“If they raise the interest rates one more time, you're going to hear Janet Yellen.” Much of the talk in the hallways here at the California Association of Mortgage Professionals event near San Francisco revolves around the Federal Reserve likely raising short term rates on July 26th due to the need to raise interest rates further to bring down inflation that is still too high. But the end to its current monetary policy tightening cycle is close. Compliance may be the new focus. “Tawny Johnson gave me the best mortgage I’ve ever had!” We’ve all seen reviews like that and wondered about them. Anyone who repeats reviews should know that the FTC announced its Endorsement Guides, which provide guidance to businesses to ensure that advertising using reviews or endorsements is truthful and complies with the FTC Act, have been revised. In other Federal Trade Commission news, it has opened an investigation into ChatGPT, released by Open AI which is backed by Microsoft, over the technology’s potential harm, possible false information, and security practices. (Today’s podcast can be found here and this week’s is sponsored by SimpleNexus, the homeownership platform that unites the people, systems, and stages of the mortgage process into one seamless, end-to-end solution that spans engagement, origination, closing, incentive compensation, and business intelligence. Interview with Speech-Language Pathologist Ailsa Falck on how Robbie can improve the auditory experience for his podcast listeners.)

Lender and Broker Software, Services, and Products

In 2023, people are watching, on average, an eye-watering 17 hours of video a week, with 75 percent of viewers saying they watch short-form video on their mobile devices. Especially for lenders targeting homebuyers aged 18 – 42, video content should be a marketing cornerstone. An effective video marketing strategy puts you in a great position to catch the attention of young, tech-savvy consumers who prefer to do every transaction on their mobile device and watch A LOT of videos. Through the Surefire CRM and Mortgage Marketing Engine solution, Black Knight offers the Surefire Power Video tool that can help you quickly create videos you can post to your own websites or external sites and embed in emails and text messages. Black Knight has also developed a free guide to crafting engaging video content. Download it now to jump start your video marketing journey.

Did you know most burglars enter homes through unlocked doors and windows? Hackers are no different, except instead of looking for easy entry points into your home, hackers search for the weakest link in your systems. As an increasing number of organizations take advantage of API functionality to connect systems, it’s important to be mindful of potential cyberthreats. In fact, every connection and transfer of data using an API can provide a door for hackers trying to steal data or carry out malicious acts. Subba Ayyagari, chief technology officer at Black Knight, has outlined several steps you can take to stand prepared and keep hackers out. Read more in Black Knight’s blog post, “Securing Your APIs From Threats.”

Do regulatory environment and enforcement actions keep you up at night? With ComplianceEase, staying compliant has never been easier or more efficient. ComplianceEase, by SitusAMC, is the leading web-based, automated compliance management system, facilitating comprehensive loan-level reviews of federal and state laws based on license types, exemptions and preemptions, as well as TRID (multi disclosure) tolerance testing. Findings are displayed in an interactive report in our RiskIndicator dashboard, listing results in key risk areas with five different severity levels to easily identify and correct issues. Gain efficiency with automation and streamline workflow. Integrated with top LOSs, investor, and regulatory platforms, and ComplianceEase onboarding client support teams provide seamless support. Most importantly, using ComplianceEase helps mitigate regulatory risk by identifying errors, so they can be corrected prior to closing. For a demo, contact us.

“Blue Water continues to revolutionize the MSR space by solving problems and creating customized solutions to alleviate operational burdens for our customers. One of Blue Water’s premier products is SuperTransfer™: Its agnostic (any client using any broker or LOS can plug into SuperTransfer™), provides in app exception remediation capabilities with severity tiers, uses OCR+ Blue Water proprietary models for document identification, is flexible & customizable, is lightning fast and provides a robust dashboard to support your team, and is affordable. “I recently completed an MSR sale with the team at Blue Water. Its technology is a game changer, and the knowledge and responsiveness of their team is simply amazing. In thirty years of selling bulk MSRs this was by far the easiest and fastest way to transact. I highly recommend them and will be utilizing them for future trades.” This is all achieved via a secure cloud-based environment accessible on your desktop. Connect with our Veteran Sales Team today and see how Blue Water can save you time and money across a variety of your Mortgage Asset needs. Services provided by Blue Water Financial Technologies Services, LLC.”

