Today I leave Illinois, with the world’s largest corn maze, and head to Nebraska, with the world’s largest ball of stamps, things that make life interesting. (Nebraska is also the source of CliffsNotes, among many things, invented in 1958.) Regardless of where I travel, regulation and its cost to lenders, and therefore the consumer, is a constant refrain. My cat Myrtle would have agreed wholeheartedly. To that point, I recently received this note from an industry vet: “Rob, I think that with regard to the significant cost of regulation, the industry needs to change its rhetoric from, ‘Things that cost lenders a lot of money and don't add anything to revenue,’ to ‘Things that increase the cost of a consumer’s loan transaction.’” The title biz is not immune to trends in our biz, and Nuria Rivera, CEO of Novation Title Insurance, joins Kristin Messerli and Robbie Chrisman on this month's episode of Mortgages with Millennials, today at 10a PT/1p ET, for a discussion on Latino housing, the Hispanic Wealth Project, why reaching the Latino community should be an important part of your business strategy, the purchasing power of the segment, as well as Nuria's story of immigration and entrepreneurship and the importance of understanding the culture. (Today’s podcast is found here and this week’s is Sponsored by Silk Title Co. Silk is for lenders who have centralized operations, are tech driven, process oriented, focused on the borrower experience, standardized in their approach, and most importantly… collaborative. Listen to an interview with Panorama Mortgage Group’s new President Hector Amendola on the importance of companies growing their Latino book of business.)

Lender and Broker Software, Services, and Loan Programs

Loan officers, close your eyes and just imagine entering loan data from the 1003 into your Encompass® LOS and, poof, every down payment assistance program that your homebuyer would qualify for appears like magic. It’s no sleight of hand; it’s real and possible, thanks to a recent integration between Down Payment Resource, the OG of DPA, and ICE Mortgage Technology. “This integration is the top draw with lenders at industry events and for a very good reason. On average, DPA lowers the homebuyer’s LTV by 6%. So just think, how many more loans could you be approving with help from DPA?” poses Brad Cardwell, formerly of Embrace Home Loans and now vice president of sales and business development at DPR. If you’re an Encompass user, don’t let this magic pass you by. Grab a spot on Brad’s calendar any time to get a demo of DPR’s Encompass integration.

“Maxwell Point of Sale is the top ranked mortgage point of sale on Capterra with 4.8/5 stars. In today’s competitive mortgage marketplace, customizing workflows and borrower experience is crucial to differentiation. With the industry-first configurability of Maxwell Point of Sale, lenders can define workflows for any mortgage product, while configuring triggers and business rules to align the borrower experience to operational processes. Maxwell Point of Sale also features more than 60 third-party integrations, allowing lending teams to seamlessly connect with other vital pieces of their workflow, from credit and verifications to pricing and disclosures. Want to learn more? Let us know and we’ll show you what Maxwell can do for you and your borrowers.”

Even when interest rates hovered near 7%, life kept moving! In the last two years, people still got married, started families, changed careers, and relocated, major life milestones that bring new financial needs. These life events drive activity in the mortgage market regardless of the rate environment. Total Expert's Chief Lending Officer Dan Catinella teamed up with Atlantic Bay Mortgage Group's Emily Farley Gardner to explore opportunities for lenders and LOs to engage both borrowers and homeowners as their lives grow and their mortgage needs evolve. They also discussed how the Fed's then-expected, now-official rate cut would impact refinance activity. Curious about their insights? Catch their conversation here!

Servicing Software and Products

ICE has helped servicers deliver an exceptional customer experience. Now it’s time to elevate the back office. It starts with MSP® Digital Experience, a revolutionary new, conversational interface that makes it easy and intuitive to harness the power of the MSP® loan servicing system by allowing users to perform their work as easily as they speak. Hear from ICE servicing executives Sandra Madigan and Dana Federspiel as they talk about ICE’s strategy for building technology that transforms how back-office teams work and watch as they discuss how ICE is delivering on its mission to make servicing simple.

“Leading the Way with Digital! Our commitment to investing in self-serve digital tools has earned us the winner of the 2024 ICE Innovation Award for Best Use of Mobile Technology in Servicing. And we continue to push into the future with a digital-first, omnichannel communications strategy, part of our philosophy to prioritize the needs of homeowners by allowing them to do business with us wherever, whenever, and however they feel most comfortable. Let’s discuss how Cenlar delivers the very best homeowner experience. Call 1-888-SUBSERV (782-7378) or visit here. We want to be your trusted partner, each and every day.”

