“I hope that I never go to jail because I haven’t memorized a phone number since 2001.” (Speaking of numbers, investors are mulling over Guild’s 2nd quarter earnings and it’s special $1 per share dividend. Rocket’s are announced later today, UWM’s Monday.) I thought I had memorized all of the digits until “Juneteenth” came along, which I guess is more of a date. Regardless, I mention this because in meetings I’ve attended, and calls I’ve been on, compliance is a big topic, and recently the subject of Juneteenth has come up, especially regarding last week the CFPB finally providing the industry some guidance. These things keep compliance folks up at night! Yes, the CFPB issued an Interpretive Rule which provides guidance on certain Regulation Z timing requirements related to the TILA-RESPA Integrated Disclosure (TRID) Rule and to the rescission of closed-end mortgages that are based on a definition of “business day” that excludes Federal holidays. And Wells Fargo Funding posted necessary adjustments regarding the Juneteenth holiday and Notice of Right to Cancel disclosure. (Loans delivered on and after Saturday, July 31, 2021, if the Notice of Right to Cancel disclosure did not reflect the correct expiration date prior to Closing, the Seller must reopen the rescission period and provide additional documentation. Loans delivered to Wells Fargo Funding prior to July 31, including those already purchased, Wells Fargo will reopen the rescission period directly with the borrowers.) (Today’s podcast is available here after 8:30AM ET and this week’s is sponsored by Richey May: bringing solutions and innovation through advisory, audit, tax, technology and other services in the mortgage industry and in banking.)

Products and Services

On this day in 1990, Sue, the largest and best-preserved Tyrannosaurus rex, was found in South Dakota. Considering Sue’s 42-foot length and 600-pound skull, a well-executed game plan was necessary to transport her to a museum. Lenders looking to build lifelong relationships and hold onto more borrowers also need a well-executed game plan. On average, mortgage lenders retain just 18% of their customers, pay $1200+ per acquired lead and see just 2 closed loans/month per LO. Enter Sales Boomerang, the #1 automated borrower intelligence and retention platform. Lenders using Sales Boomerang’s Borrower Retention Playbook average 59% borrower retention and 8 closed loans/month per LO, all for less than $300/acquired lead… So pick up your copy today.

Get to know HomeBinder at Western Secondary! Contact Meg Bennett to set up a meeting in advance. HomeBinder is excited to be heading back on the road this year for some in person meetings! First up is California MBA Western Secondary August 24th-26th where HomeBinder is honored to be alongside mortgage industry leaders to discuss critical and timely information across the industry. Given current factors, mortgage lenders are increasingly focused on consulting with today’s borrowers throughout the homeownership journey, differentiating their services beyond interest rates, solutions that integrate with current tech stacks and automate post-close engagement and retention, and increasing referrals with top performing realtors. Read more about how HomeBinder, a unique centralized home management platform provides property-specific communication, actionable maintenance, and document storage that is readily accessible through a private-label, mobile-friendly portal.

“Do you feel overwhelmed with employee retention or your current succession strategies? Many leaders in the industry feel the pressure too, especially those directly involved with company growth. Whether you are looking for compliance services around filing tax returns or planning for LO compensation, deferred compensation, or accountable plan considerations, Richey May can help you with these complex issues to find solutions to your strategic needs. Contact us today to speak to an expert and find the best solution that fits your business.”

Are you positioned with workflow to survive the latest scrutiny and onsite examinations by the CFPB? Pushing to hold servicers accountable for delivering borrowers options to pandemic hardship and potentially avoidable foreclosure, the CFPB just released a fresh slate of monitoring metrics. Our recent blog, “Surviving and Thriving Under CFPB Scrutiny”, looks at the CFPB’s Mortgage Servicing Metrics Report…. Find out more about staying ahead of deepening examination and enforcement efforts, as well as preparing for the next phase of the pandemic. Thrive amidst industry change with the ability to readily modify internal controls while ensuring risk responsiveness, no-touch automated workout approvals with CLARIFIRE®. An innovative, low-code workflow and workout application delivered easily in a full-service SaaS framework. Don’t wait! Find out why CLARIFIRE is truly BRIGHTER AUTOMATION® at eClarifire.com.

