Time is flying, and the months click by. We’re approaching the Summer Solstice. (Here in Sitka, AK, the official sunrise is around 4AM and it sets around 10PM.) As a lender, did you add to your coffers in the first quarter? If not, or if you only broke even, perhaps it is time for a change. As expected, for most lender, their pipelines and margins rolled into 2021. Independent mortgage bankers made $3,361 on each loan in the first quarter of 2021, which was the best first quarter on record. In fact, net production profits reached their highest level for any first quarter since the inception of MBA’s report in 2008. To balance out that good news, available housing inventory continues to disappoint, especially in April, according to research by Zillow. Inventory fell 1.4% compared to March and is down 30% from a year ago. This drove prices to increase 11.6% on a YOY basis, which was the fastest increase in the history of the Zillow Home Price Index, which goes back 25 years. The typical home was on the market for only 7 days before accepting an offer. Zillow economists are forecasting another big year for home price growth, expecting to see 11.6% growth through April 2022. Today’s audio version of the commentary is available here and this week’s is sponsored by MCT’s BAM Marketplace, the industry’s first truly open loan exchange between unapproved counterparties.

Lender Services and Products

loanDepot Wholesale is pleased to announce its inclusion in the Calyx Wholesaler Marketplace and the Point Lenders List. Loans can now be created in the mello Broker Portal with a click! Select loanDepot Wholesale from the Lenders List within Point or select the loanDepot logo in the Marketplace to automatically create a new loan in mello. Quick and easy! One more way we are improving the customer experience. Get started with loanDepot Wholesale today!

Today is National Chocolate Ice Cream Day. According to The Harris Poll, chocolate is America's most beloved ice cream flavor, beating out other classics like vanilla, strawberry, and mint chocolate chip. And as the perennial favorite of well over 100 banks, credit unions and independent mortgage lenders, LBA Ware's CompenSafe is the chocolate ice cream of incentive compensation management. US Mortgage Founder and CEO Steven A. Milner says automating incentive compensation with CompenSafe has “greatly improved accuracy” and added “an extra layer of transparency into how earnings are calculated” for his company’s 120 LOs, who together originate $2 billion in annual loan volume. Get the full “scoop” here.

Mortgage rates continue to hover in record-low territory, and the housing market is on fire. According to the MBA, purchase originations are on pace to increase more than 16% in 2021. In this strong market, Business Process Outsourcing (BPO) can help. Lenders can concentrate on building and maintaining their core mortgage operations while outsourcing the business of mortgage fulfillment to a third-party partner. Computershare Loan Services (CLS) has provided expert mortgage fulfillment for more than 20 years, allowing clients to build their business, lower origination costs and improve productivity. When you partner with CLS, you benefit from BPO and the support of a dedicated team - from leadership to expert processors, underwriters, and closers - that help get your borrowers to the closing table on time.

Space enthusiasts around the world watched NASA's Mars Perseverance rover touch down on the Red Planet back in February. This year also marks the 50th anniversary of the Soviets’ first landing on Mars back in 1971. Fascinating as extraterrestrial exploration may be, for mortgage lenders, it’s fair to say that landing pages are more mission-critical than space landings. These stand-alone web pages allow LOs to capture online mortgage marketing leads without buying them directly. And because prospects come in closer to the bottom of the sales funnel, they’re easier to convert, too. Get a crash course on landing pages with Top of Mind’s free ebook The Complete Guide to Mortgage Landing Pages.

Wish it were easier to get your appraisals across the finish line? Those last few steps to deliver the final appraisal to the borrower can be tedious (not to mention error-prone), which is why introducing automation can be a total game-changer and help improve your borrower experience. Reggora’s webinar on “Frictionless Appraisal Delivery” is ideal for anyone at a lending institution who is interested in controlling submission timelines and creating operational efficiency within the appraisal delivery process. Register now, and either join on June 22nd or get the recording afterward.

Does your pricing strategy lack certainty in competitive pricing? According to Nomis Solutions, competing for market share with another mortgage lender can come down to one simple point - presenting a better rate, if even by a fraction. They have supplied an informative case study which details how nationwide retail mortgage lender Premier Lending, Inc. leverages end-to-end competitive intelligence across multiple departments to 1) price with data-based certainty, 2) provide top-tier internal support to its loan officers, and 3) compete to WIN. Access this free case study and download to read the full story.

152 years ago the presidents of the Union Pacific and Central Pacific railroads met in Promontory, Utah, to drive the final spike of the Transcontinental Railroad. In addition to providing a more safe, expeditious and convenient way to travel, the Transcontinental Railroad reduced the cost of a cross-country trip from $1,000 to $150. Like trading out caravans for steam engines, AccountChek 3n1’s electronic verification of assets, income and employment is a safer (reduces the risk of fraud), faster (underwriter friendly reports) and more convenient (no more chasing borrowers down for paper documentation) way of doing business. And together, all of those process efficiencies add up to big overhead savings! Email Christy Moss to catch up with FormFree at the MBA of Florida Annual Conference June 22-24 and catch FormFree CEO Brent Chandler on the panel Disrupt or be Disrupted.

