Thank you to Tracy C. sent, “An unemployed court jester is nobody’s fool.” There are millions of unemployed U.S. citizens, and the CFPB, HUD, and other federal agencies have partnered to encourage homeowners who are struggling financially, unemployed or not, as a result of the COVID-19 National Emergency to take control of their mortgage loans with resources to support customers and clients. Click here to access the CFPB’s online toolkit. Every MLO should send it to their clients to forward to friends who may be strained: 2.7 million homeowners are in forbearance plans. And the strain is apparent in Ginnie Mae loans. Versus the MBA’s forbearance numbers Fannie Mae and Freddie Mac loans in the latest survey (3.35 percent), Ginnie Mae loans in forbearance are more than double that at 7.73%. More below on government-backed loan stats and program changes.

Lender Products and Services

“If you’re like the average lender, you have a database of 5,000 records, and only retain 20% or less of your borrowers. In one month, you’ve lost over 39 loans to your competitors. That's a whopping $10 million of loan originations!Sales Boomerang notifies mortgage lenders when someone in their database is ready for a loan. Our clients retain more than 65% of their borrowers. The longer you delay, the larger that loss becomes on your bottom line. We want to be your retention hero and win back the loans that you’re losing. ‘I have LO’s that only work Sales Boomerang leads, and my ROI is in the 20-30X Range.’ (John Kresevic, CEO, JFQ) The numbers speak for themselves: 20X Avg ROI, $240 Avg Cost Per Acquired Loan, 10-20% Avg Lift to Loan Volume. Want to see exactly how much you lost this year? Request your report today.”

Hubzu®, a leading online real estate marketing platform, launched a new best-in-class mobile app that gives buyers on-the-go access to the power of Hubzu technology. Available for iOS and Android, it provides even more tools for experienced and new buyers to find, research and bid in a competitive auction format for all types of residential properties, including retail, short sales, foreclosures and REO. They can also stay updated with real-time alerts so they won’t miss a bid. Proxy bidding for foreclosure sales will be added soon so buyers can set the highest price they want to pay and let the system do the bidding for them. To learn more, click here. Hubzu is part of the integrated asset management solutions offered by Altisource®.

In two of the most important milestones in the digital mortgage roadmap, the appraisal and final closing, lenders have an opportunity to both empower consumers and deliver an experience that drives repeat and referral business, according to the results of a recent Javelin Strategy & Research study, sponsored by ServiceLink. On 12/10 at 2 p.m. EST, join us for an overview of key findings and data from this study, as well as an in-depth discussion on how lenders can offer the seamless digital experience that borrowers have come to expect. Austin Kilgore, Director, Digital Lending, Javelin Strategy & Research, will be joined by Dave Howard, EVP, Origination Services, ServiceLink, and Jaylene O’Brien, SVP, Mortgage Operations, nbkc, to share the research results and their industry insights. After the webinar, registrants will gain access to two original white papers created in partnership with Javelin Strategy & Research, as well as a recording of the session. Register today.

“As 2020 comes to a close, Verus Mortgage Capital is taking time to reflect on how challenging this past year was. While the pandemic’s impact was far-reaching, we’re grateful to have been able to re-enter the non-QM market and once again answer the needs of underserved, creditworthy borrowers. We’re optimistic about 2021 and the increasingly hot purchase market. Are you prepared with programs for ALL of your applicants? New program enhancements go into effect on Dec. 7 including: Prime Ascent LTVs increased to 90% for 1- year document type and rate term. Credit Ascent loan amounts increased to $3 million, purchase rate and term increased to 90%. Now allowing 50% flat ratio for business bank statements. Removed cash-out restriction in Florida and increased max cash-out to $500k for Foreign National. Non-QM…it’s all we do and we do it very well. Learn more, email Jeff Schaefer, EVP – Correspondent Sales, or call 202-534-1821.”

Discover the secrets to partnering with fintech! Reggora, a leading appraisal technology company, has partnered with thought leaders from Truist, PRMG, Flagstar, DCU, and Wyndham Capital to create an easy to read “Mortgage Lender’s Guide to Fintechs.” Learn about the most effective strategies to discover internal efficiencies, find the right fintech, and evaluate the success of the partnership. Download the eBook for free.

Lakeview Correspondent now offers the VA Interest Rate Reduction Refinance (VA IRRRL) product. Designed for non-credit qualifying safe harbor loans with a minimum 640 FICO requirement, the fixed rate VA IRRRL product does not require an appraisal, employment or income calculation, or asset verification on the application, and offers loan amounts up to $1 million. Contact your Business Development Director for details.

