“How do you tell when you're out of invisible ink?” How do you tell when interest rates are “where they’re supposed to be?” Arguably, rates, based on supply and demand, are right “where they’re supposed to be” at any given time. The financial press will be blathering on about the Fed (e.g., whether it will cut rates by 25 or 50 basis points) until September 18th. Most would agree that the Fed should be “behind the curve” and right, rather than “ahead of the curve” and wrong. Of course, no one predicted a 2-day refi boom, and rates have moved back up somewhat. But, of course, every company that owned the servicing rights for a given loan reached out, and borrowers took notice. Treasury yields, like the 10-year T-Note’s, came down, and mortgage rates followed, and then went back up. But investors and bond traders have already priced in a Fed rate cut, to a great degree, because everyone is expecting it, so mortgage rates have already also come down. (Today’s podcast is found here and this week’s is sponsored by PHH Mortgage. If you are looking for a Correspondent Lending partner or an experienced, award-winning subservicer who can manage your forward and reverse, residential and commercial, and performing and non-performing loans, look no further than PHH. Today’s has an Interview with TPO Go’s Phil DeFronzo on all things renovation lending and how expanded product guidelines are helping borrowers.)

Lender and Broker Software, Products, and Services

Halcyon is proud to announce a special initiative that honors the brave men and women of the U.S. Armed Forces. Starting immediately, Halcyon will contribute the proceeds from every transaction initiated on behalf of active military members or veterans to charitable organizations dedicated to supporting our service members and their families. “Having spent six years in the Mideast, I have seen firsthand the dedication and bravery of our service members. The men and women of our military have always held a special place in my heart, and this initiative is an expression of our deep gratitude for their service.” Said Kirk Donaldson, CEO of Halcyon. Read the full press release here. Halcyon is a leading financial technology company dedicated to providing innovative solutions for the mortgage industry. Tax Wallet highlights that commitment to deliver faster, better, and cheaper financial services. For more information, visit www.halcyonsw.com.

“Ready to help your borrowers turn their homeownership dreams into reality? Look no further! Lakeview proudly offers a range of programs, including 10 State HFA Programs. Join Lakeview at the Western Secondary the epicenter of Mortgage Finance: Mark your calendars for August 19-21 at Terranea in Palos Verdes. Dive into riveting discussions, gain strategic insights, and connect with industry leaders. Let’s shape the future of homeownership together. Schedule time to meet and explore exciting opportunities. Additionally, we’re thrilled to attend Captivate hosted by Geraci, on August 19-20 in Las Vegas. Our very own Clint Thomas will be speaking on our Bayview Non-Agency Loan Product Suite.”

“Join Axos Bank at the 2024 Western Secondary Market Conference! Are you attending the 2024 Western Secondary Market Conference in beautiful Palos Verdes? Don't miss the chance to connect with the Axos Bank Warehouse Lending team! Why Choose Axos Bank? Extended Funding Hours: Enjoy extended funding hours until 6:15 p.m. ET, giving you more flexibility and convenience. Extensive Loan Funding Experience: Leverage our expertise in funding a wide variety of residential loans that you originate, ensuring smooth and efficient processing. Let’s Connect! Reach out to Eric Nelepovitz or Justin Castillo to schedule a meeting at the conference. For any warehouse lending inquiries, call us at 888-764-7080 or visit Axos Bank Warehouse Lending. We’re proud to expand our warehouse business even in uncertain times. Discover how Axos Bank can help you get more from your lender.”

New Rules, New Strategy: How to Drive Mortgage Leads in the Aftermath of NAR & FCC Rule Changes. The way home buyers interact with lending and real estate professionals is changing. NAR practice changes, effective 8/17/24, dictate new rules mandated by the groundbreaking settlement reached in March. Meanwhile, the new FCC rule, effective 1/27/25, shifts the way lenders can purchase and pursue mortgage leads. Now is the time to get ahead of rule changes with a well-crafted lead generation strategy. Download Maxwell’s new eBook to learn how NAR and FCC rule changes will impact lenders, new challenges and opportunities lenders can expect, and 3 tips for building a strong mortgage lead funnel in today's market. Click here to get your copy of New Rules, New Strategy: How to Drive Mortgage Leads in the Aftermath of NAR & FCC Rule Changes.

“Spring EQ Wholesale has just unveiled its exciting product the FIXLINE (Fixed-Rate Line of Credit), sparking a surge in demand! But that's not all! Introducing EMMA, an innovative interface designed to streamline the home equity loan process for our valued partners. Don't miss our upcoming webinar on Tuesday, August 13th at 1pm EST! Discover how EMMA can transform your home equity business with instant AVM’s, seamless Pricing, and swift Quotes! Interested in a wholesale partnership? Click here. Interested in a correspondent partnership? Click here. Second mortgages are Spring EQ’s specialty, so think of them first for all your seconds!”

Freddie/Fannie News and Updates

The lion’s share of residential business is locked, processed, underwritten, funded, and eventually sold to Freddie Mac and Fannie Mae. What’s new?

On September 20, 2024, Fannie Mae will update the Desktop Underwriter® (DU®) validation service to introduce enhancements to improve the digital verification of income and employment for loan casefiles submitted or resubmitted on or after September 20, 2024. The enhancements apply to loan casefiles for which employment or income is validated using an asset verification report, including updates to employment validation close by dates, expanded eligibility for income and employment validation messaging, and more.

Effective July 29, Fannie Mae enhanced the lists of appraisal management companies and technology service providers that can fulfill value acceptance + property data orders. Bookmark this link to stay current, as this list is subject to change.

