“What do giraffes and zoning regulations have in common? They both don't exist in Texas.” I am not heading there for a while, but instead head to St. Louis this morning for the MBA of St. Louis event. I received this note from a veteran broker. “Someone please remind government officials, bank management, and industry leaders what happened when regulations were removed or not enforced. Anyone else remember 2008-2010? We need regulations as banks don't give a damn about anything but profits and stock prices. The financial, food, geriatric care, or whatever industries will not police themselves.” As if on cue, today at noon PT, 3PM ET, Marty Green from Polunsky Beitel Green, Matt VanFossen, Chief Executive Officer of Absolute Home Mortgage Corporation, and Loretta Salzano from Franzen & Salzano will be exploring what Trump’s election win means for the mortgage industry, including the FHFA, CFPB, and the Fed, and discuss the uncertainties around his policy decisions: Regulation Central. HUD knows a thing or two about rules and regulations, and HUD’s Julia Gordon is on Mortgage Pros 411 today at 11AM PT, 2PM ET. (Today’s podcast can be found here and this week’s is sponsored by PHH Mortgage. If you are looking for a Correspondent Lending partner or an experienced, award-winning subservicer who can manage your forward and reverse, residential and commercial, and performing and non-performing loans look no further than PHH. Hear an interview with Cross Country Mortgage’s Matt Weaver, who ranked No. 1 for Most Loans Closed and No. 4 in Top Dollar Volume per Scotsman Guide in 2023, on what sets apart quality originators and how to grind out volume in this rate environment.)

Lender and Broker Software, Services, and Products

Homeowners want stability and security in their mortgage journey, but they rarely get either when a loan is transferred. Servicing transfers mean a new company, new payment settings and more, and can cause confusion and stress. ICE helps you support your customers and stay hands-on during the loan hand-off, with tools like a new “transfer tracker” that makes the process more transparent and easier to understand for your customers. EVP of Servicing Product Innovation Sandra Madigan shares how ICE is smoothing out the servicing transfer for process for homeowners. Read the new blog from ICE to learn how you can give your borrowers more control and peace of mind when you choose mortgage software that puts them first.

“TENA Companies, Inc. is here to help you navigate the complexities of the new Loss Mitigation policy updates. The recent updates to FHA loss mitigation policies, establishment of the new RHS Payment Supplement Account Demonstration Program, and updates to Chapter 9 of the VA Servicer Handbook have significant implications for Mortgage Servicers. These changes impact how Mortgage Servicers are able to assist borrowers facing financial hardship. In order to ensure your firm remains compliant, your Quality Control (QC) processes must accurately assess borrower eligibility for these programs, requiring careful review of the details and making necessary updates to audit testing scripts. Ready to streamline your QC processes? Our experienced Servicing QC team can help to make sure your firm adheres to the new Loss Mitigation updates and maintains compliance with these and all requirements. Contact TENA today to learn more about our Mortgage Quality Control services!

“If you’re not reviewing your HMDA data, you’re the only one! Not only are regulators using HMDA data to measure fair lending compliance, but investors, competitors, and vendors are also using your data for due diligence and contract negotiations, so inaccurate data can be costly. With a HMDA data review by Firstline Compliance, our team dives deep into your loan-level information, leveraging our experience to uncover issues others might miss. We go deeper because we know what to look for. With the 3/1 data submission deadline just around the corner, contact Josh Weinberg now to schedule your review in January. Stay ahead, mitigate risks, and ensure your HMDA data works for you.”

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. Maxwell Point of Sale also sees a 14% increase in pull-through from Rate Lock to Close on the vs a top competitor. Want to learn more? Let us know and we’ll show you what Maxwell can do for you and your borrowers.

Your customers’ lives are filled with important milestones, exciting achievements, and challenging times that have a significant impact on their financial needs and goals. Total Expert Customer Intelligence will help ensure you’re ready to act the moment your customers experience one of these events or signal intent to make their next mortgage-related decision. By combining your existing data with publicly available third-party data, you’ll be able to identify opportunities to engage your customers when it matters most so you can deliver authentic, impactful communications to every customer and guide them through the next stage of their financial journey. See how Total Expert helps you show up in the moments that matter.

“At Servbank, we offer subservicing that’s consistent, reliable, and dependable, delivering a best-in-class customer experience for your clients while providing the compliant surety you deserve under a trusted depository institution. With a perfect IDC score of 300, our proven track record reflects our dedication to rigor, proactivity, and a culture of compliant care. Whether it's a federal regulator, agency, or authority, we ensure that all regulations are met without compromise. You can trust that your portfolio is always in secure hands, and your customers will receive the personalized care they deserve. Our team is committed to providing the highest level of service and protection, giving you peace of mind. Partner with Servbank, the nation’s premier bank subservicer.

You don’t need a clunky CRM to send text message loan updates out to your borrowers and Realtors. If you use Encompass® by ICE Mortgage Technology™, you should check out LenderLogix’s SMS Milestone updates. What’s even cooler, you can configure the messages to be sent out in Spanish if your borrower indicates Spanish as their preferred language. Check it out today and they’ll have you up and running before the holidays!

