“My dog is really worried about the rising price of groceries, with a can of dog food now costing $3. That’s $21 in dog money.” As I travel and speak with originators, besides the regulatory environment being a concern (the latest example being the CFPB suing Freedom Mortgage yesterday), the cost to produce a loan is still a problem, and for some it is about to worsen. The last MBA’s study calculated that total loan production expenses (commissions, compensation, occupancy, equipment, and other production expenses and corporate allocations) were $11k per loan in the second quarter. Talk of another round of credit cost changes swirl, good and bad, similar to the end of last year, prompted by Fair Issac and rippling through the bureaus and CRAs. (Any questions should be addressed to your credit provider.) (Today’s podcast can be found here. This week’s is sponsored by NotaryCam, your partner for The Perfect Close! Ease of use, additional closing compliance, better borrower experience, reduced timelines, and cost savings, what is stopping you from getting on the RON train with NotaryCam? Listen to an interview with Servbank’s Johnny Spagnola on the steps companies can take to the improve customer experience.)

Lender and Broker Software, Products, and Services

Just as the caterpillar emerges from its cocoon with the ability to soar, SimpleNexus has rebranded as the nCino Mortgage Suite and is ready to reach new heights. Since being brought under the nCino umbrella in January 2022, SimpleNexus has been infused with additional resources that allow it to push boundaries and set the bar for what mortgage technology should be. Join us for a special Town Hall at MBA Annual, where nCino’s Matt Hansen and Ben Miller will share exciting plans for nCino's Mortgage Suite on Tues., 10/17, from 4-4:30 pm. Click here to save your seat or stop by our booth during Expo hours.

Strength, stability, and proven performance are essential in the mortgage space. For 35 years, Flagstar Bank has checked all the boxes with $119 billion in assets, depth of product offerings, and reliably excellent service. As the nation’s second-largest warehouse lender, Flagstar warehouses most loan types, including conventional, non-QM, and construction, and offers robust MSR, servicer advance, and EBO financing solutions. Flagstar’s warehouse platform offers the flexibility to fund quickly and easily to about 400 warehouse clients, and the specialized mortgage banking team can help streamline operations and provide greater value for cash balances. The warehouse team welcomes Jodie D. Morgan, CMB, as its new VP Senior Relationship Manager. A 21+ year industry vet and VP of the TMBA, Jodie brings her outstanding leadership to Flagstar. Congratulations! Don’t miss your chance to meet Jodie and the rest of the Flagstar mortgage executive team at the MBA Annual Conference in Philly next week. Connect with your RM or AE to reserve a time today. Not a partner yet? Sign up.

Others may be cutting back, but MortgageFlex has confirmed it will be at the upcoming MBA Annual Convention. Chief Operating Officer Craig Bechtle and John McCrea, SVP of Business Development, will both be there and MortgageFlex is proud to support. Bechtle says they will meet with lenders who are ready for a unified platform, using a single database for both origination and servicing. MortgageFlex offers the industry’s first unified platform, made up of the MortgageFlexOne browser-based LOS and the companion browser-based servicing platform. Using an open, modern SQL database, the company’s software includes simple-to-use industry-standard reporting tools and full access to the servicer’s data at no extra cost. And they’ll convert the servicer’s existing data at minimal cost. If you’re attending the show, make sure you stop by and find the MortgageFlex team in booth 1112, or schedule a meeting at the show with John McCrea by calling 1-860-460-7418.

“Not sure how to weather turbulent market conditions this fall? At wemlo®, our third-party processing services have your back during every season. After all, we know you work too hard to leave your business to chance. That’s why wemlo offers comprehensive, scalable, and dependable processing services for mortgage brokers in nearly every corner of the country. It’s simple – our processors are available when business ramps up and can easily be placed on standby during slower seasons. It’s like having a personal loan processing concierge on your team without the line item on your payroll. Best of all, there is no subscription or minimum loan requirement to take advantage of wemlo’s flexible processing services. Ready to reap the benefits of third-party processing? Schedule your 1:1 call with wemlo today. NMLS ID 1853218”

In today’s challenging mortgage-lending environment, you need solutions that’ll enhance your home equity business. ICE offers a fast, reliable, and objective property valuation tool that not only helps increase pull-through but can also lower origination costs and accelerates turn times. Validate℠ combines artificial intelligence, a condition-adjusted AVM and up-to-date property data with borrower-supplied photographs to automatically determine a property’s value and the available equity. The solution increases valuation accuracy, enabling lenders to focus on loans with a higher probability to close and, as a result, increase pull-though rates. Validate can also help you save time and money on home equity originations, while mitigating risk. Learn more by scheduling a demo today.

