A while back I parked my car outside a government office building in Sacramento. "Sir, you can't park here," said a cop. "This is where our politicians work." "Don't worry, I've locked it." Here at the Banner Bank sales conference in Vancouver, someone suggested that if it weren’t for the presidential election (don’t expect to have an answer the day after) or Israel, the mainstream press would have nothing to talk about. Remember the “old days” when a winner would be declared election night? It appears that we won’t have an answer the morning after the election, or for days, with perhaps the winner being the legal world as lawyers figure it out. (Today’s podcast can be found here, and this week’s is sponsored by Aidium. Aidium's AI Lead Prioritization alerts you months ahead of traditional triggers and lead scoring, like X-ray vision for your leads. Aidium Intelligence uses AI to analyze 5,000+ vivid consumer behavior data points, and your CRM data to determine which of your leads are most ready to transact. Hear an interview with Finlocker’s Brian Vieaux on why outsourcing should be considered a beneficial switch to variable costs that will help enterprises over market cycles.)

Lender and Broker Software, Services, and Products

“I love how long it takes for me to learn my marketing software.” Ever heard a loan officer say something like this? We haven’t either. That’s why the folks at Aduvo created a truly set-it-and-forget-it marketing automation system that quickly transforms hidden opportunities in your database into closed loans. Aduvo simplifies mortgage marketing with all the tools you need and none of the ones you don’t. It grows your business by delivering fresh marketing content and loan status updates to your contacts, delighting them in the process. Unlike other marketing systems, Aduvo doesn’t require lengthy training and integration: it can be deployed in just 15 minutes and syncs quickly with most loan origination systems. Finally, a marketing platform that’s designed so you don’t have to keep checking on marketing. See for yourself why loan officers and lenders are signing up for Aduvo by booking a quick demo today.

When asked why they wanted to work in the mortgage industry, 100% of lending professionals don’t mention a desire to manage documents. That’s why Mortgage Machine™ recently embedded Auto Split into its namesake, digital-first LOS. Designed to automate the extraction and storage of loan documents to drastically reduce closing times, this AI tool dissects large PDF files uploaded to Click n’ File and sorts them into files retrievable via smartphone, all while complying with SMART Doc® data and security standards from MISMO. In addition to incorporating the latest AI and document management, Mortgage Machine offers all-in-one eClosing functionality, including an eClose room, eNotes, eVault and remote online notarization (RON). To escape those long days of saving-and-sending, schedule a meeting with Dan McGrew at the MBA Annual Convention and Expo, Oct. 27–30.

Loan officers are getting creative in today’s challenging market. I’ve heard stories of originators attending remodeling shows, working with HR departments to reach new hires, and even teaching local classes to connect with future buyers. With rates high, LOs are advising clients to think long-term: buy now while prices are lower, then refinance when rates inevitably fall. On the agent side, success lies in partnership. Agents want loan officers who aren’t just transactional but who educate clients, follow up, and communicate throughout the process. With business slow, now’s the time to sharpen skills, strengthen relationships, and be ready when the market turns. Read my full article in Mortgage Banker Magazine. You can also find the Google doc here.

FHA and VA News

FHA and VA loans have seen different price moves over the last several months, in part due to early payoffs. Chris Maloney with BOKF MBS, writes, “While an FHA borrower may cash out in like manner to a conventional borrower (the new mortgage cannot push the loan-to-value ratio above 80%) on the VA side it is allowed to go up to 100% (though a lender may restrict the cash out mortgages they will offer to a lower LTV than 100%.) Yet, that twist doesn't really come into play in the current lending environment, as only the 2024 and 2023 vintages sport a WAC high enough to allow a refinancing in the first place.”

The Federal Housing Administration (FHA) posted a draft Mortgagee Letter (ML), Revised Cyber Incident Reporting Requirements, on its Single Family Housing Drafting Table for review and feedback. This draft ML provides updated requirements for when FHA-approved mortgagees must notify the Department of Housing and Urban Development (HUD) when a reportable cyber incident occurs. This draft ML provides a clearer definition of what constitutes a cyber incident and requires FHA-approved mortgagees to notify HUD as soon as possible (but no later than 36 hours) after determining that a reportable cyber incident has occurred. These updated reporting requirements harmonize FHA with existing standards established by the federal banking agencies. When finalized and the revised ML is published, the updated guidance will supersede the previous guidance in ML 2024-10, dated May 23, 2024.

