“They say that mafia members are nasty people. But while growing up, I lived next door to one mafia member, and he was actually a nice guy. In fact, every morning, he paid me $20 just to start his car.” Membership has its privileges. “Rob, I own a smallish independent mortgage bank (IMB). We mostly bank and have a servicing portfolio, but also do some brokering depending on the product and the pricing in the market (especially for MSRs). We currently don’t belong to any outside organizations. How are we supposed to make up our minds between the MBA, CHLA, our state organization, a regional organization, NAMB, AIME, Lenders One, or The Mortgage Collaborative, and probably some that I didn’t list?” That is a great question. I suggest that you contact each one and see where the best cultural and financial fit is. (Let me know if you need contacts.) Obviously, you can belong to more than one, but several memberships can become expensive in a hurry. Remember that advocacy is as important as it’s ever been! (Today’s podcast can be found here and this week’s podcasts are sponsored by Bundle, the attorney-prepared legal documents company that is dedicated to the real estate, mortgage, and title industry. Save 20 percent all week with the code “Chrisman.” Hear an interview with Treefort Technologies Jay Krushell and iProov’s Joe Palmer on the rising threat of home seller impersonation fraud, and how biometrics have become a preferred line of defense.)

Lender and Broker Software, Services, and Products

“Lenderful Solutions continues to redefine digital lending, delivering innovative experiences for borrowers and lenders alike. Our platform enables borrowers to shop personalized loan programs for purchases, refinance, or second mortgages and complete easy, user-friendly applications. For lenders, our advanced automation tools (such as AVM, credit pulls, and title quotes) streamline workflows and attract new borrowers while efficiently managing increased volumes. With affordable and customer-first technology, Lenderful Solutions consistently exceeds expectations. Supporting Community Banks, Credit Unions, and Brokers nationwide, we offer a comprehensive suite of solutions, including Mortgage with PreQual Express, Refi Turbo, Home Equity Turbo, Consumer, Small Business/Commercial, and Reverse Mortgage. Contact Paul Lehnert or use this link to schedule a demo. Lenderful Solutions continues to Digitize processes so that you can Humanize the Experience. Wishing you a joyful holiday season!”

With credit report fees rising yet again, savvy lenders are turning to Fee Chaser to streamline fee collection earlier in the loan process. Fee Chaser enables borrowers to make secure payments directly from their devices, and with its seamless integration with Encompass® by ICE Mortgage Technology™, payments are automatically updated in the LOS, and receipts are instantly posted to the eFolder. Best of all, Fee Chaser can be implemented in just a few weeks, making it an easy win for your team. Check it out today.

STRATMOR on Customer Experience

For most loan officers, the revenue landscape was fairly flat this year. According to STRATMOR data, the industry as a whole is on pace for about a 10% volume gain, all due to a meager resurgence in refinances, with purchases actually retreating for the third straight year. The mortgage industry is not for the faint of heart! That said, there are still loan officers out there who made serious gains this year. How did they do it? Are they buying Meta ads? Are they posting every day on TikTok? Are they purchasing tools to promote their brand and increase their searchability online? In his latest CX Tip, STRATMOR Customer Experience Director Mike Seminari has distilled wisdom from tens of thousands of borrower testimonials and shares secret ingredients that successful LOs are employing to earn more referrals. Check out “Recipe for Success in 2025: LO Behaviors Proven to Generate Referrals” for concrete examples and practical ideas LOs can put into practice today to start earning more referral business.

Correspondent, Wholesale, and Agency Product News

“Oaktree Funding Corp is proud to announce the launch of a new correspondent delivery channel, offering aggressive pricing, a range of purchase options, including non-delegated, delegated, and bulk acquisitions, and empowering Correspondent Partners with the flexibility to meet the diverse needs of borrowers in a competitive market. The s Expanded Jumbo A+ Fixed program caters to high-net-worth clients with loan amounts ranging from $450,000 to $3.5 million with competitive LTVs up to 80% for purchases, refinances, and cash-outs. It offers both 30- and 40-year fixed terms, including Interest-Only options. Learn more about flexible non-agency options here: Oaktree Correspondent Products. The Platinum Advantage program enables efficient access to equity, with loan amounts up to $3.5 million, LTVs as high as 90% for primary residences and 85% for cash-out refinances, alternative income documentation, such as bank statements, asset depletion, or DSCR calculations. Watch our recent webinar introducing the Platinum Advantage here: Webinar Link. The Titanium Advantage program offers flexible options including fixed-rate and adjustable-rate mortgages (5/6m, 7/6m, 10/6m ARMs), with Interest-Only options available for up to 40 years. Additionally, the Professional Investor Program supports real estate investors with DSCR requirements as low as 1.20, loan amounts up to $3 million, and the ability to finance up to 25 properties with a blanket loan. Oaktree also offers a wide range of second trust deed and HELOC products. Submit your scenario details here to get a quote: Contact Oaktree Funding.

