Welcome to the Monday-est Tuesday of the year. Hey, the cost to produce a home loan has fallen! Per the Mortgage Bankers Association, total loan production expenses decreased to $7,800 per loan in the second quarter of 2017 from $8,900 in the first quarter of 2017 for independent mortgage banks. The net gain was about $1,100. Wait...you want to make big bucks by servicing loans? That's fine, but due to rates dropping in the 2nd quarter, balance sheet values dropped. Did your increase in production act as a hedge?

Disaster Aid From Investors and Lenders

Many of our industry's vendors and lenders are helping out - here's a random sampling.

To help the flood victims, Notarize will offer free notarizations for state and local forms requiring notarization after a natural disaster.  Some may be required by FEMA or other Federal, State or Local government agencies. For example, FEMA may require savings bond replacement forms to be notarized. We are certain many more necessary forms will emerge as people attempt to process their insurance claims for items that were destroyed in the flooding or salvage other lost property. If you are a flood victim or suffered other damage from the storm and need a Federal, State or Local agency form notarized, we will offer the notarization to you for free. Please visit Notarize or download the app, we have made operational accommodations to ensure you will not be charged for the notary service.

Wells Fargo announced it is donating $1 million to support those affected by Hurricane Harvey and the extensive flooding in its wake. Wells Fargo is donating $500,000 to the American Red Cross Disaster Relief Fund, and an additional $500,000 to local nonprofits focused on recovery and relief efforts in Texas in the coming days and weeks. The full press release is available for viewing.

To help the victims of Hurricane Harvey, FAMP is supporting two worthwhile organizations: Americares and The Houston Humane Society. If you do not wish to support these organizations, please consider supporting a charity of your choice.

Flagstar will apply a 15 day, no cost extension to loans in the counties/parishes impacted by Hurricane Harvey that meet the following criteria: Must have a lock expiration date that falls between Friday, August 25, 2017 and Friday, September 15, 2017.  Loan must be in underwriting and is not funded or in a closing package received status (i.e. approved with conditions, conditions received, and final approval). Flagstar will reduce funding extension fees to 1 basis point per day on delivered loans provided that all conditions are cleared except for the appraisal re-inspection.

AXIS AMC has been through several disasters across the country, and has been here to help guide and navigate our industry partners through each of them. Axis expects to see a multitude of Disaster Certifications needed on properties in those markets that have been affected although lending partners and other clients may have different reporting requirements and needs. If possible, send Axis any policy or requirements that you feel are specific to you and Axis will try to accommodate.

Capital Markets

Last week was a good week for rates, if you wanted them to go lower, although Friday they went up slightly. Loan officers are more focused on hoping their client finds a house to buy rather than being focused on an 1/8 here or there. That said, Friday Treasuries, and along with them MBS, jumped in response to mildly disappointing payroll and hourly earnings numbers but then proceeded to sell off ahead of the holiday weekend with a spate of 2nd-tier numbers came out.

Perhaps of more interest is usual annual debt ceiling Congressional maneuvers, and the yield curve: The 2s10s spread finished the week at 81 bps, down from 84 bps one week ago. So, Friday the 10-year note price worsened over .250 and it closed yielding 2.16%, and the 5-year Treasury and agency MBS prices worsened about .125.

This week we have mostly "second tier" data, so rates may move more with international events including central bank decisions from the Reserve Bank of Australia, Bank of Canada, and the Bank of England. And let's not forget the usual bevy of Fed speakers out there talking about changing the Fed's balance sheet this autumn and perhaps another rate increase in December.

This morning we'll have the ISM-New York Business Conditions Index for August and July factory orders and the Employment Trends Index for August. Tomorrow is the weekly MBA application data from last week, July Trade Balance, and September Fed Beige Book. Thursday, we can look forward to weekly initial jobless claims and Q2 Revised Productivity. On Friday, the 8th we end the week with a whimper with some 3rd tier numbers. We start the week with the 10-year yielding 2.14% and agency MBS prices better by .125 versus Friday's close.

Upcoming Events

The Oregon Mortgage Bankers Association invites you to join the 40th annual 2017 Pacific Northwest Mortgage Lenders Conference. "Flex your Mortgage Muscle" and feed your inner drive for current developments in mortgage lending presented by national and regional guest speakers. It will be held at the beautiful Skamania Lodge overlooking the Columbia River Gorge in Stevenson, WA, September 17-20.

FAMC has published its September 2017 Wholesale "Monthly Customer Training Calendar".  This month's calendar offers a variety of training opportunities such as "Analyzing Appraisals" "Income Analysis for Salaried Borrowers" "Calculating Rental Income" "Preventing Mortgage Fraud," and "Optimizing LinkedIn."

Sun West Mortgage Company, Inc. posted its Webinar schedule for September 2017. In this series there are presentations on: What are Reverse Mortgages? Processing a Reverse Mortgage and Learning How Easy it is to Submit a Loan in Sunsoft Online.

On October 6th, BakerHostetler's Financial Services team and the Ohio Bankers League will present "The Future of Financial Services" in Columbus, Ohio. The program will feature CFPB Director Richard Cordray and U.S. Rep. Pat Tiberi, who will discuss industry developments in a "fireside chat" format with our own Steve Dettelbach and Mike Ferguson, respectively. The panel will also feature observations and insights from industry-leading attorneys and business people.