The FHA posted a questions and answers document that addresses inquiries received from stakeholders regarding FHA’s Mortgagee Letter (ML) 2024-07, Appraisal Review and Reconsideration of Value (ROV), announced in FHA INFO 2024-24 on May 1, 2024.

Pennymac issued reminders in Announcement 24-110 regarding escrow/impound accounts and Ginnie Mae loan data matching.

PHH Mortgage announced an operational process improvement. Clients will no longer be required to click the “Notify Lender” button on TPO Connect to resubmit documents.

Effective immediately, PHH will allow the use of a tri-merged soft pull credit report with three (3) scores for Non-Credit Qualifying VA Interest Rate Reduction Refinance loans (IRRRL) and FHA Streamline Refinances. View PHH Mortgage Credit Policy Update Announcement for more information.

Effective with Product Announcement 20241012-CL, AmeriHome clarifies that for VA IRRRL loan transactions, a “Mortgage Only” credit report with a credit score is acceptable. See the attached announcement for details.

In other FHA news, Candor Technology announced the expansion of its Loan Engineering System™ (LES) to include Federal Housing Administration (FHA) loans. “In an industry first, Candor's LES not only automates underwriting decisions for FHA loans but also offers a warranty on income calculations and cleared conditions for funded FHA loans. Candor’s LES seamlessly integrates with lenders' loan origination software, enabling it to calculate income, assets, and other qualifying credit criteria while cross-referencing FHA guidelines. The system generates and clears dynamic, loan-specific conditions and is backed by a warranty from an AAA-rated insurer for up to 60 months post-closing. Using advanced expert system technology, the LES can fully underwrite a loan in as little as 90 seconds, even at the point of sale, giving loan officers a competitive edge to secure borrowers faster than ever before.”

Capital Markets

Bond prices down = interest rates up. We’ve seen yields rise of late as it has become apparent that the Fed is likely to slow or stop its pace of rate cuts with the U.S. economy still running on a growth path. Yesterday brought the release of stronger-than-expected September retail sales (illustrating the resilient consumer spending powering the economy), better-than-feared weekly initial jobless claims (more evidence of a labor market at or near a 50-year record for employment), an indication that manufacturing activity in the Philadelphia Fed region accelerated in October faster than anticipated, and industrial production fell in September as capacity utilization dropped to a three-year low.

The European economy is smaller than the United States, but it is still important to know what’s going on there. The European Central Bank's decision to cut its key rates by 25-basis points was an afterthought, largely because that move was expected. ECB President Lagarde said risks to growth are tilted to the downside, which the market can construe as an opening for additional rate cuts. Domestically, the strong retail report does little to reverse expectations that the Federal Reserve will cut interest rates by 25-basis points next month. However, it does mean that our central bank is likely to remain circumspect about more, and bigger, rate cuts.

Just as mortgage credit availability decreased for the first time in nearly three years, lending conditions are expected to strengthen over the next six months for both consumers and businesses, according to the American Bankers Association’s latest Credit Conditions Index released today. The Credit Conditions Index climbed above its neutral reading of 50 for the first time since early 2022, indicating that bank economists expect lending conditions to improve over the next six months. The overall trajectory of the economy has generally followed the EAC’s expected path: core inflation remains slightly elevated but continues to ease, and employment growth has slowed but remains above the economy’s replacement rate. EAC members pegged the probability of a 2025 recession at 30 percent (up slightly from 25 percent in June), but the consensus view is that the economy is on track toward a soft landing.

In terms of daily news, the week closes with a modest calendar and began with housing starts and building permits for September (1.35 and 1.46 million for each, respectively, about as expected and not moving rates). We will also receive remarks from Atlanta Fed President Bostic, Minneapolis Fed President Kashkari, and Fed Governor Waller. Friday starts with Agency MBS prices unchanged from Thursday, the 10-year yielding 4.09 after closing yesterday at 4.10 percent, and the 2-year at 3.98.

Employment, Partners Wanted

Assurance Financial, a Baton Rouge-based mortgage lender, has appointed Jim Clapp as its new Chief Lending Officer (CLO). With over 25 years of industry experience, Clapp will oversee the company’s lending strategy, focusing on innovation and business development to drive continued growth nationwide. His leadership aims to enhance Assurance Financial’s competitive position in the dynamic mortgage market, ensuring the company delivers personalized, efficient lending solutions to clients. Clapp’s appointment reflects Assurance Financial’s commitment to leadership excellence and expanding its service offerings.

