If you wait long enough to cook dinner, everyone will eat cereal. Follow me for more recipes! It’s a good time to be long real estate, and one recipe that is tried and true is the link between housing prices and rents. Home Price appreciation is t’s a good time to be long real estate, and one recipe that is tried and true is the link between housing prices and rents. Home Price appreciation is driving up asking rents for single family homes. They are up 13% YOY for SFR, while up only 8.3% for apartments. We have seen all sorts of institutional money flood into the SFR space over the past year, as high cap rates and home price appreciation create returns that are hard to replicate elsewhere. While eviction moratoriums have been an issue, many investors are targeting higher-income renters who have been less affected by COVID job losses. Home prices rose 1.6% MOM and 17.4% YOY, according to the FHFA House Price Index. We saw torrid price appreciation in several MSAs including Boise, Austin, and Salt Lake City. As we saw from the latest FOMC minutes, the Fed is focusing on home price appreciation and how its MBS purchases affect it. Separately, the Case-Shiller Home Price Index rose 2.2% MOM and 18.6% YOY. (Today’s audio version of the commentary is available here and this week’s is sponsored by Candor Technology. Lenders using Candor produce a high-quality loan that requires only 1 underwriter touch on 70% of loans.)

Software and Services for Brokers and Lenders

Of all the technologies your company uses, which do you value most? Mutual of Omaha Mortgage SVP Stephen Bennett has an answer to this question that might surprise you. “By far, aside from some key mortgage production tools, CompenSafe is the most valuable product I’ve ever seen. It automates an overly burdensome, heavily regulated administrative process that touches everyone in the organization.” With the help of CompenSafe, Mutual of Omaha has improved payroll efficiency by more than 80%, enabling one staff member to handle payroll for 1,300 employees. What’s more, the software handles custom comp plans with ease, positioning Mutual of Omaha to better attract new talent and motivate existing employees. Download the full case study to see why LBA Ware’s CompenSafe has become a fast favorite of lenders everywhere.

The FeeWise™ Closing Cost Engine integration with the ICE Mortgage Technology™ Platform supports retail usage through Encompass LO Connect™ and wholesale / non-delegated business through Encompass TPO Connect™. Automated disclosures and compliance results within the point of sale create huge operational efficiencies, a reduction in fee tolerance cures and the opportunity to grow your loan volume. Join progressive lenders like PRMG, Sprout Mortgage and Plains Commerce Bank who have experienced remarkable gains by implementing FeeWise. Watch this 60-second video to learn more and email MortgageCTO to schedule a live demonstration.

What are the true costs of your current approach to income calculation? The opportunity costs of spending time chasing documents and doing busy work may be hard to quantify but can be significant. Could the repeated requests for documents be impacting the borrower experience you work so hard to protect? Why not get income by source and a checklist of needed docs right from the start? That’s the LoanCraft way! With LoanCraft’s innovative workflow, just upload the personal returns via its secure portal or Encompass and LoanCraft will return a check list that includes preliminary income by source and the documents required for validation. Its unique process combines software and a team of analysts to produce a warranted income in 4 hours for typical files. Training and set up are easy and the service is on-demand with no upfront fees or monthly minimums. Email Dominic Spadafore or visit loancraft.net to get started.

Serena and Venus Williams are such amazing singles tennis players that it’s possible to forget just how dominant they become when they partner up. Together, they have won 22 doubles titles, including 14 grand slams and 3 Olympic gold medals. By the same token, even LOs and Realtors who are already at the top of their game have the potential to reach new heights when they build partnerships as dominant as the Williams sisters’. That’s why Sales Boomerang is serving up its Realtor Referral Guide geared at helping LOs learn how to become a Realtors’ #1 preferred lender through a value proposition that matters to agents. Download the free guide today and you’ll be building committed, two-way relationships with Realtors before you can say “Game, Set Match.”

The key to addressing this is having the right data so you can identify and retain at-risk borrowers early. Black Knight’s Value Range Express provides a unique and powerful combination of listing alerts, robust data, and top-rated automated valuation models (AVMs) that help servicers more quickly, efficiently, and accurately identify at-risk borrowers. Learn how you can leverage the power of AVMs, public records data and listing information to retain more customers. Download our complimentary white paper: Retaining More Borrowers During COVID-19.