“MBA Annual is just around the corner, and that means it's almost time for Bourbon & Bites! Join Servbank, TMS, MaxEx and South Street Securities for an unforgettable happy hour at Denver’s STK on Monday, 10/28 from 5-8p. Indulge in expertly crafted cocktails and mouthwatering bites, all while enjoying the company of industry friends and colleagues. Click here to RSVP. Can't make it to the party? No worries! Meet with Servbank and TMS at their meeting space at Renaissance Denver Downtown City Center on Monday, 10/28, and Tuesday, 10/29. To schedule a meeting, email us.”

A single solution for servicers to empower homeowners during hardships: Sagent’s Dara Loss Mitigation is a streamlined, end-to-end solution that empowers servicers to help homeowners navigate financial hardships with ease. With intuitive automation and real-time updates, it simplifies the process, delivering faster decisions and clear communication. AI-powered document guidance, automated income analysis, and status trackers give homeowners confidence (and transparency) during tough times, while servicers benefit from reduced inbound calls and seamless compliance with FNMA, FHLMC, FHA, and more, plus Dara’s open ecosystem helps servicers leverage industry partnerships to ensure an end-to-end digital experience that helps homeowners recover quickly. For more info on Dara and Sagent’s future-of-servicing strategy, click here.

Broker and Correspondent Products

Orion Lending is proud to announce the release of its Elevate Grant DPA Program which includes either a Conventional or FHA 1st! That’s right, it is a GRANT Down Payment program, meaning there is NO 2ND LIEN (so no 2nd TD payments!!!) Keep in mind, new Brokers can get Express Approved by clicking here and start submitting loans as soon as the end of the day! Additionally, Orion Lending is offering a 30 bps Fall New Broker Price Special on Titan Flex, COIN DSCR and COIN Fuel DSCR and 15 bps on all other programs! With a broad range of new products and more on the horizon plus our 48-Hour SLA’s on select Purchases, with every loan Underwritten in-house!! Now is the time to hyperspeed your business with Orion!

“Arc Home is excited to attend the MBA Annual Convention & Expo in Denver from October 28-29, and we’d love to meet with you! We’ve reserved a private meeting space just 2 minutes away from the convention center, where we’ll be sharing our latest innovations to help you grow your business. Learn how Arc’s Delegated "Buy to Your Guide" program can streamline your lending process, offering more efficiency and control. You can also get an inside look at HomeEQ, our new HELOC program launching soon, designed to give your borrowers fast, easy access to home equity. We’re also hosting a cocktail and bowling party at the Denver Athletic Club on Monday, October 28th. It’s the perfect opportunity to network and enjoy some fun! To schedule a meeting or register for the party, contact Elliott Grumer today.”

Catastrophe and Disaster Updates

As homeowner’s insurance continues to be a huge burden for any owner, disasters continue throughout the year and throughout the nation. (A recent STRATMOR blog is titled “Catastrophe and Climate Risk is Only Increasing.”) Of course, FEMA’s Disaster Declarations set the stage for servicers, lenders, and investors to change policies and procedures for loans in process or for existing borrowers in those areas.

Disasters and catastrophes aren’t confined to Florida and California. There’s Louisiana Hurricane Francine: DR-4817-LA. In Illinois there’s DR-4819-IL, and in Connecticut DR-4820-CT. Minnesota had severe storms and flooding: DR-4797-MN. Florida Hurricane Debby: DR-4806-FL. Pennsylvania Tropical Storm Debby: DR-4815-PA.

PHH Mortgage posted that in addition to the previously declared counties, the following disaster declaration is being issued or modified today pertaining to Florida DR-4806: Update to End Date of Occurrence and Monitoring Expiration Date and Pennsylvania DR-4815: New disaster declared. Reference PHH announcement - Disaster Alert: Pennsylvania and Florida for all disaster declared counties, requirements, procedures, and conditions.

On 9/13/2024, with Amendment No. 5 to DR-4797, FEMA declared federal disaster aid with individual assistance to Minnesota’s Martin and Murray Counties affected by severe storms and flooding from 6/16/2024, to 7/4/2024. See AmeriHome Mortgage 20240904-CL Disaster Announcement for inspection requirements.

