Any month that starts on a Sunday contains a Friday the 13th. The superstitious sufferers of “triskaidekaphobia” try to avoid bad luck by keeping away from anything numbered or labelled thirteen, while others, such as some attorneys for whatever reason, believe it to be lucky. But some companies and manufacturers often use another way of numbering or labelling to avoid the number: see if your airplane has a 13th row or your building a 13th floor. (Who says you don’t learn anything from reading this commentary?) Wells Fargo, which has managed to stay out of lawsuit headlines as of late, didn’t have any luck yesterday when California filed support for Oakland ina Wells Fargo mortgage suit for discriminating against, or giving higher cost mortgages to, minorities. Lawyer up! The fun never ends.
Lender Products and Services
“Are you going to the NAMB National 2019 at Caesar's Palace this weekend. If so, stop by booth 1111 and meet James Hooper and his team from NMSI Wholesale to learn more about one of the fastest growing wholesale lenders in America. Learn first-hand how NMSI is positioned for growth and prepared to serve the Mortgage Broker community with our aggressive product offering featuring everything from Agency, Jumbo, Non QM and even 2nd liens, Not to mention our competitive pricing, and our propriety technology called that brokers are raving about with how easy and transparent it is. Visit us for more details or email sales@nmsigroup.com.”
Brokers – now’s the time to go in(to) reverse…mortgages, that is. Regulatory changes to the reverse/HECM program have made this once-maligned product safer than ever for senior borrowers to leverage as part of their overall retirement strategy. What’s more, it’s even easier for brokers to add this product to their mix thanks to SimpleReverse by Mid America Mortgage. With SimpleReverse, brokers have access to Mid America’s team of reverse mortgage experts, ensuring brokers can offer this highly complex and heavily regulated product with confidence. In just 5 easy steps, brokers can get from inquiry to closing while still earning their normal commission. For more information on the SimpleReverse program, call 833-765-LOAN or contact simple.reverse@midamericamortgage.com.
Caliber Home Loans, Inc. has become the first lender outside of Figure Technologies to originate home equity lines of credit directly on the Provenance blockchain platform. By originating, servicing and financing loans on Provenance, Caliber looks to deliver an outstanding consumer experience, while lowering costs, reducing risk and improving financing execution throughout the entire loan process. Sanjiv Das, Chief Executive Officer of Caliber said of the new HELOC platform, "We think the ease and speed of this process is truly unique. Unlike traditional home equity lending timeframes which often stretch out for weeks, our borrowers can now complete the entire process digitally and access their funds in days. We think that's a great solution and gives our customers tremendous flexibility."
Non-QM origination volume continues to grow exponentially even in the face of historically low rates, and as we near the finish line for 3Q 19’, the velocity of growth, interest in the product, and capital investment are at an all-time high. Deephaven Mortgage is committed to helping the industry continue its upward trajectory. To help originators & executives learn more about the Non-QM marketplace & how to make it a part of their business plan, Deephaven co-hosted a webinar recently with LoanScorecard; visit https://vimeo.com/355325583 to catch up on the market and continue building your Non-QM knowledge. Deephaven has a diverse array of products, technology, and 7+ years of Non-QM expertise to aid the originator at the point of sale. Non-QM is the 100% focus at Deephaven, get in touch with us today by contacting us at brokerinfo@deephavenmortgage.com (Wholesale) or sales@deephavenmortgage.com (Correspondent).
Homeownership remains a cornerstone of the American dream, but the rising cost of originating mortgages is pushing that dream out of reach for more and more Americans. Lenders are drinking from a firehose right now thanks to low-interest rates, but the underlying problems – high costs and inefficient systems – haven’t gone away. When the euphoria calms down, those problems will still exist and lenders will have to deal with them. This is a problem specific to mortgage production: mortgage origination costs have been climbing for more than a decade, and everyone involved is starting to feel the strain. Rather than focusing solely on the customer-facing portions of the process, mortgage tech must streamline the back-end components that account for the biggest delays. Cloudvirga Co-founder Kyle Kamrooz explores the the current state of the cost of mortgage origination costs and the vision to reduce costs while making borrowing more accessible.
