Borrowers will bear the brunt of this, but rumors from several sources have Fair Isaac planning on giving most residential lenders an early Christmas “present,” effective 12/26, of higher fees for mortgage work incorporated into a new tier system. (Talk to your credit reporting agency or provider for details and tiering.) I heard a dealer in a Reno casino say that no one gets ruined by losing, they get ruined by trying to win back the money they lost. How hard is it to get back a lost client? People ask me why I send the commentary out six days a week. Hey, if I can help one MLO not lose one borrower, it’s worth it, right? For example, if an MLO is working with a borrower, or their spouse, who is Native American, they can access VA's Native American Direct Loan (NADL) program to buy, build, or improve a home on federal trust land. The borrower may also be eligible for a loan to refinance an existing NADL to reduce their interest rate. Find out if they qualify for a NADL. There are jillions (a secondary marketing term) of less-well known programs out there by which MLOs can add value to their clients. (Today’s podcast is available here and features an interview with nCino’s Matt Hansen on innovation and product initiatives in the mortgage fintech space. This week’s is sponsored by SimpleNexus, the homeownership platform that unites the people, systems, and stages of the mortgage process into one seamless, end-to-end solution that spans engagement, origination, closing and business intelligence. Click here to learn more about SimpleNexus, an nCino company.)

Lender and Broker Products, Services, and Software

Music legend Bill Withers just might have been onto something when he proclaimed in 1972 that we all need somebody to lean on. Though this tough mortgage market can feel like a challenge, we’re all in it together, and a helping hand from the experts could be the leg up you need to succeed. Black Knight is joining with top mortgage lenders to host a free virtual webinar called “Learn from Lenders: How to Navigate This Challenging Market Through Tech” on Wednesday, Oct. 12, at 1 p.m. CST. Register now to join the discussion with this experienced panel to explore the innovative new origination solutions that are helping businesses create new opportunities even as the mortgage industry faces the smallest refinance market ever, and some of the lowest purchase volumes in recent history. Register for this free virtual webinar today.

While some athletes are memorable enough on their own, magic can happen on the field when the right pairings are put together. Joe Montana and Jerry Rice were both Hall of Fame players in their own right, but together, they were legendary. Similarly, Mortgage Coach and Insellerate have paired up to help lenders fill their pipelines with Hall of Fame-worthy numbers. Together, the technologies equip mortgage advisors with the capabilities they need to efficiently contact leads and provide meaningful mortgage advice that earns their trust and loan commitment faster. Working through Insellerate’s CRM, which intelligently prioritizes and distributes leads, users can generate TCAs that have been prefilled with contact data and click a button to instantly connect with leads. Learn more about this legendary pairing and start scoring more deals today.

Have we reached a new normal as far as forbearance exits are concerned? Maybe. But what if they spike up again? Will your default team be subscale? And if they don’t spike, will you be overstaffed? Major servicers are hedging their bets by strategically outsourcing their modification and default fulfillment to Covius. Three of the top five servicers have modeled the benefit and outsourced their loss mitigation and modification work to us. Outsourcing shifts fixed costs to variable and lets you redeploy staff without worrying about a short-term spike in forbearance mods or the uncertainty of the current economic cycle. For more information about modification and default outsourcing at Covius, contact Matt Johnson, VP of Business Development.

“Delivering customer service that outpaces industry benchmarks. At Cenlar, we are always striving to improve the homeowner experience. The results of our efforts are clear, with the kind of progress that is measurable. Our call center is consistently outpacing industry benchmarks. Our performance reflects both our investments in people and technology, and the strengthening of our commitment to “think like a homeowner.” We strive to anticipate homeowner needs and answer common questions through proactive communications, like our chat bots and web site. While it is important to us that we are among the best in our industry, it’s of even greater importance that we are always improving the service we deliver to our clients and their homeowners. Let’s discuss how Cenlar can meet the mortgage servicing needs of your organization. Call 1-888-SUBSERV (782-7378) or visit us.”

Don’t wait - it’s time to truly understand your MSR portfolio financial results, refine your MSR strategy and optimize the path forward through dynamic market conditions. At Richey May, we begin with a deep analysis of your MSR portfolio, a review of the overall servicing retained/released strategy plus a review of the production side of the business. Ongoing support with sale selections, Letters of Intent and Contracts, and periodic calls to discuss MSR conditions can also be included. Contact Seth Sprague, CMB to learn more about Richey May’s Mortgage Banking Consulting Services.

TPO Products

Yes, there are companies that are still growing. Merchants Bank of Indiana recently hired Reija Eden and Bryan Neitzelt to cover the Western Region for its Correspondent channel. Merchants offers Agency and Non-Agency programs with a focus on Non-Delegated Lenders. Merchants also offers a dedicated Financial Institution channel, BCU Mortgage Services, that provides fulfillment services to Banks and Credit Unions. With approximately $10 Billion in Assets, a strong warehouse financing platform, a diversified banking business and seasoned mortgage professionals in the C-Suite, Merchants approaches the Correspondent business from a position of strength and commitment. Reija and Bryan join Kathy Bickett-Eastern Region; Jeff Cothern – Central Region; Dan Hastings – Midsouth Region; Bob Reinagel- Southeast Region.

As a Non-QM (NQM) pioneer, IMPAC has helped navigate countless brokers through the often-challenging waters of NQM. Our proven track record in alternative credit speaks for itself. Since our inception in 1995, we’ve originated and purchased over $94B in residential mortgage loans and have issued over $60B in non-agency mortgage-backed securities. Alternative credit has been woven into the fabric of who we are and our story for decades. NQM is in our DNA™. Our Non-QM product suite offers 90% LTV on Bank Statement, 1099, Asset Qualification, and Full Doc programs, and our Investor product offers a no-minimum DSCR option (details linked here). Also, we offer the ability to speak directly with our experienced, in-house underwriters to help close loans faster. To learn more, contact an Impac Account Executive today.

