Lenders outside of Ohio were mildly interested in the Ohio Governor’s race where Ex-CFPB chief Richard Cordray lost. As forecast Democrats won the House and the Republicans kept control of the Senate, and although there were a few surprises, and some results aren’t known yet. There was a fair amount of volatility overnight and each democratic win seemed good for bonds and not so much so for equities: this morning we find rates temporarily lower (but over time rates are still expected to grind higher) and stocks higher. Markets don’t like uncertainty, and much of that has been removed. Things are still polarized, and the jawboning has begun on 2020.
Lender Products and Services
Looking for a familiar path to grow your Non-Agency production? Galton Funding, a leading non-agency conduit, is offering its Correspondent clients the ability to utilize GSE findings to access our expanded criteria under the Galton Streamline 1st and 2nd lien programs. The Galton program allows Correspondents to use GSE findings for income and reserves up to 95% LTV/CLTV (no MI) as well as provide Interest only options. The Streamline 1st lien is designed to create ease in the underwriting process and is available for loan amounts to $2.5MM. The Streamline 2nd program allows borrowers to avoid MI or Jumbo terms as a piggy back or tap into their home’s equity as a standalone. In addition, with the recently added IO option, Galton’s 2nd lien will better compete with HELOC offerings. For more information contact your regional Business Development Manager at Galton Funding.
Fidelity Bank has been committed to providing warehouse banking solutions for correspondent mortgage bankers and emerging mortgage bankers for more than 30 years. “With Fidelity, you gain access to our dedicated, friendly and responsive team – a team with an intimate understanding of the industry in which you operate, the clients you serve, and the unique needs you have. This deeper industry knowledge and relationship with your business means we can be more flexible and act quickly. We are open to hearing your ideas and requests and can easily provide additional financing to meet your needs and assist with issues as they arise. If you’ve thought that it might be time to consider a new warehouse bank, or add to your current capacity, contact Susan Johnson (952-830-7243) or Brian Huddleston (713-332-8367). Work with a proven partner with a dedicated and responsive team.
Floify’s new and improved Disclosure Desk is here! Version 2.0 of Floify’s remastered Disclosure Desk gives lenders the power to create a single, streamlined experience for their borrowers to view and eSign their loan disclosures – all within the same mortgage point-of-sale their clients use to upload documents, complete a loan application, and follow along with important loan milestones. And there is plenty of additional value to be harnessed from Floify’s other incredible features, including a suite of third-party integrations, a dozen integrated credit reporting agencies, unlimited document storage, customizable business rules, mobile app, and tons of branding and style options! To discover how Floify’s next-generation mortgage point-of-sale system can boost the productivity and profitability of your lending operation, request a live demo!
Do you know if your subservicer is a positive extension of your company? Your customers are your greatest asset. And yet, you hand them over to a sub-par subservicer with antiquated technology, who doesn’t deliver your level of customer service. It’s time to demand more from your subservicer. Sign up NOW for this LIVE TMS Webinar taking place TODAY, November 7 at 2p.m. EST and listen to experts Ali Vafai, TMS president, and Barbara Yolles, TMS chief strategy officer, to learn how happy customers equal future growth and the role technology plays in it.
In today’s environment, nothing is ordinary. Join Sierra Pacific Mortgage on Monday, November 12 at 10:00 PST for a free webinar, “Not Your Ordinary Income”. This one-hour webinar features an introduction into more complex income types that can be used to qualify your borrower, including non-taxable income. Register today so that you can gain more knowledge regarding the GSE requirements for documentation of Social Security, Child Support, Alimony, Military Income, Disability, and Retirement income. If your borrower has them, they may be able to use them in purchasing their next home. Come find out more.
Disaster Updates
FEMA has declared a major disaster in Wisconsin for disasters occurring from August 17 to September 14. Pacific Union Financial is monitoring the impact of the disasters in Wisconsin as well as the impact of Hurricane Michael and the resulting damage and flooding currently affecting Florida and Georgia. Per its published guidelines, any properties located within the areas identified by FEMA offering private assistance will require confirmation the subject property has not been affected by disasters. This confirmation includes Borrower written certification of the condition of the property prior to clear to close by Pacific Union.
Pacific Union requires certifications from Correspondents for properties in the affected counties of the Hurricane Michael disaster identified by FEMA for purchase to occur. Any properties located within these areas offering private assistance will require confirmation, per its published guidelines, that the subject property has not been affected by the hurricane. This confirmation includes borrower written certification of the condition of the property prior to clear to close. See the Pacific Union’s Disaster Area Policy for detailed requirements.
Ditech issued a reminder that FHA requires a disaster inspection to be performed after the close of disaster incident period, unless HUD issues a waiver. When the incident period has closed, or if HUD issues a waiver, FHA fundings may resume. Ditech is suspending closings on Jumbo and Expanded Criteria Products in Georgia, North Carolina, South Carolina and Virginia. Review its complete Disaster Policy and Guidelines in Chapter 18 of the Client Guide.
