Anyone born around this time is a Capricorn, and if you believe in horoscopes, they are the most patient and careful, and they are down-to-earth for everything. The broad stroke feature of them is adamancy: they tend to hold on to their own views and never give up before achieving the goal. I like to believe that the goal of nearly every lender is to do more volume in a compliant manner, and the volume part is going to become tougher. According to Curinos, December 2021 mortgage rate-lock volume was down 40% YoY and 17% MoM across all channels, while funded volume decreased 25% YoY and 6% MoM. In the Retail channel, lock volume decreased 37% YoY and 17% MoM, while funded volume was down 25% YoY and 6% MoM. (Curinos sources a statistically significant data set directly from lenders to produce these benchmark figures. Drill deeper into this data here.) Farther up the food chain, do you think it is just your imagination that active real estate listings are down? Nope. The St. Louis Federal Reserve shows us in a nice graph. Speaking of real estate, today’s audio version of the commentary is available here and this week’s is sponsored by Real Estate Connection (REC). Today’s features an interview with Brian Coester, CEO of Real Estate Connection on his entrepreneurial ways and serving the real estate industry. REC connects buyers with local qualified Real Estate Agents and walks them through the entire home purchase and selling process with the lender partner.

Broker and Lender Services and Products

Radian Title Services is pleased to announce Brian Edwards has taken on a new role as Vice President, National Account Manager, serving Radian’s national origination clients. Brian has nearly twenty years of experience managing title and settlement processes, including title production, title clearance, settlement, and post-closing. In his previous role on Radian’s title operations team, Brian was instrumental in launching Radian Ready, a digitally-enhanced title review process which leverages a powerful data and analytics platform to significantly shorten and simplify the title insurance approval process. Through a simplified grading system, reviewing title reports with consumers is a breeze and gives them clarity at every stage. When there are items that need to be cleared, an exact break down of each issue and plain-language explanations of how they will be cured is provided. For more information on Radian Ready or any of your title needs, contact Brian here.

Do your new year’s resolutions include freeing up time to focus on more meaningful activities? RM Automate, powered by the Zoral Automation Platform, is focused on streamlining and optimizing your entire organization by automating manual, repetitive work and freeing up you and your team to focus on more high-value tasks. Scalable, fully customizable, and easy to implement, it brings a host of benefits to every phase of your operation from lead generation to post-closing and accounting. RM Automate powered by Zoral. Easy automation. High impact. More time to spend doing better things! Schedule your customizable demo today. 

The power of Encompass® is the ability to add unlimited customizations such as Business Rules. What your Encompass Administrators need is a way to manage your current and future customizations. Biz Rule Analyzer will save your Administrator countless hours and in turn, save your company thousands of dollars every year. Over the last ten years, hundreds of Encompass Administrators have been using Biz Rule Analyzer to resolve calculations and other conflicts. In addition, Biz Rule Analyzer tools will help control the “health” of your Encompass® system. Biz Rule Analyzer is just one of our excellent Lender Toolkit Expert Power Tools™. Schedule a demo today to learn how you can easily improve your LOS performance and experience. To learn more about how Lender Toolkit is helping lenders modernize their operation, listen to our recent Lykken on Lending podcast entitled “Building a Culture of Change and Automation”.

We’ve been talking to leading LOs and getting their ideas about production challenges in 2022. Every one of them is doubling down on their Realtor outreach. They know that Realtor relationships are king. Now is a great time to remind your partners of the ways you can add value to them. You should find out how you can use your CRM to tap data intelligence and utilize SmartScore™ technology to build your referral machine. You’re going to need it this year. Supercharge your Realtor Relationships with SmartScore™ - tech that helps you determine which clients in your database are most likely to purchase in the coming months – so you can refer purchase business to your Realtor! Demo Usherpa SmartScore™ today.

Maxwell’s Mortgage Optimization Platform is the comprehensive solution your lending team needs to thrive in 2022’s challenging market. Going beyond loan applications and document management to address the entire process, the Mortgage Optimization Platform combines Maxwell’s point of sale, processing workflow technology, outsourced fulfillment and QC/due diligence, and secondary market trading offerings. The newest of these solutions, Maxwell Processor Edge, is a first-of-its-kind processing workflow technology that integrates with your LOS to increase efficiency, reduce errors, and decrease time to approval from your processing team. This solution, along with the rest of Maxwell’s powerful suite of offerings, gives local lenders the game-changing edge they need to compete in 2022 and beyond. Click here to learn more about Maxwell’s Mortgage Optimization Platform and its individual solutions suited to your specific needs, or request a demo today.

