“With oil prices going down, I’ll demand that interest rates drop immediately. And likewise, they should be dropping all over the world. Interest rates should follow us,” President Trump stated. Texas knows a thing or two about oil prices, inflation, mortgages, and climate change. As hundreds of residential lenders, and their vendor partners, gear up to travel to Austin Sunday and Monday for the MBA’s IMB event, the following week, the Texas MBA, in partnership with CoreLogic and the Mortgage Bankers Association, is hosting a free Climate and Insurance Symposium with some “heavy hitters” ahead of the National Servicing Solutions Conference in Dallas. “Join us on Monday, February 3rd from 1pm-5pm to listen to experts discuss the impacts of climate related disasters on servicing and insurance, and what legislative and advocacy efforts we have available to us.” In this nation it is sometimes impossible to separate politics, fiscal policy, and housing, and this week on The Last Word, KP, Brian, and Christy will discuss President Trump's executive orders and their impact on housing and housing finance. They will analyze how these policies could affect homeowners, renters, and the broader real estate market. The conversation will explore potential changes in mortgage lending, affordability, and government-backed housing programs. Tune in for expert insights on what these developments mean for the future of housing. (Today’s podcast can be found here and this week’s is sponsored by Lender Toolkit's new Prism. Experience a quantum leap in accuracy and efficiency as you streamline workflows, reduce errors, and close loans faster. Prism's advanced OCR boasts 99 percent accuracy across 1,450+ document types. Effortlessly index, analyze, and underwrite crucial data with their intelligent system. Today’s has an interview with HomeLight’s John Boyles on product development in the capital markets.)
Correspondent and Wholesale Products
“eRESI is thrilled to announce recent enhancements to LLPAs for our Alt-Doc, Full Doc, and Agency Non-Owner Occupied programs! Stay tuned for more updates and improvements to our programs soon. Additionally, we look forward to seeing our lending partners traveling to MBA's IMB Conference next week. Lisa Schreiber and Kris Willoughby will be in Austin to discuss how we can support your Non-Agency business and unlock new avenues for growth. Won't make it to Austin? Meet with Kris Willoughby at TMBA's Southern Secondary Conference instead on February 10-11 in Houston, TX. Don't miss your chance to schedule a meeting with her to explore our tailored lending solutions.”
“Deephaven Mortgage is excited to announce new product enhancements right out of the gate this year! We celebrated a historical record for non-QM fundings in 2024, and we’re ready to do that again in 2025. We are committed to helping you grow your business along with us! Here are the highlights of our product updates. Expanded-Prime: Maximum LTV for cash-out refinances now goes up to 80% with a 740 minimum FICO and maximum loan amount of $1.5 million, reduced ownership seasoning requirements for cash-out refinances to 6 months for subject property, added P&L only documentation with maximum LTV of 70% for purchases / 60% refinance and maximum loan amount of $2 million, and delayed financing now has no restrictions on cash-out amounts to recoup cash within 6 months. DSCR / BPL: Foreign national borrowers can now borrow in the name of an LLC, foreign national borrowers can now submit international consumer credit reports to establish acceptable tradelines, and expanded tradeline requirements for foreign national program. Equity Advantage - Closed-End Second: maximum loan amount is now $750,000, minimum FICO down to 660, maximum CLTV up to 80% for second homes and investment properties, P&L only option now allowed, cash-out ownership seasoning minimum is now 6 months, limited tradelines allowed for primary only with a CLTV of 75%, and non-warrantable condos allowed. Non-Prime: reduced seasoning requirements for cash-out transactions to 6 months. Let’s get to it! Send your scenarios and become an approved partner with us today.”
