“I can’t believe my grandpa is voting Democrat this year…he would have never done that when he was alive.” (Or Republican – your choice.) Things aren’t always what they appear. How about how non-conforming rates for fixed terms and ARMS are currently .125%-.25%+ lower than Agency? Crafty MLOs are looking for ways to be more rate competitive and for well qualified borrowers, quoting non-confirming rates could win the deal. Many non-conforming investors will accept loan amounts $453,150-$679,650 to compete in with Fannie & Freddie. With no Agency gfees, different loan level price adjustments, and lower compliance costs with portfolio products, they’ve been lower for a while.

Lender Products and Services

“The mortgage industry is a roller coaster ride at times.  How do you continue to grow, generate new revenue and stay profitable when the market takes a turn for the worse? A proactive and sustainable recruiting plan is how! As the leading strategic growth partner in the mortgage industry, Model Match can help! We provide a full range of solutions to help our partners grow their business. Whether you're looking to increase efficiency of your own recruiting efforts, or need a partner that can recruit for you, Model Match is the solution. Between our award-winning talent management software and seasoned recruiting professionals, we match the right people, to the right company, at the right time! CLICK HERE to connect with one of our recruiting specialists and let us show you the value we can create.”

Check them out: Usherpa announces new Zillow integration. According to industry expert Garth Graham (STRATMOR Group), “every lender needs to have a strategy to embrace a consumer centric process, and to embrace potential innovations, and Zillow is certainly a leader in driving and even changing consumer buying patterns in real estate.” Usherpa’s Zillow integration seamlessly grabs your Zillow leads and adds them to nurturing email campaigns automatically, making sure you are the MLO they are thinking about when they are ready to buy. Usherpa is always searching for ways to help you close more deals with less effort. Schedule a demo today to see all the new and innovative technology Usherpa can offer you.

New Penn Financial is proud to announce the launch of its AUS for the Correspondent Division’s SMART series products through the expanded partnership with LoanScorecard. When integrated with correspondent lenders LOS or through the web, the addition of the AUS technology builds on New Penn’s goal to support its lenders in “expanding capacity with speed and ease” boosting their volumes and aiding in recruitment and retention efforts. “We gained incredible efficiency running AUS for all non-agency loans over the past couple of years,” said Dena Kwaschyn, New Penn’s Chief Fulfillment Officer. “This continues to significantly benefit our underwriting assessment, workflow, and turn times.” Contact your correspondent rep to learn more about SMART product benefits or visit New Penn.

Fixed Rate Home Equity Loans are getting a second look! Consumers with low 1st mortgage rates in need of cash are carefully considering the risk of an adjustable rate HELOC in what may be a sustained environment of rate increases. Spring EQ the nation’s premier non-bank home equity lender specializes in fixed rate home equity loans with FICO’s as low as 640 and CLTV’s as high as 100%. Spring EQ has developed an innovative process that typically requires only 4 documents (proof of income, mortgage statement, proof of hazard insurance and a photo ID) and customers can get their money in as little as 2 weeks. Ken Turner, Director of Wholesale Lending, is overseeing Spring EQ’s wholesale channel. Become a broker partner and offer your customers standalone or piggyback home equity loans. We’re also looking for account executives to help manage the growing demand for our products. Just contact Ken Turner (215-302-3850) to sign up today or send a resume.

Quick. If I asked you what matters most when selling loans off, what would you say? Chances are if you’re like the majority of people in the mortgage space, you said “best price.” I get price is important, but that’s just table stakes in today’s competitive market. You need to start thinking bigger. When it comes to best price, this new TMS article explains the new school of thinking — customer service after you sell the loan. How your customer is treated post-sale impacts your profitability and long-term growth. Want to capture your customer when they refi or purchase again in the next 3-4 years? Then start thinking about how you’re treating them after you close the loan and make sure they think of you first for the next loan — even when you sold off the loan.

Capital Markets

Waterfall Asset Management (WAM), a credit-focused asset manager, with approximately $7.3 billion in AUM (as of 7/31) has launched a residential mortgage conduit. The WAM conduit strategy will focus on partnering with best in class originators to originate proprietary mortgage products under forward flow agreements. Specifically, WAM’s proprietary products will be designed to serve both the purchase and the cash-out needs of prime and “near-prime” borrowers looking for low payment, higher leverage options than existing mortgage products in the market. The products will be offered on a delegated basis so the control of the program remains with the originator. Maria D'Anza and Perry Dziekanski have recently joined WAM to grow and support the conduit team. For more information, please reach out to either Maria D’Anza (212.257.6154) or Perry Dziekanski (212.257.5412) directly.

MIAC’s capital markets group is pleased to announce its exclusive offering of ~$25mm reperforming residential whole loans. The collateral consists of 63% modified loans, ~6 months performing, average UPB of ~$184k. Bids are due Friday, November 9th. Interested parties should contact their MIAC sales representative at 212-233-1250 or Steve Harris for additional information.

In other trading news, over at Fannie Mae’s trading desk, effective Jan. 1, 2019, the minimum term for certain whole loan fixed-rate products will be updated in Pricing and Execution – Whole Loan®. The changes are being made to further align with the MBS market. Learn more.

