Yesterday I received this note from Tennessee. “Rob, thank you for the commentary, as always. Among several noteworthy items in yesterday’s, one thing stood out. ‘NAR has 1.5 million members but only 1.2 million active listings.’ That sure sums things up in my area.” (And most of those listings, when actually purchased, will have average closing costs over $6,000.) When you’re a hammer, all you see are nails. And when you’re a baby boomer, you think you’re one in a million. The National Association of Realtors (NAR, not to be confused with the NRA) has released a study finding a "dire shortage" of housing which requires a "once-in-a-generation" response. As Brent Nyitray smartly sums up, “The US housing stock grew at a 1.7% pace from the 1970s through the 1970s, however it has averaged only 1% since, and has fallen to 0.7% over the past decade. They estimate that the supply gap is about 6.8 million units, which would require housing starts of more than 2 million units per year. In 2020, housing starts came in at 1.3 million, however COVID did impact those numbers slightly. Housing starts have returned to historical normalcy” but hasn’t kept up with the population growth. available here and this week’s is sponsored by Origence, helping financial institutions provide mortgage, consumer, indirect, and home equity loans with greater efficiency and increased scale. Today’s features an interview with Michael Farris on how having native system configurability benefits lenders.)

Lender and Broker Services and Products

No inventory? No problem. Create more move-in ready or upgraded home inventory using Renovation loan programs. Let Planet Home Lending’s Renovation lending experts show you how to take advantage of the power of “as improved” appraised values for both purchase money and refinance transactions. From first-time homebuyers and millennials to move-up buyers and right-sizing retirees, Planet Home Lending has the programs that help you close more loans! To boost your local inventory, Contact Jim Bopp, Vice President of National Renovation Lending, now at 518-348-6426.

Do you want to increase your team’s efficiency, boost customer and partner satisfaction, and minimize human error? If you’re not harnessing the power of a fully LOS integrated CRM, you’re missing out on all of this and more. Jungo, the CRM built on Salesforce and customized for loan origination teams, is proud to announce its safe and secure integration sync with LendingPad. With the Jungo + LendingPad LOS Sync, a complete sync between CRM and LOS ensures that loan files and customer records are consistent across all platforms. Plus, Jungo’s email and texting automations trigger loan process updates to your borrowers and referral partners as soon as a loan file is updated in LendingPad. Ditch double data entry and do mortgage pipeline management better with the Jungo + LendingPad LOS Sync! To learn more, click here.

Since Tokyo is more than 12 hours ahead of the U.S., Olympics superfans will need a game plan to catch all the events. You know who else needs a game plan? Lenders that want to hold on to their borrowers for future loans. On average, mortgage lenders retain just 18% of their customers. Sales Boomerang, the #1 automated borrower intelligence and retention platform, recently studied 19 mortgage companies that are beating those odds with an average three-year refi retention rate of 59.33% and drew up a winning game plan for lenders looking to stand at the top of the borrower retention podium. Going for gold? Download the free Borrower Retention Playbook today.

Deliver a consumer-centered homeownership experience. Here’s one thing that’s abundantly clear: consumers want an easier, less stressful, and less expensive way to purchase homes. And now, lenders have an opportunity to add value to the homeownership journey by bringing integrated activities and increased operational efficiencies into an end-to-end customer experience. The first step? Understanding what consumers really want, and identifying opportunities to precisely deliver that throughout the homeownership journey. Blend commissioned this study by the Aite Group to survey over 2,000 American consumers to identify consumer pain points in the homeownership journey and explore new, lender-facilitated solutions. Inside this report, you’ll find key consumer insights and strategic recommendations for how lenders can power a new, customer-centric standard for homeownership. Download the report, “Reframing the Homeownership Journey: Consumer-Focused, Lender-Led”, and dive into key consumer survey takeaways and how your peers are approaching the challenge.

AIME Fuse 2021 National Conference just got even bigger with the additions of bestselling authors and entrepreneurs Simon Sinek and Molly Bloom, who will be joining five-time NBA champion, Naismith Memorial Hall of Famer and inspirational philanthropist Earvin “Magic” Johnson as keynote speakers. Don't miss out on the largest nationwide gathering of independent mortgage professionals in the country, happening at the Bellagio Hotel & Casino in Las Vegas on Friday, September 24, and Saturday, September 25!