Another Kickback Scheme, and a Letter From the Trenches
Pennsylvania's attorney general says a group of Lehigh Valley-based mortgage brokers and their manager participated in a kickback scheme and disguised the kickbacks as stock sales. In a news release Friday, Attorney General Michelle Henry said a civil complaint was filed against a group of Lehigh Valley-based mortgage brokers and their manager regarding a kick-back scheme that involved real estate agents directing potential home buyers to the brokers. The manager and the brokers offered real estate agents discounted ownership in a joint venture mortgage brokerage company, sporting event tickets, dinners, and other kickbacks, in exchange for the agents steering clients to the mortgage brokerage, according to the complaint. The buyers were unaware of the scheme, Henry said.
The news last week prompted a broker from the Midwest to write me saying, “The brokers were no doubt doing it, but what infuriates me is that this is an extremely common practice being carried out by so many real estate companies to title companies to banks. The CFPB seems to turn a blind eye to it, and instead focus on big, headline-grabbing targets where a monetary settlement is possible. (Editor’s note: the CFPB did “go after” a title company back in 2014 for kickbacks.) In-house parties that mortgage companies host are rampant; brokers complain about using below average title companies because they pay the agent or losing clients to lenders because the in-house mortgage team is now a Fed Charter net branch that signed up every real estate agent and pays a ½ point per referral. Everyone seems to turn a blind eye.”
As Usual, Lenders are Willing to Help Those in Need
Lenders and servicers know that mortgage payments are still due even if a homeowner has lost their property to the fires. But originators are telling those impacted that they could be eligible to reduce or temporarily suspend their mortgage payments for up to 12 months by entering a forbearance plan with their mortgage servicer. While this temporary reduction or pause in payments is in place, homeowners will not incur late fees, and foreclosure and other legal proceedings are suspended. Some of the U.S. biggest banks, such as U.S. Bank, Chase, Wells, Citi, and Bank of America, have already offered to ease mortgage repayments for victims of the Los Angeles fires.
The State of California has a “Reassessment of Property Damaged or Destroyed by Misfortune or Calamity” form and every borrower or owner in that area should know about.
Fairway Independent, as well as other lenders and vendors, have charitable arms to help those in need.
PRMG CARES FOR LA! Supporting Southern California Wildfire Victims! Paramount Residential Mortgage Group, Inc. is committed to aiding those impacted by the devastating wildfires in Southern California through the PRMG Cares® 501(c)(3) Non-Profit Foundation. “We’re calling on our friends, families, partners, and colleagues to come together and raise funds to support displaced residents and the first responders working tirelessly on the ground,” said Paul Rozo, CEO of PRMG. To show appreciation for your generosity, PRMG is offering exclusive rewards to top donors. “Join us in making a difference today! Together, we can restore hope and rebuild lives for those affected by this tragedy. Learn how you can help protect the nest! Visit: PRMG Cares for LA!”
Events, Webinars and Training Into February
As hundreds prepare to head to Austin for the MBA’s IMB event, a good place for longer term conference planning is to start is here for in-person events in the future; and organizers can post their event!
On today’s The Last Word, KP, Brian, and Christy will discuss President Trump's executive orders and their impact on housing and housing finance. They will analyze how these policies could affect homeowners, renters, and the broader real estate market. The conversation will explore potential changes in mortgage lending, affordability, and government-backed housing programs.
Technology and innovation in residential lending are the focus of Now Next Later Mondays at 1pm ET.
All Tuesdays at 11am PT, two veteran LOs discuss all things mortgage with Industry Leaders: Mortgage Pros 411 with Audrey Boissonou and Kevin Casey.
Looking for more in-depth commentary on weekly mortgage news? Register here for Wednesday’s 11AM PT "Mortgage Matters: The Weekly Roundup” presented by Lenders One.
Thursday will be another episode of The Big Picture at 3PM ET. Rich Swerbinsky hosts a variety of guests. You can click here to register for Thursday’s 3 PM ET show.
“2025 Lending Compliance Outlook! Dig into lending compliance in 2025 with big-picture insights and practical tips covering topics like hot-button regulatory issues in lending compliance, preparing your lending compliance management program for 2025, what to look for in HMDA and 1071 data, and best practices for staffing, marketing, pricing, products, processing and underwriting. Click here to register for our webinar on Thursday, January 30th at 1PM CST.”
