“My landlord told me that she would like to have a chat with me about the house's sky-high heating bills this winter. I told her, ‘Sure thing, whenever you want. My door is always open.’” A key selling point for originators, in talking to potential clients on the fence about buying a home, is rent. Rents have been increasing, and there’s no sense of permanency, but if you can’t pay your rent, qualifying for a home loan is going to tough. LendingTree found that more than 8 million U.S. adults live in a household not caught up on rent payments. About 3.6 million adults are also living in households that are not being charged rent, primarily in Mississippi, West Virginia, Alaska, Arkansas, and Alabama. There are plenty of rent disputes in the courts, just as there are disputes and cases involving mortgage bankers. I bring this up because convicted former MBA Chairman Ron McCord and his Oklahoma-based company settled CapLoc's allegations that they put fraudulent loans on a funding line settled for $31 million. Brad Finkelstein did a write up. (Today’s podcast can be found here and this week it’s sponsored by MGIC. Since 1957, MGIC has insured more than 13.5 million mortgage loans with innovative products, tools and strategies that help customers solve problems and fuel growth. Explore tools and solutions to boost your business here. Listen to an interview with Tallulah Le Merle, where she flips the script and asks Robbie questions about mortgages.)
Lender and Broker Services and Software
Homebot is making a move to an even more connected consumer experience through the acquisition of Quo Finance, a Mobile App for Homebuyers. With the acquisition of Quo, Homebot plans to bring a native mobile app experience to their millions of engaged consumers, while supporting loan officers and real estate agents in attracting more first time home buyers. See the full story here.
Need help with Fannie & Freddie’s new “property data” programs? Book a complimentary GSE “property data” consultation with Reggora’s Head of Appraisal Compliance, Ken Dicks. Each agency now accepts new valuation products on eligible properties, but there’s more than a few nuances lenders should know about each program. Book a private consultation to learn the nuances of each new product, the differences between each agency’s program, what lenders are responsible for when leveraging these new products, and much more.
Want to launch your next chapter in life and business? Reserve your seat at the The StorySeller Virtual Summit on April 19. Topics include: How to Start and Grow a $1 Billion Company with No Venture Capital, How to Find Hidden Opportunities in Life and Business, and The Stories We Tell Ourselves as Entrepreneurs and Why They Matter. The event is hosted by best-selling author and Momentifi CEO, Gibran Nicholas with sessions from several other speakers. The theme of the event is how to use StorySelling and the 9 human archetypes to grow an epic business and find more meaning in your day-to-day work. Registration is free, but you and your team should reserve your spot now because seating is limited. This is a great way to kick off the Spring Home Buying Season with your team and referral partners. Click here to learn more or sign up. You can also click here to inquire about group tickets.
What have over 250,000 MLOs and real estate agents adopted in just the past 6 months? Emerging new technology company Milestones has hit the ground running since their July 2022 Series A and go-to-market announcement. The technology is fully white-labeled and gives homeowners an all-inclusive homeownership experience including: home value & equity monitoring, home maintenance reminders and how-to articles, cloud-based document storage, one-click access to hire professionals for various projects around the home, and much more. Their unique revenue model allows MLO’s to double down on their commitment to client retention and maturation, while substantially lowering their tech spend (and offering more value to both homeowners and Realtor partners). Connect with Milestones’ Chief Revenue Officer, Ashley Terrell, at #NEXTSpring23 or by email, and you can learn more at milestones.ai.
Discuss the value of instant verifications of income and employment with The Work Number® at MBA Tech 2023. Do you understand the critical importance of seeing a mortgage applicant's gross income when verifying their income and employment? Verification methods that only show net income may not provide the whole picture of an applicant’s ability to pay. Stop by the Equifax booth #202 at MBA Tech, April 2-5 to learn more. The Work Number provides instant verifications of income and employment that show gross income, and not just net income. With access to 604 million records, The Work Number database instantly returns records, updated each pay cycle, provided directly by employers, so there’s no need to collect an applicant’s private banking credentials, potentially exposing them and yourself to risk.