Agency Changes

Fannie Mae issued SVC-2021-04, updating the Servicing Guide broadening the requirements for acceptance of mortgage assistance funds, introduce a new process for filing conventional mortgage insurance (MI) claims in the new Fannie Mae MI Claims Portal (MICP), simplify the REOgram™ notification process, and include a reference to recently added Selling Guide policies for notarization standards and remote ink-signed notarization.

To assist Lenders with help identifying condotels and transient use, Fannie Mae created a condo training video providing tips on determining condotel project characteristics and resources to help gain certainty and clarity on its condo project eligibility guidelines.

Watch the condotel projects training video.

Fannie Mae updated the instructions to the Multistate Fixed Rate note and Multistate SOFR notes, and the summary page instruction for the Maine Fixed Rate Note. These changes apply to the current notes and are already incorporated into the new (July 2021) note instructions.

View a summary of the updates and Access the updated instructions.

Freddie Mac updated Guide Exhibit 19, Credit Fees in Price and Loan Selling Advisor® to reflect elimination of the 50 basis points, market condition credit fee in price for certain cash-out and “no cash-out" refinance mortgages. If the market condition credit fee in price is assessed on a refinance mortgage that is allocated to a cash contract with an acceptance date prior to June 1, 2021, and the mortgage funds on or after August 1, 2021, Freddie Mac will reimburse you according to the monthly ACH process described in Guide Section 6303.2 Payment of fees.

Rapidly fluctuating markets present unique appraisal challenges and the current environment of upward pressure on pricing in many markets has been particularly difficult. Learn about how this environment has led to a rising trend in appraisals below contract price and some of the tools available to appraisers to help them navigate it in this Freddie Mac Article.

Lenders can sell Freddie Mac community land trust (CLT) mortgages secured by certified CHOICEHome® mortgage manufactured homes with Freddie Mac written approval. Because manufactured homes typically cost less than site-built homes, financing a CHOICEHome with a CLT mortgage brings sustainable homeownership within reach for more households. CLTs sell homes in their inventory to eligible homebuyers and lease the lots on which the homes sit to the homebuyers at below market rates. Lenders need a second term of business (TOB) to sell and service loans secured by CHOICEHome-certified manufactured homes on a CLT. For more information, review Bulletin 2021-25, CHOICEHome FAQs and the CLT FAQs.

Freddie Mac’s Construction Conversion Mortgages Secured by Manufactured Homes makes it easier for borrowers who want to replace interim construction financing used to buy a manufactured home and/or pay construction costs like those related to the installation and anchoring of the manufactured home. Find out more in manufactured housing FAQs.

Freddie Mac now permits energy reports to be dated up to 24 months prior to the note date instead of 120 days. Also, the energy report exception previously applicable only to solar panels to also include other renewable energy sources, such as water efficiency devices, wind turbines and geothermal systems. View GreenCHOICE FAQs

Use Fannie Mae’s new Self-Assessment resource to ensure your post-COVID-19 forbearance evaluation process complies with the contractual obligations in your Lender Contract and the Fannie Mae Selling and Servicing Guides.

Do you have processes in place to detect and prevent undisclosed borrower debt throughout the loan manufacturing process? In this Fannie Mae issue of Quality Insider, tips to enhance your internal controls from origination and prefunding to post-closing.

Freddie Mac announced the launch of its new, comprehensive CreditSmart® financial capability curriculum aimed at helping consumers learn about the importance of building, maintaining and using credit. According to a recent Freddie Mac survey of homeowners and renters, many Americans are confused about the impact of debt on their credit profile. For example, one in three Americans are not aware that credit score elements, such as the length of credit usage or having joint credit and loan accounts, are reported to credit bureaus. The new CreditSmart Coach® curriculum for facilitators will be available on October 1. More information about the newly launched CreditSmart is available online.

Fannie Mae’s Collateral Underwriter® (CU®) Version 5.0 launched on June 25. CU now has an improved user interface, as well as fewer messages with more robust content to help lenders make more informed decisions. Watch the CU 5.0 Quick Start Guide.

