Crazy times. Brooks Brothers filed for Chapter 11 bankruptcy. Rocket Companies filing for an IPO. Genworth Mortgage Insurance completing an excess of loss reinsurance transaction. It is easy to argue that it is the fear of the virus that is impacting economies around the world, not the virus itself, slowing economies and keeping rates low. People learn to adapt, right? And that encourages a bounce back: “adaptive economic normality.” The virus is certainly pushing the advance of technology in the residential lending industry as individuals, lenders, and title companies have changed ways of doing business. (Here’s how to “Rickroll” your next Zoom meeting.) Real estate agents have adapted, as have buyers, and sales are strong at reasonable price points. Most housing markets are solid, especially anywhere else besides urban cores which are seeing people leave. What isn’t solid is the value of the vehicles Car and Driver chose as the “worst of all time.” (Hey, I’ve owned a couple of those!)

Broker and Lender Products and Services

Bringing Service Back to Mortgage Servicing: “At ServiceMac, we believe mortgage servicing requires real service, the type of service that revolves around helping customers rather than updating notes in a system. Our user-friendly digital platform provides full transparency that allows you and your customers to see exactly what we see. This empowers your employees to be self-sufficient and creates trust and accountability with the customer. The ServiceMac Control Tower is a state-of-the-art mortgage servicing quality assurance platform that enables servicers to monitor their portfolio for adherence to applicable federal and agency requirements in real time. Most importantly, our Customer Operations Specialists always pick up the phone when questions inevitably arise or hiccups occur. Please contact Mike Vowell to learn more about the ways we’re bringing service back to mortgage servicing.”

Thanks to Dodd-Frank, lenders are required to ensure that their appraisers are independent and not subject to influence when performing evaluations. Many lenders use an AMC because of this, but they still want orders to go to appraisers they trust and have a relationship with. This makes sense, but there’s a lot of confusion out there as to what’s acceptable and what crosses the line in terms of the regulations. Triserv has published a new article outlining what lenders can and cannot request in terms of using their favorite appraisers. Short version: you can have your cake (sort of), eat it too, and remain compliant. This information - as well as other resources about managing appraisals during this challenging time - is provided by Triserv, a 50-state AMC that has client-specific, dedicated teams on both coasts offering high-touch, personalized service. Contact Triserv at learnmore@triservllc.com.

Stearns Wholesale recognizes the importance of an efficient, customized experience to serve more borrowers effectively and keep your referral partners euphoric. In a recent release, the popular Accelerator program has expanded eligibility criteria. Streamlining the process and improving the price on popular scenarios with the same best-in-class fulfillment was the driving force behind this development. New criteria include up to 90% LTV just requiring the borrower is a W2 wage earner that owns no other REOs and has no major derogatory marks. Better value, faster, sustainable. Click here to learn more about this program or connect with a Stearns Account Executive.

“We know how to make those phones ring! ‘You know, PRMI is just a powerhouse in the mortgage industry now. And Monster Lead Group has been an unbelievable partner. Monster knows what they're doing, they know how to make the phones ring, they know how to generate business, but they also know how important it is to help us grow a brand at the same time. It's a real marketing system. It's not just sending mail. I think the consistency of the campaigns is what we rely on… Our cost per funded loan is about 50% of the industry average… So that story should be told. We're able to grow and scale our operation because of the predictability of the Monster campaigns. That is what's allowed us to get to this point.’ Monster Lead Group can help you achieve better results from your direct mail.”

Josh Linkner will be the keynote speaker at the upcoming Calyx Vision 2020 virtual user conference. Linkner’s live presentation, “Big Little Breakthroughs: How Small Everyday Innovations Drive Oversized Results,” will stream on Tuesday, August 18, from 11am - 12pm CT. His session will explore the power of inventive thinking and creative problem solving in day-to-day situations and will provide attendees with fresh perspective, inspiration, practical tools, and actionable advice that can be quickly and easily implemented at all levels. Don’t miss out, register today!

Training and Webinars 

National MI has posted its July 2020 webinar sessions. All webinar attendees will be entered in a random drawing and are eligible to win a National MI branded gift.

The California MBA’s Mortgage Tech & Marketing Committee is hosting a FREE webinar tomorrow, on July 9th at 11 am (PST) titled “Carrying Forward Digital Agility in the COVID-19 Recovery” on the differences between transactional digital and truly digital. “We will explore the new way customer relationships can be created, nurtured, and actioned in the context of the wither home ownership experience with a pair of Tavant reps ( Matthew Wood, Senior Director of Fintech Products, and Debi Roy, Director of Sales) as well as well-known industry guru Kevin Peranio, Chief Lending Officer at PRMG.  RSVP here.

