“An eye for an eye, Tooth for a tooth. Vote for me and I'll set you free! Rap on, brother, rap on. Well, the only person talking about loving thy brother is the preacher. And it seems nobody's interested in learning, but the teacher. Segregation, demonstration, integration, determination, aggravation, humiliation, obligation to our nation.” So sang The Temptations in “Ball of Confusion” from 1970. (Yes, 54 years ago.) Politics aside, some in our industry were confused when rates went up instead of down after the last Federal Reserve meeting, but face it, there has been a lot of positive economic news recently that has kept long term rates higher. The Fed can only control so much: Extreme weather across southern Asia has sent the price of black tea sharply upward, with the benchmark auction price of tea in northern India coming in up 30 percent year over year. Beyond heavy rains in June that hurt the harvest, a fungus has been afflicting India’s tea plantations. Harvests in Sri Lanka are likewise down, and the export markets are going to suffer the most: Japan, for instance, gets 60 percent of its black tea imports from India and Sri Lanka. (Today’s podcast can be found here, and this week’s is sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite's three core products, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics, unite the people, systems, and stages of the mortgage process. Hear an interview with nCino’s Ben Miller on a topic that’s dominating industry conversations right now: artificial intelligence and machine learning.)
Lender and Broker Software, Services, and Products
Due to high interest rates, origination volume remains low across all loan-purpose types. Adversely, equity continues to increase, creating a bright side for lenders. ICE suite of valuation solutions can help streamline home equity lending by determining the value of a property and estimated equity, faster and more cost-effective than traditional or drive-by appraisals. Download the eBook, How to grow a successful home equity lending business, to learn how ICE can help you improve your business operations, increase profitability, and gain an advantage in today’s home equity lending market.
“Get ready to achieve excellence in mortgage servicing QC! Check out ACES’ new ebook “Mastering Mortgage Servicing QC,” containing insightful information from our recent webinar presented. With practical tips for both beginner and master levels, this guide offers best practices for defining quality standards, implementing controls, and fostering a culture of continuous improvement. By applying these strategies, you can drive meaningful advancements in your operations, ensuring your credit union is equipped to deliver superior service. Download the guide.”
Things move fast these days. People’s schedules are busier than ever. And we all seem to be on the go, all the time. That makes staying connected with your customers and prospects more challenging if you don’t have the right tools. Engage SMS from Total Expert is a compliant, conversational messaging service that lets you keep conversations moving forward whether you’re at your desk or on the move. View full conversation histories in the Total Expert platform, weave SMS into automated Journeys, send bulk messages, and connect with customers in real time… All from your unique local phone number. Learn how Engage SMS can help deepen relationships, elevate your customer experience, and drive conversions!
Servicing Tools and Risk Products
“Is a standing call with your servicer enough for proper oversight? Is there a specified cadence for how often a lender should meet with their servicer? Ultimately, you are responsible for overseeing your subservicer, so you must understand what is expected of you and the key actions you need to take to maintain oversight and comply with regulations. Tune in to this video, where the experts at Richey May answer the most frequently asked questions about subservicer oversight requirements. Whether you’re considering a subservicer or navigating the general complexities of oversight, Richey May’s mortgage compliance experts can help. Contact us today for more information.”
“At Servbank, we know that details matter. Which is why we focus on the details, both the big and small, so you can concentrate on what really matters: your business. We understand how challenging managing your portfolio can be. That is why we provide you with a single point of contact for all your needs, ensuring you that nothing falls through the cracks… so that you can focus on the growth and success of your business. Whether it's an individual loan issue or an entire portfolio need, we’ve got you covered. With timely, transparent, and efficient communication, we make your experience with us frictionless and hassle-free. Make your life easier and let Servbank handle the details, so you can focus on taking your business to the next level. Learn more about the nation’s premier bank subservicer.”