Fannie Mae updated LL-2023-05, Advance Notice of Changes to Master Servicing Processes and Systems, to reflect updated reporting requirements based on remittance type and to clarify timing for summary reporting mortgage loans.

Find more opportunities for condominium loans in Loan Product Advisor® (LPASM) with new feedback message updates. Freddie Mae is enhancing LPA to help you gain earlier insight into a condo project’s eligibility with Project Assessment Request (PAR) status messaging pulled straight from Condo Project Advisor®. Further details are available in Freddie Mac News and Insights.

Make your loan delivery process more efficient, check out Freddie Mac’s new enhancements to Loan Selling Advisor®.

Freddie Mac is requiring trended credit data to be included in credit reports submitted to LPA. Pennymac is aligning with this change, details available in Pennymac Announcement 24-74.

Pennymac’s alignment with Fannie Mae updates and new flexibilities to the HomeReady program is discussed in Pennymac Announcement 24-73.

Capital Markets

If people aren’t working, they spend less. If they spend less, the economy slows. Yesterday’s Jobless Claims data (initial claims were down to 233k from 250k the week prior) gave a clear sign that investors overshot the mark in responding to poor July payrolls figures at the end of last week. What a surprise. That 17k week-over-week drop for U.S. unemployment benefits was the most in almost a year and helped reassure flustered markets that the U.S. employment picture isn’t falling apart and we're headed for a recession, so much as the balance of the workforce is reverting to its pre-pandemic trend. That’s just what the Federal Reserve has been shooting for in achieving a soft landing. The Fed is mulling the timing of easing monetary policy, but apparently, it’s a foregone conclusion. September fed funds futures were predicting a 100 percent chance of a 50-basis point cut before jobless claims hit the tape but are now more or less predicting a one-in-three chance of 25 basis points and two-in-three chance of 50 basis points. The December futures are pricing in 100-125 basis points in cuts this year, down from 150 basis points on Monday. Keep in mind that the Fed is intent on remaining data dependent, as it should be, and has another month of inflation and employment data to parse through before the September FOMC meeting. We learned yesterday that mortgage credit availability eased for the seventh straight month, according to the MBA’s Mortgage Credit Availability Index. For July, the MCAI rose 3.3 percent month-over-month to 98.1 and is 6.5 percent higher than December’s low. Of note, the index rose 1.9 percent year-over-year, the first time in several years it has increased versus the prior year. There is no major data or Fedspeak today. Outside of the U.S., there are a couple reports of interest including final July inflation in Germany and the Canadian employment situation for July… If anyone cares. Without any releases scheduled today, we begin Friday with Agency MBS prices slightly improved from Thursday’s close, the 10-year yielding 3.94 after closing yesterday at 4.00 percent, and the 2-year at 4.03.

Employment

Mortgage Investors Group (MIG) is pleased to announce the appointment of Vinay Miglani as Chief Business Officer. Vinay brings nearly two decades of experience in the residential lending sector, including capital markets, product development, and operational efficiency, to his new role at MIG. Co-founded by Chrissi Rhea and Chuck Tonkin, Mortgage Investors Group has long been committed to building a community grounded in shared values and goals. "We are delighted to welcome Vinay to our senior leadership team," said Anna Beltran, President of MIG. "His extensive experience and forward-thinking approach to the industry will be instrumental in driving our strategic initiatives. Vinay's expertise will undoubtedly contribute to our mission of delivering unparalleled service and value to our clients." Vinay's responsibilities as Chief Business Officer will encompass overseeing both the capital markets and information technology departments, as well as supporting overall corporate business solutions. His role will be pivotal in advancing MIG's technological and operational frameworks to better serve its customers and partners. Please join MIG in welcoming Vinay to the team and connect with him on LinkedIn.

“At Evergreen Home Loans, our Marketing department acts as a full-service ad agency, helping our loan officers shine and grow their business. Our in-house experts manage everything from digital marketing and social media creative to print advertising and public relations, ensuring quick turnarounds and top-notch quality. Our comprehensive approach allows loan officers to focus on what they do best: serving clients. With consistent brand messaging and high-impact campaigns, we elevate their personal brands and drive more business their way. Experience the power of expert marketing at Evergreen Home Loans, where our team’s creativity and strategy help our loan officers succeed. To see all open positions visit: Careers.”

Lower, LLC has made several bold moves in the past year, both through M&A activity as well as key hires. Lower’s plans for expansion have all been executed around our vision for transforming the modern mortgage experience. As a part of that execution, Lower has added another key hire in Dustin Owen in the capacity of Divisional Sales Leader and SVP of Growth. Dustin brings a vast history of influence and team-building experience, and we’re thrilled that he chose to be an integral component of that growth. “We are dedicated to our vision to becoming a top five lender in the nation, a large part of which is focused on adding key team members like Dustin to our growing team,” stated Dan Snyder, CEO. “His energy and influence are so infectious and that was apparent from the first meeting.” Ready for the Future of Mortgage? Click here to learn more!

In July, Logan Finance achieved a record-breaking funding month, continuing June’s fiscal year-end milestones which included significant volume and revenue gains along with a large increase in market share. Want to join and contribute to the next milestones? Logan has several job openings for Account Executives in all regions and in Operations, including Account Managers and Supervisor, Condo Specialist, Underwriters and Exceptions, and a Disclosure Specialist. Contact Randy to apply. Logan extends a big welcome to these Account Executives who recently chose to join the team: Larry Brand (NY), Carl Burris (CA), Lewis Poretz (MD), and John Martinez (FL). “The Logan Experience” is making itself known in the Non-QM world, so get on board and experience the difference.