Events

Among Rolling Stone’s 100 Greatest Artists of All Time, No. 42 Van Morrison is notable for a career that spanned a variety of genres and reinvented itself time and time again. In his 2017 song “Transformation,” Van the Man sings “Gonna be a transformation down in your soul, gonna be a transformation, baby now that you know.” On June 16 at 3 pm ET, Sales Boomerang’s Alex Kutsishin and Mortgage Champions’ Dale Vermillion will be singing the same tune to lenders, hosting a masterclass on transformative sales, tech and leadership strategies that will separate LOs from the competition and keep sales pipelines full. Reserve your spot today to earn your own place among the G.O.A.T.

“The housing market is shifting. As a loan officer, you'll be left behind if your sales strategy isn’t in alignment. You may know that, but you might not know where to start or how to make sure you don't put your career at risk. That's where we come in. On Thursday, June 24, join the community of Kansas City mortgage professionals for an exciting event - Ignite: Skills + Strategies for the Modern Mortgage Consultant, powered by Ace Creatives and Wyndham Capital Mortgage. Learn about generating new leads, building your personal brand and cultivating agent relationships from industry leaders like Adam Constantine, Owner/CEO of Ace Creatives; Trey Rigdon, SVP of Marketing at Wyndham Capital Mortgage; and a top performing Kansas City realtor at Topgolf - Overland Park from 3 p.m. - 8 p.m. (CDT). Register now!”

Underwriters who evaluates rental income are invited to participate in Fannie Mae’s on-demand course to learn about determining eligibility and documentation requirements; get tips for entering rental income in Desktop Underwriter® (DU®); and find scenarios and explanations to enhance learning.

Knowledge is Power! Visit the loanDepot Training Calendar to register for upcoming June training sessions.

The California MBA’s Legal Issues Committee will be hosting their FREE quarterly webinar on June 8th at 11 am PT. The topics covered include an update on TCPA issues, the impact of the recent decision regarding CDC-mandated eviction moratoria; HR/employment trends regarding work-from-home issues, an update on the CFPB and more. Speakers include Richard Andreano, Jr., Partner, Ballard Spahr, Caren Castle, The Wolf Firm, Sarju Naran, Hoge Fenton, and Eric Troutman, Squire Patton Boggs.  Click here to RSVP.

If you missed the MCT Webinar “Unlocking Profitability: How to Navigate Secondary Market Challenges”, you can still view the webinar recording and/or download the slide deck.

Register for the MBA NJ webinar and join Ashley Gravano as she shares tips and tricks for leveraging social media to grow your business and network on Wednesday, June 9th from 1:00-2:00 p.m.

Register for the MCT Industry Webinar on June 9th for the debut of BAM Marketplace, a new program that facilitates whole loan liquidity between clients. MCT’s Phil Rasori and Justin Grant will discuss the role of BAM Marketplace in assisting the secondary market during the 2020 liquidity crisis, key functionalities and benefits, the process of selling loans on BAM Marketplace, how bids are facilitated between unapproved counterparties, and the future of BAM Marketplace.

The New England Mortgage Expo is June 10 & 11 to the Mohegan Sun Resort & Casino. Register to join, and use code OCNFREE* for complimentary registration.

Johnston Thomas’s Sean Stephens will be hosting a complimentary webinar at 10:30 AM PST, on Thursday June 10, titled “Transitioning to Delegated Underwriting: How to Increase Profitability While Mitigating Risk”. 

Join Flagstar for monthly insights to grow your business, Flagstar Flex Series on June 10th featuring speaker Katrina Cravy, Co-Founder, CharismaQ, a professional training and coaching company.

Fannie Mae reps will discuss manufactured home financing options, with an overview of programs and policies that can support your manufactured home financing business, including MH Advantage® and financing for single-width manufactured homes. These webinars are offered monthly starting on June 16.

The California MBA’s Mortgage Innovation Committee will be hosting their latest monthly webinar on June 17th at 11 am PT, and the group will tackle “The New Non-QM: How It Works For You”. Speakers will include Eric Morgenson, VP of Business Development at Angel Oak Mortgage Solutions, John R. Lynch, CEO and Founder of PCMA Private Client Lending, and Darius Santos, Chief Revenue Officer at DUBB. The group will cover the basics of alternative lending, how technology advancement Is making non-QM easier to close, how you can grow your non-QM business, and more. Click here to RSVP.

Join RCLCO Real Estate Consulting on Thursday, June 17th for a conversation with senior leaders in real estate to explore the latest insights on the market, as part of RCLCO's

monthly round-up live webinar series. During this June 2021 installment, in addition to answering your live Q&A, Managing Directors Charles Hewlett and Todd LaRue will discuss the emerging market segment of purpose-built and institutionally managed single-family rentals.

