Lenders using Candor produce a high-quality loan that requires only 1 underwriter touch on 70% of loans. Imagine the ROI by reducing fallout, improving hedge, slashing cycle time, and banishing repurchases.
Lenders using Candor produce a high-quality loan that requires only 1 underwriter touch on 70% of loans. Imagine the ROI by reducing fallout, improving hedge, slashing cycle time, and banishing repurchases.
Experienced mortgage loan originators (MLOs) know that a rate lock is a rate lock. The removal
of the adverse market fee of .5 for conventional conforming refis above $125,000 has caused
conversations about pricing, borrower, and profit strategy. One MLO wrote to me and stated, “If
the price had worsened, we wouldn’t be going back to borrowers for that difference. It’s not a
one-way street. My borrowers don’t know what the FHFA is, barely know who Fannie and
Freddie are, and my company is not repricing its entire locked refinance pipeline. If asked, and I
doubt if I will be, I will explain to my borrowers that a lock is a lock. And none of them want to
start the process over again with a new lender for .125 in rate.” A veteran capital markets gal
joked to me, “Any MLO that encourages repricing should lose their license. Let’s start there.”
But then continued, “A deal is a deal. Any price change needs to follow normal process and we
will not be removing the fee from existing pipeline.” And a retail CEO wrote to me, affirming,
“We’re going to use the .5 to offset what was a poor 2 nd quarter, margin-wise, for us.” Of course,
improving efficiency also helps the bottom line, and today’s audio version of the commentary is
available here and this week’s is sponsored by Candor Technology; today’s includes an
interview with Candor CEO Tom Showalter on how the underwriting position is evolving from
task based to outcome based.
Employment & business opportunity
A large and well capitalized national lender is seeking to acquire or incorporate a small to
midsize lender (size is of no consequence) with Agency approval. Government lending
approvals are an added bonus but not required, nor is a servicing portfolio. This Lender has the
administrative infrastructure, capital, and experience to grow rapidly, and will provide a great
compensation, culture, and career opportunities to the team. The option exists for a complete
buy out, create a P&L type operation, or fold your organization entirely into the company with
continued employment! Be part of a larger organization to increase your volume and product
offerings. If you are interested, please send your confidential note of interest to Chrisman
LLC’s Anjelica Nixt for forwarding specify this opportunity.
Evergreen Home Loans™ is excited to introduce Evergreen Advantage™, a powerful
end-to-end technology suite that improves the customer experience. Designed to put loan
officers in control, Evergreen Advantage takes home financing and customer data management
to the next level. With features like a mobile app, a powerful CRM, eClose, and a personalized
loan servicing app, loan officers stay connected to their customers from the beginning of the
transaction until after the loan closes. Additionally, real estate professionals can expect their
customers’ to close faster and easier than ever before. Evergreen Advantage combines the
company’s signature customer service with intuitive technology systems that help originators
improve their productivity. Streamlined, simplified, and superior, Evergreen Advantage is an
ideal way to increase customer retention and develop new agent relationships. If you’re
interested in working with a company that combines innovative technology with local human
kindness to improve your business, visit the Careers page.
Finally, there’s a better business model that provides LOs with ultimate control, unmatched
pricing, and a proprietary LOS that promotes faster closings! See how top producing loan
officers are leveraging digital storefronts to expand market reach and increase volume. Canopy
Mortgage is hiring top producing Loan Officers and Branch Managers. Build your business
the way you want, Join Canopy to stand out in the following markets: CA, CO, FL, GA, HI, IL,
NC, SC, TN, TX, and WA. Reach out to Josh Neumarker at Canopy Mortgage for more
information (801-330-5016).
New, innovative products are rolled out monthly at Thrive Mortgage, where
advancements in Specialty Jumbo products, Construction, and even Reverse are the
norm. One such new product is an in-house, FHA-backed program allowing FICO scores down
to 540. “No one is working harder to provide home ownership opportunities to more consumers,”
says Tay Toliver, Director of Community Advancement. Also, in response to the cap restrictions
imposed by Fannie and Freddie for NOO properties, Thrive rolled out a Non-Agency, in-house
program for Investment and Second Homes which was not impacted by drastic rate increases
seen in the market. “To offer our clients this flexibility across the spectrum, and offering these
products with in-house underwriting, is another example of the innovative culture of our
company,” stated Randell Gillespie, EVP for Thrive. “We are setting a new standard unlike
anything our industry has ever seen.” To learn more, contact Thrive Mortgage at
info@thrivemortgage.com.