Exert your relevance or become irrelevant. While mortgage rates hover near 8 percent, it’s time to double down on financial education, deepening client relationships, and genuine value delivery to stay relevant and evolve as a trusted advisor for life. With the Milestones solution, you can deliver ongoing value throughout every stage of homeownership, from buying, selling, moving, and owning, with your custom branding to stay top of mind. If you’re headed to MBA Annual next week, we would love to chat. Schedule some time with Rob Houser, Mortgage Sales Executive.

What's an internal audit anyway and do you need one? An internal audit acts as a third line of defense for your mortgage operation. It provides comprehensive assurance based on the highest level of independence and objectivity to evaluate the effectiveness of management’s internal controls. This function should advise your mortgage operation on plans to achieve the company's strategic, operational, financial and compliance goals. An effective internal audit should go far beyond just checking a compliance box; it should be an integral part of protecting your company. If you want to ensure you’re adhering to regulatory requirements and demonstrating good faith business practices, a Richey May internal audit is a good fit. If you’re looking to be Fannie Mae approved in the future or want to maintain your approved status, it’s required. If you’re unsure whether you need an internal audit, ask one of Richey May’s experts today or learn more here.

Credit, Non-Agency, DPA, Non-QM, 2nd News

Verus Mortgage Capital, the industry’s non-QM leader, has non-agency solutions that can help lenders compete more effectively in today’s challenging market. For example, Verus’ Closed End Second Lien Mortgage program enables you to capitalize on the enormous amount of tappable home equity in the U.S. Borrowers can access their equity without having to refinance and forfeit the interest rate on their first mortgage. It features a fixed interest rate, maximum loan amount of $500,000, maximum CLTV of 90%, minimum credit score of 680, standard or Alt. income documentation options, and available for all occupancy types – primary residence, second home, or investment. Verus offers numerous non-QM programs that can help you assist borrowers who need more flexibility – people with nontraditional income, those who are investing in properties, foreign nationals or borrowers seeking an interest-only payment option. Meet with Verus at the MBA Annual Oct. 15-18 to learn more. Contact Jeff Schaefer, EVP – National Sales at 202-534-1821.

Most lenders have changed their credit policies and procedures, addressing hard versus soft pulls, and trying to limit trigger leads. Recall that the FHFA revamped its conventional mortgage requirements for the first time in nearly 20 years. The classic FICO is being phased out, with FICO 10T and VantageScore 4.0 in its place. Additionally, bi-merge credit reports will soon replace traditional tri-merges: Certified Credit published a primer on the changes worth a perusal.

These products, the ones that aren’t conventional conforming or government, are products that most loan officers want in their product line up. No one wants to send a borrower elsewhere. Banks and credit unions still offer some portfolio products through their branches, often having little need to offer them in a correspondent or wholesale channel. What investors have recently announced changes to their products?

LoanStream Mortgage MaxONE DPA Program features: FHA DPA, Purchase Only, Min FICO 600 - DU Approve/Eligible (no manual underwriting), No First Time Home Buyer Requirement, Non-occupied Co-borrowers allowed per FHA guides, DTI - Follow AUS - Approved/Eligible, One borrower must complete HUD approved counseling, 96.5% Max LTV with 3.5% DPA (100% CLTV), Loan Amount to Conforming Limits.

Lower your borrower’s payment with LoanStream Mortgage Wholesale 40 YEAR Program.