Plaza Home Mortgage partners are invited to join Arch MI on September 7th for an overview of The Three C's of mortgage banking including income/employment, assets/reserves and ratios. Understand the factors that make up a credit score, and the fundamentals of mortgage risk.

Join RESPA expert Phillip Schulman, partner at Mayer Brown, for Marketing, Entertainment and Educational Activities under RESPA, a live event produced by October Research and sponsored by SoftPro 2-3 p.m. on Sept. 20th. He will break down the latest HUD and CFPB interpretations of this complex regulation and answer questions affecting lenders, compliance attorneys, title and settlement agents and underwriters. Topics will include office rentals, co-advertising, marketing service agreements and much more.

In today's regulatory environment, the closing process poses substantial risk to lenders. Closing agents must be managed along with other vendors. NYMBA is providing a 1-hour webinar on September 12th to discuss concerns, risks, and management components when it comes to Closing Agents.

On September 7th, FHA is offering a free, online webinar that will assist FHA-approved lenders with the upcoming Annual Recertification and provide detailed information as well as tips on submitting a successful recertification package to the Department of Housing and Urban Development (HUD).

FHA's Office of Single Family Housing's Lender Approval Team has posted a video, "OLAPC Lender New Applicant Tutorial," which briefly walks new applicants through basic eligibility requirements and how to avoid common application mistakes.

What is your understanding Fair Lending? Developing and maintaining a sound fair lending compliance management program is your best line of defense. Join Clark Schaefer Hackett's Leonard Wagers and Tricia Lynn for an informative webinar on September 7th at noon EST.

Join AEI in Washington D.C. for a two-day conference, October 11th and 12th, highlighting the latest insights from several mortgage and collateral risk measures, along with new research on the anatomy of risk metrics and loan pricing. Experts from a variety of backgrounds will share lessons learned from their efforts to objectively measure housing risk and apply it to today's market conditions. If you aren't able to attend in person, To watch live online, click here on October 11 at 7:45 AM ET. Registration is not required.

Job, Company Moves, Affiliations

Speaking of the MBA, it is searching of two Directors of Strategic Member Relations. "The incumbents will be tasked with developing relationships with senior executives at the Association's member companies to maximize the value of their MBA membership and engagement.  Incumbents will coordinate and facilitate integration within MBA's senior management team by delivering enhanced member value and engagement with the MBA. The Directors will provide comprehensive account management and connect members to the MBA resources that support their needs. College degree required, Master's Degree preferred, with preferred emphasis on business or sales/marketing. Minimum of 5 years of industry experience required.  Specific member relations and/or outreach background required. All qualified applicants will receive consideration for employment without regard to race, sex, color, religion, sexual orientation, gender identity, national origin, protected veteran status, or because of disability." For questions or interest contact Tricia Migliazzo, VP of Member Engagement, and/or apply online here.

"We are excited to announce that on Tuesday, August 22nd, NYCB's Account Executives and Sales Management Team became part of the Freedom Mortgage Wholesale Lending family. Together, they bring a history of first in class service, unparalleled experience, and industry knowledge to its clients. Freedom Mortgage Wholesale is excited to join forces, expand its reach, and build upon the outstanding experience their customers have come to expect and deserve. To learn more, or to become part of the team, email the Freedom Mortgage Wholesale Lending Division at MyFreedomAE@Freedommortgage.com today."

"Evergreen Home Loans is GROWING and looking for a Regional Underwriting Manager. Since 1987, our focus has been on providing a WOW full service home buying experience. We originate, fund, and service home loans and have approvals with Fannie Mae, Freddie Mac and Ginnie Mae. Candidate must be able to work on site at one of the EHL Operations Centers located in Vancouver, WA or Lake Oswego, OR. Evergreen was honored to be named #1 Best Workplace in Washington by Seattle Business Magazine in 2017. Fortune Magazine ranked Evergreen no. 12 in their national survey of best workplaces in finance and insurance and Fortune named Evergreen a 2016 Great Place to Work for Women. Join our team today! Please contact Arlene Evans -Talent Acquisition - or apply online here."

The Community Home Lenders Association (CHLA) is seeking like-minded small and mid-sized community-based IMBs to become a member of the only national trade association that exclusively represents IMBs. CHLA educates Congress, agencies, and regulators about the importance of IMBs and advocates on their behalf. CHLA today released its "CHLA Report on IMBs."  This report shows why IMBs are a critical source of mortgage loans, with data showing large increases in the non-bank market share of FHA and GNMA.  It also demonstrates how IMBs are the most regulated type of mortgage lender, with a detailed chart comparing regulation of banks and non-bank mortgage lenders. In March, CHLA released its own GSE Reform Plan, and in July testified before the Senate Banking Committee on how to protect small lenders in reform legislation.  In June, CHLA released its Policy Agenda, with positions on this issue, support for lower FHA premiums and ending Life of Loan, and CHLA's proposals for targeted regulatory relief for smaller IMBs.