Today's podcast is brought to you by SimpleNexus, an nCino company and award-winning developer of mobile-first technology for the modern mortgage lender.
Tens of thousands of loan officers at hundreds of IMBs, banks, and credit unions use the SimpleNexus homeownership platform to provide a world-class borrower experience. With one login, you and your borrowers can do it all from any device — from uploading docs and checking loan status to paying for appraisals and signing disclosures or closing documents.
Learn more at simplenexus.com.
Some things are nearly timeless, like this annual list of “10 Things to Do,” most of which can be applied any year. Here in Las Vegas, the time of sunrise is 6:05AM, and yes, I’ve been up for a few hours by then, not getting into bed. But can’t you almost feel the earth moving around the sun? Anchorage is picking up 6 minutes of daylight per day; Kanas City 4. Over a week that’s… uh… 7 times… well, you can figure it out per week. Every spring it is remarkable. What some consider remarkable, although not in a good way, is how we find mortgage rates in the 7s again, and the talk here at the Lenders One event is what can be done about it. Despite the yield curve being inverted (2-year yields are .8 percent higher than 10-year yields), once again IMBs are searching for hidden ARM buyers, good home equity products, and continuing to offer down payment assistance programs, bond programs, and buydowns. But for many, the hope of 30-year fixed-rate mortgages in the 5s is temporarily shelved. (Today’s podcast can be found here and this week is sponsored by SimpleNexus, an nCino company and 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, incentive compensation, and business intelligence. Listen to an interview with Guardian Mortgage’s Jordan Jarvis on the daily grind of a mortgage loan originator (MLO) and ways to keep closing deals in a tough lending environment.)
Employment, transitions, and a death___________________________________________________
Since 1999 ACC Mortgage has led the way in Non-QM through all economic and rate environments. 24 years proves this is not hype or hyperbole and ACC has never broken a lock or stopped lending. If you are looking for stability, sharp pricing, and a complete product offering, then you need to connect with the oldest Non-QM lender in the industry. If your company is struggling with Non-QM, or you are looking to make a career switch, call us at 877-349-050 or e-mail us.
Newfi Wholesale announced that John Wise has been added to its executive team as Senior Vice President of West Coast Sales. “Wise brings with him decades of Non-QM leadership experience and proven success in the mortgage industry.” Orange County’s HighTechLending family lost its President, Don Currie, unexpectedly last week. Don had been in the biz for over forty years and served as President/Co-Owner of HighTechLending. (HighTechLending, Inc., founded in 2007, is a Top 10 Reverse Lender nationwide with platforms in Retail, Wholesale, Reverse and Servicing, and has over 40 branches.) Don was the Past President and Board Member of California Association of Mortgage Professionals Orange County (CAMP-OC).
Broker and lender products and services___________________________________________________
“Do you need help with your mortgage accounting? Can you even find the right staff to hire? Perhaps you cannot afford a full-time Accounting Manager, Controller or CFO or just need help closing your books. Get the accounting support you need to fit constantly changing market conditions. The Torbett Group provides the mortgage accounting expertise that you need at an affordable price, backed by 20+ years in the industry. We can help ensure that you are capturing critical loan level data from your LOS and get it into your financial system. We are AMB experts, and we know mortgage accounting. We can work with Operations and Management to get your financials flowing the way they should be. Outsource your accounting now and spend your time building your business instead of buried in it. We can help. Contact us for more information.”
“When the market compresses, and competition for fewer originations expands, the lenders and loan officers who are prepared to react and respond to new opportunities quickly will see the most success. Total Expert’s integration with SimpleNexus lets loan officers access the most relevant contact and loan information on any device, so they can engage with borrowers and prevent opportunities from slipping through the cracks, even while they’re on the go. With a better understanding of where contacts are in the lending process, you’ll be able to deliver more personalized communications, create impact with every interaction, and continue to drive revenue growth. To learn more about our integration with SimpleNexus, come find us at the upcoming SNUG Conference in Salt Lake City from March 13-16 or schedule a meeting with us at the event by emailing us.”
“One Source for All Your Lending Needs.” For over 100 years, United One has been a trusted lending process partner to leading financial institutions nationwide, supporting their first mortgage, home equity and commercial lending needs. By partnering with United One, you will receive a complete solution at a competitive price. From credit reporting to verification services, from appraisal management to flood zone determinations, from tax monitoring to title insurance (and more) ... our portfolio of services runs deep. Keeping these services in-house, under one roof, gives the lender full control of the transaction, saving them time and money. United One has the team, the technology, and the competitive pricing you have been waiting for. So, if you are ready to move ahead with a powerful lending process partner, click here to schedule a call with our team.
Celebrate March by closing more loans! LoanStream has extended its specials! Get an Appraisal Credit up to $400 at closing from LoanStream for newly approved brokers through 3/31/2023! Plus, take advantage of the 35 BPS Price Improvement with our FHA Smart Choice Special also through 3/31/2023. Restrictions apply to promotions, talk with your LoanStream Account Executive for details. Get Approved with LoanStream so you don’t miss out on these types of specials!