101% Conventional Financing, Down Payment Assistance, and No Mortgage Insurance. Lakeview Wholesale is offering a conventional first up to 97% LTV with no mortgage insurance, plus an interest only DPA community second of up to 4% for down payment, and closing costs (lesser of purchase price or appraised value). Finish the year strong by increasing your high LTV and first-time buyer business. Currently available in select states. Click here to learn more.
Where can you get 11X return on every dollar you spend? There is only one place smart lenders go to get these returns consistently: Sales Boomerang. Why would you say no to 11X or better ROI? You can't, and you shouldn't. Believe me, your stake holders will thank you. "Now, we don't let opportunities walk out the door thanks to timely notifications," Michael Guidotti from American Pacific Mortgage. Lenders get on average an 11X return but many are posting 15X, 20X, 25X and all the way up to 60X returns from every dollar invested into Sales Boomerang. "Sales Boomerang is a game changer for us, because we've never had access to such information before," Stephen Barton from Eustis Mortgage. If volume is not your problem today then profit and customer retention need to be at the top of your list. Check out the long list lenders already using Sales Boomerang and then schedule your demo.
Flood and Disaster News
In the U.S., the number of National Flood Insurance Program policies has fallen from 5.65 million in 2011 to 5.2 million flood insurance policies in 2018. In the 59 counties that saw evacuation orders related to Hurricane Dorian, the number of flood insurance policies drop 31 percent over the period, from 734,445 policies to 508,731 last year. In Palm Beach County, the number of federal policies fell 37 percent over the period. Yet the Federal Emergency Management Agency has set a goal of doubling the number of Americans with flood insurance by 2023. Good luck.
On September 18th, learn about PRMG’s FHA 203h product, the mortgage insurance for Disaster Victims program, which allows for up to 100% financing for the purchase of a new home for borrowers who owned or rented a home in a Presidentially-Declared Major Disaster Area (PDMDA) that was destroyed or damaged to such an extent that replacement is necessary.
FHA is providing a free, online webinar covering ML 2019-14: Updates to FHA’s Loss Mitigation Options for Borrowers in Presidentially Declared Major Disaster Areas (PDMDA). This webinar is offered on Thursday, Sept 26th.
Previously, AmeriHome suspended fundings due to the National Weather Service predictions for Hurricane Dorian along the Eastern Coastline. AmeriHome is lifting the remaining funding suspensions for the Florida, Georgia, and South Carolina counties.
loanDepot Wholesale is monitoring Hurricane Dorian and will be providing updates and guidance as the impact of the hurricane becomes clear. All previous restrictions for counties in Florida, Georgia and North Carolina have been removed. South Carolina counties still impacted include Berkeley, Charleston, Dorchester, Georgetown and Horry.
Hurricane Dorian has moved north up the coast and Plaza Home Mortgage® has resumed funding throughout Florida and Georgia. The pause in funding remains in place for the Carolinas and Virginia during the continued monitoring of the storm path.
loanDepot Wholesale/Correspondent’s Weekly Announcement includes information on FHA’s Mortgagee Letter 2019-11 / FHA Fixed and ARM Matrix, FHA’s Mortgagee Letter 2019-13 Condominium Project Approval Requirements and Nebraska’s Disaster Announcement Update.
Capital Markets
NewDay USA has been approved as a Ginnie Mae Servicer Seller for VA loan production in addition to being approved to issue Ginnie Mae I and II securities for FHA multi-issuer securities. “The Ginnie Mae single-family program provides critical mortgage financing for our nation's veterans and active duty military, after Ginnie Mae’s review showed NewDay USA’s prepayment reduced speeds, meeting Ginnie Mae guidelines. Based on current origination volume, NewDay USA is projected to be a top five VA lender in the U.S. in 2019.”