Fannie Mae issued a thank you for helping to make the 2024 HomeReady® very-low-income purchase (VLIP) credit a success. With your help they have directed funds to achieve homeownership, particularly for first-time homebuyers. Fannie Mae Lender Letter LL-2024-01 announced the $2,500 HomeReady VLIP credit extension for an additional year, limited to first-time homebuyers.

Freddie Mac Single-Family Seller/Servicer Guide (Guide) Bulletin 2024-16 announces updates to the following topics: 2025 conforming loan limit values, information security, credit underwriting, automated collateral evaluation (ACE) and ACE+ PDR, Freddie Mac Gateway, fee-only repurchase alternative program. Read the Bulletin for details on these and additional updates impacting your business and your borrowers.

National MI announced its support of the higher GSE Conforming and High Balance/Super Conforming loan amount limits, Jumbo and Medical Professional Program loan limit increases, and an increase to the Delegated Authority Limit. An update to the Eligibility Matrices in National MI’s TrueGuide® Underwriting Guidelines incorporating these changes will be posted to nationalmi.com on or before December 31, 2024.

Effective 12/09/2024, PHH Correspondent Lending began accepting new locks for both Mandatory and Best-Efforts channels that meet the FHFA and HUD 2025 loan limits. Go to the company library to view the information.

FHFA has announced that, in most of the U.S., the 2025 maximum conforming limit for one-unit properties is increasing to $806,500, and the loan limit ceiling to $1,209,750. HUD has announced that the FHA floor will increase to $524,225. For implementation information, see AmeriHome Mortgage Product Announcement 20241107-CL.

Capital Markets

If you think you’re imagining that rates haven’t been moving much, you’re not imagining it. Treasury market volatility has hit its lowest level since February 2022 as easing inflation and growing expectations for a Federal Reserve rate cut next week calm investor nerves. Yields on 10-year notes remain steady, hovering around the 4.20 percent range, with a 98% chance of a 25-basis-point rate cut priced in. Analysts cite softer economic data and reduced tariff concerns as factors stabilizing the market.

We learned yesterday that producer prices at the wholesale level rose more than expected in November (0.4 percent month-over-month versus 0.3 percent expectations) to a level not seen in nearly two months, led by a 0.7 percent jump in the index for final demand goods. On an annualized basis, the index rose 3 percent, again above expectations. That is the largest increase since the 12-month period ended February 2023, evidence that inflation at the producer level is moving in the wrong direction, evidenced by the large jump in goods inflation, particularly food. Producer prices are eventually passed onto the consumer. Bonds sold off, pushing rates higher, in the aftermath.

We’ve had a flurry of central bank activity this week ahead of the Federal Open Market Committee (FOMC) meeting on December 17/18. The Bank of Switzerland (SNB) eased policy rates by 50-basis points yesterday morning, while the European Central Bank (ECB) eased by another 25-basis points for the third consecutive meeting. Since global bond markets do tend to correlate with one another, these moves by international banks should help drag down U.S. rates in general. There is currently a 98 percent chance of a 25-basis points cut at the conclusion of the Fed’s meeting next week already priced into markets.

In news of interest to the mortgage sector, Freddie Mac reported the 30-year and 15-year primary mortgage markets rates declined 9-basis points and 12-basis points to 6.60 percent and 5.84 percent this week, respectively, their lowest levels since the week ending October 24.

With many minds shifting to Christmas time, the week closes out with a light economic calendar. We’ve already received today’s main data point, import and export prices for November, neither of which moved rates. (Both were expected to decline 0.2 percent month-over-month, versus rising 0.3 percent and 0.8 percent in October, respectively.) We begin the day with Agency MBS prices worse a few ticks from Thursday’s close, the 2-year yielding 4.20, and the 10-year yielding 4.35 after closing yesterday at 4.32 percent.