“Looking for a flexible solution for your mortgage accounting needs? Richey May's Client Accounting and Advisory Services (CAAS) team offers the industry expertise needed to outsource accounting functions with ease. CAAS allows you to ramp up or down, eliminating fixed costs to align with market conditions. Our experienced staff understand the economics of loan production and the secondary market, bridging the gap between accounting and secondary teams. Our CAAS team is well versed in cash and accrual accounting with access to the most trusted and capable team of GAAP experts and mortgage industry auditors, to bring value to every part of your business. Our team can help you to implement the best practices employed by top lenders - all at an affordable cost! Get the support you need today for success in any market condition. Email us.”
TPO Products
The spring buying season is upon us, and Verus Mortgage Capital is here to help clients capture market share. As mortgage rates ebb and flow and inventory remains below normal levels, now is the time to expand your loan offerings by adding non-QM products. Verus Mortgage Capital is the #1 investor in the non-QM space and the sector’s indisputable leader. Verus offers flexible guidelines along with a comprehensive suite of non-agency programs. As more borrowers move into unconventional income types, such as gig work and online commerce, non-QM loans can help bridge the gap and open new doors for your business. By partnering with Verus, your company can grow with a new and sustainable source of business backed by deep financial sources and liquidity. Contact Jeff Schaefer, EVP – National Sales, or call 202-534-1821 to learn more.
“Citi Correspondent Lending understands homeownership has long been a cornerstone of the American dream and we remain dedicated to helping turn those dreams into reality, while remaining firmly committed to responsible, sustainable growth. Citi Correspondent is looking to expand our seller base, especially to smaller Non-Delegated / Best Efforts lenders with a shared passion for supporting underserved communities, including Southern California, the DC metro area and Miami. Citi offers a growing product suite and a robust set of Community Reinvestment Act (CRA) pricing incentives along with a quality-focused pre-purchase loan review process that can be leveraged to maximize loan manufacturing quality across your entire book of business. To learn more about becoming an approved Citi Correspondent, contact our National Client Services Team at CMICORRCRR@citi.com or complete our Prospective Correspondent Questionnaire.”
“For 27 years, Luxury Mortgage Corp. ("LMC") has long been regarded as a pioneer and subject matter expert in Non-Agency wholesale lending, with a renowned, deeply experienced team of Account Executives and support staff. Baseball season is here and LMC is stepping up to the plate! With significant improvements on Simple Access Non-QM guidelines which include LTVs up to 90 percent, Qualifying Based on Assets Only, Bank Statement review calculations results within 48hrs, Loan Amounts to $3MM, DSCRs less than 1.0, 30-year and 40-year I/O options, and Unlimited cash in hand, LMC is ready to serve your every need. LMC just closed a $1.6m 24-month bank statement purchase in 7 business days from submission to CTC! It is time to align with true partners who will be here for you and execute at the highest levels. Click here for a complete overview of our products. Contact LMC today to connect with an Account Executive!”
Miscellaneous Third-Party Updates
I try to group investor and lender news, but sometimes news and changes come out that don’t fit together, often involving processing or back-office functions. With that in mind…
If you are a current Calyx Point user, check out Plaza Home Mortgage® in the Wholesaler MarketPlace. “The Calyx Wholesaler MarketPlace allows you to submit a loan file to Plaza directly from Point, with just a few quick steps. Once the loan is locked in BREEZE, you can see the lock confirmation in the Calyx Wholesaler. Click here to watch the quick video to see how it works.”
PRMG TPO Resource Center Updates 23-04 includes updates to various SnapDocs functions, Fannie Mae CPM access, multiple agency checklists and forms. Also, the addition of mortgage insurance certification form number requirements.
PRMG updated QC requirements on All Products and is allowing submissions through condo team on various products. View the details in PRMG Product Update 23-17.
