9.28.22 MBA Annual Topics; Par Rates for Borrowers

Thank you to Appraisal Logistics for sponsoring today’s podcast. Just this year, Appraisal Logistics decided to make AIM-Port, their appraisal management platform that has propelled them to success as an AMC, available for mortgage lenders looking get a better handle on their own appraisal operations. AIM-Port is a dynamic appraisal management platform that reduces costs, improves operational efficiency, and elevates the borrower experience for lenders who are seeking to maximize returns in these market conditions. Born from Appraisal Logistics, a full-service AMC licensed in all 50 states, AIM-Port’s robust integrations, custom automations, and granular reporting tools are battle tested daily by their own staff and their many lender clients. Lenders using AIM-Port experience improved internal communication, automatic order allocation, seamless payment processing, and much more. Reach out to info@aim-port.com for to join the growing list of mortgage lenders seeing improvements in appraisal operations. That’s info@aim-port.com

Transcript

As Florida’s homeowners, insurance companies, and companies that service loans in Hurricane Ian’s path, brace for the storm, lenders nationwide continue to grapple with a very, very difficult environment. Everyone wants a decent HELOC. Servicing sales have dropped. Buydown loans are back in vogue. (Ask your investor if they buy them, but Planet Home, AmeriHome, and Northpointe jump to mind.) Everyone wants a viable ARM product, at a fixed rate program with some points back. There are many asking if the days of paying 125-150 basis points to IMB LOs are numbered. There is a lot going on as we wrap up September. In fact, some would say it’s pumpkin spice season again, which can only mean one thing: it's time for the 2022 MBA Annual Conference. I spotted Garth Graham and David Hrobon from STRATMOR on the attendee list, who told me their schedule is quickly filling up. Any lenders considering their options as a seller in the current market should reach out to lock in an appointment. Send a confidential email to Sarah Houser to schedule. (Today’s podcast is available here and this week’s podcast is sponsored by AIM-Port, an appraisal management platform built to reduce costs and elevate the borrower experience for lenders managing appraisal operations. Go to aim-port.com for more information or click here to reach out to a team member today!)

Jobs

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A medium-sized healthy/profitable Fannie/Freddie approved Western US based IMB seeking a head of HR. If you’d like to join a nationally ranked top place to work, please contact Chrisman LLC’s Anjelica Nixt to forward your note.

Underserved markets need more than mass-marketed loan products. As a Latina-owned company, New American Funding understands that different clients have different needs. The company offers an extensive line that’s as diverse as your clients, with a skilled staff to support you locally and help you expand your business. Beyond competitive rates and industry-leading turn times, New American Funding is committed to increasing and sustaining homeownership in underserved communities. In fact, its percentage of loans to Hispanic and Black borrowers is 44.8% and 38.2% higher, respectively, than the industry percentage (per 2021 HMDA). That commitment extends to the company’s workforce, which is made up of 45% minorities. If you’re ready to open the door to homeownership for more clients than ever and feel like you’re part of something bigger, it’s time to look to New American Funding. For more information, contact Jordyn Dexter today, 855-458-2023! EOE

There are advantages in being an originator for a national bank, and NBH is looking for growth-oriented originators in its footprint states which include CO, MO, KS, TX, UT, NM, ID, and WY. Any loan originators interested in a career with NBH, please send me a confidential resume for forwarding.

In the Northwest, Banner Bank is searching for Builder Direct Mortgage Loan Officers as well as Mortgage Loan Officers. These are true portfolio lending opportunities with local decision making and direct to Fannie and Freddie loans with retained servicing to assist in client retention and marketing opportunities. Additional highlighted products cover CRA lending with private label no payment down payment assistance to help assist all borrowers with the right opportunity. The right fit for an established team or the individual looking to grow their business and take the next step in their career. Please send resume to Aaron Miller.

Lender & broker products, services, and software

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Ribbon Home is the loan officers’ secret weapon. Like a Swiss Army Knife, Ribbon is a multi-purpose tool to help your homebuyers, agents, and business excel in challenging situations. In today’s market, one-third of all homes are purchased with cash. This puts clients that need home financing at a disadvantage. Ribbon allows clients that need home financing to compete for every home on the market by eliminating the financing, home sale, and appraisal contingencies, turning their offer into a guaranteed-to-close, all-cash offer. Ribbon is not a lender, agency, or iBuyer, and works with mortgage and real estate professionals in these supported states. By partnering with Ribbon, you can help more homebuyers turn pre-approvals into funded loans and earn more agent relationships. Join our lender webinar every Tuesday to learn more.