Deephaven Mortgage is excited to be a Preferred Provider on the Lenders One Mortgage Cooperative platform. A pioneer in the Non-QM space, Deephaven was founded in 2012 to provide mortgages to the millions of Americans who, for one reason or another, are unable to qualify for a traditional, government-backed loan. Deephaven’s team of industry experts is known for their experience, knowledge, and focus in the Non-QM space. Deephaven programs include alternative income options like bank statements, 1099, and Asset utilization along with DSCR and solutions for credit-challenged borrowers. With multiple delivery options and a focus on training and support, Deephaven has all you need from a Non-QM strategic partner in order to grow your production. To get approved with Deephaven Mortgage contact Tom Davis.
Western Alliance Bank’s Specialized Mortgage Services group provides access to a team of mortgage financing and treasury management professionals that custom tailor debt and deposit solutions. Treasury management and liquidity solutions help Independent Mortgage Bankers find efficiencies and cost savings, and we have a proven track record with escrow and operating accounts. Our clients receive best-in-class service with high-speed account opening and implementation from a dedicated service team. Western Alliance also offers speed to approval and certainty of execution for flexible MSR financing structures to accommodate your MSR retention strategy. To learn more about how our treasury management solutions can add efficiencies to your cash flow cycle and to inquire about traditional warehouse lending, MSR financing, note financing and other mortgage finance products, please contact Jennifer Schachterle (720) 261-5774, Mark Short (469) 702-6212, Chris Martin (480) 341-5483 or Nick Richards (646) 708 1211. Western Alliance Bank, Member FDIC.
Have you ever used a piece of lending software and thought, "there's no way they talked to a mortgage banker when they built this"? Unfortunately, that's become the norm. But it doesn't have to be that way. What if you had a point-of-sale system you didn't have to beg your loan officers to use? What if your online loan application was so slick that your borrowers enjoyed filling it out instead of getting frustrated or needing instructions? If you're using Encompass® by ICE Mortgage Technology™, this could be your reality with LiteSpeed by LenderLogix. Built by mortgage bankers, LiteSpeed is a true POS with the features you want at a cost your CFO will be happy about.
Events, webinars, and training in the next few weeks___________________________________________________
A list of conferences this year can be found here under the “Conferences.”
Enact will host multiple live courses to help grow your business and positively impact homebuyers. From courses on updates to Desktop Underwriter and Loan Product Advisor to courses on tax forms Schedule C and Schedule E, Enact covers it all. Browse Enact’s course catalog of on-demand webinars, just have your company or individual NMLS ID handy when registering.
Check out the PRMG University TPO March Training Calendar.
Check out National MI’s upcoming March 2023 webinar sessions: Follow-Up To Close with Bruce Lund - March 7th at 10am PT. Insights from the 2023 NextGen Women’s Homeownership Report with Kristin Messerli – March 9th at 10am PT. Shift Up Your Emotional Intelligence - Part Five with Jennifer Powers - March 21st at 11am PT. Dealing Effectively with Conflict with Andrew Oxley - March 15th at 11am PT.
Credit Unions wanting to start a construction lending program or beef up their current program will want to tune into the next ACUMA Inside Track webinar, March 7, at 1:00 p.m. Central time, and learn the latest strategies to “construct” a future in this expanding market.
Freddie Mac values the important role housing finance agencies (HFAs) play in our nation’s affordable housing ecosystem. The Freddie Mac HFA Advantage® mortgage offering provides a competitive solution for housing professionals to consider for first-time and repeat homebuyers.Learn more about HFA Advantage’s features and benefits, borrower eligibility and homebuyer education requirements and new product enhancements. Register for Freddie Mac’s FREE webinar on Tuesday, March 7, 2 p.m. – 3:30 p.m. ET or Wednesday, March 22 | 2 p.m. – 3:30 p.m. ET.
Mortgage servicing rights (MSR) assets are a hot topic given today’s volume challenges. But are you doing everything possible to maximize this valuable cash asset to optimize profitability?Make plans to attend the Industry’s First Webinar on MSR Valuation, Optimal Blue’s MSR 101: How to Value the MSR Asset, on March 8, noon ET.You won't want to miss the MMLA Sales Rally 2023, March 14th, at Suburban Collection Showplace in Novi, an event to ignite your sales production in 2023. A new look and a new mission to connect with top sales coaches, motivators and exhibitors to help you increase sales regardless of rates. Real Estate Power Panelist include: Jeff Glover, Jim Shaffer, and Tim Pascarella.