IndiSoft is co-hosting with Hope Now, a national webinar to address the need for proactive collaboration on the part of servicers, non-profit housing, and state agencies to provide immediate and long-term assistance to consumers dealing with housing issues as a result of the Covid-19 pandemic. Register now for this Thursday, July 9th Webinar.

On July 9th, American Banker is offering a Web Seminar: Lessons learned: Shifting bank IT priorities as economies reopen.

Join MMA for a free webinar with Brent Widman on July 9th, Habits of Top Producers from 10-11:30AM CT.

Join MWF as List Reports' Jon Cox, National Director of Strategic Accounts, discusses using flexible strategies to build and maintain growth in today's ever-changing market. Register for Pivoting Your Strategy to Gain Profitability on Tuesday, July 14th 10AM-10:45AM PT.

Mortgage Bankers of the Carolinas and Arch MI are presenting a 2-part series, “Ten Tips That Turn the Tide in Your Favor: Ideas for Success in a Changing Market,” on July 14th and

July 21st.  Register to learn a total of 10 tips in an ever-changing market.

CE credits will be provided for each course attended. Candlestick Charting: July 15th at 14:00 EDT: putting candlesticks in the context of market dynamics and will provide you with an understanding of the significance of a select number of bullish and bearish signals. (It is recommended that you take Discover Candlesticks Charting prior to this session.) Introduction to Technical Analysis: July 22nd at 14:00 EDT: Learn about the building blocks of technical analysis including the advantages and disadvantages and the underlying assumptions of the Dow theory, the different types of charts and their relevance, increase your understanding of trends, identify certain patterns, and discuss how these are interpreted in the market.

On Tuesday, July 14th, join the NMMLA No-Cost Virtual Luncheon with guest speaker, Genworth’s “That MI Guy”, Steve Richman, discussing the 9 Things To Embrace Today and Continue Doing When COVID Goes Away.

Plaza’s Webinar opportunities for the month of July include: July 13th: MI Misconceptions: How to present MI to Real Estate Agents and Consumers, July 15th: 9 Things To Embrace Today And Keep Doing When COVID Goes Away, July 20th: Connection to Close: Top Producers Mindset, July 21st: Plaza's Condo Financing Options, and July 23rd: Plaza's Reverse Mortgage Basics.

Ignition Sequence Started

Let’s cut to the chase. Are you ready to invest in 21% of Rocket Companies? Here is the Form S-1 for Rocket Companies. Quicken Loans, which will be the main subsidiary of Rocket Companies, was the largest mortgage originator in 1Q20.

The S-1 states that RKT had a 1Q20 market share of 9.2% up from 1.3% in 2009, and a mortgage servicing portfolio of $344 billion (UPB) making the company a top 10 mortgage servicer. With that comes 98,000 servicing clients (about 5%) on forbearance plans. For 2019 Rocket Companies had total revenue (net) of $5.1 billion and net income of $893.8 million, representing a 22% and 46% growth from the prior year, respectively. Over the same time period, adjusted revenue was $5.9 billion, adjusted net income was $1.3 billion, and adjusted EBITDA was $1.9 billion.

It is larger than PennyMac: Common equity totaled $3.65 billion at the end of 1Q compared to $2.36 billion of PennyMac Financial. And RKT's financials show a strong record of profitability. Inside Mortgage Finance believes that it is the largest retail lender in the United States with $145 billion in originations in 2019 and $51.7 billion in the first three months of 2020.

Dan Gilbert will still be in charge, retaining approximately 79% of the combined voting power of Rocket Companies’ outstanding common stock and thus control over actions requiring approval of stockholders (election of the board of directors, amendments to bylaws, the approval of any merger or sale of the business, and so on).

Sexy stuff. Are United Wholesale, Freedom Mortgage, Caliber Home Loans, Fairway Independent, or loanDepot far behind?

Capital Markets

There was a little “rally in the alley yesterday,” sending yields on the 10-year note and the 30-year bond to one-week lows, due to further coronavirus caution. While there is little question that the U.S. is seeing a spike in newly confirmed cases of the virus, there is ongoing debate as to what that will mean for the economy. Fortunately(?), more younger people are catching the virus, meaning the mortality rate will continue to fall and people will learn to "deal" with the disease until one or multiple vaccines arrive. As Atlanta Fed President Bostic said, the recovery may be "a bit bumpier than it might otherwise be." As far as actual market moves go, MBS yesterday reacted to faster-than-expected June prepayment reports from the agencies. And the 10-year yield closed the day -3 bps to 0.65 percent.

