Sen. Patrick Moynihan once said, “Everyone is entitled to their own opinions, but not their own facts.” In a question guaranteed to generate opinions, there is, “Rob, do you ever think that the mortgage industry will be like the gasoline business, dominated by a very few huge companies?” No, I don’t think so. The cost and barriers to entry are too low. I very much doubt that a few lenders will ever dominate the mortgage origination sector. Looking back over a few decades concentration among the top 30 lenders has been very fluid. The top 30 lenders had a 92% market share in 2008, but that has dropped to 57% in 2018. Over the last ten years, 23 of those top 30 lenders are newly in this elite group which means that only seven have been able to sustain their leadership position. I personally expect that we will experience a similar turnover in the next ten years, including some major disruptors, and the size of marketing budgets. My two cents.
Lender Services and Products
What exactly is a Property Fingerprint? Class Valuation has spent the last year partnering with industry stakeholders -- including the GSEs, lenders, and appraisers – to work on valuation modernization initiatives designed to bring better transparency, granularity, and credibility to the appraisal process for all involved. The result? The industry’s first true Property Fingerprint designed to provide the most robust, in-depth level of property data to appraisers and lenders alike. The technology, which is currently in pilot, is the first of its kind and is GSE-backed. See it in action here.
Are you a mortgage banker who is looking for a new warehouse partnership? One that offers enhanced options in today’s dynamic interest rate environment? If so, book a meeting with the Executive Team from Axos Bank (formerly BofI Federal Bank) at the MBA Annual Conference in Austin, TX. Our diverse offerings include a comprehensive array of Agency, Super Jumbo and Non-QM products, aggressive pricing with deposit relationships, warehouse facilities from $5MM to $125MM, and a streamlined application process. With extended funding times up to 5:30 pm ET and exceptional customer service just a phone call away, Axos Bank is an essential partner to help you grow your business. Contact our Warehouse Lending Division or our Wholesale and Correspondent Division to set up a meeting at the MBA Annual Conference.
Freddie Mac Single-Family is ALL FOR reducing barriers and raising hope. Freddie Mac is expanding the thinking around affordable lending and inspiring others to do the same. With All For HomeSM, we’re leading the way through providing insights, education, mortgage products and business solutions that address the needs of today’s borrower and of The Borrower of the FutureSM. Rising home prices and interest rates, coupled with a lack of entry-level inventory, are increasing affordability challenges. Demographic and cultural shifts, migrations from rural to urban, first-time homebuyers with thin-credit files and complex processes pose additional barriers to achieving the American dream. It takes collaboration and partnership to innovate solutions that make a positive impact. Learn more about All For Home, discover key insights to inform your business and take advantage of solutions and tools that will enable your borrowers to make Home Possible®. All in. All of us. All For Home.
For those of you heading to the MBA Annual, this is a reminder to make sure you check out Tequilatopia. Hosted by your friends at TMS and South Street Securities, it’s a party that promises to be as unique and weird as the city of Austin. Indulge in tequila tastings and delicious Mexican food while enjoying the company of friends. It all happens on Monday, October 28 from 5-8 pm at Café 605 in the Hotel Van Zandt. Spots are filling up fast so register here to get on the guest list today!
Path, the enterprise-level, cloud-based LOS designed from the ground up for banks, credit unions and mortgage bankers from Calyx, is now offering new software versions to match your organization’s size and complexities. Need your LOS preconfigured with standard settings for a quick and simple implementation? You got it! Need a more customized solution specific to your organization and its needs? No problem! With Path, you have options. Stop by booth 839 at MBA Annual to explore how Path can fully transform your business (and enter for your chance to win a Google Home smart speaker & home assistant). Contact Michele Warren to schedule a meeting and learn more.
Stearns Wholesale recognizes the importance of providing innovative tools to propel mortgage broker success in today’s hyper-competitive market. With broker market share catapulting ahead, Stearns is delivering experiences that make a difference. “Our view is that for a mortgage broker to thrive today, they must remain nimble and have an acute focus on the client experience,” said Jon McCash, EVP National Sales. This month’s product & technology release includes real-time BPMI quotes, a one-click portfolio view of important customer milestones, and two new product launches. Brokers who are looking to partner with a customer-first lender, send a message here.
