“I’ve had $8,000 in my bank account and I’ve had $8. Let me tell you, the $8 lasted longer.” $42 billion in deposits didn’t last long in Silicon Valley Bank. Until lunch, basically, as money was silently transferred to other depositories in a matter of hours. Western Alliance is in the headlines today, and at another “headline” bank, First Republic Bank’s stock price plummeted down but has leveled off since, although the stock is trading at such a discount to book value that there is talk of a buyer coming in, or the government finding one. The financial turmoil that erupted from the collapse of Silicon Valley Bank, Credit Suisse (CS), and others roiled the markets but has since simmered down. And the situation makes the job of central banks around the world attempting to engineer a soft landing to avoid a recession more difficult. Events in the banking system might also "contribute to significant tightening in credit conditions over time, and in principle, that means that monetary policy may have less work to do," Jerome Powell noted. Whether the Fed ends up pulling the trigger on another 25-basis point rate hike in May remains to be seen, as there is a lot of data between now and then. (Today’s podcast can be found here and this week it’s sponsored by Milestones. Giving homeowners an all-inclusive homeownership experience including home value and 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. Listen to an interview with Milestones Ashley Terrell on the value prop for borrowers, loan officers, and companies utilizing technology at every step of the homeownership journey.)

Lender and Broker Services and Software

What’s good for homeowners is good for lenders – and right now, home equity loans and lines of credit (HELOCs) are helping lenders grow their business. If you’re struggling to generate new business in today’s market, consider promoting your home equity products, which can give homeowners immediate access to funds they need and help you retain your customers. Read Black Knight’s blog to learn why so many borrowers are turning to the tappable equity in their homes right now, and how you can take advantage of HELOCs to help you expand relationships with your customers.

Your application fallout rate is too costly! Control costs with Service 1st’s pre-qualification credit reports and Smart Select bureau cascades. “Pre-qual” credit reports are soft inquiries that offer less costly options to view consumer credit and don’t result in a trigger lead for your competitors. Smart Select is credit cascade similar to S1’s VOE cascade. Select customizable attributes that cause the cascade to continue with additional bureau pulls or stop and alert the End User of negative findings. Are you prepared for the new dual credit score models? View this industry partner playbook including a timeline to track implementation updates. Contact S1 today and get transparency into your business processes and expenses.

“The challenges mortgage lenders are facing in 2023 are historic, and it’s vital to understand that decisions now will impact the long-term success and profitability of your company. The mortgage banking consulting experts at Richey May are here to help you make those all-important decisions around your go-forward strategies. We dive deep with an analysis of your operational and financial metrics, MSR cash flows, servicing retained strategies, and production data. Our advice is focused on helping companies succeed and return to profitability, so you can reach your goals this year and beyond. Contact us to begin your deep dive.”

Work Hard Easier. Here's how to work less and win more in this tough market. Your first instinct may be to work even harder than you have been. But instead, you should focus your energy on the essential tasks: making one-to-one phone calls, having face-to-face meetings, and personalizing your marketing with video content. Automate tasks like prospect follow-up, loan in-process updates, Realtor and past customer outreach, thank you cards and closing gifts, etc. Set up automated social media posts also. A truly easy SmartCRM system will do all this and more. Take a look at Usherpa's Relationship Engagement Platform, ranked number one in customer service and client loyalty in the mortgage business. Download this free Field Guide to Success and see how easy delegation can be.

TPO Products

“For the ninth consecutive year, U.S. Bank has been named one of the World’s Most Ethical Companies by the Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices. As a trusted advisor, we have recently launched a new educational breakthrough series aimed at providing lenders the tools and resources to be successful in today’s market. The next program “Social Impact Lending: The New Frontier for Lenders” will highlight the opportunities in multicultural markets and how lenders can build data-informed 360 strategies to make an impact in their respective communities. To learn more about participating, please contact your U.S. Bank account executive. Also plan to connect with us at upcoming regional MBA conferences or at the MBA Annual Secondary and Capital Markets Conference next month. In addition, in early May, our HFA team will be at the NALHFA Annual Conference in Tampa where they will be sharing more about our commitment to affordable housing, first-time homebuyers, and sustainable homeownership.”

Grow your pipeline with Spring Specials on Government and Non-QM Programs from LoanStream, including price improvements! Here for a limited time only, check it out: Govt & Non-QM Specials LoanStream Wholesale - Wholesale Mortgage Lending – New to Non-QM Lending? Get the basics down by attending our Special Non-QM 101 Webinar on Tuesday, April 18th at 11AM PT and learn about how these programs can help you Close More and Sell More loans! We’ll cover the difference between Agency and Non-QM Lending, Income Types and more to help you be successful! Register now to reserve your spot: Webinar Registration LoanStream Wholesale - Wholesale Mortgage Lending.

4.8-million-Person Data Breach

The TitleMax parent company had a data breach that exposes nearly five million Social Security numbers. TitleMax parent company, TMX Finance Corporate Services, has disclosed a data breach that exposed the personal information of nearly five million individuals. The information was accessed over almost two weeks in February, and includes names and birthdates, as well as driver’s license and Social Security numbers. If exploited, and why wouldn’t cybercriminals use it, the information to commit identity theft.

In the United States, title companies and residential lenders are “where the money is,” and are often targets, not only of stealing personal information but for stealing money outright. Companies have truly beefed up security, but it still happens unfortunately.