Join First American Data & Analytics, Thursday, January 30, 1:00pm - 2:00pm Eastern, for a forward-looking webinar on the 2025 housing market. Odeta Kushi, Deputy Chief Economist for First American Financial Corporation will explore key trends, challenges, and opportunities in the year ahead.
Friday the 31st, listen in to opinions (Last Word Fridays at 1pm ET) from Jodi Hall, Kevin Peranio, Christy Soukhamneut, and Brian Vieaux! Register here.
2/3-2/5, in San Diego, is the Optimal Blue extravaganza! Don’t miss it and be sure to say hello to my son Robbie.
The Texas MBA, in partnership with CoreLogic and the Mortgage Bankers Association, is hosting a Climate and Insurance Symposium ahead of the National Servicing Solutions Conference in Dallas on Monday, February 3rd from 1pm-5pm. Registration is free thanks to CoreLogic, but seating is limited, please register here.
February 4-7, in Dallas, is the MBA’s Servicing Solutions Conference and Expo. Yes, meet your peers at MBA's Servicing Solutions Conference & Expo, February 4-7, 2025, in Dallas, TX. to better understand servicers' operational challenges. Gain critical insights on cost containment, quality assurance, business model methodologies, and more.
Do you know how to earn business from Gen Z borrowers? It all comes down to trust. Join Catalina Kaiyoorawongs, CEO of LoanSense, and Kristin Messerli, Executive Director of FirstHome IQ Webinar on Wednesday, Feb 5th, 10:00 AM - 11:00 AM PST., as they explore the essentials of connecting with Gen Z homebuyers.
Join Rebecca Lorenz, Thursday, February 6th, 10:00 AM - 11:00 AM PST., for an engaging and eye-opening webinar on key trends shaping the mortgage industry and leadership strategies to succeed.
In Lombard, Illinois, IMBA’s 104th Annual Reception...2025 Mortgage Lending Conference will be held on Thursday, February 6, 6:00pm - 8:30pm. Network, enjoy great appetizers and drinks at The Capital Grille! IMBA Officers and Directors will be installed, and Annual Sponsor Partners and special award recipients will be recognized.
CoAMP is excited to partner with NAMB to bring its CVLS course to Denver, Friday, February 7th, 9:00 AM – 5:00 PM MST at Stewart Title, 7979 E Tufts Ave. Cost for NAMB Members is $199, attendance for NAMB Military Veteran Members is free. Cost for CoAMP Members is $299, email dmcdonald@townemortgage.com for discount code-$299 level includes a year membership to NAMB); Non-NAMB or CoAMP Members-$399 (includes a NAMB Membership). The certification training will cover VA lending basics in addition to advanced topics to set yourself apart. The certification exam immediately following the course, upon passing you will be presented with your CVLS certification and marketing materials. Visit NAMB’s website for more information.
Capital Markets
Yesterday, U.S. bonds sold off again despite jobless claims coming in higher than expected (a weakening job market is supposed to be good news for rates). President Donald Trump, speaking virtually at the World Economic Forum in Davos, warned European Union nations that they could face penalties unless they start producing goods in the U.S. While he delayed his promise to impose tariffs on China, Trump has now threatened a 25 percent tariff on key trading partners like Canada and Mexico, prompting concerns of retaliatory action.
Today’s economic calendar kicks off later this morning with the non-market moving preliminary January S&P Global PMIs, which will be followed by final January Michigan sentiment and existing home sales (expected to tick up to 4.18 million from 4.15 million). On the central bank front, the Bank of Japan was out with its latest monetary policy decision overnight, hiking rates by 25-basis points to 0.50 percent, the highest level in 17 years. We begin Friday with Agency MBS prices nearly the same as Thursday’s close, the 2-year yielding 4.26, and the 10-year yielding 4.64, unchanged from Thursday’s close.
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