“Someone asked me if I had plans for the fall. It took me a moment to realize they meant ‘autumn’ and not the fall of civilization.” The Autumn solstice is this weekend, and I will be heading to Chicago and then to Lincoln, Nebraska to visit with mortgage folks. Housing, of course, will be a topic: It will take more than the Fed's rate cut to fix America's housing problems. “Rob, are you hearing that new homeowners are having their insurance cancelled within weeks of funding, often due to “roofing issues”? Yes, I have. As we’ve been writing about for several months, renewal costs are going up, new policy prices are going up, carrier numbers are dropping, and drone usage is increasing surveillance. Keep in mind, however, that the insurance industry isn’t wantonly doing it. In the last few years insurance companies have taken underwriting hits, suffered from inflation in replacement costs, properties have been under-insured given the premiums, and state-level insurance restrictions have prohibited market pricing. (Today’s podcast is found here and this week’s is sponsored by Visio Lending. Visio has a top-notch broker program and is the nation's premier lender for buy and hold investors with over 2.5 billion closed loans for single-family rental properties, including vacation rentals. Hear an interview between Rob and Robbie on interest rate pricing and other chatter from their travels around the nation attending mortgage conferences.)

Lender and Broker Software, Services, and Loan Programs

Truv is thrilled to announce our enhanced integration with nCino. Inc. Lenders can now access Truv's embedded income, employment, and asset verifications directly within nCino's Mortgage POS product, creating a seamless, faster, and easier mortgage application process for both loan officers and borrowers. The real-time income, employment, and asset verifications are embedded in the 1003 loan application, no external emails & SMS links needed! Request a demo.

Have you seen Rocket Pro TPO’s new Welcome Home RateBreak product? Watch 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 their Home Equity Promotion - they 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.

“At Service 1st, our existing mortgage VOE/VOI volume dipped over the last three years as lenders brought the verification in-house. As the industry prepares for the next volume wave, we say, “Bring it on!” We’ve onboarded new data partners, now 30+ employment data resources. We’ve enhanced our VOE/VOI cascade, plugged it into ICE Mortgage’s EPC platform (“TSV Services”), and embedded this new data into S1’s Income+ analysis engine. Plenty of opportunities to meet with S1 @ MBA’s Annual Conference. Can’t wait, let’s setup a demo prior! Talk soon.”

Sponsored Events

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.

Is AngelAi really offering free credit repair? Join the next OriginatorTech Deep Dive by NMP on Tuesday, September 24, where they will showcase how AngelAi allows mortgage originators to offer free credit repair through its AI-driven platform. During this 30-minute live group demo, you’ll see how AngelAi addresses disputed accounts and challenges with creditors. They’ll demonstrate how AngelAi follows detailed steps in compliance with FCRA regulations and engages with creditors on the borrower’s behalf to help resolve disputes.

The service described above is provided by AngelAi at no charge, saving you up to $75 per disputed account, as credit repair typically costs around $75 per account. However, AngelAi will charge for any out-of-pocket expenses necessary to provide the service, such as shipping costs, credit report fees, postage, printing, mailing, etc. You only pay for expenses that were actually incurred. Register here for the OriginatorTech Deep Dive.

“VIBE 2024. Your Blueprint for 2025 Success. Kind Lending doesn't just talk success, we build it. That's why we invite you to join us Friday, October 18 at our Very Important Business Exchange (VIBE) held at the Palms Casino & Resort in Las Vegas, Nevada. VIBE 2024 is designed to equip you with the tools necessary for a thriving new year. Receive industry-leading insights and actionable strategies from experts like Glenn Stearns, Grand Cardone, and Barry Habib! Fuel your motivation with inspirational speakers like Paralympic gold medalist Blake Leaper and Navy SEAL hero Mark Owen. Build lasting connections with endless networking opportunities. The best part? You have access to this exclusive event for free! Secure your spot today by contacting your Kind Account Executive to receive your registration code! New to Kind? Email Vibe2024@kindlending.com for an introduction and code. Don’t miss out on this unforgettable experience to revolutionize your business!”

STRATMOR on Customer Retention

The Federal Reserve’s highly anticipated rate cut announcement was more than many analysts expected: 50 basis points. So, what does it mean for the mortgage industry? STRATMOR Group Senior Partner Garth Graham believes that even a small drop could be helpful to the mortgage market, but it will help some companies more than others. With a lot of smaller IMB’s selling their production to aggregators for the last few years, many of the larger players control the related servicing rights and may have an edge in customer retention as refinancing increases. He writes more about this here. By the way, STRATMOR is also conducting a well-attended Consumer Direct Workshop in Dallas in November that focuses on the CD channel. Click here to learn more and reserve your seat.

