Some people say, “You’re crazy to stay in residential lending in this environment, and it’s not going to improve dramatically in the near future.” No, this is crazy. Owners of vendors and lenders who are barely eking by, or losing money quarter after quarter, aside, there is plenty of sanity remaining. Given what I heard in Manhattan, we can expect many, many offerings of 2nd mortgage programs and HELOCs from investors and therefore the lenders that sell to them, given the amount of equity that’s out there. LOs know that these are homes, not houses, and many owners focus on their life there at that address and need to be shown how a 2nd may make sense. But if your client wants to treat house prices like shares of stock, here’s a zip code map showing price appreciation in this part of the business cycle. Speaking of business cycles, Bill Dallas has been through a few, and joins The Big Picture today at 3PM ET to discuss Rohit Chopra firing a missile across the bow of the credit reporting agencies, the evolving post-NAR settlement landscape, and more. (Found here, this week’s podcasts are Sponsored by Truv. Truv lets applicants verify income, employment, assets, insurance, and switch direct deposits. Unlock the power of open finance, with Truv. Today’s has an interview with Experian’s Ken Tromer and Jamie Norris on helping mortgage companies optimize their business expenses and protect prospects using Experian Verify and Power Profile Plus.)

Lender and Broker Services and Products

Operations Masterclass for lenders looking to drive change in their organizations: Do you want to know how the pros, category 1 operations leaders, implement new technologies? This is your event. From Vision to Reality: Driving Large Scale Transformation with Change Experts. Join Liz Short (CEO of Short Solutions and former SVP at Fairway Independent Mortgage Corporation), Misti Snow (Founder of GRITT and former SVP at loanDepot), and Kristin Broadley (Founder of Excelerate Advisors and former VP at Rocket Mortgage) along with Richard Grieser (VP of Marketing at Truv), as they share a framework with tangible paybooks for success, and apply it to Truv's cutting edge income and employment verifications platform as a real world example. May 29 at 1pm CT. All attendees will receive an exclusive Change Management Playbook to download after the live webinar! Start driving transformational change today! Register here.

“Are you a lender seeking to help customers realize the dream of homeownership and grow your business? Partner with Ameris Bank for your warehouse lending needs, and we’ll ensure you receive the resources, support, and service you need to close loans and grow your business. In fact, our warehouse customers have one-on-one access to specialty treasury management professionals who offer tailored financial solutions for their business. With Warehouse lines of credit ranging from $1.5 million to $150 million, we offer competitive interest rates, low fees and industry-leading technology to our customers. Contact Jill Gainer or Jessica Lapresi to learn why their clients trust Ameris Bank for their Warehouse lending needs and how we can help your business grow in today’s market.”

“Approximately 200 originators have turned to MAXEX for better liquidity on Agency-eligible NOO, second homes and high balance loans. Avoid costly LLPAs. Trade it mandatory bulk or best-efforts flow. Get competitive bids from FIVE leading non-agency buyers with ONE contract and ONE set of guidelines. Get access to another premium buyer this summer, available exclusively through MAXEX. Visit us at maxex.com/conforming to learn more.”

Walking around Times Square this week for the MBA Secondary conference, one thing was very clear: the guys selling knock-off purses have a better payment collection system than most lenders. Fortunately, Fee Chaser lets lenders collect appraisals, credit reports, or any other fee with a click of a button. Borrower gets a text message, pays on their device, and the LOS is updated immediately. Give your borrowers the 5th Avenue treatment with Fee Chaser.

On May 1, 2024, Fannie Mae and Freddie Mac, along with the FHFA, announced new requirements for reconsiderations of value (ROVs). The requirements help educate the borrower on the right to appeal an appraisal and how to do it. They also help create uniform industry-wide expectations for how to manage ROVs. Watch this complimentary webinar hosted by ICE to hear directly from Fannie Mae and Freddie Mac about their implementation of these new ROV requirements, followed by a demo of ICE’s ValidateROV, a new solution that can help lenders address these changes. *Check with your compliance or legal department for information on complying with applicable law.