Heading to Denver for MBA Annual next week? Schedule some time to meet with the Covius team and learn more about why we are trusted by 9 of the top 10 lenders and servicers, 14 of the top 20 banks and thousands of settlement agents and attorneys. Covius’ technology-enabled solutions deliver operational efficiencies, mitigate risk, and empower compliant decisions and borrower interactions. Covius solutions are recognized leaders in loss mitigation, document and data solutions, title and settlement services, compliance and critical borrower communications, lien release tracking and preparation, HOA tracking, quality assurance, REO asset management and auction services, credit reporting and verification and more. Click here to schedule a meeting and discover how our innovative solutions can streamline your mortgage operations.
STRATMOR’s Customer Direct Workshop
The Federal Reserve cut came in September, but now future rate cuts are unknown. 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
Rocket and the Department of Justice
As has been mentioned in the Commentary, there is definitely the feeling that government agencies are hustling up penalties ahead of the election. Fairway Independent was last week, and now…
The U.S. Justice Department is suing Rocket Mortgage, an appraisal management company, and an appraiser for race discrimination in a mortgage refinance application.
“The Justice Department announced today that it has filed a lawsuit alleging that Rocket Mortgage LLC; Solidifi US Inc.; Maverick Appraisal Group Inc.; and Maksym Mykhailyna discriminated against a Black homeowner by undervaluing her home based on her race in an appraisal required as part of a home mortgage refinance application. The United States also alleges that Rocket Mortgage retaliated against the homeowner and interfered with her rights by cancelling her mortgage refinance application when she reported this discrimination.”
Webinars and Training Into November
A good place for longer term conference planning is to start is here for in-person events in the future.
Visio Lending and STRATMOR Group present “Use DSCR Loans to Earn $150k Per Client: The Broker Playbook for Growing Repeat & Referral Business.” Join Visio CEO Jeff Ball and STRATMOR Director of Customer Experience Mike Seminari for an invaluable webinar on using customer success principles to grow your DSCR broker business. Register here for the webinar on Tuesday, October 22nd, at 3 PM CST.
Tuesdays at 11am PT, two veteran LOs discuss all things mortgage with Industry Leaders: Mortgage Pros 411 with Audrey Boissonou and Kevin Casey. Meet Catherine Hall, Executive Director of the National Association of FHA consultants.
Trading within the To-Be-Announced (TBA) mortgage-backed securities market at specific price levels during volatile market conditions offers a streamlined process and greater confidence. Agile, a groundbreaking fintech bringing mortgage lenders and broker-dealers onto a single electronic platform, announced the launch of limit orders as a new quote request option for all users. This functionality improves execution and efficiency and ultimately, mortgage lender profitability. To further prepare for upcoming election-related market volatility, join Agile on October 22, at 11 AM PT for the latest Agile Trader Talk Webinar for a discussion on how the election, no matter the outcome, could impact the Mortgage-Backed Securities (MBS) market.
Join MaryKay Scully for an interactive course and test your knowledge of self-employed borrower tax returns. Register for MMLA West Chapter Zoom Webinar with Enact on Tuesday, October 22, 9:00 a.m. - 10:00 a.m.
Were you around for the market whipsaw that was Trump’s first election? No matter who wins, it pays to be prepared for election-related market volatility. Join Agile on October 22, at 11 AM PT for the latest Agile Trader Talk Webinar, where Greg Vacura, president of Agile, will lead an in-depth discussion with BOK Financial’s Chris Maloney, JVB Financial’s Thomas McHugh, and Jefferies Joe Pollicino, on how the upcoming election could impact the Mortgage-Backed Securities (MBS) market. Join this team of experts and make sure you have your bases well-covered before election day.
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. Ari Karen, Partner, Mitchell Sandler, show is sponsored by Mitchell Sandler
Tomorrow 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. This Thursday will feature Verisk's Kingsley Greenland talking about climate risk, disaster modeling, and homeowners insurance.
Join CAMP for Broker Round Table with Eric Garcia, October 24, at 11:00 AM.
Friday the 25th listen in to opinions (Last Word Fridays at 1pm ET) from Kevin Peranio and Brian Vieaux! Register here.
End this week with The Mortgage Collaborative’s The Fix with Melissa Langdale covering current events in the mortgage market for 30 minutes starting at noon PT, 3PM ET.
Next week, of course, is the MBA’s National Convention and Expo, from October 27-30.