Pennymac will be restructuring its Best Efforts rate sheet effective Monday, March 20, 2023. Read PennyMac Announcement 23-19 for the upcoming changes.
Recently, the IRS announced updated requirements with the use of the new Form 4506-C. With AmeriHome Correspondent Product Announcement 20230302-CL, AmeriHome is aligning with this IRS notice. Details and a summary of the requirements for the previous and new Form 4506-C is posted in the announcement.
Capital Markets
Occasionally someone will ask about yield curve “inversion,” as in, “Why are 2-year Treasury yields higher than 10-year Treasury yields?” Supply and demand. Fewer people want short term money, so the price goes down, and rates up. People are more interested in longer term yield. It suggests that while investors expect interest rates to rise in the near term, they believe that higher borrowing costs will eventually hurt the economy, forcing the Fed to later ease monetary policy. (And remember that Congress oversees fiscal policy, the Fed monetary policy.)
Pricewise, it was another subdued day of action in the bond markets yesterday though there was an overriding sense amongst investors that recent banking problems are in the rear view mirror, which helped to drive bond yields lower and rates higher. There is still plenty of pressure on banks, highlighted by the White House yesterday saying that federal regulators should reinstate some of the Dodd-Frank rules that were rolled back by the Trump administration, including increased liquidity and capital requirements for banks with $100 billion to $250 billion in assets as well as more stress tests and resolution plans.
The third estimate for fourth quarter GDP showed a slight downward revision to 2.6 percent from 2.7 percent reported in the second estimate, due to downward revisions to exports and consumer spending. The personal consumption expenditures index, the Fed’s preferred inflation gauge, was left unrevised at 3.7 percent while the core-PCE Price Index was revised up to 4.4 percent from 4.3 percent in the second estimate. The report points to above-potential growth and inflation that remains above target, which the Fed could use as an argument for additional rate hikes.
Today’s month- and quarter-end session kicked off with personal income and spending for February (+.3 and +.2 percent, respectively, somewhat weak). The core PCE Price Index increased .3 percent versus expectations of an increase of 0.4 percent month-over-month and 4.6 percent year-over-year. Ahead are Chicago PMI for March, Michigan sentiment, and three Fed speakers: New York President Williams, Governor Cook, and Governor Waller. We begin the day with Agency MBS prices up a tick or two and the 10-year yielding 3.53 after closing yesterday at 3.55 percent. 2-year? 4.10.
Employment
Amid reports of sporadic cutbacks, the most recent set in Citizens Bank wholesale group outside of the bank’s footprint, companies continue to hire as well.
“Are you an experienced Wholesale Account Executive excited about innovation and the prospect of being a part of something special? Then Emporium TPO is ready to meet you!
We’re looking for talented sales professionals to join our growing team. Our experienced leadership and collaborative culture allow you to focus on serving mortgage brokers and shaping your professional future. Emporium TPO is the result of more than 65 years of industry experience combined with a vision to build the future of third-party origination. We’re a transformational mortgage lender that delivers high-quality products for our partners and meaningful careers for our associates and others are noticing, including our brokers: “Thanks for those last 2 transactions! You’re our DSCR lender from here on out! Excellent service, reasonable conditions and the pricing is great. Thank you!” – Chris M. Apply on our website or send your resume.”
In the Northwest and California, Banner Bank is searching for Mortgage Loan Officers looking to create lasting Realtor and builder relationships at a bank focused on the market today. Banner has opportunities for lenders looking for local decision making with FHA, VA, USDA, state bond and true Portfolio lending opportunities along with servicing retained Fannie and Freddie loans to assist in client retention. Additional highlighted products cover CRA lending with private label no payment down payment assistance to help assist all borrowers with the right opportunity. Banner is the right fit for an established team, or the individual looking to grow their business and take the next step in their career. Please send resumes to Aaron Miller.
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