Through technology, products, and processes, Rocket Pro TPO has showed that it is focused on helping brokers succeed. But Rocket Pro is doing more than helping you work in your loan pipeline. With its Pro Talks series, Rocket Pro TPO is providing you access to expert minds that can help you truly improve your business and your life. For the next installment, Austin Niemiec will be sitting down with best-selling author and former FBI negotiator Chris Voss. He will give insights into human nature and how to use influence and persuasion to get more from your business. You can take part in this Pro Talk on Tuesday, January 18. It’s completely free. All you have to do it sign up here. You could learn the tips you need to get your business to the next level.

Regulations and Legal News

Attorney Phil Stein (with Florida’s Bilzin Sumberg) writes, “Your readers may be interested in an article answering the burning question, “Are we finally done with B2B lawsuits regarding mortgages originated in the 2000s?” 

The higher the costs of compliance and regulatory burdens, the more the consumer pays. The number of small banks and credit unions existing the origination game only decreases consumer choice... And when are less choices good for consumers?

Be aware that the CFPB recently published updated HMDA FAQs, specifically addressing loan volume thresholds for determining institutional and transactional coverage under Regulation C. And the FFIEC’s member agencies released revised interagency HMDA examination procedures.

And in late November, in case you missed it during the holidays, a final rule was issued by the CFPB, the Federal Reserve, and the OCC took effect on January 1 whereby the Agencies adjusted their appraisal exemption threshold for HPMLs.

Out of California (which accounts for nearly a quarter of nationwide residential volume) came news yesterday that the DFPI (Department of Financial Protection and Innovation) is spurring participation in the Mortgage Relief Program Funded by U.S. Treasury. The California MBA is on top of it, and any questions should be addressed to CEO Susan Milazzo.

Capital Markets

Join MCT on Thursday, January 13, 2022 at 10 a.m. PT for a webinar demonstrating the new MCT Learning Center, a review of recommended content by lender growth stage, and an overview of client-exclusive training & resources. MCT’s Curtis Richins, Paul Yarbrough, and Ian Miller discuss the debut of the new Learning Center, a one-stop educational content database for each stage of growth of a mortgage lender in the secondary market. The new MCT Learning Center is built around a tailored experience for each individual user with a repository of webinars, technical whitepapers, blog posts, market commentary, and a dictionary of industry terms, granting unparalleled educational access to users looking to expand their knowledge of capital markets. Visit the Learning Center today. And join us on Thursday January 13, 2022 at 10 a.m. PT. 

Mortgage-backed security prices sank Thursday, leading to higher rates, and continuing their weak start to 2022. Post-Fed turbulence has yields rising! The 10-year Treasury yield touched the highest level since April 2021 yesterday and marked a session high just three basis points below its high from last year (1.77 percent). With markets further adjusting to Wednesday’s hawkish Fed minutes, a couple of Fed officials spoke about rate hike prospects with St. Louis Fed President Bullard saying that the initial hike in short-term rates could happen as early as March and San Francisco Fed President Daly saying that the economy is closing in on the Fed's full employment and inflation goals. 

Initial claims for the week ending January 1 increased by 7k to 207k, which doesn’t disrupt the idea that the labor market is tight. Initial claims are running at pre-pandemic levels, which at the time were thought to be quite low. The ISM Non-Manufacturing Index for December decreased from a record high in November, but still expanded to mark the 19th straight month of growth for the services sector. An uptick in the prices index is a worrisome inflation point given the narrative that consumers will be engaging more with services companies in 2022. Freddie Mac’s Primary Mortgage Market Survey saw the 30-year rate 11 bps higher at 3.22 percent with the 15-year rate 10 bps higher to 2.43 percent. Meanwhile, the 5/1 hybrid ARM rate held steady at 2.41 percent.

The Fed’s path is relatively certain, but that doesn’t stop economists from analyzing news that comes out. This morning the December employment payrolls report led off today’s calendar: Hourly earnings were +.6 percent (+4.7 percent annualized), nonfarm payrolls were only up 199k (half of expectations), and the unemployment rate was 3.9 percent (close to the pre-pandemic level). The only other data point today, if anyone cares, is consumer credit in the afternoon. There are also a couple of Fed presidents scheduled to speak: San Francisco’s Daly and Atlanta’s Bostic. The Desk will purchase up to $3.7 billion in conventional MBS and up to $9.3 billion 0- to 2.25-year coupons in the Treasury operation. After the unemployment data we begin the day with Agency MBS prices are worse .125 and the 10-year yielding 1.74 after closing yesterday at 1.73 percent.

