“If you were born in September, it's pretty safe to assume that your parents started their new year with a bang.” Are originators getting a “bang for their buck” when it comes to marketing to real estate agents? “Rob, have you heard that 20 percent of real estate agents account for 80 percent of transactions? And that most loan officers are calling on the 80 percent of real estate agents who hardly do any business?” Yes, I have. I’ve even heard worse: that 70 percent of agents don’t close any deals. I can’t verify that, but I can recommend three things. First, make sure that the time and energy you or your staff are spending is focused on courting agents who actually do transactions. Second, skim through the NAR website, as it is chockful of statistics that will help you. Third, the St. Louis Fed does a bang up job with stats, including the number of active listings… so let’s see… 900,000 listings and 1.6 million real estate agents… (Today’s podcast is found here and this week’s is sponsored by Stavvy. Moving real estate beyond paper documents. Stavvy is the digital platform that helps real estate professionals grow their business and ditch the paper process. Book a demo today! Hear an interview with Gallus Insight’s Augie Del Rio on his love for data and how his entrepreneurial spirit was cultivated from a young age in Mexico.)

Lender and Broker Software, Services, and Loan Programs

The best mortgage CRM is the one you'll actually use... If your CRM isn't making your life easier, making you more money or giving you the gift of time by automating tedious admin tasks then what's the point? Aidium Mortgage CRM is built for the loan officer and embraced by the enterprise. Why? It's got a complete Reporting Suite to measure personal and team performance over time. Does your CRM have 24/7 phone, chat, and email support? Aidium does. How about a Marketing Suite? Lead and Referral management? Pre-built email/SMS series. Start asking yourself if your CRM is actually working for you, or if it's just another valueless expense. I want to see why Top-Performers trust Aidium.

Register now for the 2024 Loan Vision Innovation Conference in Chicago, September 23-25! Tailored for financial leaders in IMBs, banks, and credit unions, this event is your key to staying ahead in the competitive financial landscape. LVIC24 offers a unique opportunity to gain the insights and tools you need to drive growth and efficiency within your organization. Learn from mortgage industry titans like Michael Fratantoni, Rob Chrisman, and others through sessions focused on profitability, sustainability, and industry best practices. Enjoy enhanced networking opportunities, including the Opening Dinner + Awards Ceremony and an Evening on the Chicago River.

Total Expert and MAXA Designs have partnered to bring the convenience and usability of point-and-click design tools to regulated financial services organizations. Now, anyone can create compelling, compliant, branded marketing materials with a design suite that’s purpose-built for modern lenders. Unlike horizontal solutions that lack the ability to pull in dynamic, data-rich content, Total Expert and MAXA Designs give enterprise designers and administrators the ability to create and manage pre-built templates that sales and marketing teams can personalize to forge deeper relationships with customers while ensuring brand and regulatory compliance. With the ability to upload InDesign files, lock down specific template elements, and quickly package files for printing or direct mail campaigns, Total Expert and MAXA make it easy for distributed teams to create the collateral they need without worrying that they’re violating brand or regulatory compliance. Learn more here.

More on the DC Title Company Fines

I received an earful in response to the Commentary’s note yesterday about the settlements involving allegations of kickbacks with Washington DC area title companies, including “Title kickbacks new? The title world has done this since the beginning of time. I believe most large real estate companies have shell companies set up for agents to ‘buy into’ designed to pay agents a ‘share’ of the profits from title.”

Attorney Brian Levy, who often writes about RESPA issues in his Mortgage Musings had this to say. “Rob, despite the consumer protection allegations of the DC attorney general that consumers were ripped off, there was no evidence or allegations that higher prices were paid by consumers. In fact, DC area title insurance rates are all the same (rates are fixed by regulation, but I understand they are quite high in DC in relation to other areas). Moreover, despite the obvious RESPA implications of title companies with affiliated ownership by real estate brokers, there were no RESPA violations cited. So, one might ask, why would these title companies settle with no RESPA violations or consumer harm? I cannot speak for any of the defendants in these settlements, but I think this demonstrates that the risk/reward calculation of defending financial services company litigation against enforcement officials with expansive interpretive and remedial powers can be particularly challenging. The balance of power in those discussions not only involves the potential financial costs, but also the reputational risks. ‘Fighting City Hall’ is not for the faint of heart.”

Program News and Changes

Have you seen Rocket Pro TPO’s new Welcome Home RateBreak product? Watch the video for complete details! This industry exclusive is a 2-1 Rocket-Paid Temporary Buydown for HomeReady and Home Possible purchases. Partners with Rocket Pro TPO can offer their clients thousands in savings over the first two years and the buydown cost is covered! This product provides big opportunities for brokers to co-market with real estate partners and builders while delivering more homeownership opportunities to their low to moderate income clients. As a reminder, Rocket Pro TPO recently announced an extension of its Home Equity Promotion: Rocket will be covering the $795 origination fee through September 30. Remember, this is a limited time offer, if you’re interested in these savings and more, contact Rocket Pro TPO.

United Wholesale Mortgage announced Refi75, a 75-basis points incentive on any note rate for conforming conventional, FHA and USDA rate and term refinances, along with FHA Streamlines and VA IRRRLs. “This new incentive gives UWM partners a competitive edge with past clients and the ability to attract new borrowers looking to save on their monthly payment. With thousands of borrowers currently eligible to benefit from a refi, Refi75 can make it easier to secure a lower rate and save. This pricing incentive is available on new locks through October 31. This comes after UWM recently announced Govy125, a 125-basis points incentive for all VA IRRRLs and FHA Streamlines, which ended on September 3. Additional details on Refi75 can be found here.”