“Looking for an easier DPA program? Click n’ Close has you covered. Thanks to its simplicity and competitiveness, our SmartBuy DPA program has helped over 4,000 borrowers finance their home purchase. From start to finish, SmartBuy DPA offers a streamlined process for all parties. With lower capital requirements and short turn times, Lenders can be up and running with SmartBuy in a snap. In addition, wholesale loan program information is available in today’s leading PPEs, including Optimal Blue, MeridianLink’s Price My Loan, Lender Price, and Polly, and unlike state/municipal bond programs, brokered SmartBuy DPA loans are all processed, submitted, underwritten, closed & funded in one setting with CNC. With no maximum income requirements and other innovative features, such as a repayable option with a 30-year amortization and a 2-1 buydown, SmartBuy lives up to its name. Contact Adam Rieke, Soliman Martinez or Kerry Webb (wholesale) to get started today.”

“Turn fixed costs into variable costs on a dime. When the market zigs, lenders need the flexibility to zag. Richey May Advisory brings the mortgage industry expertise and agility you need to convert fixed costs into variable costs. Our difference maker is your ability to outsource services to highly trained experts in a model that fits your needs. Whether that means loan-level accounting, advisory, business intelligence, compliance support, cyber services, internal audits, or underwriting automation, we have the tools, knowledge, and experience to deliver value and improve your financial performance unlike any competitor, anywhere. You’ll feel it almost immediately in your day-to-day operations. Even better, you’ll notice the difference in your bottom line. Reach out or visit our website to learn more about how we can help your operation.”

TPO Channels for Lenders and Brokers

Are you a Non-Delegated Correspondent looking for solutions to help you easily control your company’s loan profitability at the loan officer level? This week, Rocket Pro TPO launched Target Profit Control, a new feature that enables principals to set desired profit targets using a loan-level price adjustment at the loan officer level, ensuring margins are achieved every time, regardless of loan changes. Available only from Rocket Pro TPO, Target Profit Control eliminates misquotes or loan adjustment errors and saves time monitoring loans for margin targets. This offering is the latest addition to Rocket Pro TPO’s Correspondent Assist Program, which provides a broad range of fulfillment options by leveraging Rocket Pro TPO technology for all your disclosure needs, including closing documents. Interested in learning more about a Broker or Non-Delegated Correspondent partnership? Contact Rocket Pro TPO to get started.

It’s no secret: Loan officers need to dig deeper into their toolbox to find new ways to stand out in today’s competitive market. One option is to position yourself as a government mortgage expert, especially if your lending partner is Flagstar Bank. For 35 years, Flagstar has made the government lending process easy. Flagstar has minimal overlays and allows for 580 or even no FICO score on USDA, VA, and FHA loans with multiple borrowers. They also offer VA loans up to $4 million and manual underwriting for borrowers with less-than-perfect credit. Their seasoned AEs, skilled underwriters, and insightful training programs can guide you through the nuances of government lending products so you can educate your borrowers with confidence. Contact your Flagstar Account Executive to learn more or sign up with Flagstar.

Conferences, Events, and Training

The kind of news you want to know, VIBE 2023, a very important broker exchange, is here! What is VIBE 2023?* The biggest growth mindset event for Mortgage Brokers featuring a VIP lineup of some of the most influential speakers in the country! Join us at the Westin South Coast Plaza in Costa Mesa, CA on 10/24/2023. Register to attend using your UNIQUE CODE**, provided by your Kind Account Executive. Learn more by visiting here. *VIBE 2023 event is open to all licensed Mortgage Brokers in the United States. No commitments to establish a partnership with Kind Lending are required to attend. **Unique Codes are provided by your Kind Lending Account Executive. If you do not have an account executive or are not yet working with Kind TPO, email us to learn more.

Millennials and Gen Zers represent the largest group of first-time homebuyers. In less than 10 years, 3.1 million will have entered the market. Of these buyers, roughly 75 percent of them report checking social media daily. Making social media a necessary strategy for loan officers. Join Homebot's VP of Marketing, Ashley Remstad and Mortgage Advisor Sosi Avila as they discuss key strategies and tactics for using social media to your advantage. Register for the webinar here.

Sure, it's mortgage tradeshow season. But if you've got to pick one, it ought to be the Greatest Mortgage Conference in The Known Universe. That's the modest description for Originator Connect, the nation's largest LO conference. A huge exhibit floor and tons of sessions that will help loan originators bulk up their pipeline, it's also got special events such as The Non-QM Summit and the Private Lender Forum. Looking to start your own brokerage? There's an entire half day Build-A-Broker program. And attendees can also get their federal NMLS license renewal class done while you're there. It's all free to NMLS-licensees and their support staff. Just go here and register using the code CHRISMANFREE. And if you want to know what's coming your way, don't miss keynote speaker Lawrence Yun, the chief economist for the National Association of Realtors.

The California MBA’s Western Secondary will be August 21-23 at the Waldorf Astoria at Monarch Beach in Orange County. “Explore the possibilities of the 2023 Western Secondary Market Conference – a unique in-person event that brings together the most influential players in the secondary market.”