Correspondent and Broker Products

“Elevate your non-QM investments with Planet’s expert asset management and commercial servicing offerings. If you're an investor in non-QM, Residential Transition Loans (RTL/fix-and-flip), DSCR, multifamily, or Single-Family Rentals (SFR), seize the opportunity to meet with us at IMN's 5th Annual Non-QM Forum June 13-14 in Dana Point, CA. Discover how Planet’s specialized platform and veteran advisors can help you maximize returns by reducing risk, providing real-time insights, and maximizing recovery, all at competitive pricing. Don’t miss out on this chance to gain a strategic edge. Contact Jim DePalma, Samantha Manfer, or Caitlin Moynihan or (585) 512-1030. Let’s connect in Dana Point and elevate your non-QM portfolios.”

“Newrez Correspondent is thrilled to announce that Co-Issue has been added to our suite of delivery methods. If you are interested in Newrez’s Co-Issue program, please contact your Regional Sales Manager. In addition to Co-Issue, we have several other delivery methods and executions that will help you succeed in today’s market. We have also added Delegated Non-QM and Closed-end Home Equity products to enhance your product offering. Not approved? Sign up today! A big thank you to all of our clients, prospects and industry partners for spending your valuable time with our team at the National Secondary in NY. You can meet Tom Van Auken, Alex Weems and Chris Nobile at the upcoming 40th Regional Conferences of the MBAs in Atlantic City, NJ, June 4-7 at the Hard Rock Hotel and Casino to discuss all that Newrez has to offer.”

STRATMOR on Banks Playing to Their Strengths

According to STRATMOR, there are several strategies banks and credit unions can work on right now that don’t directly relate to pricing discipline, cost cutting or operational efficiency, but that can move the dial in terms of gaining market share and improving profitability. Most revolve around improved execution of critical business development activities, rather than on new investments in technology or systems. In STRATMOR’s May InFocus article, “All Hands on Deck: Action Ideas for Banks Navigating This Tough Mortgage Market,” Principal Tom Finnegan outlines a roadmap for banks to leverage their strengths and regain their competitive edge. He offers recommendations for uncovering new leads and shares strategies for creating an improved operating model that will pay dividends both today and in future, more robust volume periods. To learn more about strategies for banks and credit unions, check out STRATMOR’s May Insights Report.

Training, Events, and Conferences

A good place for longer term conference planning is to start is here, and click on “Conference List” for in-person events in the future.

Today at 3PM ET, Rich Swerbinsky is interviewing industry vet Bill Dallas on The Big Picture.

Join MBA as they delve into the fundamentals and complexities of mortgage accounting. Anyone who desires to increase their knowledge of mortgage loan accounting will benefit from this session that is designed for business owners, executive management, accountants, and non-CPA accounting managers. Complete the full series, and you'll have the information necessary to master mortgage accounting. Mortgage Accounting Webinar Series: Part IV: Hedge Accounting and GAAP Reporting today from 2:00 PM-3:30 PM.

Join Lisa Green from Atlantic Bay as she hosts Katherine Campbell Chief Marketing Officer from Shape Software for a session on "Adapting to AI." May 23 at 11:00 EST. Discover how to embrace AI's capabilities instead of viewing it as competition. Learn how to leverage AI to support sales, improve customer service, and streamline operational tasks. Explore the use of tools like CRMs and social media to boost lead generation.

Tomorrow we’ll see an episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30 minutes starting at noon PT, 3PM ET, in “The Rundown”. Tomorrow’s co-host is Mike Pulver, the incoming NY MBA President and the SVP of Mortgage for GRB Bank.

Webinar: Surprise: First-time home buyers are on the rise. Here’s how to earn their business. Interest rates and housing inventory haven’t been hospitable for first-time buyers. Despite challenges, this segment made a notable jump in Q1 2024. What drove first-time buyers onto the property ladder, and how can lenders win their business? In this webinar, presented by Maxwell on May 29 at 1 p.m. CT, we’ll dig into Maxwell’s exclusive data to better understand today’s first-time buyers and explore how to cater to this valuable segment. Click here to save your seat (and if you can’t make the live event, you can still register for the on-demand recording!).

There’s the 2024 NRMLA Eastern Regional Meeting May 29th, 9:30 am - 5:30 pm. A representative from the CFPB's Mortgage Markets division will address the 2024 Eastern Regional Meeting in Washington, DC on May 29 to discuss marketplace issues and trends that the CFPB is closely monitoring, and other initiatives related to reverse mortgages. In addition to the CFPB, you'll hear from FHA, Ginnie Mae, Urban Institute, NRMLA's legislative team, and other subject matter experts.