It has been nearly a year that markets have been dealing with the increasingly escalating trade war between the US and China. The next round of talks between the countries will take place in October in Washington and while the markets hope for a deal (yeah, right) at the conclusion of those meetings, both sides have large demands from one another. In the manufacturing sector, more firms reported contraction in the latest ISM survey which fell below the demarcation level of 50 between expansion and contraction for the first time since 2016. Services, which are a larger part of the economy, rose to 56.4. Should new tariffs go into effect, however, it may erode consumer purchasing power and therefore consumer spending. Last week we learned that nonfarm payrolls declined in August to +130,000 with 25,000 the result of temporary hiring for the 2020 census. Despite a general slowdown in hiring that has persisted throughout the year, hourly earnings increased 0.4 percent and are up 3.6 percent over the last three months. The Fed will have to weigh slowing business conditions with good consumer data when they meet next week to update monetary policy. Most market participants expect a 25bps reduction to the Fed Funds Rate as they expect the committee to continue to support the current expansion.
So U.S. economic data continues to be mixed with consumer data remaining positive and business and manufacturing data eroding. While not all industries reported contraction, those that did included: apparel, fabricated metals, transportation equipment, primary metals, plastics and rubber, paper and electrical equipment. Business productivity has been increasing throughout the year and was up at an annual rate of 2.3 percent during the second quarter as labor market remain tight. The trade gap narrowed slightly in July to -$54.0 billion although at the current level it might still be a drag on Q3 GDP. All this as well as the escalating trade uncertainty between the US and China will be on the minds of Fed officials when they meet next to discuss monetary policy. The markets have priced in a greater than 90 percent likelihood of another 25bps rate cut following the conclusion of the FOMC meeting.
Looking at yesterday, U.S. Treasuries experienced a volatile Thursday session, first facing some selling pressure after President Trump indicated that a 5 percent tariff increase on imports from China will be postponed for two weeks and reports Chinese officials are considering a removal of restrictions on imports of American farm goods like soybeans and pork. Then, the latest policy statement from the European Central Bank called for a reduction to the deposit facility rate that will exempt some bank reserves from negative rates and a resumption of monthly asset purchases in the amount of EUR20 billion.
European Central Bank President Draghi called on fiscal authorities in the eurozone to commit to more spending in order to lift long-term yields. His press conference was partially responsible for the reversal in bonds when he highlighted the limits of monetary policy (and the negative implications of negative rates for pensions) and said that fiscal policy could speed up the effects of monetary policy so rates could go higher. The ECB lowered its outlook for 2019 growth in the eurozone. And thus Treasuries reversed course after the euro nearly hit a fresh 2019 low which wasn’t helped by a tepid $16 billion 30-year bond reopening, and the 10-year closed the day +6 bps to 1.79 percent.
Today’s calendar began with August Retail Sales (+.4%) and Import/Export Prices (-.5%, -.6%), and later July business inventories, preliminary August Michigan sentiment. We begin the day with Agency MBS prices worse a solid .125 and the 10-year yielding 1.82%.
Jobs
A lender experiencing massive growth headquartered in Scottsdale AZ, is looking to add to its’ executive team by hiring a CFO by the end of the year. The company started in August of 2017 with 4 loan officers and no outside funding, and in August funded over $200,000,000 in volume; with projections crossing $275,000,000 funded by December. Licensed in over 30 states, it is primed to continue its explosive growth and needs a candidate with exceptional leadership and accounting acumen to elevate the organization to the next level. The candidate should have extensive knowledge of mortgage specifics, warehouse lending, and the ability to operate in a fast-paced environment. “Our culture is one built around being elite at everything from client service to production to accountability; all while keeping team members positive and loving their careers.” Please email all resumes to Chrisman LLC’s Anjelica Nixt for forwarding; specify opportunity
NewRez Wholesale, a nationwide and heavily capitalized lender, is looking for experienced Account Executives with an entrepreneurial spirit to join its growing team. Opportunities are available in the following areas under their respective Regional Managers: Arizona, Florida, Nevada, San Jose and San Diego, California (John McElhone), Western PA (Shawn Crowley), Wisconsin, Minnesota, Tennessee, and Houston, Texas (Tony Hale). "We are excited to expand the team with new talent in new territories," says Mark Melini, VP National Wholesale Sales Manager. "Our growing product suite, flexible lending guidelines and fast broker onboarding process makes NewRez a great place to take your career to the next level.” To learn more about available opportunities, contact Mark Melini.
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