Do you smoke weed? Have you been vaccinated against COVID? Too early in the workweek for those questions? (Is it okay to ask if someone’s been vaccinated against polio?) Some questions aren’t, can’t be, shouldn’t be, are too politically charged to be, asked. We don’t want to need a lawyer to have a conversation with a co-worker or underling. This one is a little easier: What percent of outstanding MBS (mortgage-backed securities) is owned by the Federal Reserve? The answer is 30 percent. That’s a lot. Smarter minds than mine opined that the $1.5 billion cap fear (remember that when it came to window sales?) was exaggerated. Fifteen years ago securitizing was normal, even if you were doing $50 million a month. The $1.5 billion cap per Agency window sale cap is a way of pushing lenders back to issuing their own securities. But you should also remember that last March the private label market (composed mostly of jumbo and non-QM loans) disappeared in three days. When the head of the FHFA was nudging us away from Agency securities and toward the private label machine, really? We’re supposed to rely on that? Any capital markets person will tell you that price uncertainty of private label execution impacts consumers’ rates. (Today’s podcast of the commentary is available here and this week’s podcast is sponsored by  Candor Technology. Today’s episode has Part One of an interview with Candor CEO Tom Showalter on how to teach machine predictive intelligence.)

Broker and Lender Services and Products

The term “sneakers'' can be traced back to the Industrial Revolution, when the first rubber-soled shoes were developed. The silent footwear replaced clunky leather-soled shoes, making them the perfect tool for sneaks. Mortgage lenders should steer clear of anything verging on sneaky when it comes to employment agreements and regulation compliance. To help with that, experienced regulatory, labor and employment law litigator Ari Karen will join SimpleNexus EVP and General Manager Lori Brewer on December 13 at 2 pm EST for a free webinar to discuss employment agreements, compensation, arbitration, and the latest regulations impacting mortgage lenders. Start 2022 off on the right foot and register now.

For the first time ever, Black Friday’s online sales declined, down to $8.9 billion this year from $9 billion in 2020, according to Adobe Analytics. With the shopping buzz wearing off, it’s time to get excited about all the upcoming opportunities to connect! The Computershare Loan Services (CLS) team is gearing up to attend ABS East, MBA’s Independent Mortgage Bankers Conference, and MBA’s Servicing Solutions Conference & Expo, to name a few. Meet up with the CLS team to hear all of the benefits of tapping into their origination fulfillment, co-issue MSR acquisition, and servicing solutions, as well as their mortgage cooperative. Contact Computershare Loan Services (CLS) to learn more.

The Work NumberⓇ and ICE Mortgage Technology to Offer Easy Income and Employment Verification Services to Help Streamline Mortgage Loan Originations! Reliable data flows are essential for efficient mortgage lending. To help ensure vital income and employment data is provided seamlessly, originators will soon have access to The Work NumberⓇ database through a new Partner Connect API (application programming interface) integration with EncompassⓇ by ICE Mortgage Technology. With this enhanced integration, mortgage lenders can instantly access income and employment data in just three clicks, all without burdening the consumer to provide sensitive log-in credentials. The Work Number®, the largest centralized commercial source for income and employment data, gives lenders a better understanding of borrowers so they can make more informed decisions that can optimize back-end operations, assist with maximizing efficiency and help mitigate risk. For more information on solutions tailored for mortgages, visit theworknumber.com. 

Have you ever wondered why the french fries at your favorite fast-food joint seem SO addictive? It’s because they are! Processed foods are tasty and convenient, but they flood your brain with dopamine, mimicking the biological effects of addictive drugs. That’s why a well-rounded diet is crucial for your health. Similarly, filling your pipeline with purchased leads may seem convenient, but it isn’t actually enough to sustain your business. Also, relying too heavily on these types of leads may have a negative impact on your loan volume in the long-run. Fortunately, Sales Boomerang is offering its recipe for lending success in The Mortgage Advisor’s Diet, a free eBook that breaks down ways to fill and sustain your pipeline with relevant leads from your own database. Quit relying on low-quality, fast-food leads that cost you time and money. Download The Mortgage Advisor’s Diet today.

Sales Managers and Loan Officers: Want to diversify your referral base in 2022 and tap into a blue ocean of financial advisor referrals? Most Loan Officers recognize this massive opportunity but don’t know what to say to get the advisor meeting, how to present once they do, and how to build a mortgage practice around this incredibly profitable niche. That’s where the Financial Advisor Referral System comes in. Craig Strent has been working with financial advisors for the last 20 years and gives the specific scripts, tools, and tactics he has used to build annual volume of $100M+ from Financial Advisors. Don’t miss this chance to make financial advisor referrals part of your 2022 business plan! Click here for more information or to sign up.

Training and Events

Join Finance of America Mortgage (Bill Dallas - President) and HouseCanary (Jeremy Sicklick - CEO) tomorrow, Tuesday, December 7, at 10:00am PT for an industry webinar on how to ensure success with your 2022 purchase market playbook. Topics: how to keep pre-approved borrowers from straying during extended shopping periods in a seller’s market and how to retain existing customers as they begin a new home search. Register for the Chrisman/Finance of America Mortgage/HouseCanary webinar.