The Mississippi Mortgage Bankers Association is holding its fall conference September 7-8 in Jackson. Our theme for this year is “Building a Strong MS” We are focusing on building relationships, strategies, and opportunities for the real estate housing industry in MS. Our fall conference is open to loan originators, realtors, and other industry affiliates. Realtors will receive Continuing ED (CE) credits for attending the Fall Conference.

Save the dates of September 10-12 and join lending professionals from the Pacific Northwest at the Riverhouse in Bend, Oregon, for the Pacific Northwest Lenders Conference. This event promises to be a catalyst for professional growth, offering a unique platform to expand knowledge, build valuable connections, and elevate lending businesses in the region.

Register for the AzAMP Annual EXPO, Luncheon, and 8-Hour NMLS CE Class on September 27th and 28th at the We-Ko-Pa Resort and Casino. Don’t miss Luncheon Speakers Allen Beydoun, UWM EVP, and Rob Chrisman, The Chrisman Commentary Daily Mortgage News. Stay the night at the resort and attend all the events.

TMBA is working through the summer planning outstanding events including the 6th Annual Mortgage Symposium, November 6-7 at the Westin Dallas Southlake Hotel in Southlake TX. The Texas Women Mortgage Bankers event will be held on November 6 at the Westin Dallas Southlake Hotel.

Capital Markets

Economists and investors continue to ruminate on how the consumer price index increased 3% year over year and 0.2 percent month over month in June. The year-over-year increase marks the lowest rate of inflation since March 2021. Too early for the Federal Reserve to do a “victory lap” or a true soft landing?

Yesterday brought another strong rally in treasuries following more favorable inflation news, with the yield curve steepening extending further as investors ramped up bets that the Fed will hold rates steady through year end following a 25 basis points hike later this month. At the producer level, both headline and core inflation slowed more than analysts anticipated, another sign that inflation continues to moderate. Producer prices barely rose in June from a year earlier to post the smallest increase since 2020.

Before we get too far ahead of ourselves, San Francisco Fed President Daly said yesterday that it is too early to declare victory over inflation, reminding us that there is a 12-24 month lag in the transmission of monetary policy. And on the Fed front, St. Louis Fed President Bullard announced his resignation, effective immediately, though he will remain at the Fed in advisory capacity until August 14.

But back to inflation. The Federal Reserve’s mandate is to contain inflation and help the economy. It misjudged the early strength of inflation, which got out of control, though the June CPI showed inflation is moving toward the Fed’s target. Decelerating consumer prices could lead to lower mortgage rates, which would steadily lift home sales and increase home production. The Fed’s latest Beige Book that was released this week indicated that the economy is cooling, with modest growth and slower wage increases. Subsequently, the Fed’s July rate hike will probably be the last of this cycle unless the U.S. is hit by another inflationary shock.

Today’s calendar is a light one but does include more inflation-related reports in the form of import and export prices for June that didn’t move rates. Later this morning brings preliminary July consumer sentiment. Big bank Q2 earnings releases (JPM, Citi, and Wells Fargo) are all coming in better than expected. We begin the day with Agency MBS prices roughly unchanged from Thursday’s close and the 10-year yield’s unchanged at 3.76 percent. In the last week or so the yield on the 2-year has dropped .5 percent to 4.66!

Employment

A national mortgage lender is seeking to hire a strategic Chief Technology Officer with strong leadership skills. The CTO must excel in project planning, capacity models, process mapping, understand deployment of AI, multichannel customer engagement. Must possess strong communication skills and strong knowledge of Encompass and how to build proprietary tech solutions. Must also have led teams in accordance with the above. Confidential inquiries should be directed to Chrisman LLC’s Anjelica Nixt for forwarding; please specify the opportunity.

Looking to break the glass ceiling? C-Suite Executive seeking position as President, CEO, COO/CSO. Immensely competent with strategies, goals, team building, P&L Management, executing a pivot; no pixie dust just fast, agile, smart work with high output. Highly connected with GSEs, investors, regulators, industry vendors, PE money, and compliance executives. Broad industry experience in mortgage, building, land development, insurance, financial services, marketing, software development, capital markets, TPO, private lending, data analytics, tech stacks, M&A, turn arounds, project building/deployment, and leadership & team building. Entrepreneurial and intrapreneurial. Experienced in building tech/digital/DTC as part of strategic plan to build other channels while building traditional sales efforts. Fintech relationship a bonus. Comfortable with boards, C-Suite, and stakeholders. Ego is in check, even tempered, highly goal driven, innovative and creative problem solver, excellent communicator. Currently living on West Coast, relocation considered or will do long distance commute. Please email Anjelica Nixt for additional information and connection with the candidate.