Conferences, Events, and Training
Lots of folks are heading to Austin for the MBA’s shindig in about a week and a half. But there is a lot going on elsewhere in the next 2-4 weeks. Let’s take a sample.
(First, here’s a little tip. Anyone interested in next July’s Western Secondary, care of the California MBA, should know that a) it is moving to a fantastic location in Southern California, and b) you should contact CEO Susan Milazzo sooner than later to reserve meeting space. And rooms. The only thing nearby is the Ritz and the ocean, and anyone who waits will be scrambling.)
If you’re in North Carolina, the Charlotte Regional Mortgage Lenders Association is having its monthly luncheon and speaker on Thursday, November 7th at Myers Park Country Club.
The California MBA Legal Issues Committee is offering a free webinar on October 17th. Topics include the impact of QM patch expiration, an update on Taniguchi v. Restoration Homes and vicarious Liability of Lenders for Independent Contractors’ TCPA Violations.
Want to see how you can better engage with and manage your prospects, borrowers and past customers? Next week, on October 22nd at 10am PST, Insellerate will show how it helps lenders engage with over 50,000 new borrowers monthly with its CRM and marketing automation platform. Learn how you can use new technology to engage with your borrowers thru text, social media, email and more. Register here.
If you are a credit union in the Southeast, or want to meet one, on October 24th come to the SECUREN Fall Conference which takes place in Chattanooga.
Reverse mortgage folks are gearing up for the annual conference in Nashville Nov. 18-20. Brian Montgomery will be the featured keynote speaker.
If you find yourself in the Kansas City area on November 14, the MBAKC is having a fine holiday luncheon.
If you work in Minnesota and want to get the latest on the iBuyer movement and learn how to become a better salesperson, check out the line up at this year’s Minnesota Mortgage Association Annual Conference. Nationally renowned speaker Rene Rodriguez, MN Twins President Dave St. Peter, and local Real Estate expert Long Doan will get you prepared for 2020 in this power packed ½ day of information on November 13.
In Maryland MMBBA is offering a two-day course in conjunction with Genworth entitled “Mortgage Foundations: Mastering the Basics for the Business” on October 29 and 30th in Columbia, MD. Early bird deadline ends 10/18, so register now here. Email info@mmbba.org for further information. This is a great course for ‘new’ people to the mortgage industry, or those who want to learn more fundamentals of the business!
Register for the October 24th Mortgage Quality & Compliance Committee (MQAC) Webinar: "Banking and Secondary Market: How to Avoid Repurchase Demands".
The MBA of Florida’s November 7th Webinar will be hosted by Pat Sherlock who will discuss Successful High Tech & High Touch Marketing Strategies in Origination.
The Utah Mortgage Show will be “celebrating, advancing and supporting” the men and women who finance residential and commercial real property. With top speakers, great hands-on sessions and a wealth of opportunities from exhibitors and sponsors, November 8this a can't-miss day for hundreds of mortgage professionals.
Register for the MMBBA’s Navigating the Waters To Be the Best Version of Yourself (PMW) at Hudson Coastal on November 5th beginning at 8:00.
If you have been looking for a conference specifically for origination, servicing, operations and reverse professionals, look no further than TMBA's 2nd Annual Mortgage Symposium 'Preparing For The Future Using Today's Technology'' happening November 11th and 12th, 2019. Register now and join the fun at the Omni Frisco Hotel in Frisco, Texas.
Slots are filling up fast for TMBA's 2nd Annual Mortgage Symposium, 'Preparing For The Future Using Today's Technology'', November 11th and 12th at the beautiful Omni Frisco Hotel in Frisco, Texas. Full of great sessions and speakers, industry trends and projections and of course 'Tailgate at The Cowboys Club' at the Star where the Dallas Cowboys work and play. Mingle with colleagues at this iconic venue. (only 100 tickets available).
Join the Texas Women's Mortgage Bankers networking group on November 11th. This popular event strives to provide opportunities for women from all aspects of the mortgage banking industry to network, engage, learn and grow in their careers. Separate registration is required for this event. Register or sponsor today.