National MI’s December training lineup (just this week alone) includes “Execute an Effective 2022 Planning Workshop with Dr. Bruce Lund” and “Gearing up for a Productive Year with Kristin Messerli & Cultural Outreach” Sign up to attend any of the National MI webinars on the MI University webpage.

This December, Enact (formerly Genworth Mortgage Insurance) will host multiple courses to help you make personal and professional plans for 2022. From a session on ways to master control and time management strategies to Understanding the Basics of Freddie Mac's Refi Possible and Fannie Mae's RefiNOW to MI Cancellation and Termination, there’s something for everyone. You can browse Enact’s course catalog of on-demand webinars, just have your company or individual NMLS ID handy when registering.

Winterize your professional skills with ARCH MI complimentary webinars. November featured topic is the Self-Employed Borrower Five-Part Series. Gain a better understanding of business structures, cash flow and income calculation, including COVID-19 guidance.

Plaza Home Mortgage December Training Calendar is now available. Options include Expand Refinance Potential with RefiNow & Refi Possible, Enhanced Customer Service through Better Communications and Plaza’s Reverse Jumbo.

PRMG University TPO Training Calendar Now Available PRMG December live webinars topics include Radian’s Understanding and Reviewing Condo Appraisals, PRMG's non-QM Investor Solution product, Symmetry HELOCs for TPO and Exploring AllRegs.

Join loanDepot at tradeshows or attend monthly virtual trainings. Check out loanDepot’s Training & Events calendar for details.

Prepare for the new year with Mortgage Bankers Association (MBA) Chief Economist Michael Fratantoni. For years, he has provided expert economic insight on the mortgage and housing market and he will be sharing his latest forecast with you in the final installment of this year's Economic Forecast webinar series on Tuesday, December 7th. Register for Economic Forecast Series.

Mountain West Financial is finishing 2021 with a BANG. MWF President, Gary Martell Jr., will be joining the December edition of MWF Mortgage Insights Livestream on Tuesday the 7th.

At the Texas Motor Speedway, on December 9th, Lenders One, a national alliance of independent mortgage bankers, banks and credit unions, is hosting its inaugural in-person Basecamp, the best of L1 Summits in a one-day format.

One Day, Scores of Exhibitors, Dozens of Sessions, And One Blowout Holiday Party! The Big Irvine Show Returns on December 9th - California Mortgage Expo. Plus Build-A-Broker, your NMLS License Renewal Class for free.

December 9 is your last chance of the year to attend Fannie Mae’s manufactured housing webinar. Learn about manufactured home financing options with an overview of programs and policies that can support your manufactured home financing business, including MH Advantage® and financing for single-width manufactured homes.

Ready to discuss your “lizard brain”? AMPLIFII Your Influence - Increase Your Sales. Influence is a science, and it can be learned. Join MBA of Florida for its December 13th Webinar, Presented by René Rodriguez.

The National Association of Realtors® will host its third annual Real Estate Forecast Summit on Wednesday, December 15, starting at 1 p.m. Eastern. The all-virtual event will provide a year-end review and outlook on the real estate market and the economy. NAR Chief Economist Lawrence Yun and a group of leading real estate and banking economists and researchers will arrive at a consensus real estate market forecast for 2022 and beyond.

Capital Markets

How elite investors buy homes and loans: As home demand shifts with plateauing list prices and short supply, Wall Street’s top buyers of homes rely on HouseCanary Solutions for real-time decision making. With the power of our newest solution, Acquisition Explorer, you can filter MLS listings tailored to exactly your Buy Box preferences. Learn about Acquisition Explorer, and/or contact email HouseCanary.

Last week had the world scrambling to figure out how dangerous the omicron variant of the coronavirus is. We also saw a highly anticipated U.S. jobs report that contained conflicting signals. It showed the smallest jobs gains this year (+210k), a participation rate that was edging up, and an unemployment rate (4.2 percent) that fell more than forecast. The report is composed of two surveys: one of households and the other of employers. Each has slightly different questions and definitions of employment. Employers reported an increase of 210k jobs while households showed an increase of 1.1 million. Regardless, the overall mixed bag of a report may nevertheless push the Federal Reserve to quicken the wind-down of its pandemic bailout as the economy is on the mend. It at the very least gives the central bank wiggle room policy-wise to attack inflation more aggressively.

We have already seen talk of just that. December’s FOMC meeting got a lot more meaningful last week after Fed Chairman Powell suggested the committee might speed up the end of the Fed’s asset purchase program despite the uncertainty surrounding the Omicron variant and the potential effects to economic activity. St. Louis Fed President Bullard (2022 FOMC voter) said in a speech on inflation that he sees economic measures that argue for removing accommodation at a faster pace. November’s consumer confidence report highlighted the fact that consumers feel employment opportunities abound but many expressed concerns over childcare as well as returning to the workplace which have kept them from returning to the labor force. The ISM Manufacturing Index hinted that some of the supply chain issues may finally be starting to resolve as the new orders index jumped to 61.5 after a 7-point drop the month prior. The seven-day moving average of ships anchored off the port of Long Beach has fallen from a high of 83 to 46 as of November 17. Finding qualified labor still remains a source of frustration across many sectors of the economy. There is still ground to cover until the constraints facing businesses are fully resolved, however economic activity remains robust and continues to steadily improve. Rates were down to close the week.