As loan officers, we’re convinced we have to make ourselves available 24/7, 365 days a year. So it should come as no surprise that this “holiday weekend” came and went like any other for many of us. Your referral partners likely asked you for a favor while you were grilling with your family… “Can you update this preapproval? Can you send me a new pre-qual? The Smith family is making an offer, and we need four letters because they aren’t sure yet what they’re offering. They’re thinking conventional, but maybe if they can, they’ll go FHA…” Are you cringing yet? If this is your experience, check out QuickQual by LenderLogix. By allowing Realtors and borrowers to adjust their own preapprovals, you can focus on actions that drive actual revenue and maybe enjoy the next holiday weekend like you deserve.

Looking for technology that elevates, simplifies, and streamlines your mortgage process? Look no further. PointCentral is the end-to-end solution you need to maintain control, ensure accuracy, and prevent unauthorized changes across multiple locations. With PointCentral you can configure access rights for multiple locations, users and user roles and decrease the potential for errors with customized trigger warnings and compliance rules. Enjoy the convenience of enhanced security, remote access to loan files and templates and a detailed audit trail to track loan file changes. Learn how PointCentral can keep your business moving.

In our data-driven, technology-dominated world, it’s nice to know TMS has a subservicing system that makes it all easy and intuitive. Enter SIME: rhymes with “gimme,” stands for Servicing Intelligence Made Easy. As TMS’s digital portal, SIME gives lenders 24/7/365 access to their portfolios, including customizable dashboards, 90+ standard and customizable customer reports, loan-level detail and raw data, and customer call recordings. Its Happinest app also empowers customers with numerous intuitive self-service options. TMS wants to help Grow Happiness in borrowers and lenders alike, and it’s true: You can’t spell “smile” without “SIME.”

On this day in 1921, Margaret Gorman of Washington, D.C., was named the first Miss America. Speaking of Washington, D.C., IDS is looking forward to seeing the nation’s top mortgage-lending credit unions at ACUMA’s 25th Annual Conference next week. More than just an award-winning doc prep provider, IDS also offers a full suite of eClose options through its eClose platform, Solitude Solution. You may also recall reading an IDS thought piece in the latest ACUMA Pipeline about how RON and other digital tools can help credit unions continue to provide personalized service to their members even if those members were part of the “Great Reshuffling.” If you’re headed to ACUMA, be sure to stop by booth #6 or set up a time to meet with IDS in Washington, D.C., to discuss all your doc prep and eClose needs.

How well is your production mix performing compared to your peers? If you are not sure, Richey May’s Peer View Ops can help you understand your production mix compared to your peers in real-time. In addition to FICO, LTV, and DTI comparisons, we show your average pricing compared to your peer groups by type, purpose, and occupancy mix. You will have the ability to filter any metric by any of these loan characteristics to make sure you understand how you’re performing compared to your peers in every cross section of performance. Contact us to schedule a demo to get a look at the reporting features and see how this tool helps drive your business.

Loan Products

Stearns Wholesale continues to invest in and expand their jumbo offerings! Not only does Stearns continue to lead the nation in jumbo rates, but it is also enhancing their jumbo products to make it faster and easier for Stearns’ clients to streamline requirements and submit a loan application. Last week, Stearns announced that its Garnet and Jade Jumbo Products are now equipped with AUS. These exciting improvements will allow for less income documentation and more flexibility with DTI. If you’d like to sign up for training sessions this month covering the new Garnet and Jade Jumbo AUS enhancements, click here to register for Jade Jumbo tomorrow or click here to register for next week’s Garnet Jumbo training. If you’d like to partner with Stearns or learn more, click here to be contacted.