Looking for more in-depth commentary on weekly mortgage news? Register here for "Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT join Robbie Chrisman and Justin Demola for a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements.

Operations Masterclass for lenders looking to drive change in their organizations! Join Liz Short (CEO of Short Solutions and former SVP at Fairway Independent Mortgage Corporation), Misti Snow (Founder of GRITT and former SVP at loanDepot), and Kristin Broadley (Founder of Excelerate Advisors and former VP at Rocket Mortgage) along with Richard Grieser (VP of Marketing at Truv), as they share a framework with tangible paybooks for success, and apply it to Truv's cutting edge income and employment verifications platform as a real world example. May 29 at 1pm CT. Register here.

Webinar: Surprise: First-time home buyers are on the rise. Here’s how to earn their business. In this webinar, presented by Maxwell on May 29 at 1 p.m. CT, we’ll dig into Maxwell’s exclusive data to better understand today’s first-time buyers and explore how to cater to this valuable segment. Click here to save your seat (and if you can’t make the live event, you can still register for the on-demand recording!).

Register for American Banker’s webinar on Thursday, May 30, 2:00 p.m. ET / 11:00 a.m. PT. Executives from Plaid and American Bankers Association will discuss the impact open banking could have on the digital financial ecosystem, challenges and opportunities for small and medium sized financial institutions, and what they can be doing now to prepare.

Thursday the 30th will be another episode of The Big Picture at 3PM ET, Rich Swerbinsky is interviewing industry vet Sue Woodard from The STRATMOR Group.

Friday the 31st will see an episode of The Mortgage Collaborative’s Rundown with Melissa Langdale and me covering current events in the mortgage market for 30 minutes starting at noon PT, 3PM ET, in “The Rundown”.

Capital Markets

“The base rate generator allows you to be more efficient on your lock desk, particularly with hedgeable production. You can auto-lock anything that's priced to that hedgeable product that you're powering with your backend execution.” In this latest video, MCT’s CAO, Chris Anderson, describes how the Base Rate Generator allows mortgage lenders to directly inform their front-end rate sheet pricing with their back-end capital markets executions. By combining live agency API connections, co-issue executions, aggregator pricing, and custom TBA indications, the MCT Base Rate Generator allows mortgage lenders to improve margin management and competitive performance. Originators interested in learning more about the industry-first features included in Base Rate Generator should register for the upcoming webinar on June 4th.

The Minutes from the May FOMC meeting released yesterday showed that policymakers are still expecting inflation to return to target, but at a slower pace than previously thought. On aggregate, the minutes were deemed hawkish after 'various' Fed officials mentioned the willingness to tighten policy further should risks to the outlook materialize in causing such action. However, Fed Chairman Powell said last week that he does not anticipate that a rate hike will be the next policy move.

No surprise here, but higher mortgage rates are pouring cold water on the resale market. Existing home sales dipped for the second consecutive month in April, down both 1.9 percent month-over-month and year-over-year to 4.14 million, corresponding with an increase in the 30-year fixed rate over the months prior. The median existing-home sales price grew 5.7 percent from a year ago to a new April-record $407,600, the tenth consecutive month of year-over-year price gains. The inventory of unsold existing homes climbed 9 percent from one month ago to 1.21 million at the end of April, or the equivalent of 3.5 months’ supply at the current monthly sales pace. Sales activity was much stronger amongst homes priced $1 million or more, with inventory up 34 percent year-over-year and sales up 40 percent year-over-year. This gives some validity to the theory that pent-up demand will be unleashed when more inventory for lower-priced homes becomes available.

The Chicago Fed National Activity Index for April and weekly jobless claims (215k, about as expected… slight drop in continuing claims to 1.794 million) kicked off today’s calendar. Later today brings S&P Global flash PMIs, new home sales for April, KC Fed manufacturing for May, Treasury announcing month-end supply (consisting of 2-year, 5-year and 7-year notes, a Treasury auction or $16 billion reopened 10-year TIPS, Freddie Mac’s Primary Mortgage Market Survey, and remarks from Atlanta Fed President Bostic. We begin Thursday with Agency MBS prices hardly different than Wednesday’s close, the 10-year yielding 4.41 after closing yesterday at 4.43 percent, and the 2-year at 4.86.