This week’s $112 billion mini-Refunding being conducted tomorrow to Thursday packs the most market moving potential, in addition to the latest on Omicron, with Fed speakers going into blackout ahead of next week’s FOMC decision. Agency MBS prepayments will be released late today with Class A 48-hour notification on Thursday. Today’s lone economic release is the Employment Trends Index for November, due out later this morning. This week sees the Desk purchasing an average of $4.7 billion MBS per day. They will also conduct the first operation to include GNII 3 percent since early September 2020. We begin the week with Agency MBS prices worse .125-.250 versus Friday’s close and the 10-year yielding 1.38 after closing last week at 1.34 percent.

Careers

“Prosperity Bank Warehouse Lending is expanding again! To support our continuing growth, we have an immediate opening for a Warehouse Lender/Account Manager. We deliver exceptional customer service with facilities tailored to our clients’ funding needs, whether that be eNotes, Bridge Loans, Construction Lending, Non-QM or Super Jumbos. The right candidate will reside in one of the following states: TX, CO, ID, OK, NM, TN, or NY. Requirements for this position include a minimum of 5 years in warehouse lending evidencing your ability to originate new relationships as well as manage existing accounts. Excellent written and oral communication skills are a must. If you want to join a successful national warehouse lending platform with opportunities for advancement, please email your resume to Martha Reitz.

“OptiFunder is growing! As the only warehouse funding platform offering integration, optimization, and automation, we've grown 400% YTD and our recent capital raise of $25M is propelling new innovation. We need to add multiple positions, including seasoned sales professionals to support our national growth effort. Preferred candidates should have 5+ years’ experience selling to C-Suite Executives or manage a portfolio of warehouse lines of credit. Additional candidates considered with national contacts and the energy to sell a fast-growing technology solution for independent mortgage bankers. Submit your resume to Anjelica Nixt, or for more information about this opportunity, our Warehouse Lending Operations Leader position, Data Scientist position and more, click here.”

Wells Fargo is searching for a Head of Home Lending Correspondent Sales who is a direct report to the Head of Home Lending Capital Markets. Direct reports include the Correspondent Sales team (divided into three divisions and comprised of three Divisional Managers, as well as 15 Regional Sales Executives). The ideal candidate is a seasoned executive with increasing responsibility in mortgage, financial services, or allied industries in leadership positions with emphasis in distributed sales, operations, credit, strategy, risk management, secondary marketing, and the residential housing market. For the full job description and desired qualifications, contact Kristen Flaherty, Executive Recruiting (515-608-2893).

Now is the time! PRMG is actively hiring experienced Regional and Sales Managers to serve the ever-growing TPO space. This includes, Western, Northwest, Midwest, and Southeast United States. PRMG has invested in its operations teams to ensure they provide the best possible service levels to customers and business partners. PRMG is a team-focused organization, believing that efficiency and success starts with the actions of likeminded team members across the entire organization. Mutual appreciation between operations and sales has led PRMG to exceeded annual goals year after year and decade after decade! We don’t Grow without TPO! Today, along with numerous accolades under their belt including being ranked amongst the Top Mortgage Employers to work for in America 2021, PRMG employs nearly 3,000 people across the country and is licensed in 48 states with over 250 branches. Are you ready for a positive change? Contact HR@prmg.net for a complete job description or confidential inquiries.

MAXEX, the first digital mortgage exchange, has doubled its participation on the exchange over the last 13 months and now actively supports more than 270 originators and more than 20 high-profile investors. To continue to support and expand its rapid growth, MAXEX has promoted Paul Bianchini to Divisional Sales Director, East and Ryan Freas to Divisional Sales Director, West. Additionally, MAXEX will begin a search for a new Divisional Sales Director to lead its Central region. The company plans to hire a number of additional Sales Directors and expand its inside sales team throughout 2022. Visit the MAXEX careers page to learn how you can help shape the future of the mortgage industry. 

Attention mortgage brokers and correspondent lenders! A nationally chartered bank with decades of commitment to residential lending throughout the country is expanding its branch partner network. If you are a mortgage broker or correspondent lender, imagine a world where your administrative burdens are lifted, where you no longer need to maintain warehouse lines, and where you can offer your employees enhanced benefits. Now imagine a world where you can lend in all 50 states without having to be licensed and where you partner with people who are vested in your success. In this world, you can still be paid from your profits. If you’ve dreamed of starting your own mortgage company, or if you have your own company but you’re tired of going it alone, then CBC Mortgage, a division of First Federal Bank, would like to talk to you. Serious inquiries and confidential resumes to Chrisman LLC’s Anjelica Nixt for forwarding.