On 9/13/2024, with Amendment No. 4 to DR-4806, FEMA declared federal disaster aid with individual assistance to four additional Florida counties affected by Hurricane Debby from 8/1/2024 to 8/27/2024. See AmeriHome Mortgage 20240903-CL Disaster Announcement for inspection requirements.

On 9/11/2024, with DR-4815, FEMA declared federal disaster aid with individual assistance to four Pennsylvania counties affected by Tropical Storm Debby from 8/9/2024 to 8/10/2024.

See AmeriHome Mortgage 20240901-CL Disaster Announcement for inspection requirements.

AmeriHome Mortgage posted several disaster announcements, each including inspection requirements. On 9/20/2024, with DR-4819, FEMA declared federal disaster aid with individual assistance to 7 Illinois counties, AmeriHome Disaster Announcement 20240907-CL. On 9/20/2024, with DR-4820, FEMA declared federal disaster aid with individual assistance to 3 Connecticut counties: Fairfield, Litchfield, and New Haven, AmeriHome Disaster Announcement 20240908-CL. On 9/16/2024, with DR-4817, FEMA declared federal disaster aid with individual assistance to 8 Louisiana parishes affected by Hurricane Francine, AmeriHome Disaster Announcement 20240906-CL.

PHH Mortgage posted Disaster Alerts per FEMA declarations for the States of Louisiana, Florida, and Minnesota: Louisiana DR-4817, Florida DR-4806, and Minnesota DR-4797.

Reference PHH Announcements for all disaster declared counties, requirements, procedures, and conditions.

Capital Markets

As if we haven’t had enough discourse about the Federal Reserve recently, yesterday was highlighted by several officials suggesting the possibility of additional large interest-rate cuts, citing that current rates are still significantly impacting the U.S. economy. Minneapolis Fed President Kashkari anticipates two quarter-point reductions in the remaining 2024 meetings, while Chicago President Goolsbee predicts "many more" cuts in the coming year. Atlanta President Bostic noted that last week's half-point move will bring rates closer to neutral and support a labor market that is "weakening but not weak." The Federal Open Market Committee is set to meet again on November 6-7, shortly after the presidential election.

The old-fashioned “flight to quality” doesn’t seem to happen any longer. In international news, Israeli warplanes launched attacks on numerous targets in Lebanon, warning civilians to evacuate areas near Hezbollah weapon storage sites. A Hezbollah official stated the group has entered a new phase of open warfare against Israel. Prime Minister Netanyahu asserted that Israel would take "whatever action is necessary" to mitigate the threat from Hezbollah, leading to rising international concern over the escalating violence along the Israel-Lebanon border, which could apply downward pressure to interest rates as investors seek to put money in less risky assets.

On the U.S. economic front, data showed a continued expansion in the S&P Global U.S. Services PMI, but at a slower pace than in August, while the S&P Global U.S. Manufacturing PMI showed a contraction in line with global trends. The remainder of this week is packed with some significant economic releases, including PCE inflation numbers, home prices, and the final revision of Q2 GDP.

This week will also feature a wealth of housing data, including new single-family home sales, expected to decline to a 695k annualized pace, aligning with historical averages. Home builders are relying on incentives, with 64 percent of sales in August closing with assistance, the highest since April 2019. Housing affordability does not seem poised to improve anytime soon.

Many asset prices, including bonds, are determined by supply and demand. The Treasury will auction $211 billion in notes, predominantly at the front end of the yield curve, likely without much market disruption. The auction slate kicks off with $69 billion in two-year notes as yields sit at year-to-date lows. Meanwhile, volatility in the market has decreased, though with ten FOMC members scheduled to speak this week, it does raise the possibility of unexpected market shifts. Investors are closely watching for indications of future rate cuts, with the latest market pricing implying more aggressive cuts “a la” last week.

Philadelphia Fed non-manufacturing indices for September kicked off today’s economic calendar. Later today brings Redbook same store sales, July house price indices from Case-Shiller and FHFA, September Consumer confidence, Richmond Fed manufacturing and services, the aforementioned Treasury auction of $69 billion 2-year notes before a buyback in 20- to 30-year coupons for up to $2 billion, and remarks from Fed Governor Bowman. We begin the day with Agency MBS prices worse .125-.250, the 10-year yielding 3.80 after closing yesterday at 3.74 percent, and the 2-year at 3.61.