Services and products
XINNIX has released a first-of-its-kind Performance Training Program, ASCEND™, for
experienced operations professionals looking to transition from a Loan Processor into a
Junior Underwriter. The ASCEND™ Program covers advanced conventional mortgage loan
knowledge and world-class underwriting skills: Everything a mortgage loan processing veteran
needs to become a Junior Underwriter. "We have had this program in development for nearly a
year. The pilot ended last month, and the results have exceeded our expectations," said XINNIX
Founder & CEO, Casey Cunningham. "ASCEND also provides an excellent opportunity for
mortgage companies to provide a solid career-path for their processors who are looking to
advance their career in the industry and to be market-ready fast.” If you’re ready to help your
team ASCEND™ to the next level of their career, schedule a call with a XINNIX Account
Executive today!
Opteon, an international provider of property and advisory services, is thrilled to
announce the acquisition of The William Fall Group (WFG) and its related brands,
Valuation Partners and Summit Valuation Solutions. The strategic move will help Opteon
fortify its U.S. entity, Apex Appraisal Services (Apex), as it continues to push forward innovation
and technology within the appraisal industry. Opteon is delivering same-day appraisals in
Australia and New Zealand and developing a similar customized solution for the U.S. The
acquisition builds upon a strong foundation for this vision, providing Apex with expanded
national coverage, an Eastern office, and priority access to staff appraisers. Read the press
release for more exciting details.
It’s no secret that borrowers with complex income situations can create incremental work for
mortgage lenders as they look to review and approve homebuyers for financing. The new “All
Employers Within 36 months” taps into the nearly 115 million active records on The Work
Number database helping lenders review income that may sit outside of calendar/tax years to
more quickly identify income trends or earnings potential that may indicate better continuity and
ability to pay. “Most mortgage applications that come in with complex income will require two
years of tax returns but pulling all employers from the past 36 months from The Work Number
can show lenders data from an expanded timeframe that helps give them better context on the
borrower,” said Joel Rickman, SVP of Verification Services at Equifax Workforce Solutions.
Tired of using multiple rate sheets to price a loan for your NOO investments? ONE is a unique
mortgage loan product independent of the government that simplifies the loan process
by eliminating the need to use multiple rate sheets to price a loan or having to
continuously make adjustments as loan parameters change. With ONE there is only ONE
rate and no adjustments, regardless of the scenario. Register for the free webinar tomorrow to
learn more. Don’t wait - the first 50 to register and attend the webinar will receive a ONE
branded Tile, a simple device that helps digitally track your things.
Did you know that retail lenders made up 90% of the market last year in Jumbo originations?
That’s $425 billion dollars! This large number of jumbo production presents a massive
opportunity for brokers to capture in the marketplace. Stearns Wholesale is providing brokers
with the tools and products to compete with the banks in jumbo. The rates on Stearns’
six jumbo products are currently the best in the nation. Not only are they #1 in jumbo
pricing, but Stearns is amplifying its virtual resources with five upcoming training sessions
throughout July covering all things Jumbo. If you would like to register for one of these Stearns
Jumbo Product Trainings, click here. If you’d like to partner with Stearns or learn more,
click here to be contacted.
Today, thousands of potential homebuyers will lose bids on houses that their families fell in love
with. They’ll lose the bids because they didn’t know that their payment would only go up $45 per
month if they offered $10k more. They’ll lose bids because they didn’t know exactly how much
cash they would need to come up with. They’ll lose bids because they were confused about
what the financing looked like after consulting with a random online mortgage calculator.
Confused buyers don’t win bids. Confident buyers win bids. When you send a buyer off with a
PDF pre-qualification letter and closing cost summary, you’re not arming them with what they
need to compete in this market. When you send them a QuickQual, sent right from within
your LOS, you’re creating a confident and assertive buyer who will convert. See the future
of pre-approval letters by checking out QuickQual by LenderLogix, and they’ll text a demo right
to your phone.
New functionality on Richey May’s RM Analyze is coming your way in August! Don't wait
for annual peer group reporting; our real-time metrics provide visibility into data broken out
monthly, with daily updates to inform you of where you stand before month end or quarter
end. Gain additional insight into how your production and operational metrics measure up
against your peers in real time with Peer View Ops. This tool is a great compliment to the
existing Richey May peer to peer financial comparison tool and our business intelligence
platform and is a seamless integration into existing RM Analyze dashboards. Not yet on the RM
Analyze platform? Get a demo of RM Analyze today and get a sneak peak of the new Peer
View Ops functionality coming soon!
Glen reread last month's numbers and shook his head. He let out a sad sigh, scrolled to his
partner’s name and tapped out a text: Our cost per lead is over $100 and our cost per
acquisition is close to $2,000. I don’t know how much longer we can do this. He hit ‘send’ and
counted the seconds as he waited for a response. Finally, George replied: Glen, I have the
answer. Yesterday I was referred to Sales Boomerang, and they can take our leads from
the past 12 months and bring them back to life. I hear it’s amazing and the cost comes out to
around $10! Glen sighed again, but this time, it was a sigh of relief. Minutes later, he was
booking a demo on the Sales Boomerang website, and he couldn’t believe how many top
lender logos he saw there! Things were looking up already.