The US dollar has edged up to the highest value in 16 months against currencies of major trading partners in light of US economic data that are more positive than expected. Why should you know about that? A strong economy anywhere will attract investment from all over the world due to the perceived safety and the ability to achieve an acceptable rate of return on investment. Since investors always seek out the highest yield that is predictable or "safe," an increase in investment, particularly from abroad, creates a strong capital account in the U.S. and a resulting high demand for dollars.

Economic data over the last few months hasn’t produced any surprises or changes to the current narrative of a strong labor market and gradually rising prices for consumer and producers. Expectations remain high for the Fed to increase the fed funds target once more this year in December as well as for potentially 2-3 additional hikes to occur in 2019. Consumer prices have matched market expectations. Producer prices have as well – so inflation is tame and steady. Overall, the data continues to support the trend of continues gradual price increases. Over on the jobs front, recent JOLTS data revealed that the number of job openings remained near record highs. The number of job openings has now exceeded the number of unemployed for many months this year and the construction and manufacturing industries have hit new cycle highs for openings. The “quit rate” has been steady, which is elevated and should put upward pressure on wages.

The U.S. 10-year closed at 3.20% yesterday ahead of today’ midterm elections (odds makers are preparing for a split congress, with Democrats taking control of the House of Reps and falling short in the Senate). Investors generally prefer gridlock that comes from a split congress, because it means Democrats won’t be able to roll back tax cuts or reinstate key parts of the Dodd-Frank financial regulations. Elsewhere internationally, China's President Xi Jinping reported the country expects to import $30 trillion worth of goods and $10 trillion worth of services over the next 15 years, a positive outlook. And reports are that the European Commission will officially propose disciplining Italy for deviating from EU budget rules on November 21. Finally, Federal Reserve policy makers are expected to leave the main interest rate unchanged Thursday at their penultimate gathering of 2018.

Today’s economic calendar has 2nd tier numbers: Redbook same-store sales for the week ending November 3, job openings from JOLTS, but with a set of Treasury auctions of note: $45 billion 1- and $30 billion 2-month T-bills, followed by $26 billion 1-year bills and $27 billion 10-year notes. We begin Election Day with Agency MBS prices little changed from Monday night and the 10-year yielding 3.20%.  

Jobs, Personnel Moves, and Promotions

Susan Mingolla! And did you know that only 30% of loan officers operate with a business plan? XINNIX wants to help all mortgage professionals get ahead of the curve in 2019 and discover how they can take their individual and branch production to new heights through the power of effective planning. That's why they are offering a free webinar, Business Planning for Success, on November 14 at 10 AM ET. CLICK HERE to register!

Gateway Mortgage Group, a full-service mortgage company licensed in 40 states and the District of Columbia, stands with the Folds of Honor and our nation’s military families. Since May of 2017, Gateway has donated $5 for every mortgage loan closed through its retail channel. The company has donated $16,605 to in the third quarter of 2018, bringing its total annual contribution to $61,835 and its lifetime contribution to over $135,000. Each month, the company conducts a ceremonial check presentation to a Folds of Honor representative in one of its branches around the country. The partnership is intended to further the mission of providing educational scholarships to spouses and children of America’s fallen and disabled service men and women. As Veteran’s Day approaches, Gateway proudly supports Folds of Honor and our nation’s military families who defend the freedoms all Americans enjoy. For more information, visit Gateway Gives Back.  

In today’s mortgage marketplace, MLOs need every advantage they can get. You not only have to compete with other lenders, but you’ve got to keep an eye on the market, government policy, compliance…the list goes on and on. If the company you work for doesn’t provide top notch support in those areas, you’re already at a disadvantage. Get the Loan Team Advantage from Assurance Financial: a) Unwavering LO support with full service compliance and marketing, b) complete, fast and accurate loan fulfillment to limit time from app to the closing table, and c) a competitive comp plan for LOs and Branch Managers that puts you in the driver’s seat. Get the Loan Team Advantage from Assurance Financial, a growing private residential mortgage banker with offices throughout the South, East Coast, and Midwest US. Contact Paul M. Peters, CMB, (225-939-6353) for a confidential discussion today.

A rapidly expanding bank-affiliated mortgage company is seeking seasoned independent or bank-affiliated retail loan officers, retail mortgage branches, and distributed retail mortgage companies throughout AL, AR, DC, FL, GA, KY, MD, NC, SC, TN, TX, VA, and WV. If you want access to a diverse product offering to grow your business and a great culture of fun and success this opportunity is for you and your team. The Bank offers an excellent compensation package including 401K and health insurance, office set up with computers, phones, and iPad, as well as lease takeover and aggressively priced products including a true bank portfolio offering including Super Jumbo, Jumbo, Expanded Credit, Foreign National, Alternative Income, Construction-to-Permanent, and Non-QM purchase products. To learn more or be connected to the bank, please send me your confidential request for forwarding; please specify opportunity.

Freddie Mac announced that Deborah Jenkins will be named EVP and head of its Multifamily business, effective immediately. Jenkins also has assumed a role as member of the company’s Senior Operating Committee. Congrats!

Roostify announced that Courtney Keating Chakarun has joined the company as Chief Marketing Officer. Chakarun comes to Roostify from CoreLogic, where she served as SVP, Marketing & Innovation.

Summit Funding, Inc. announced that Caleb Mittelstet will join the company as the National Sales Manager in the Corporate office “responsible for leading the Branch Managers to deliver exceptional and competitive services to exceed our clients’ expectations.”