October Research, LLC is happy to announce this year’s Women’s Leadership Summit (WLS) will be held Nov 3-4 in Cleveland, OH. Built around the four diamonds: Develop, Grow, Support and Empower, attendees walk away with the tools for success. Learn how to manage effectively, negotiate for what you need, build a network and much more. Visit OctoberResearchWLS.com for more information and to register today.
The California Mortgage Expo returns to Pasadena on Tuesday, November 5, bringing in the industry's best, with educational sessions that show you how to make more money, be a better sales pro, and keep your pipeline full.
Fusion '24: The Midwest’s Premiere Lending Event! Formerly known as the Servion Lending Conference, Fusion 24 Nov. 6-8 is your best value in comprehensive residential and commercial lending insights and education. Happening at the JW Marriott - Mall of America, Fusion 24 promises to be packed with expert speakers, networking, and live entertainment ideal for all experience levels. Sponsorship and exhibitor opportunities available here. Act now, the JW Marriott-Mall of America room block expires 10/7! Learn more at myservion.com/fusion.
If you’re in Georgia, certainly Atlanta, come to the luncheon on November 12th for the Atlanta Mortgage Banker’s event in Dunwoody!
Have you heard about (read: registered for) some of our expanded media offerings? Chrisman Commentary is pleased to bring you a variety of video shows hosted on Zoom throughout the week. Take your pick: We have a show focused on technology and innovation (Now Next Later Mondays at 1pm ET, presented by BILT Rewards), origination (Mortgage Pros Tuesdays at 2pm ET), big-name interviews (Mortgage Matters Wednesdays at 2pm ET, presented by Lenders One), headline news (The Big Picture Thursday’s at 3pm ET), opinion (Last Word Fridays at 1pm ET), advisory services (Advisory Angle first Tuesday of the month at 2pm ET, presented by STRATMOR Group), capital markets (Capital Markets Wrap second Tuesday of the month at 3pm ET, presented by Polly), regulation and compliance (Regulation Central third Tuesday of the month at 3pm ET), and reaching the next generation of homeowners (Mortgages with Millennials last Tuesday of the month at 1pm ET, presented by The Mortgage Collaborative). (If you don’t see a presenting sponsor, please reach out to Chrisman LLC’s Anjelica Nixt to inquire about opportunities.)
Capital Markets
Despite a slow news day yesterday, there was a lot of selling in the bond markets amid increased concerns about fiscal policies with the U.S. election two weeks away. Corporations have been in a rush to secure financing ahead of potential market turbulence and the looming presidential election, leading to an extraordinary burst of corporate bond sales. The selloff was greeted with relatively heavy trading volumes in UMBS30s where 5 percent then 5.5 percent were the most active versus relatively light GNII flows and better bids on G2/UMBS swaps.
Minneapolis Fed President Kashkari repeated that he favors reducing interest rates at a slower pace, something markets have been coming to terms with thanks to the seemingly indestructible nature of the current U.S. economy. It’s an interesting paradox considering consumers have become increasingly worried about the jobs market, weighing on overall moods. Consumer confidence has remained within its narrow range for the past two years, though there is hope over expectations for lower interest rates. We learned yesterday that the September Leading Economic Index was down 0.5 percent month-over-month, worse than expected, following a downwardly revised 0.3 percent decline in August.
Much like yesterday, the economic calendar is relatively light for the remainder of this week. Markets will get a first glimpse of business conditions in October, when S&P Global releases the preliminary flash estimates of its Manufacturing and Services Purchasing Managers’ Indices on Thursday. Durable goods orders are expected to have rebounded from a flat reading last month. Existing and new home sales data are the other key releases this week. The consensus expects existing home sales, which account for most of the homes sold, to have rebounded in September after a steep fall in August.
Philadelphia Fed non-manufacturing indices for October kicked off today’s economic calendar. Later today brings Redbook same store sales, Richmond Fed manufacturing and services for October, some short-duration Treasury auctions, and more remarks from Philadelphia Fed President Harker after he dominated headlines yesterday. We begin the day with Agency MBS prices roughly unchanged from Monday, the 10-year yielding 4.19 after closing yesterday at 4.18 percent, and the 2-year at 4.05.
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