Customer service tips
Have you ever seen the television show American Ninja Warrior and secretly wished you could
compete? You might actually be closer than you think if you’ve ever helped a borrower through
the gauntlet that is the mortgage loan process. Both can be a mix of thrill and agony. Both have
high stakes and plenty of potential pitfalls. And both give you only once chance to get it right, at
great cost if you don’t. A pristine mortgage loan process, one without any critical miscues,
generates an NPS of 96. Contrast that with the average NPS of -1 when any one of the seven
commandments of the customer experience are missed. How can you ensure your borrowers
stay on track and finish as triumphant, raving fans? STRATMOR MortgageSAT Director Mike
Seminari gives you a game plan in his July Customer Experience Tip, “Competing for “Raving
Fan” Mortgage Borrowers.”
Events & webinars over the next few weeks
The next “TCS Forum,” is today at 10AM ET, and is on “Mortgages 2021 & Beyond: New
technologies and growth models.”
Katherine Campbell from Assurance Financial, Alex Kutsishin from Sales Boomerang, and
David Karandish from Capacity have, today at 1PM ET, Sales Boomerang’s Top Gun School.
ONE is a unique mortgage loan product independent of the government that simplifies the loan
process by eliminating the need to use multiple rate sheets to price a loan or having to
continuously make adjustments as loan parameters change. Register for the free webinar
tomorrow: The first 50 to register and attend the webinar will receive a ONE branded Tile, a
simple device that helps digitally track your things.
Stearns Wholesale is offering training sessions covering all things Jumbo. If you would like to
register for one of these Stearns Jumbo Product Trainings, click here.
The National Association of Realtors ® will host its Real Estate Forecast Summit: Global
Update on Monday, July 26th. NAR Chief Economist Lawrence Yun and several leading
international economists will discuss foreign buying trends in the U.S. housing market, the top
countries for Chinese buyers, and real estate market conditions in Australia and Canada. For
questions about the summit or NAR’s upcoming 2021 Profile of International Transactions in
U.S. Residential Real Estate report, please email Troy Green.
Friday, July 30 th is the next edition of The Mortgage Collaborative’s Rundown with Rich and
Rob. Rich Swerbinsky, the COO of The Mortgage Collaborative, and I will be covering current
events in the mortgage market for 30 minutes starting at 3PM ET: “The Rundown with Rob and
Rich.”
Capital markets
Obtaining “Best Execution” in Capital Markets has always been important, but recent
tightening of agency and investor guidelines has emphasized the need to expand loan sale
strategies. Mortgage Capital Management (MCM) is leading the way with its Total Sale
Optimization platform. MCM’s Total Sale Optimization (TSO) system was designed and built
not only to maximize each lender’s returns from individual loan sales and/or bulk sales, but to
maximize all sales executable. TSO takes advantage of an AI programming technique that
incorporates each client’s available executions including Cash Window vs Securitization, Low
Balance Securitization with Stips by product, loan balance and coupon levels; High Balance
pooling limits to eliminate HB LLPA’s, Rate, Loan Balance, Location, FICO, and State
combinations. The system also simultaneously evaluates all other executions including: AOT,
Co-Issue, and Best-Efforts pricing to arrive at a sale plan that optimizes the overall execution.
Why settle for less? Compare before you buy… Contact sales@mortcap.com today.
Rates go up, rates go down. Concerns about the virus to open the week that had gripped
markets were put in the rearview mirror. Because. A mixed Housing Starts and Building Permits
report for June showed better than expected starts while permits, a leading indicator, missed
estimates. Permits declined across all regions for single-family units, suggesting there will be a
slowdown in building activity related to higher costs, a lack of available labor, and/or high selling
prices offsetting buyer demand.
Mortgage applications decreased 4.0 percent from one week earlier, according to data from the
Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending July
16. The previous week’s results included an adjustment for the Fourth of July holiday, though
mortgage rates did drop during the reporting period. This afternoon brings results from a $24
billion 20-year Treasury bond auction. The NY Fed Desk will purchase up to $5.3 billion of 30-
year 2 percent and 2.5 percent. We begin the day with Agency MBS prices worse a few
32nds and the 10-year yielding 1.24 after closing yesterday at 1.21 percent.
Kris W. writes, “The guy at the furniture store told me the sofa would seat five people without
any problems. Then it occurred to me, I don’t think that I know five people without any
problems.”