Correspondent and Wholesale Programs

Special non-QM pricing opportunity! JMAC Lending TPO is offering price improvements up to 200 bps on DSCR Prime Investment Non-QM loans. Fixed and ARMs, $100K to $2.5M. Up to 80% LTV. Up to $500K cash-out. One appraisal. 15+ years of success funding Non-QM loans. In addition, JMAC’s DSCR loan programs allow brokers to lend in several states where they are not licensed. Ask us! No income. No assets. No Problem. Get approved with the new JMAC Lending today to grow your pipeline. Contact sales@jmaclending.com today for your special pricing. Learn more about JMAC and DSCR loans here. JMAC offers 6 dynamic Non-QM products with loans to $4.0M, including Alt Doc up to 85% LTV on ITIN; up to 90% LTV on Bank Statements, 1099 and Asset Utilization; P&L and WVOE up to 80% LTV, and our Venice DSCR No Ratio cash-out. Make JMAC your go-to Non-QM lender for 2025 and beyond.

Great news is coming soon for mortgage brokers seeking new Jumbo loan options. In early December, Dart Bank Wholesale Lending will be launching a new Jumbo loan product offering financing up to $3 million, perfect for homebuyers in the luxury home market. It’s a great tool to have in your arsenal, with competitive rates, flexible terms, and eligibility for primary & secondary homes plus investment properties. Contact your Account Executive Adelfo Emanuele (West), Mary Johnson (East), or click here to get signed up with Dart Bank Wholesale.

Rocket Pro TPO’s popular 24 Takeoff has been extended! Brokers can get a 24 bps credit on conventional, VA, and FHA purchases and refinances through December 1st (some exclusions apply). It’s a great way to stay competitive and grow pipelines before the holidays. If you haven’t yet, check out Welcome Home RateBreak! This industry exclusive 2-1 Rocket Pro TPO-paid temporary buydown for HomeReady and Home Possible purchases lets partners offer clients thousands in savings over the first two years, at no cost to them. It’s a game-changer for co-marketing with real estate partners and helping more low- to moderate-income clients achieve homeownership.

Climate, Insurance, GSE Losses, Housing Stock Declines

Obviously disasters and catastrophes can be terrible. That said, lenders and servicers have an opportunity to truly add value to clients, and STRATMOR’s current blog is “A Lender’s Personal Touch Can Help After a Disaster.”

The climate impacts all of us. I don’t care if you don’t believe in climate change, or the cause of it, manmade or natural. The fact of the matter is, investors, servicers, insurance companies, and all related parties do, and it impacts borrower’s mortgage rates (through servicing values) and insurance premiums. 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.

Senior STRATMOR Partner Garth Graham sent me a note on the topic. “As you know, I live in Florida, and we are personally experiencing the impacts of climate change, and most notably the runaway costs of insurance due to various natural disasters that have hit our state. I personally have never filed a claim (luckily never experienced damage), but the whole state is now considered so high risk that premiums continue to rise. My entire family is aware of my plight.

“What is ironic is that my brother in law (David Torregrosa) works for the Congressional Budget Office, and recently wrote public commentary about this situation… Not my personal situation of course, but the high cost of insurance that is impacting homeowners in high-risk areas. I note that David is still willing to visit me in Florida during the winter, but he has concerns about how the insurance market in Florida will continue to function. Enjoy (or lament) the observations made in the CBO document released this past week.”

Thank you, Garth, something that every lender should check out are the numbers on Page 7 of the report: The Present Value of Expected Flood Damage to Homes with Mortgages. “The present value of 30 years of expected flood damage for homes with mortgages backed by the GSEs, FHA, or VA totals $190 billion in the 2020 period. That value increases by 36 percent, to $258 billion, in the 2050 period. Most of the present value of expected damage in both periods is attributable to homes with mortgages backed by the GSEs.”

Capital Markets

Housing data releases dominate this week’s relatively light economic calendar, and those kicked off yesterday with a better-than-expected NAHB Housing Market Index for November from Home Builders. That preceded today's release of October Housing Starts (expected to be down due to hurricanes Helene and Milton) and Building Permits (less affected by severe weather and expected to rise). Pending home sales soared in September, foretelling a strong rebound in existing home sales last month. We also learned yesterday that Industrial Production fell 0.3 percent in October, largely due to the Boeing strike, while lingering effects of Hurricane Helene also contributed. Manufacturing Production and Capacity Utilization figures both fell.

After some of the market frenzy from investors anticipating tax cuts and deregulation as a result of President Trump’s victory died down, over the course of the past week it has become clear that the Federal Reserve is in no rush to cut interest rates. Fed Chair Powell hinted as much in a press conference last week, reiterating the Fed’s wait-and-see approach when he said, “There’s more data that we will see between now and December, and we’ll have to continue to weigh what makes sense.” Fed funds futures have been quietly paring back bets for a December rate cut, and odds now sit just above a 50 percent chance of another 25-basis point cut next month. Current measures, particularly core PCE inflation, remain elevated.

As mentioned above, housing starts and building permits for October kick off today’s economic calendar. Expectations are for 1.330 million and 1.430 million, respectively, versus 1.354 million and 1.425 million previously. Later today brings Redbook same store sales, some short-duration Treasury activity, and remarks from Kansas City Fed President Schmid. We begin the day with Agency MBS prices better by about .125 versus Monday afternoon, the 2-year at 4.24, and the 10-year yielding 4.37 after closing yesterday at 4.41 percent.