Webinars and Training Next Week

A good place for longer term conference planning is to start is here for in-person events in the future.

Mastering Annual Mortgage Reviews with Rebecca Lorenz: September 24th at 1pm ET.

Tuesdays at 11am PT, two veteran LOs discuss all things mortgage with Industry Leaders: Mortgage Pros 411 with Audrey Boissonou and Kevin Casey.

Looking for more in-depth commentary on weekly mortgage news? Register here for Wednesday’s 11AM PT "Mortgage Matters: The Weekly Roundup” presented by Lenders One.

There’s the upcoming 2024 Pacific Northwest Mortgage Leaders Conference Sunday, September 22 – Tuesday, September 24 at the Seattle Grand Sheraton. As the industry continues to evolve through technology, innovation, and adaptation, the conference will present an impressive lineup of local and national industry leaders who will share insights on critical topics impacting the mortgage industry.

MBA’s Compliance and Risk Management Conference, taking place September 22-24 at the Grand Hyatt Washington, is the perfect opportunity to get the latest information on regulatory compliance, risk management, QA/QC, underwriting, and fraud prevention. Hear from GSEs and government agency representatives and gain important updates on government lending from the source. Access actionable advice from the industry's brightest minds that you can implement immediately to make a difference for your business.

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.

9/24-9/25 the Nebraska Mortgage Association’s Annual Fall Conference will be held at the Nebraska Innovation Campus in Lincoln, NE. “It will feature an outstanding line-up of great speakers, along with the presentation of our 2023-24 ‘Champions Circle’ awards and the announcement of our 2024 ‘Mortgage Professional of the Year’ recipient.”

FHA’s free, on-site Underwriting training in Philadelphia PA, September 25, 2024, 9:00 AM to 11:30 AM will provide an overview of FHA underwriting procedures and addresses several industry-related frequently asked questions (FAQs) as outlined in FHA's Single Family Housing Policy Handbook 4000.1. This training will also take an in-depth look at a variety of topics including credit, income, and asset (CIA) documentation; automated underwriting systems (AUS); closing; and more.

FHA’s free, on-site Appraisals training in Philadelphia PA, September 25, 1:00 PM to 3:30 PM will provide an overview of the appraisal requirements outlined in FHA's Single Family Housing Policy Handbook 4000.1. The training topics will include property inspection requirements, appraisal validity period, manufactured homes, water and septic, attic and crawl spaces inspection, and the FHA Appraiser Roster.

When you attend NRMLA’s Annual Meeting & Expo, you'll not only learn new and innovative sales strategies that can help grow your business, but you'll also hear from top regulatory and legal experts who will share timely and important updates on the status and trajectory of the HECM program: September 24 at 1:00 pm - September 26 at 12:00 pm.

MBAMW Lenders One-Day Conference will be held on Wednesday, September 25, 9 am - 5 pm at Venable LLP, Washington, DC. Legislative update from Bill Killmer, Senior Vice President of Legislative & Political Affairs, MBA, and Economic update from Hamilton Fout, Vice President of Economic & Strategic Research.

Attend the AzAMP Annual EXPO, Luncheon, and 8-Hour AZ CE Class September 25th and 26th at the We-Ko-Pa Resort and Casino. Members are Free, membership must be active on the day of the event.

Join the Michigan Mortgage Lenders Association as it hosts a mPower luncheon with the MBA. A great line-up of distinguished CEOs will share their leadership stories. September 26 at Lovett Hall @ The Henry Ford in Dearborn. Click here for all the details and to register.

Thursday, September 26th, will be another episode of The Big Picture at 3PM ET. Rich Swerbinsky hosts a variety of guests. You can click here to register for Thursday’s 3 PM ET show.

Where industry experts share proven tactics to bridge the homeownership gap. A Seat at the Closing Table is a training series that provides support to loan officers, mortgage brokers and housing professionals who want to close the homeownership gap for minority borrowers. Join California Association of Mortgage Professionals for a Freddie Mac presentation of A Seat at The Closing Table Tuesday, September 24th at 11:00 AM PST.