LBA Ware will be sponsoring the next edition of The Mortgage Collaborative’s Rundown with Rich and Rob on June 18. Lori Brewer will be leading the discussion with Rich Swerbinsky, the COO of The Mortgage Collaborative, and me in covering current events in the mortgage market for 30 minutes starting at 3PM ET: “The Rundown with Rob and Rich.”

The Mortgage Bankers Association of Florida’s Secondary and Convention is from June 22-24 in Orlando. Come by and say hi!

The Chicago Mortgage Originators Expo, scheduled for Tuesday July 22 is a free event. Use code OCNFREE* when registering includes FREE optional NMLS Class. This Live and In Person event but seating for this event is limited, and going fast.

Capital Markets

Recent economic data affirms the narrative of heightened demand coupled with supply-chain bottlenecks and shortages. Friday’s employment report, which showed 559,000 net new jobs, didn’t meet market expectations which were adjusted after ADP’s report showed a net gain of 978,000. The unemployment rate, however, fell to 5.79 percent and anecdotal evidence suggests businesses are increasing pay to attract workers. New claims for unemployment fell to a pandemic low of 385,000 and continuing claims are a fraction of where they were this time last year. Half of U.S. states announced they would opt out of Federal enhanced benefits which may put downward pressure on this data set.

During the week we learned that the ISM Manufacturing Index rose to 61.2 indicating strong expansion while the ISM Services Index jumped to a record high 64.0. Both series reported supply chain constraints as well as increasing commodity prices which likely held back even higher headline numbers. Mortgage applications continue the trend of no trend with purchase applications down 3.1 percent for the week of May 28. While the ingredients for inflation persist the Fed is expected to maintain its “patience” over the summer although there may be more discussion of adjusting asset purchases, such as MBS, which would affect mortgage rates.

Economic news that is weaker than expected usually leads to lower rates, and we saw that Friday. The payroll headline missed consensus expectations, though the ADP report showed that close to a million jobs were added in May, so the payroll number could be revised upward in the next couple of reports, just as March and April figures were revised up on this report. Investors thought it would leave the Fed inclined to think it has more time, not less, to start talking about tapering its asset purchases.

This week’s economic release of interest will be the May CPI on Thursday with other economic reports including trade, wholesale inventories and sales along with preliminary June Michigan sentiment on Friday. Fedspeak is quiet with the Fed in blackout ahead of the June 15/16 FOMC meeting. Today’s economic calendar is light with the only data releases being May employment trends and April consumer credit, both due out later today. Today's schedule sees the NY Fed Desk conducting three operations, with one in each class, for up to $6.6 billion. Monday starts with Agency MBS prices worse/down .125 and the 10-year yielding 1.58 after closing last week at 1.55 percent on no substantive news.

Employment

“Now hiring: Temple View Capital! Our strong 2020 growth continues into 2021 with new financing partnerships in place that provides billions for the company to allocate to DSCR, Fix & Flip, Ground Up Construction and Bridge loans to borrowers nationwide. Our products are designed using common sense underwriting approaches, making them perfect both for direct lending to borrowers and also as a white-label solution for brokers & correspondents. They are competitively priced as well, and please visit TempleViewCap.com to see our latest DSCR and Fix & Flip rates. We are constantly innovating with new technology and honing our processes to ensure quick, easy, and consistent approvals making it smoother than ever to close deals. Because of our growth, Temple View is adding experienced BDMs, Loan Officers, Underwriters, Analysts and more. Want to be part of the fastest-growing private lender in the US? Email Doug Perry today for full-time and partnership opportunities!

Towne Mortgage Company is a multi-channel, national mortgage lender with the strength and stability of nearly 40 years in business. Account Executives have numerous opportunities to expand and excel. You will sell cross-channel (Wholesale, Non-Del, and Full Delegated) and have access to full Agency and Renovation product sets.  Furthermore, Towne offers single AE territories in large markets on top of an extremely competitive compensation and benefits package. Currently, Towne has wide-open markets: WA/OR, CO, VA/MD/DC, OH/IN, TX, FL, TN/AL/KY, LA/MS/AR, NC/SC/GA and New England Region. Our reviews repeatedly show we meet client expectations.  A recent review said "I felt the process from submission to closing was very smooth. Everyone on the team communicated great and responses to questions were addressed quickly." Let Towne’s experience in this space help you generate more business from your clients. Get started with a company that’s one-of-a-kind! Explore Towne Careers at careers.townemortgage.com.

Current job opportunities with FHA include four open positions for a Management Analyst: Two vacancies in Washington, DC. (20-HUD-1316-P) and two vacancies in Philadelphia, PA., (20-HUD-1339-P). Click on the appropriate link which will take you to the vacancy announcement on USAJobs.gov.