Flagstar Bank is building on its strengths in the mortgage space with a host of recent product introductions geared to keep you ahead of today’s ever-shifting market. New products include Advantage Non-QM which has flexible guidelines including higher DTI up to 55%; Advantage Bank Statements with more flexible qualifying guidelines for your self-employed borrower; competitively priced Jumbo ARMs up to $4 million; a standalone HELOC with a minimum 680 score and I/O options; as well as a Jumbo One-Close construction product with ARMs that have higher loan limits up to $3 million, a great solution for the current housing shortage. For 35 years, Flagstar’s commitment to all four channels of the space has been strong and will remain strong. Count on it. To learn more, visit here or write John Gibson. Flagstar will also be at the MBA Annual Convention in Nashville October 23-26, so contact John for a meeting.

Wholesalers Making Changes

Brokers doing business with Finance of America learned that the last day to register or forward lock (per-lock) a file will be Monday, October 10th. The last day to submit the full file is the following Monday, October 17th. The last day to lock the files that were not pre-locked will be on October 28th. Funding must occur by December 16th.

Brokers know that loanDepot will exit the Wholesale channel effective October 31, but is committed to remaining coordinated, transparent, and communicative throughout the wind-down period. Here are some important dates to keep in mind as you close out your pipeline. September 30th was the last day to submit loans in the mello® Broker portal. October 15th: Last day to lock loans in the mello® Broker portal. October 31st: Last day to fund Wholesale pipeline and last day to purchase NDC pipeline. December 31st: Last day to access the mello® Broker portal.

UWM revealed three new tools to help independent mortgage brokers offer “more speed, control, and transparency from initial approval to closing, UClose 3.0, TRAC (Title Review and Closing) and Safe Check. An enhanced version of the UClose 2.0 platform, UClose 3.0 offers hybrid closings and streamlined virtual closings, giving borrowers the ability to close anywhere, anytime, on any device. With this platform, it will now only take minutes to move from CTC to Final Closing package. Entirely new to the industry, TRAC offers an alternative to the traditional title and closing process. This exclusive tool provides a streamlined experience, plus significant savings for the borrower by removing the need for Lender Title Policy and reducing title and closing fees. Safe Check allows borrowers to get an appraisal waiver pre-check before submitting their loan. This early approval helps borrowers move ahead with certainty on cost and prevents trigger leads through a soft credit check that doesn’t impact FICO scores.”

On June 6, 2022, the IRS announced that form 4506-C is being updated and published a draft of the new form. A final version of the new form is expected to be available in mid-October. See AmeriHome Correspondent announcement 20220908-CL for details and a comparison of changes between the current & new Draft Form 4506-C.

AmeriHome has updated the Non-Delegated – Condominium Project Review Quick Reference Guide. View AmeriHome announcement 20220907-ND.

Pennymac expanded eligibility requirements and loan program availability for temporary interest rate buydowns, as outlined in PennyMac Correspondent Announcement 22-64.

Capital Markets: Inflation Takes Center Stage

Yes, sometimes our stock and bond markets are moved by markets overseas. Yesterday, for example, we saw more selling in bond markets as the Bank of England expanded its emergency Gilt buying program to include inflation-linked debt, though reiterated that the plan is still on track to end on Friday. Domestically, the largest players in the U.S. Treasuries market (Japanese pensions and life insurers, foreign governments, and U.S. commercial banks) have backed off and are in retreat. There is also the Federal Reserve, which has accelerated the pace of offloading Treasuries from its balance sheet to $60 billion a month.

There were a couple forecasts and surveys of note yesterday. The New York Fed released its latest survey of consumer expectations, showing that one-year inflation expectations decelerated to 5.4 percent from 5.7 percent to reach the lowest level since September 2021. The IMF released its updated forecasts, reducing its outlook for global growth in 2023 to 2.7 percent from 2.9 percent with the U.S. economy expected to grow just 1.0 percent. The IMF called on central banks to continue tightening policy and projected that inflation will decelerate to 6.5 percent in 2023 from 8.8 percent in 2022.

With the 30-year conforming rate reaching the highest level since 2006, anywhere from 6.8 percent to 7.1 percent, depending on who you ask, mortgage applications decreased 2 percent from one week earlier, according to data from the MBA. We have also received the week’s first inflation report with September producer prices: +.4 percent, +8.5 percent for the year. (Expectations were for the headline to fall to 8.1 percent year-over-year.) Later today brings a Treasury auction of $32 billion reopened 10-year notes. After Cleveland Fed President Mester said yesterday that the fundamental state of the economy is "still good," though she is troubled by the breadth of inflation, three Fed speakers are currently scheduled today (Minneapolis’ Kashkari, Fed Chair for Supervision Barr, and Fed Governor Bowman) and the minutes from the September 13/14 FOMC meeting will be released in the afternoon. We begin Wednesday with Agency MBS prices worse .125 and the 10-year yielding 3.96 after closing yesterday at 3.94 percent.

Jobs and Transitions

Acra Lending continues to expand its footprint as the industry’s leading private mortgage lender, and we are seeking talented mortgage professionals to join the growing team! Now is the time to join a company that provides competitive mortgage lending programs and a seamless customer experience. Acra Lending, the leader in Non-QM lending, is currently hiring for Wholesale Account Executives, MLOs , IT Professionals, Accounting and more. Apply at JoinAcra or email us to learn more about the opportunities we offer.

Evergreen Home Loans™ has hired 35-year veteran Robert Lipston as executive vice president of production. (Mr. Lipston also serves as a local leader in the mortgage industry as the current president of the Puget Sound Mortgage Lenders Association.)