MCT & Lender Price Webinar, Strengthen Pricing & MSR Strategies, is scheduled for September 26, at 11:00 AM PT. In this webinar, MCT’s David Burruss and Azad Rafat are joined by Lender Price’s Paul Orlando and David Colwell to discuss MSR strategies and how the right MSR strategy can increase your bottom line.

Join NALHFA and Moody's Analytics Economist, Shannon Brobst, for an exclusive member-only webinar, Friday, September 27, at 1:00 PM ET to explore the short-term outlook for the housing market and interest rate environment, as well as potential impacts of the November election on the housing market.

Friday the 20th listen in to opinions (Last Word Fridays at 1pm ET) from Kevin Peranio and Brian Vieaux!

End this week with The Mortgage Collaborative’s Rundown with Melissa Langdale covering current events in the mortgage market for 30 minutes starting at noon PT, 3PM ET.

Capital Markets

Will the larger Fed rate cut help to reduce the chances of the economy falling into recession? The bond market didn't react much to Wednesday’s Fed announcement, and after the Fed’s outsized rate cut on Wednesday, investors are now pricing in another 70 basis points of rate reductions this year.

For what it’s worth, the Fed is forecasting an additional 75 basis points of cuts in 2024 and another 75 in 2025 for 200 basis points of total easing. Fed Chair Powell suggested in his press conference that the FOMC’s decision to go big with the first rate cut was driven by the relative strength of the economy.

In terms of mortgage rates, the Fed cut (at least in the near term) probably doesn’t mean much. Federal Reserve rate cuts affect the short end of the yield curve and don’t have much influence on the long end. However, all of this is dependent on the economy avoiding a recession. If the U.S. economy does happen to enter a recession, projections for rates are going to drop versus current ones, fed funds included. For now, the expectation is that the Fed will be able to engineer a soft landing after jobless claims signaled a healthy labor market.

Lenders care about supply and demand. We learned yesterday that sales of existing homes retreated 2.5 percent in August to a seasonally adjusted annual rate of 3.86 million. Sales slid 4.2 percent from one year ago. The median existing-home sales price rose 3.1 percent from August 2023 to $416,700, the 14th consecutive month of year-over-year price increases. And the inventory of unsold existing homes improved by 0.7 percent from the previous month to 1.35 million at the end of August, or the equivalent of 4.2 months’ supply at the current monthly sales pace. More inventory is becoming available with mortgage rates dropping, yet it is still a tight market, evidenced by the ongoing increase in the median home price.

Internationally, the Bank of England held its key rate at 5 percent and warned investors it won’t rush to ease policy. The move pushed the pound to its strongest level against the dollar since 2022. The bank will look to gradually reduce rates over time. Norges Bank kept its policy rate unchanged at 4.50 percent, saying it is likely to stay there through the end of the year.

This busy week that was headlined by the Fed’s decision closes out with an empty economic calendar today aside from remarks from Philadelphia Fed President Harker. We begin the day with Agency MBS prices slightly worse than Thursday’s close, the 10-year yielding 3.73 after closing yesterday at 3.74 percent, and the 2-year yielding 3.61.

Employment

“Wanted: Capital Markets Managing Director. A mid-sized nationwide IMB is in search of a visionary Capital Markets leader to head our efforts, someone to articulate a clear vision for top notch execution and pricing, and to bring that vision to life. The right candidate will own and shape the cap markets department. Current products include Agency, Government, Jumbo, and Non-QM. Responsibilities include competitive analysis, daily pricing, hedging, trading, and lock desk management. Experience bulking NQM paper a strong plus. The company has had a phenomenal growth trajectory over the past year. If you are looking for a great culture and opportunity for input, please contact us. Send a confidential resume.”

“Evergreen Home Loans has been named to the 2024 Fortune Best Workplaces in Financial Services & Insurance™ list, marking the 8th time we've received this honor. Ranked 29th in the medium-sized company category, this achievement underscores the hard work and dedication of our entire team. This recognition is based on comprehensive employee feedback collected by Great Place to Work® and Fortune. Haavard Sterri, CMO of Evergreen Home Loans, expressed gratitude for this acknowledgment: "Our people are the heart of our success. This award reflects the supportive culture we’ve built and motivates us to keep prioritizing our employees." At Evergreen, we remain committed to fostering a workplace built on trust, where employees from all backgrounds can thrive. We are currently hiring branch managers and Loan Officers: visit our careers page to learn more! Come and build your legacy with us!