ActiveComply: Love it or hate it, social media is a critically important tool that lenders and servicers must utilize in order to attract new customers and stay on the cutting edge of contemporary marketing strategies. But how does one safely navigate the cluttered tangle of federal mortgage regulations and their ambiguous reach when it comes to the relatively new world of online advertising? There are many federal and state regulations designed to keep the mortgage industry fair for all and recent years have seen current laws fine-tuned to include social media, as well as new regulations specifically created for this brave new world of marketing potential. Read ActiveComply’s most recent article on Mortgage Advertising Regulations and check out our Record Retention Geomap to learn more about archiving requirements. ActiveComply: Making social media monitoring simpler, more compliant, and at a lower cost. Request a free compliance report for your company today.

In-person Events, Virtual, and YouTube Training

Are you a seller who has questions about transitioning from Cash to Guarantor? Join MCT and Freddie Mac for their webinar on August 19that 9am PT as they discuss Selling Guarantor: Ensuring a Successful Transition. This webinar will be a collaborative discussion of the best practices in converting from Cash to Guarantor executions. They’ll explore the preparation required for Guarantor pricing analysis, operations and systems readiness, and the contracting and delivery processes. They’ll also provide attendees with tools and resources to understand the steps required for a successful and profitable Guarantor execution. Register for their webinar for information on making the change from Cash to Guarantor!

Equilibrium Solutions will be sponsoring this Friday’s edition (tomorrow) of The Mortgage Collaborative’s Rundown with Rich and Rob on the 13th. Paul Campbell 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.”

Richey May’s next Quarterly Mortgage Trend Series Webinar is on Wednesday August 18th.

Every smart company is focused on diversity & inclusion. There's only one place for sales, operations, and real estate professionals: come say hi to Dave Stevens, Mitch Kider, and me at NAMMBA CONNECT with its series of Executive Tracks for the C-Suite, Operations and Marketing Executives. Take a deep dive into our customized agendas. The Sept. 16th-19th event takes place at the Westin Buckhead in Atlanta, GA. There are over 100 sessions, 60+ exhibitors, and 30+ speakers to choose from. August 25th is the deadline for reserving your room at the special conference rate. The conference, NAMMBA CONNECT marks NAMMBA’s 5th year of supporting the mortgage industry. See what the hype is all about and register today for the event!

“Mad Mortgage is back in the studio with two new episodes! Episode 4 features Joe Wilson of SocialCoach. He and Mace dive into the world of social media as it applies to the mortgage industry. In our most recent recording, we interview the well-known Rob Chrisman for Episode 5 to discuss the origins of The Chrisman Commentary and industry trends. Mad Mortgage will continue to interview lending experts, tech innovators, and mortgage leaders to provide you with up-to-date information on the latest trends. Watch Mad Mortgage on YouTube or stream audio from popular podcast sources.”

Customer Service Tips

As purchase business returns to dominance in the lender loan mix, referral business becomes a key factor of revenue growth. According to data from STRATMOR Group’s MortgageSAT Program that measured the loan experience for more than 260,000 borrowers last year, the Net Promoter Score (NPS) falls 91 points when the borrower says there was a problem with a loan. It can be anything from a misunderstood fee to poor communication or expectation setting. 91 NPS points is the difference between your next referral and someone who will badmouth you to friends and colleagues. In his August Customer Experience Tip, Mike Seminari suggests three steps lenders can take to survive and thrive through the transition to a purchase environment by creating a delightful experience for borrowers. Don't miss, “Preparing for the Shift to a Purchase Market.”