Careers

FNB’s Manager of Mortgage Compliance and Quality Control reports directly to FNB’s EVP / Head of Mortgage Banking; direct reports include Manager of Mortgage Originations Quality Control, Manager of Mortgage Servicing Quality Control, and Residential Mortgage Compliance Officer. This position is primarily responsible for managing the consolidated areas of Compliance and Quality Control (QC) for the Bank's Residential Mortgage Services. This position is the first line of defense for all aspects of compliance, QC, agency, and private investor repurchase, government insuring, internal and external audits, regulatory exams, customer experience, staff development, collaboration, and integration with all functional areas of Residential Mortgage Services. The incumbent advises the Director of Mortgage Services and senior managers of primary issues which may expose the department and Bank to regulatory or compliance risk and/or issues.

What are your New Year’s Resolutions? Perhaps it’s making your team stronger and more experienced, or it’s finding your next personal growth opportunity. We want to help make this one resolution that won’t fizzle out by mid-January. Since 2010 Pezian Search Group has helped countless teams grow and people take the next step in their careers and would love to do the same for you. Whether you’re in Mortgage, Banking or one of their supporting industries, are actively looking or just curious to see what is out there, reach out to our team at info@peziansearchgroup.com to discuss how we can be a difference maker for you. You can also follow and engage with us directly on LinkedIn. Let’s partner to make 2022 your best year yet.

Industry Leading Compensation & Turn-Times. Recently named among Top 6 Best Large Mortgage Companies to Work For by National Mortgage News and #1 Mortgage Lender on Ranking Arizona’s consumer poll, Geneva Financial Home Loans is filling Branch Manager and Loan officer positions in 45 states. Close in as little as 10 days. Large volume branches can opt for same-day Underwriting with in-branch Ops option. P&L includes zero fees for credit reports, AUS, LOS, CRM, technology fees, employer taxes (commissioned employees), VOEs, 4506Ts, and warehouse costs. See why Geneva Financial has a 5-star Google rating with over 2,000 verified borrower reviews!

Milestone Home Lending, part of the Newrez Family of Companies, is looking for ambitious Loan Officers in Greenwood, IN. This unique opportunity provides an outstanding platform for Loan Officers to expand their pipeline. “Elevating the consumer experience, driving efficiency, and removing complexity for our agents is a constant focus. Our Loan Officers with Milestone Home Lending are embraced by our agents as an important partner for their buyers. It’s rewarding to watch careers grow as we focus on the customer experience and leverage the expertise of one another.” said Tracy Hutton, CEO of Century 21 Scheetz. “When someone joins our company, not only are they joining Milestone Home Lending, but they are also joining a team that works closely with Century 21 Scheetz. Together, we set the standard for the homebuying experience!” said Brittany Wineinger, Joint Venture President of Milestone Home Lending. Ready to make a move? Apply now or contact Brittany Wineinger, or our recruiting team at recruiting@newrez.com today!

So, you want to work at awesome company? Well, Consolidated Analytics wants to hire awesome capital markets due diligence professionals. Sounds like a possible match! Consolidated Analytics is currently searching for a VP, Transaction Management to rock the following: 1. Lead and inspire a team of driven due diligence professionals in a fast paced, high-energy environment; 2. Produce and deliver accurate, well-researched intelligence and audit findings to our RMBS/ mortgage capital markets clients and counterparties 3. Be a project management maestro and ensure guidelines, requirements, and timelines are met. 4. Foster strong client relationships. The ideal candidate has 5-10 years of experience in capital markets due diligence, expertise in credit and compliance, and is an effective leader and communicator. Candidates can work at our offices in Anaheim, CA; Plano, TX; or in slippers at home. Apply here

Amerifirst Financial Corporation, parent company of Ameritrust Home Mortgage, announced the hiring of Dan Manginelli and Bob Boehnlein to lead a major expansion in California, Arizona, Nevada, and Oregon, serving as co-managing directors of the Ameritrust division helping to open nine new branches in the western United States.