Super charge your VA offering with significantly enhanced pricing for one of the industry’s lowest available note rates for purchases and refinances (now available between 1.75%-2.125%) through Freedom Mortgage’s Wholesale Division. As the nation’s #1 VA and FHA lender (Inside Mortgage Finance, Jan - Jun 2020), our clients can offer even more value with an additional 50 bp purchase incentive for government loans, effective November 30, 2020.  To learn more, check out our rate sheet or email AskFreedom@FreedomWholesale.com.

USDA, FHA, VA Programs Never Sit Still

Every lender, and certainly every servicer, realizes the risk of originating and owning government-backed FHA and VA loans. FICO scores are in the high 600s. The MBA’s survey tells us that delinquency rates are noticeably poor (in percentages, New Jersey 20, Louisiana 19.6, Maryland 18.6, Texas 18.3, New York 17.6, California 15.7, Massachusetts 17.2, Wisconsin 12.9, Illinois 17.1 District of Columbia 20.2%, Florida 17.1, and Arizona 13.8%). As industry vet Joe Garrett points out, “Servicing delinquent loans can be very expensive, and if you have to foreclose, you can be out a whole lot of cash for a very long time while waiting to be reimbursed by HUD.”

Fannie & Freddie recently announced 2021’s loan levels, and the FHA’s are expected this week. “Low cost areas” are expected to go up to $356k (65% of GSE’s $548,250) for case numbers after January 1. For the VA program, the Blue Water Navy Act removed the maximum guaranty amount for veterans with full entitlement.

Register for FHA’s free online webinar, Wednesday, December 2nd. FHA will provide an update to the Federal Housing Administration’s (FHA) quality assurance results for the most recent quarter, as well as specific information on FHA’s Credit Watch Termination process.

On December 2nd, MBA-NJ is offering First in Webinar Series, USDA Rural Development: Program Basics and Updates.

OMBA is providing a VA Training designed to teach how to effectively underwrite, process and originate VA loans.  Changes in VA guidelines that have not been updated in the handbook will be discussed, as well as Circulars that will provide guidance for obsolete information in the handbook. This 8-hour webinar will be conducted in two 4-hour sessions, December 3rd, and December 10th from 1:00 to 5:00 pm EST.

On November 17, USDA’s Proposed Rule was published in the Federal Register to mandate the use of the Agency’s Guaranteed Underwriting System (GUS) and Lender Loan Closing System (LLC) for all approved Single Family Housing Guaranteed Loan Program (SFHGLP) lenders. The proposal will allow the Agency to decrease time-consuming and expensive manual file reviews, improve performance monitoring and reduce program risk of the guaranteed loan portfolio. USDA is seeking comments, submitted via the Federal eRulemaking Portal: Go to http://www.regulations.gov and in the “Search Documents” box, enter the Docket Number RHS-20-SFH-0025 or the RIN# 0575-AD21, and click the “Search” button. To submit a comment, choose the “Comment Now!” button.

The USDA launches AskUSDA, meant to improve & streamline the customer experience.

The FHA released an update to its Single Family  Handbook. The update incorporates Mortgagee Letters released since January of this year, which include the enhancements made to FHA’s Claims Without the Conveyance of Title procedures and the Loss Mitigation options for borrowers impacted by the COVID-19 pandemic. This update does not include the anticipated proposed changes to the servicing portion of the SFHP Handbook released in July on the FHA Single Family Housing Drafting Table. Based on discussions with HUD, those updates are expected before the end of the year or early January.

Yes, we have Single Family Housing Policy Handbook 4000.1 (SF Handbook). Information updates includes revisions and additional clarifications to various FHA policies and programs throughout the SF Handbook since its last update eleven months ago, as well as the incorporation of changes previously announced in the Mortgagee Letters included in the Handbook Transmittal.

FHA’s Mortgagee Letter (ML) 2020-38 announces expanded capabilities within FHA Catalyst, providing mortgagees with new claim submission functionality through the platform. This expanded capability is part of FHA’s continuing efforts to improve and standardize processes for its stakeholders. We also have Mortgagee Letter (ML) 2020-40, extending the effective dates previously  published in ML 2020-24 of multiple COVID-19 subjects including Temporary Guidance for Verification of Self-Employment; Rental Income; 203(k) Rehabilitation Escrow Account.