Capital Markets

Everyone out there knows that supply shortages are weighing on economic output, constraining an even more robust expansion, and driving up prices. (If I don’t have the parts to make a car or a computer, I can’t sell one.) June’s construction report highlighted shortages of materials that were holding back new nonresidential projects from commencing. The ISM Manufacturing Index numbers from last week slipped and showed new orders easing which could be the beginning of a return to a supply/demand equilibrium. Respondents in both the manufacturing and services surveys reported significant price pressures on commodities and challenges in the labor market. July’s jobs report was well above market expectations and a closer look showed the leisure and hospitality sector accounted for nearly half of the monthly gain. Additionally, May and June’s headline job gains were revised higher. 

The Fed continues to watch progress on employment closely and has said it wants to see further substantial progress before it begins to taper asset purchases despite the current heightened inflationary environment. It remains to be seen if the recent spike in COVID cases due to the delta variant will reverse these gains or simply slow a full return to “normal”.

Inflation remains elevated. Maybe you’ve seen that while dining out, or buying groceries and personal care items. We saw yesterday that the Consumer Price Index (CPI) rose 5.4 percent year-over-year in July, though the pace did moderate slightly from June. Price pressures remain broad-based, which should place upward pressure on inflation for the foreseeable future. While it can be argued that it is evidence of an expanding economy, there is no guarantee that inflation pressures will be as pronounced in coming months. The report showed that prices in categories most closely associated with the economy's reopening and supply constraints have started to ease, which does support the “transitory” narrative.

The day's data eased fears that the Fed may soon pare back stimulus, though the inflation numbers should be taken with a grain of salt as last year’s prices were distorted by lockdowns. There is worry that President Biden's $3.5 trillion spending plan will make inflation worse. The economic agenda has passed the Senate and now awaits a vote in the house on August 23. Dallas Fed President Kaplan said that he supports a tapering announcement in September, followed by reduced purchases in October. Remember, talk of rate hikes and talk of tapering are two completely separate subjects.

This morning we’ve seen initial jobless claims for the week ending August 7 (375k, as expected) and continued claims for the week ending July 31 (2.866 million). We’ve also received July PPI (both headline and ex-food/energy +1.0 percent – strong!). Later this morning brings Freddie Mac’s Primary Mortgage Market Survey for the week ending August 12 and a $27 billion 30-year bond auction which will conclude the Quarterly Refunding. There are no Fed appearances until after the August 26-28 Jackson Hole symposium, with the exception of Fed Chair Powell this coming Tuesday. The Desk of the NY Fed will conduct two operations today targeting up to $5.2 billion across 2 percent and 2.5 percent coupons. These are the last operations on the current schedule with a new one will be released in the afternoon along with the tentative purchase amount for the mid-August through mid-September period. We begin the day with Agency MBS prices worse nearly .125 and the 10-year yielding 1.37 after closing yesterday at 1.34 percent on the strong inflation data.

Jobs and Promotions

“Currently ranking as the #1 Loan Originator in Orange County, Ryan Grant is a nationally recognized coach, speaker, and trainer in the mortgage business. He believes work-life balance is key to a fulfilling life and transparency is a competitive advantage. Grant expresses, ‘The reason why we’ve created such a unique mortgage practice is because I truly want our clients to be proud of the team they have chosen to work with.’ Too many mortgage corporations keep their employees in the dark and expect them to grow. The lack of transparency and authenticity leads to a loss of trust. At NEO Home Loans, we believe the mortgage industry needs a new beginning. It’s our ethos to foster open and honest communication. We believe you should always be cultivating new skills and growing toward your ultimate potential. NEO Home Loans is a division of Celebrity Home Loans, LLC | NMLS #227765. For more information on NEO Home Loans, contact (801) 893-0697, or check out Neo!”

Norcom Mortgage, with 32 locations along the East Coast, California, and Mid-West, announced the promotion of Rob Filippone to VP, Market Manager, responsible for business development and management of Norcom’s retail branches in N.Y., Mid-Atlantic and Florida.