40-year term loan is fully amortized for its fixed term loan program. Two options available:

40 Year Fully Amortized Loan (480 months) or 40 Year Interest Only (first 10 years IO followed by 30-year fixed). Available programs include Full Doc, Alternative Doc (Bank Statement, 1099, Asset Utilization, VOE), DSCR. Purchase, Refi and Cash out available.

Introducing ITIN Loans at Hometown Equity Mortgage, a great option for those borrowers who may not be able to qualify for a traditional mortgage loan because they do not have an SSN.

Hometown Equity Mortgage offers a stand-alone second up to 90% CLTV, down to a 660 FICO, Interest only 1st lien allowed,12-month bank statements, Non-Owner- and Owner-Occupied option.

From conventional mortgages to government-backed loans and jumbo financing to niche products like non-QM and DSCR loans, as well as renovation and reverse mortgages, Plaza Home Mortgage® has you covered for just about any type of loan you might need. Look over

Plaza’s Diverse Product Lineup.

For a limited time, you pay $0 origination fees when you buy a home or refi with SoFi. That means a $1,495 credit at closing you can put toward, well, anything else. View your rate by 10/13/23 to save big on your mortgage. Need more reasons to go with SoFi for your home loan?

HighTechLending Wholesale is now offering its new Jumbo Proprietary Reverse Product, the Platinum Reverse. The Platinum comes in three variations: Maximum LTV Fixed Rate, Adjustable Rate with a Line of Credit, Reduced LTV with a lower Fixed Rate.

Capital Markets

Are we heading toward lower rates? Unrest, usually in the form of military action, around the world usually leads to a “flight to quality” and investors buy U.S. securities, driving down yields. We’re seeing that now. Bonds had a solid day on Tuesday, supported by safe-haven trades related to the Israel-Hamas conflict and some short-covering in a market that has been heading mostly lower since May.

Yesterday's gains were also supported by a dip in oil prices and comments from U.S. Federal Reserve officials that the jump in long-term rates has effectively tightened financial conditions enough for the Fed to keep its policy rate on hold at the October 31-November 1 FOMC meeting. Geopolitical instability usually causes interest rates to fall, but the strong domestic labor market is the biggest factor in the Fed’s current decision making and will probably remain so, especially after September’s big payrolls number.

A “dead-cat bounce” normally describes bond prices, but it’s apt today in describing mortgage applications. Mortgage applications increased 0.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. We’ve also received the September Producer Price Index (PPI) figures (+.5 percent, +2.2 percent year-over-year, core +.3 percent – ex-food & energy) versus expectations of increases of 0.5 percent month-over-month and 1.8 percent year-over-year.

Later today brings a Treasury auction of $35 billion reopened 10-year notes, and several Fed speakers: Governors Bowman and Waller, Atlanta President Bostic, and Boston President Collins. We begin the day with Agency MBS prices better by roughly .250 and the 10-year yielding 4.59 after closing yesterday at 4.66 percent; the 2-year yield is down to 4.99.

Jobs

radius financial group inc. is looking for a dynamic business development leader to continue its successful track record of identifying and adding talented production personnel to its unique platform. Based in Norwell, MA, we are a full-service retail mortgage banker founded in 1999 that is customer obsessed and hyper focused on supporting our production teams with the latest technology and dedicated support teams. The Business Development position will be responsible for developing and executing a candidate sourcing plan that will focus on proven purchase producing Loan Officers and teams in our existing markets, as well as new markets for our company. Interested candidates should send their resume to Carla Herrera at cherrera@radiusgrp.com for consideration.

“There’s a leader of any trick-or-treating crew. The one with the fullest pillowcase and the biggest, candy-eating grin. If you’re still reading this, you've probably got “leader of the werewolf pack” written all over you too. So, why are you still “ringing doorbells” for someone else? It’s time to get into the entrepreneurial spirit! Lead your own pack and collect your own candy... without all the heavy lifting (gummy bears might not weigh you down, but compliance and marketing sure could). A Motto Mortgage franchise allows you to find highly competitive rates for your borrowers while you create a business of your own. We provide professional marketing content and automation, product mix, wholesale lender relationships, and compliance support. From. Day. One. So, why fill some other boss witch’s cauldron when you can fill your own? Email us for all the details.”