HighTechLending announced it has officially changed from HighTechLending to American Senior Lending, effective immediately. Eric Ellsworth, EVP of Sales stated, “This new name "really aligns with our strategic vision of helping seniors tap into the equity of their home." Watch the video of HTL’s Rebrand Announcement.

OCMBC, Inc. announced the successful acquisition of HomeStar Financial Corporation. The acquisition was formally closed on August 29, 2024, marking a significant expansion in OCMBC's nationwide operations. “Founded in 2002, HomeStar Financial Corporation started as a small local mortgage banking company in Gainesville, Georgia. Under the leadership of Founder and CEO Wes Hunt, HomeStar is licensed to conduct business from coast to coast. Serene Vernon, President of OCMBC, Inc., stated, ‘We are thrilled to welcome Wes Hunt and the entire HomeStar Financial team to the OCMBC family. Their extensive experience in servicing and their commitment to providing outstanding customer service align perfectly with our values at OCMBC. We look forward to achieving remarkable things together.’"

Developed to guide homebuyers, CreditSmart Homebuyer U®* is a complimentary, online education course that can save your clients time and help them move forward in their home purchase journey. For today’s homebuyer, a key factor in starting their journey is to establish a solid foundation in money management. Do your clients have the resources they need to understand why money matters? Let CreditSmart Homebuyer U guide them through key learning principles for successful money management.

Grow your pipeline with 1099 Income Qualification. LoanStream Mortgage's NaNQ / Non-QM Programs are proprietary programs specifically created to fulfill mortgage program options for our brokers with non-prime programs.

William J. Hufnagel, President & CEO of Dart Bank announced the launch of the Bank’s new Wholesale Lending division to enhance mortgage brokerage services throughout the United States. Rooted in Dart Bank’s nearly century-long history of service-oriented lending, its Wholesale division’s client-centric approach is built on integrity and transparency. This strategic initiative extends the opportunity for consumers across the country to experience the Dart Bank advantages of reliable and consistent service as well as quick and efficient loan processing. The new offering will also provide Dart Bank with increased revenue opportunities. Dart Bank’s Wholesale Lending division is led by: Phillip Miller, Todd Gates, Mona Samaha, Michael VerHeek. Joining the team are Adelfo Emanuele, Mary Johnson, Kathy Horn, Charla Karlek, Amelia Kreutzberg, Kristi Kuhn, and Christy Smith.

DAS Acquisition Company, LLC, which does business as top nationwide lender USA Mortgage, and Phoenix, Arizona-based Realty Executives (REI), announced that it has entered into a joint venture relationship that will open loan offices in early fall in St. Louis and Kansas City under the brand name, Mortgages by Experts. Facilitated by DAS Acquisition’s joint venture company, DAS Partnerships, the new joint venture will help both REI and DAS Acquisition provide exceptional real estate and lending services to their clients, with best-in-class technology, loan products and customer service.

Capital Markets

Geocaching is the world’s largest treasure hunt, with more than three million geocaches hidden in more than 190 countries. Finding a well-hidden geocache often requires a map and compass to guide the way. For secondary market teams, it can be equally hard to research new niche and non-QM products… until now. Meet LoanCOMPASS, a new solution from LoanPASS built to help correspondent lenders quickly and easily research, find, and develop niche loan offerings. From jumbo loans and HELOCs to construction loans and DPA products, LoanCOMPASS cuts product development research down to a matter of seconds using advanced filtering to simplify the search. Find profitable loan products faster: start your free 60-day trial today.

MCT reported a 3.33% increase in mortgage lock volume compared to the previous month. There was a significant 103.19% surge in refinance activity following a recent quarter-point drop in conventional 30-year and government 30-year mortgage rates. While total mortgage volume remains flat, year-over-year figures show a 21% rise, primarily due to increased refinances. As the Federal Reserve considers rate cuts, potential short-term market volatility is expected, according to Andrew Rhodes, MCT's Senior Director and Head of Trading. For a deeper analysis of these trends, download MCT’s full report. Stay ahead of market developments: sign up for MCT’s newsletter to receive regular updates and insights.

Things appear to be slowing, which helps interest rates. Ahead of the Federal Reserve’s meeting in two weeks, we learned yesterday from the Fed's Beige Book for September that only three of the twelve Fed Districts saw slight growth at the tail-end of the summer, while the others experienced either flat or declining activity. Consumer spending weakened, manufacturing declined in most areas, and commercial construction and real estate saw mixed results. Employment remained steady with modest wage growth, and prices rose only slightly. In other Fed news, the Philadelphia Fed has begun searching for a new President to replace President Harker, whose term ends in June.

Job cuts in August from Challenger, Gray & Christmas kicked off today’s economic calendar. Per its report, U.S.-based employers announced 75,891 cuts in August, a 193% increase from the 25,885 cuts announced one month prior. It is up 1% from the 75,151 cuts announced in the same month in 2023. For the year, companies have announced 536,421 job cuts, down 3.7% from 557,057 announced through August of last year.

We’ve also received a weaker-than-expected ADP employment (+99k), which was expected to come in at 150k after 122k in July. Weekly jobless claims (227k; continuing claims 1.838 million) and productivity and final Q2 unit labor costs (on the light side) have also been released. Later today brings nonmanufacturing PMIs starting with S&P Global followed by ISM, Treasury announcing the details for the mini-Refunding (consisting of $58 billion 3-years, $39 billion 10-years, and $22 billion reopened 30-years), and Freddie Mac’s Primary Mortgage Market Survey. We begin the day with Agency MBS prices slightly better than Wednesday night, the 10-year yielding 3.74 after closing yesterday at 3.74 percent, and the 2-year yield at 3.73.