FHA’s Mortgagee Letter (ML) 2020-39 further extends the period for mortgage forbearance provisions provided under the CARES Act, as announced in ML 2020-16 on June 4, 2020. More specifically, ML 2020-39 allows mortgages to be endorsed for insurance when the borrower, after closing, has requested a forbearance due to the COVID-19 National Emergency. Mortgagees may use the guidance in this ML immediately for pending endorsements through December 31, 2020.

Black, Mann & Graham L.L.P posted a memorandum regarding VA regulations establishing processes and procedures for issuing guidance documents.

FAMC has updated FHA Standard products minimum FICO to 620, effective for all loans locked on and after November 23.

Starting with new locks last Friday, November 27, Flagstar updated its Government Loan Amount FICO loan level price adjustments.

loanDepot’s Weekly Announcement includes updated information on Fannie Mae and Freddie Mac COVID-19 Updates Conventional, loanDepot FHA Lending Guide Credit and Eligible Transactions, loanDepot VA Lending Guide – Credit and Income Section and the VA Help Desk Transition ServiceNow.

First State Mortgage is not aligning its policies with FHA’s Temporary Forbearance Flexibility. Review Guide Announcement 2020-036 for more information.

Capital Markets

The bond markets were open on Friday but there isn’t much to report from the post-Thanksgiving trading day. Last week closed with buying in the bond market, largely due to geopolitical concerns after Iran's top nuclear scientist was assassinated. Longer-term treasuries, in particular, were supported by discussion in Wednesday’s FOMC minutes about possibly shifting more QE purchases to the longer-end of the curve. By the close on Friday, Treasuries had rallied and the MBS basis ended tighter. November gross issuance totaled a record $354.1 billion, up 4.9% from the previous month’s high of $337.4 billion. 43% was in FNMA, 37% was in FHLMC, and 20% was in GNMA.

This week’s economic calendar gets underway shortly with Chicago PMI for November and Pending Home Sales for October. The only other release scheduled is Dallas Fed Texas manufacturing for November. There is no Fedspeak scheduled today, but Chair Powell and Treasury Secretary Mnuchin will testify before the Senate Banking Committee tomorrow and the House Financial Services Committee on Wednesday. Other economic updates scheduled this week include November ISM manufacturing and October construction spending tomorrow, November ADP employment on Wednesday, November Challenger job cuts and November ISM manufacturing on Thursday, and October factory orders and the closely watched November Payrolls report on Friday. We begin the day with Agency MBS prices unchanged from Friday and the 10-year yielding .86 after closing Friday at 0.84%.

Employment

“Is your company offering you stock options? Since 1999 ACCMortgage.com is not like any other company. Recently voted a MPAm Top Mortgage Workplace and had another record setting November in purely Non-QM. Now we are looking ahead to 2021. If you have a passion for Non-QM, tired of the typical corporate mentality and want to be rewarded for your hard work, then ACC is your new home. Looking for stability? ACC never stopped lending during COVID. We offer the most complete Non-QM suite of products, top commissions, and our pricing will not be beat. We are looking for passionate and experienced Non-QM underwriters, account managers and Account Executives to build on our already successful foundation. E-mail resume to Recruiting@accmortgage.com.”

“Caliber Home Loans is passionate about helping people reach their dreams of home ownership. We’re always looking for new ways to educate homebuyers and others in the mortgage industry. So, we’ve developed two podcasts: “The Home Connection” and “Homeownership Heroes.” Both are right for homeowners, realtors, lending professionals and everyone in between. And they’re presented in an easy-to-understand format. “The Home Connection” covers mortgage industry trends and marketing strategies for lending professionals streaming every other Monday on Apple, Google and Spotify. “Homeownership Heroes” covers military benefits and VA loans and is on the National Mortgage Professional TV Network every Wednesday. It also streams on Apple, YouTube, and Facebook. Caliber Home Loans is an innovative company, and we’re hiring right now. Visit our website today to view open opportunities. To be immediately considered for Operations or Sales positions, email Jonathan Stanley or Brian Miller respectively.”

Track record of long employee tenure = Assurance Financial. Best tech stack in the mortgage marketplace = Assurance Financial. Exemplary record of servicing purchase money market MLOs = Assurance Financial. Incredible entrepreneurial Branch Manager business model = Assurance Financial. Community service oriented in all markets with St. Jude as our philanthropy partner = Assurance Financial. Founded in 2001, licensed in 43 States, all agency approvals, not controlled by private equity, and growing in all markets. If you are an aggressive producing branch manager or senior mortgage loan officer considering another opportunity, please contact Paul Peters, CMB, or Lindsay W. Anders to discuss an opportunity with Assurance Financial www.assurancemortgagelo.com.