The 5th Annual SimpleNexus User Group (SNUG) conference is on March 13-16, 2023, at the Snowbird Mountain Resort with sessions focused on helping mortgage lenders optimize their incentive comp plans, maximize the advantages with eClose, deploy a unified business intelligence strategy, increase partner referrals, and fully embrace SimpleNexus' entire platform solution. Check out the full SNUG 2023 agenda and register now to lock in your early bird savings. The only Michigan-based association dedicated solely to the housing finance industry, The Michigan Mortgage Lenders Association (MMLA), has announced the speaker lineup for its 2023 Sales Rally, taking place March 14 at the Suburban Collection Showplace in Novi, Michigan. MMLA has filled the day with nationally known speakers to inspire and foster connections between housing professionals and to ignite their drive for increased sales production. Speakers include Dan Ervin, Vice President of Sales at First Merchants Bank, Dan Elsea, owner of Real Estate One, keynote speaker and former NBA player Mateen Cleaves and much more.
Join LoanStream Mortgage for an informative webinar on the in-and-outs of using DSCR loans, March 14 at 11:00 PT. This webinar will focus specifically on properties for Airbnb, VRBO, VACASA and other short term rental platforms.
FHA is conducting a free, two-day, in-person, instructor-led classroom training in Boise, ID, March 15, 2023 & March 16, 2023│8:00 AM – 5:00 PM (Mountain). FHA representatives from the Santa Ana Homeownership Center will cover a wide range of topics, including: Single Family Housing Policy Handbook 4000.1; underwriting the FHA appraisal; endorsement protocols; the Loan Review System (LRS); and much more.
An October Research publication, has invited Tai Christensen from Arrive Home, Troy Garris of Garris Horn and Suzanne Garwood from Chase to break down Special Purpose Credit Programs on March 16th webinar. Discussion topics of who is eligible for these types of programs, how to offer them compliantly and how to get the most out of them. Learn how these programs can help you be successful and meet your fair lending goals in this Dodd Frank Update.
Join TMBA’s webinar 'Understanding the Complexities of Cyber Threats within Mortgage Banking and Regulator Expectations for Data Protection on Thursday, March 16, at 11:30 am (CST). Charles Beveridge, Senior Vice President, Assistant General Counsel, PrimeLending, and Michael Nouguier, Chief Information Security Officer & Director of Cybersecurity Services, Richey May & Co., LLP, will discuss how financial institutions of all sizes are facing an increasing volume and variety of cyber threats.
Capital markets: Fed, Fed, Fed, Fed…___________________________________________________
The jobs report could be the biggest talking point of this week after Federal Reserve governor Christopher Waller warned interest rates may have to be raised more than expected if economic data comes in hot. Investors will also be paying close attention to Treasury yields, especially the 10-year Treasury note after its flirtation with the 4 percent level. Friday’s February jobs report could have huge significance following the January blowout number of 517K job additions. The consensus estimate is for 215K new jobs to have been added to the economy, but a lower number could shift the narrative on if the January print was a one-off. The unemployment rate is expected to hold steady at 3.4 percent and a 0.3 percent month-to-month bump in average hourly earnings is anticipated. Average weekly hours are expected to dip to 34.6 from 34.7.
Glancing back, economic data released over the last week did nothing to change the narrative that the economy is not slowing quickly enough to put significant downward pressure on inflation towards the Fed’s 2 percent target. Services data remains strong and above many analysts' forecasts while manufacturing data is only gradually weakening. In fact, core new orders increased 0.8 percent in January. The pullback from the disproportionately high pandemic era demand for goods is expected to further weaken manufacturing activity. Consumer confidence fell 3.1 points in February as consumers weigh persistently high inflation and a recent spike in interest rates against a robust jobs market.
Looking at our biz, pending homes sales spiked 8.1 percent in January when mortgage rates dipped prior to the recent stronger than expected inflation data. Over the last week, mortgage purchase applications were at a 27-year low and rates are roughly half a point higher since the end of January. While the expectation that mortgage rates will be lower at the end of the year remains, they are expected to remain higher for longer until significant progress is made slowing economic activity and reducing inflation.
This week is packed with market moving potential including Chair Powell’s semi-annual monetary policy testimony tomorrow and Wednesday, as well as the mini-Refunding tomorrow through Thursday along with the monthly U.S. jobs report on Friday. Other economic data of potential interest include factory orders, wholesale inventories, consumer credit, ADP employment, and Challenger job cuts. Regarding MBS, February agency prepayments will be released this evening with Class A 48-hours on Thursday. Kicking off the economic calendar is January factory orders for January, due out later this morning. We begin the week with Agency MBS prices better by .125-.250 versus Friday’s close and the 10-year yielding 3.91 after closing last week at 3.96 percent.
“A Garda is driving down O’Connell Street in Dublin when he sees two fellas urinating in public in an alley. He parks the car and runs over to them.He asks the first fella for his name and address.The man replies, “I’m Paddy O’Toole of no fixed abode.”The security officer turns to the second fella and asks the same question.He replies, “I’m Ben Riordain, and I live in the flat above Paddy!”