A highly accomplished C-level executive in mortgage/adjacent industries, with a proven track record in leadership, turnarounds, growth, transitions, and successful exits, is now seeking a new leadership role. Achievements include channel reboot 12x in 11 months. Intrapreneurial experience with rapidly growing companies and start-up/channel/pivot scenarios. Deep understanding that before MVP, “does it work” must be executed. Expertise spans all facets of running an organization, including ownership, manager/ic-operator, sales, operations, product development, M&A, and financial optimization. Past mortgage and FINRA licenses, exceptional agency relationships and knowledge; valuable resources. Experience with VC-backed firms, PTC’s, banks, PE’s, Insurance, Developer/Builder, IMB’s and brokers. Ideal position is President (line/business), COO/CSO or similar roles with a VC or FinTech/FinServ at the core with tech utilized mortgage or IMB/Bank looking to pivot into this sector for superior margins, exceptional scale, and top market share. To connect with this driven, successful leader, please email Chrisman LLC’s Anjelica Nixt.

Mortgage industry leaders expect more mergers and acquisitions in 2025, fueled by lower rates and growing confidence. loanDepot Executive Director of Enterprise Partnerships and Acquisitions Dan Hanson said most mortgage business owners know that the future of the industry will require immense investments in technology, quality, and culture, but too often, they see selling their business as a “win/loss” transaction. Instead, Dan said, “One plus one can equal three. For those with strong sales cultures, becoming part of a larger organization with the scale and means to make strategic investments can bring significant growth and new opportunities.” Culture fit, product mix, geographical footprint and technical prowess are all important considerations for potential sellers. Leaders interested in a confidential conversation are invited to reach out to Dan directly.

“Join a Growing Team at Evergreen Home Loans! At Evergreen Home Loans™, we’re excited to announce our continued expansion! As one of the most trusted lenders in the industry, we’re committed to providing homebuyers with innovative products, exceptional service, and on-time closings. To support our growth, we are actively recruiting experienced loan officers and branch managers who share our dedication to customer success and community impact. With a supportive culture, cutting-edge tools, and programs like our Security Plus Seller Guarantee, our team members are empowered to thrive. If you’re ready to take your career to the next level with a company that cares about both its employees and customers, visit our careers page to learn more about opportunities with Evergreen Home Loans™!”

Impact Summit: Equipping Movement’s Sales Team for Success! Movement Mortgage is hosting the Impact Summit in Charlotte, N.C., on December 6, an exclusive conference designed specifically for the company’s loan officers and sales teams. The all-day event will feature inspirational and motivational talks from New York Times Best-Selling Authors Bob Goff and Phil M Jones, industry leaders like Dave Savage and Neel Dhingra, and many more. The Impact Summit will offer Movement’s loan officers a chance to connect with trailblazing mortgage innovators, master the art of personal branding and storytelling, and learn from the most influential leaders in the industry. They’ll walk away with fresh insights, proven strategies, and the motivation to elevate their career to new heights heading into 2025. Interested in hearing more? Want to attend? Tickets are on sale now! Reach out to Movement at events@movement.com for more information.

Looking for a dynamic career in fintech and real estate? Realfinity, a mortgage startup in embedded lending, is hiring a Mortgage Loan Processor in Miami, FL (on-site). This is your chance to join an innovative team transforming how real estate agents offer mortgage services to clients, streamlining the entire homebuying journey. As a Loan Processor, you’ll manage end-to-end loan applications, collaborate with dual-licensed agents, and ensure a seamless lending process. If you thrive in a fast-paced, high-growth environment and have a passion for delivering exceptional service, this is the opportunity for you. Apply now to be part of a company that's revolutionizing real estate finance! Read more here. Send your confidential application to Elena Cardoza.

Guild Mortgage spread the news that 25-year vet Nora Guerra is joining the company as Senior Vice President of Community Lending Solutions. Guerra will “lead, develop and expand programs, policies and initiatives that support attainable homeownership, including mortgage lending, down payment assistance, financial education, and community outreach.”

(As a reminder, anyone searching for employment can post their resume at no charge at www.lendernews.com, and potential employers can view all resumes for several months for only $75.)