For borrowers located in a declared major disaster area and need to reconstruct or replace their home, Plaza offers assistance to disaster victims through the FHA 203(h) Program. The FHA 203(h) offers the kind of financing terms that are needed most. Zero down on the purchase of a new home (renters included). Financing available to rebuild a damaged home. Credit score from 580 and flexibility in late payments.
The state of Florida Disaster reported by FEMA in the areas of Bay County, Franklin County, Gulf County, Taylor County and Wakulla County, Sun West Mortgage Company, Inc. will require an interior and exterior inspection prior-to-funding or purchase of any loans with subject properties that are determined to be at risk. The inspection must verify that the property is sound, habitable and in the same condition as when it was appraised.
Mortgage Solutions Financial posted a new alert regarding the Hurricane Michael Disaster.
Mr. Cooper posted an announcement as it continues to monitor FEMA Disaster Declarations and concerns regarding Hurricane Michael. Some counties have been released from its published funding suspension list provided that lenders submit the applicable post-disaster inspection in accordance with Mr. Cooper’s Disaster Area Lending Policy; Mr. Cooper Seller Guide Section 6 “Underwriting Made Easy”. FHA requires post-disaster inspections to be completed after the official incident end date, which has not been determined at this time. As such, inspections for FHA loans should be performed after the disaster end date.
Capital Markets
On Election Day 2018 the U.S. 10-year closed at 3.21% as most jabbering from the press centered on election day, with everyone else growing weary of the jabbering. As with other elections, the markets will digest the outcome of the ballot over the next several weeks. This midterm election, particularly congressional races, are seen as a referendum on the policies of President Trump. Still this week we have the Federal Reserve’s Thursday policy decision, which looms large along with ongoing tension over trade and the state of the global economy. Internationally, the Reserve Bank of Australia left its cash rate at 1.50%, as expected. Additionally, the RBA lifted Australia's growth forecast for 2018 and 2019 to 3.5% from 3.0%
This morning we’ve had the MBA’s mortgage applications data for last week. Total activity fell 4%, purchase apps -5% with refis accounting for 39% of total activity and ARMs up to 8%. Next we have… not much. The EIA Weekly Petroleum Status Report, September consumer credit, and another Treasury auction. Additionally, the FOMC will kick off the first day of this week's two-day meeting. Wednesday begins with rates lower versus Tuesday’s close: the 10-year is at 3.20% and Agency MBS prices are better by .250.
Jobs and Company Initiatives
Congratulations to Fairway Independent Mortgage Corp. for the creation and continued success of its non-profit American Warrior Initiative (AWI). Its mission is to educate and inspire Americans to give back to America’s disabled veterans. Giving back to veterans is not something Fairway merely does on veteran holidays but something that is practiced on a daily, weekly, monthly, yearly basis. In recent years the employees of Fairway have donated over $3 million dollars through payroll deduction to the American Warrior Initiative to fund initiatives all over the country for disabled veterans and active duty service members and their families, including 70 service dogs, vehicles, veteran business grants, home renovation and repair grants, family grants, help for homeless veterans, sponsorship of para-triathletes and much more. 50 AWI events have been or will be hosted by Fairway branches in 2018. (These events include “Boot Camps” where real estate agents receive 3-4 hours of CE – over 30,000 real estate agents have attended these camps in the last six years.)
The Third Party Originations team at Home Point Financial is pleased to announce that Tim Fitzgerald has joined the company as Managing Director – Regional Manager. He will direct the regional sales team responsible for 14 states in New England, the Northeast, Midwest and Washington DC and work with Paul Wyner, Senior Managing Director – TPO Sales. Noted Phil Shoemaker, Chief Business Officer at Home Point, “We are happy to have Tim on our team; his innovative leadership style will contribute to our position as a leader in the TPO channel.” To congratulate Tim, drop him an email.
“It’s the most wonderful time of year to make your move to PrimeLending, an industry leader with over three decades of continuous growth and stability. How easy is your transition? With powerhouse recruiters Philip Rodriguez and Shay Crow by your side, it’s quick, simple and stress-free — and you can start originating day one! Philip covers the Pacific Northwest with Kelly Lee, and Shay bolsters the Southern Coastal region with Brandon Watson. Both are mortgage industry experts who have helped countless Loan Officers and Branch Managers discover their best at PrimeLending. Are you next? Contact Phillip or Shay to get started today.”
Considering a change? At MortgageRight, we set ourselves apart by offering lower rates, better pricing and higher compensation! We’re making a name for ourselves across the nation by operating with thinner margins than other industry players. We saw the rising interest rate environment coming ahead of time and decided in advance to put several key strategic factors into place that would help our producers win in a market like this one! Very simply, we can offer lower rates and/or a higher comp, and we can back our claims up 100%! But don’t take our word for it. Check out this recent example: We recently on-boarded a branch manager who was able to increase his comp by 50BPS AND offer 1/8 better RATE to his customers! Give us the opportunity to show you how our model can help you win more deals in any environment. We’ll be happy to put any candidate in touch with recent hires and existing LOs to discuss our strengths, see what we have to offer, and hear our vision for the future. For a pricing engine walk through, contact Mike Russo at (888) 425-5456 or visit us at www.branchright.com.
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