Capital Markets

“Do you need to sell loans your company no longer needs or desires to hold? NASB works with mortgage lenders and sellers of all sizes across the country to facilitate whole loan trades. Whether it’s a reaction to historic volume from 2020 or adjusting to the new Government Sponsored Enterprise (GSE) purchase caps, we can help. NASB Whole Loan Trading has a dedicated loan purchasing team, that provides a quick turnaround along with competitive pricing. Regardless of if it’s ‘scratch and dent’ seasoned or non-seasoned loans in your portfolio, we buy both scenarios. NASB purchases* in bulk or even potentially individual loans. We buy residential property loans (1-4 units), mortgage loans in 1st lien position (excluding HELOCs), and loans underwritten to Agency standards but are non-salable. Contact NASB Whole Loan Trading Today! (*Purchase approval subject to NASB’s purchase loan due diligence review. NMLS ID: 400039, EHL, & Member FDIC.)”

Not much movement in the bond market yesterday despite some noticeable headlines as we continue to be focused on COVID developments’ impact on economies. Initial Jobless Claims numbers disappointed, putting some fire-power behind Powell's comments emphasizing that we have a way to go for the labor market to recover. GDP came in lower than expected at 6.5 percent, putting a finer point on the fact that growth may be stalling. Yes, in some ways the economy is now ahead of the pre-pandemic levels, but inflation and the COVID delta variant are beginning to weigh on the economy and jobless claims are still at almost double pre-pandemic levels.

Oddly, Black Knight reported a 31k increase in the overall number of active forbearance plans since last Tuesday. Despite the increase, there are still 163k (-7.9 percent) fewer plans than at the same time last month. As of July 27, 1.9 million borrowers remain in COVID-19 forbearance plans. For good news, the Primary Mortgage Market Survey from Freddie Mac for the week ending July 29 saw another cycle low in the 15-year fixed rate, falling 2bp to 2.10 percent, while the 30-rate ticked up 2bp to 2.80 percent.

Today closes out month-end trading for index purposes and we have a busy slate of economic data to go with it. Personal income and spending for June (+.1 and +1.0 percent, respectively) and Q2 employment costs (+.7 percent), the Chicago Purchasing Manager’s Index, and Michigan Consumer Sentiment. “Fedspeak” returns following this week’s FOMC events with St. Louis Fed President Bullard and Governor Brainard both on the podium. The Desk of the NY Fed will purchase up to $4.6 billion of conventionals. We begin the day with Agency MBS prices better/up .125 and the 10-year yielding 1.24 after closing yesterday at 1.27 percent.

Employment 

The new leadership team at Anchor Loans, the nation’s largest fix-and-flip lender, is looking for talented sales professionals with extensive experience in the private money lending space to help the company meet its ambitious growth targets. In the past year, Andy Pollock has come on board as CEO, and this summer industry veterans Matt Miles and Andrew Jewett have joined as head of capital markets and enterprise sales, respectively. To date, Anchor’s originated more than $9.5 billion in bridge loans to professional investors (85% are repeat customers) and is growing rapidly. The company offers attractive compensation, sign-on bonuses, top-tier benefits, and hybrid work options! To learn more, contact Anchor’s Human Resources Department.

“Know a Unicorn? Candor is paving the path for the future Mortgage Industry. Candor is adding to #TeamCandor Underwriting Specialist (no pipeline, just brainpower!), Scrum Master, Data Engineer, Software Engineer, and several more. Is that you?”

275 basis points Agency, 325 bps Govie, and a P&L model with rapid turn-times. Recently named among Top 6 Best Large Mortgage Companies to work for by National Mortgage News, Geneva Financial Home Loans is filling Branch Manager and Loan officer positions in 45 states. Close in as little as ten days. Large volume branches can opt for same-day Underwriting with in-branch Ops option.  P&L includes zero fees for credit reports, AUS, LOS, CRM, technology fees, employer taxes (commissioned employees), VOEs, 4506Ts, and warehouse costs. See why Geneva Financial has a 5-star Google rating with over 1,800 verified borrower reviews!

“Our commitment to Non-QM is Maverick Strong and we want YOU on our team! FGMC is looking for experienced Wholesale & Correspondent Account Executives and Non-QM Underwriters to join our growing team across the United States. These remote positions provide impressive benefits, highly competitive compensation, and a seamless hiring process. For Non-QM Underwriters sign-on bonuses and buyouts may be available! FGMC has been in business since 1987 and is dedicated to growing the Non-QM space. Send us your resume or any questions you have about our open positions to careers@fgmc.com. Looking for a Non-QM & Non-Agency partner? You can learn more about working with Maverick Solutions, FGMC’s proprietary line of alternative financing products!”