In terms of economic releases, U.S. job openings unexpectedly increased in May as hiring surged to a record. The number of available positions rose to 5.4 million during the month from 5 million in April, according to the JOLTS report, concentrated in accommodation and food services, retail, and construction. The MBA reported the results of its latest forbearance survey, which showed the total forbearance rate ticked down to 8.4 percent as of June 28. Black Knight reported that about 25 percent of borrowers in those forbearance plans had made their June payment, implying an effective forbearance rate closer to 6.5 percent. The percentage of borrowers in forbearance plans who made payments was down from 30 percent in May and 46 percent in April. Additionally, about half of active forbearance plans were set to expire in June based on an initial 90-day period, but the extension option will likely be made available for most borrowers given the national forbearance option for GSE and Ginnie extends through March 2021.

The MBA also released its latest Forbearance and Call Volume Survey, which showed that the total number of loans now in forbearance decreased to 8.39 percent as of June 28. According to MBA’s estimate, almost 4.2 million homeowners are in forbearance plans. The share of Fannie Mae and Freddie Mac loans in forbearance dropped for the fourth week in a row to 6.17 percent, while Ginnie Mae loans in forbearance decreased to 11.72 percent.

Today we learned that mortgage applications increased 2.2 percent from one week earlier, per the Weekly Mortgage Applications Survey for the week ending July 3. The Refinance Index increased 0.4 percent from the previous week and was 111 percent higher than the same week one year ago, while the seasonally adjusted Purchase Index increased 5 percent from one week earlier and was 33 percent higher than the same week one year ago. The Treasury will auction $29 billion reopened 10-year notes. There is only one Fed speaker on the schedule, Atlanta’s Bostic. The Desk will purchase up to $4.665 billion consisting of $1.768 billion GNII 2.5 percent and 3.0 percent followed by $2.897 billion UMBS30 2.0 percent through 3.0 percent. We begin today with Agency MBS prices down/worse a few ticks and the 10-year yielding .66.

Jobs

“Mortgage Confidential gave me access to opportunities that I did not know existed and found me the perfect opportunity for this stage of my career.” (Area Sales Manager in North Carolina.) “Mortgage Professionals love working with Mortgage Confidential! We are the #1 resource for Mortgage Professionals to find opportunities and to maximize their value. We give you the option to confidentially put yourself on the market and control the Lenders and Banks that you want to engage with. We work with professionals in all facets of the industry: Sales, Operations, and even Executives have all been very pleased with the experience. Banks and lenders, please reach out to us on our Lender Access Page to see if we can help you grow your team. Mortgage professionals feel free to reach out to see how we can help you!”

“During this chaotic time, Thrive Mortgage has maintained its commitment to supporting and improving our communities as well as serving our clients. One such commitment is our support for Defenders of Freedom, an organization focused on supporting veterans and providing treatment options for those suffering from PTS and Traumatic Brain Injuries. ‘Supporting Defenders of Freedom is one of the best initiatives we have launched this year,’ stated James Duncan, Thrive’s Director of Marketing. ‘It’s more than a financial commitment for us. They have been a part of our family and we will continue to support them for many years to come.’ The annual golf tournament, one of the organization’s biggest annual fundraising events, is scheduled for 9/15/2020 in Dallas. All are welcome to register. For registration information, or to learn more about supporting Defenders of Freedom, please visit its website or reach out to us at info@thrivemortgage.com.”

Intelliloan.com an established mortgage lender is seeking Experienced, Smart, and Friendly Loan Processors. Work onsite in our Irvine, Las Vegas, Scottsdale, or Dallas locations, or remote from your home. Family-owned and in business for 25 years, we have a keen focus on treating our team members like family. With manageable pipelines of approximately 50 loans while funding 2/3 of the pipeline monthly, you can make over $150K while setting your own hours. Management lets you set your own pace, working as much or as little as you like. We provide best in class technology and tools to keep you working efficiently. We require 2 years minimum loan processor experience.  Benefits Include, Company Match 401K, Healthcare, Dental, Vision, Life and Disability Benefits. Big Company Benefits. Small company feel. A place where everyone knows your name. Email us for information.

If you are a PHENOMENALLY talented UNDERWRITER, Kind Lending wants to talk to you. Are you tired of a working with inefficient and slow technology that freezes on you?  Are you tired of working with a leadership team that doesn’t listen to what would make your job easier? Well then, it’s time to make a switch to the KIND side. Under the leadership of Glenn Stearns and Yvonne Ketchum, they value an employees’ ideas, find ways to continually improve technology to eliminate system frustration, and support a strong work-life balance. Kind Lending is truly building a one of a KIND team and is looking for Underwriters that value their relationships with brokers as much as they do. If you are looking for an excellent employer that cares about their employees, you want to talk to Kind Lending right away! Apply on the website at kindlending.com or send your confidential resume to president, Yvonne Ketchum.  It’s an exciting time to join the KIND Movement!