On November 18th-19th, Washington insiders, fintech providers and mortgage lenders are invited to #NEXTDC19. An exclusive, boutique event focused on delivering policy intel. This is the Washington event where housing policy and technology intersect.
Registration is underway for MBA's Accounting & Financial Management Conference (AFM19) scheduled for November 19-21 in San Diego. This event brings together leading authorities in real estate finance to share critical business intelligence, insights and best practices. Yes, there’s the MBA's Accounting and Financial Management Conference 2019. But also available on Tuesday, November 19th from 8:00-11:00 is Fundamentals and Best Practices in Mortgage Accounting or Foundational Elements of Mortgage Servicing Rights.
Join MBA Education and industry experts in San Diego on November 19th for a new workshop Foundational Elements of Mortgage Servicing Rights (MSR). The three-hour condensed session will cover critical topics that every financial and servicing professional should understand. Participants will learn MSR cash flow assumptions, commonly accepted accounting practices, and the appropriate method of valuation given your business mode.
Capital Markets
What have rates been doing? Well, there are two big stories vying for market’s attention on a continuing basis: Brexit, and the U.S./China trade war. On Friday, rates went up slightly after the U.S. and China announced a partial trade deal, though it appears Beijing wants a rollback in tariffs before it will agree to buy as much as $50 billion of American agriculture products. Yesterday, rates went up slightly again after it was reported U.K. and European Union negotiators in Brussels are closing in on a draft Brexit deal, though it remains to be seen whether Prime Minister Boris Johnson has the support of various groups such as Northern Ireland and Parliament.
Regardless, any optimism should buoy Treasury yields, and the 10-year closed the day +2 bps to 1.77 percent. U.S. stocks rose as well because of some positive earnings news. On a slightly more sober note, the International Monetary Fund lowered its global growth forecast for 2019 to 3.0 percent from 3.2 percent due to falling manufacturing activity and trade, and the forecast for 2020 was lowered as well.
It’s a whole new day, and we have already seen that mortgage applications increased 0.5 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending October 11. The Refinance Index increased 4 percent from the previous week and was 199 percent higher than the same week one year ago, while the seasonally adjusted Purchase Index decreased 4 percent from one week earlier and was 12 percent higher than the same week one year ago. We’ve also received September Retail Sales (-.3%, ex-auto -.1%). August business inventories are later this morning, as well as the NAHB Housing Market Index for October. There are also two scheduled Fed speakers: Chicago’s Evans and Fed Governor Brainard. We begin the day with Agency MBS prices +.125 and the 10-year yielding 1.74%.
Jobs and Transitions
“Join the String Real Estate Information Services team today. There isn’t enough time or space to name all of the reasons why this is the perfect time to connect with String, but here are a few highlights. String’s reputation and experience is unparalleled, we are growing (6th straight year), ALTA just added String to its ALTA Elite Provider Program and we are laser-focused on quality and metrics. The bottom-line for String clients is more profits, less risk and the ability to focus internal resources where they can make the biggest impact. And when you join the String team, you will be recognized and rewarded for your contribution. We are hiring Account Managers in multiple cities! For a detailed job description and to apply visit the String careers page or send your resume to Prashant Kothari.”
Thrive Mortgage believes in technology that enhances the client experience and increases the efficiency of the Originator. Last year, Thrive launched iThrive, its Intelligent Mortgage Platform, to create a vastly superior lending experience. Thrive’s drive to become the leader in lending innovation has led to impressive “Contract-to-CTC” times of lower than 14 days. Beginning next week, Thrive will implement the third phase of its iThrive platform adding advancements designed to bring the entire loan process into the palm of the borrowers hands all the way through closing. Dan Windell, Training & Development Manager, stated, “Borrowers benefit from an incredibly simplified interface and communication tools that update at every milestone. The LO manages their files more efficiently from prequals, to pricing options and locks, to disclosures. All of it handled through a single, interconnected app.” To learn more about available growth opportunities, please reach out to info@thrivemortgage.com.
MAXEX announced that Erik Anderson is its new COO to lead day-to-day business operations and manage continued company growth. MAXEX is a residential mortgage loan trading platform and exchange company.
Get Rob Chrisman Daily by Email