Investor News: Non-Agency, Non-QM

As noted above, LoanStream is offering pricing specials and a webinar, “Govt & Non-QM Specials LoanStream Wholesale - Wholesale Mortgage Lending” on Tuesday, April 18th at 2PM ET and learn about how these programs can help you Close More and Sell More loans! We’ll cover the difference between Agency and Non-QM Lending, Income Types and more to help you be successful! Register now to reserve your spot.

Plaza Home Mortgage’s Solutions Non-QM and DSCR Investor Solutions programs have been updated with LTV improvements for certain locations, and cash-out transactions may now base the LTV off the appraised value after six months of ownership. These enhancements are effective immediately for all new locks.

Check out Plaza Home Mortgage Reverse News providing the latest information on all things Reverse Mortgage.

AD Mortgage is offering a "Spring into Savings" Non-QM Purchase Loan Promotion. Starting tomorrow, 4/6, get a 0.25 Lender Credit for loans locked before April 30 in CO, UT, TX, NV, WA, MD, and NH. “From April 6 until April 30, we are offering a 0.25 lender credit on loans locked in seven states including Colorado, Utah, Texas, Nevada, Washington, Maryland, and New Hampshire.

Angel Oak Mortgage Solutions announced new program enhancements to the DSCR, Business Bank. Additionally, Angel Oak’s Individual Tax Identification Number (ITIN) loan program, allowing borrowers to submit their ITIN cards in lieu of Social Security Cards, is back. This loan product is a full doc non-QM mortgage offering flexibility for individuals residing in the United States.

Bank Statements not meeting DTI requirements? Save the deal at Champions Funding, here to help with this game-changing, deal-saving, hero-making Ally loan program. Leverage the power of No Ratio loan options to open up possibilities for more borrowers.

The 2nd Mortgage Program from Unite Mortgage is not a HELOC and is available in Full Doc or Bank Statement. “This program is perfect for borrowers looking to take cash out of their home but don't want to refinance their 1st mortgage due to having a low rate locked in.” Close Ended 2ND Mortgage | Standalone or Piggyback, 30 Year Fixed Rate, Fully Amortizing Loan, No Prepayment Penalty, Primary, 2nd, and Investment Properties, SFH, 2-4 Unit, and Condo's, and Up to 90% CLTV (On Primary). (See site for full details.)

Excelerate Capital offers “Elite DSCR” with numerous attributes and restrictions; check the website for details.

Capital Markets

We had a little rally in the bond markets yesterday (prices up, rates down) following the release of the Job Openings and Labor Turnover survey for February, which showed that openings were down by nearly 900k in February. Openings fell across most business sectors, and though some suggest that this report invites new questions about the strength of the labor market, it is evidence that the Fed's tightening is finally gaining some traction. There were also signs yesterday that inflation expectations are receding, and central banks are no longer in a rush to accelerate monetary tightening.

Though affordability remains a challenge, today’s calendar kicked off with mortgage applications decreasing 4.1 percent from one week earlier, according to data from MBA for last week. This comes on the heels of four consecutive weeks of increases, with the 10-year yield rising over 10 basis points during the reporting period.

We’ve also received ADP employment for March (145k, much lower than expected although its predictive ability is questionable) and the March trade deficit. Also today will be the final March S&P Global services PMI and ISM non-manufacturing PMI for March. We begin Wednesday with Agency MBS prices up .125 from Tuesday and the 10-year yielding 3.30 after closing yesterday at 3.34 percent, although the 2-year is down to 3.76.

Employment

The Mortgage Collaborative (TMC) is looking for an experienced President & Chief Operating Officer to oversee the organization’s ongoing operations and serve as a visible public leader on behalf of its nearly 300 lender members. The President will oversee the day-to-day operations, be responsible for financial outcome and strategic direction of the business, and is a key member of the senior management team reporting only to the Chairman/CEO. The President will have to maintain full control of diverse business operations and oversee a solid group of team members, so TMC expects the candidate to be an experienced and culture-driven leader. It’s also critical to maintain a positive, lender-centric business strategy with TMC’s growing membership and vendor partners. If you are interested in becoming the next President/COO of TMC, please send a letter of interest and updated resume to Jim Park, Founder and Interim CEO.

A well-capitalized, bank-owned mortgage company is seeking a Chief Financial Officer with strong related mortgage skills to lead its accounting team and serve on their executive leadership team. Candidates must have a history in mortgage accounting and an in-depth understanding of mortgage financials, capital markets, GAAP, and the accounting aspect of servicing mortgage loans. This position can be remote but travel to corporate (near a major airport hub) is required monthly, and on an ad hoc basis as needed. If you are interested in joining a growing company, please send your confidential resume to Chrisman LLC’s Anjelica Nixt for forwarding.

“Changing workplaces doesn’t have to be stressful, and at Evergreen Home LoansTM, you'll feel like you’ve always been there. Evergreen offers a VIP experience from application to a world-class onboarding experience that makes your transition smooth and puts you on a faster path to success. You'll be surrounded by a culture of caring associates interested in cutting through the red tape and making things happen! Add coaching, training, innovative products, and tools, and you have the recipe for success. From day one, you'll be empowered to do the right thing for everyone in your orbit. While other companies try to deliver a similar product, Evergreen delivers a superior experience. Loan officers seeking a great place to work and a smooth transition should visit the Careers page.”