“Northpointe Bank Correspondent Lending offers more loan programs giving your borrower more options to finance their home. The Northpointe Medical Professionals loan program helps borrowers with 100% financing and no mortgage insurance options with loan amounts up to $850,000. The expanded underwriting guidelines excludes student loans from the debt calculation and eligible borrowers can be currently practicing or begin employment within 90 days of loan closing. The program is available in all states expect NY. Northpointe’s Streamline Jumbo Fixed & ARM loan program offers purchase and rate/term refinances with loan amounts up to $3,000,000, and cash-out refinances with loan-to-value ratios up to 80% with loan amounts up to $1,000,000. Maximum LTVs up to 90% do not require mortgage insurance. Plus, the program offers 0.25% loan level price adjustor pay up for purchase transactions. For more information, email us at correspondentsales@northpointe.com, or view our program details.”

Finance of America Mortgage TPO introduced Two-X Easy Jumbo DU Documentation, High Loan Amounts & LTV products. Purchase & R/T Refinance highlights include $2 million to 89.99% LTV w/ NO MI with 680 score on 1-unit, OO or 2nd home. Cash Out Refinance $2 million to 89.99% LTV w/ NO MI with 740 score on 1-unit, OO.

Capital Markets

Last week’s economic data was positive despite lower-than-expected employment gains in August. Employers added 235,000 jobs in August and the unemployment rate dipped slightly to 5.19 percent. The most job gains occurred in professional and business services, transportation and warehousing, private education, manufacturing, and other services. Over the last year, the labor force grew by 0.4 percent while payrolls were up 4.3 percent, leading to the tight job market. Employers also cut the fewest jobs since June 1997, according to the Challenger, Gray and Christmas Job Cuts Report. Although payrolls are increasing and job cuts are significantly down, total employment is still roughly 5.3 million below the pre-pandemic high in February 2020 and the number of people considered to be in the labor force is down 4.9 million. While the Fed continues to monitor the employment situation closely, they are expected to provide more insight as to when they may begin to taper their asset purchases at the upcoming FOMC meeting later this month. No changes are expected to monetary policy at that meeting and there are no expectations of changes to the Fed Funds Rate until well into next year.

The holiday-shortened week began with little new news as markets digested Friday’s lousy August payroll figures. Talk on the day revolved around a potential announcement tomorrow morning by the European Central Bank on a reduction to its asset purchases. Looking ahead, financial markets will be eagerly anticipating the minutes from the September Fed meeting for any further clues on tapering timing.

Today’s economic calendar is already underway, and we have seen that mortgage applications from MBS decreased 1.9 percent from one week earlier for the week ending September 3. Later this morning brings job openings from JOLTS for July, a Treasury auction of $38 billion reopened 10-year notes, July consumer credit, and several Fed speakers in addition to the latest Beige Book. The Desk will conduct two MBS purchase operations targeting up to $5.2 billion 30-year 2 percent and 2.5 percent. We begin National Ampersand Day with Agency MBS prices a few ticks (32nds) higher & the 10-year yielding 1.34 after closing yesterday at 1.37 percent.

Employment 

“BluePoint Mortgage is seeking experienced Account Executives looking to graduate to higher compensation levels by joining a premier wholesaler. With over three decades in the business, BluePoint Mortgage offers extremely competitive pay (earn up to 70 bps on non-QM), a flexible and fun work/life balance, and a strong product offering. We’re looking for Account Executives who have what it takes to be a Scotsman Guide Top AE in the Nation, joining ranks with BluePoint’s Nationally Ranked Top Performers! Scotsman Guide 2021. If you think you have what it takes, reach out to Char Mangrello, VP Human Resources.”

Tired of having outdated news from 2019 on your website? A skilled writer has some extra bandwidth and is available to produce weekly, monthly, or as-needed mortgage-related content for lenders on their website or advertising material. Please send me a note of interest to forward to the writer.

If you’re in Northern California, Redwood Credit Union is looking for an Assistant Manager of Mortgage Lending Member Experience.

Wells Fargo announced that Ann Thorn has been named head of the company’s Home Lending servicing operations and will join the company next week, reporting to Kristy Fercho, head of Home Lending. Ann will oversee the nation’s largest mortgage servicing portfolio including loans with total unpaid principal balances of nearly $1.1 trillion as of June 30, 2021.