Wrap up your month with Loan Stream’s 25 BPS Off Conventional High Balance and Government (680 FICO and below) September Special. Here for a limited time!

Plus, new Conforming Loan Limits to $715,000! What a great way to kick off Fall! Talk to a LoanStream Account Executive today.

Handle volatility like a pro. Moder is the outsourcing partner you’re looking for to help you manage growth in the toughest market in decades. Moder can automate almost anything, and has a passion for making your processes better, faster and cheaper. The Moder team will be attending MBA’s Annual Convention in Nashville and welcome the opportunity to show you how we’re blending our industry experience with people & technology to help our clients manage their P&L’s with confidence. Contact the Moder team today to schedule some time together in Nashville and you can learn more about Moder by visiting here.

“What’s the recipe for a more competitive secondary marketing strategy? Start with these top-secret ingredients: a trip to Music City, a meeting with Optimal Blue, and (optional) a plate of hot chicken and a glass of sweet tea. If you’re heading to Nashville to attend MBA Annual22, be sure to take advantage of the opportunity to meet with an expert from Optimal Blue. We invite you to request a one-on-one meeting, where you can discuss ways to automate your secondary marketing functions to operate more competitively in today’s volatile market. Optimal Blue’s experts boast decades of industry experience, which means you receive unrivaled expertise and support. We look forward to seeing you in Nashville Oct. 23 – 26!”

Last chance: Register for tomorrow’s home equity webinar presented by Spring EQ Wholesale, the ONLY wholesale lender in today’s market offering HELOCs, 5-year to 30-year fixed rate 2nd liens, and traditional broker compensation, (yes, you can earn fees).  Home Equity Loans: Why Cash Out? Why Now? Why Spring EQ? will take place Thursday, Sept 29, 2022, at 2:00pm ET and will be hosted by Spring EQ’s VP of Wholesale, Shawn O’Brien. Rates have risen, and home equity loans are thriving. Spring EQ offers CLTVs to 95% and DTIs to 50% for Piggybacks, stand-alone 2nds, and 1st lien HELOCs.  You can see rates here.  Spring EQ’s product is something that all mortgage originators should have in their toolbox to keep their clients close and effectively compete to win more business.  Become a partner now or contact your Account Executive to learn more.

Homebuyers should be able to pay their upfront fees with the click of a button. That shouldn't be a controversial statement, yet here we are in 2022, and mortgage lenders are still sending out CC authorization forms and taking credit card payments over the phone. If you haven't taken steps to automate this process, you're leaving money on the table, risking PCI compliance, and providing an outdated experience to borrowers. With Fee Chaser by LenderLogix, you can request a fee payment with a click of a button within your LOS. Borrowers receive a secure payment link via text and email, complete the payment on their device, and everyone is sent a receipt. It's a simple yet highly effective way to provide borrowers with the digital experience they expect and deserve. Send a sample fee request to your phone, and set up a demo with LenderLogix to learn more.

Upcoming events to wrap up September and enter October

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Does your firm work in the service industry or with self-employed borrowers who otherwise may not qualify using a traditional bank statement program? Bring your deals, scenarios, and questions as National Mortgage Professional Magazine presents a DealDesk featuring Acra Lending's Light Doc Programs. Acra Lending is excited to announce their new light doc programs for self-employed borrowers and wage earners. Qualify your borrowers easily with the new 1099, P&L, and WVOE-only programs. These light doc programs are a perfect fit for your borrowers in the service industry or self-employed borrowers who otherwise may not qualify using a traditional bank statement program. Join Jason Sheridan, Vice President at Acra Lending on Wednesday, September 28 at 2 pm ET / 11 am PT as he helps you understand eligibility requirements, target audience, income documentation and calculation, credit, and eligible property types. Register here to present your deals and ask your questions about Acra’s Light Doc programs. 

Register for tomorrow’s home equity webinar presented by Spring EQ Wholesale, the ONLY wholesale lender in today’s market offering HELOCs, 5-year to 30-year fixed rate 2nd liens, and traditional broker compensation, (yes, you can earn fees).

Join MBA St. Louis’s Luncheon on Sept 29th. Partnering with speakers from several different companies to present a variety of perspectives on the mortgage industry in the St. Louis region. You will hear from New Rez, Mortgage Capital Trading (CMT), First Integrity, Flat Branch Home Loans, and Carrollton Bank. Each will share their insight on pricing models, different marketing perspectives, ways to make more money and human resource issues.

Join RCLCO for its monthly webinar, Thursday, September 29th,  where Kelly Mangold, RCLCO Principal, will discuss the return to office and the impact of remote and hybrid work on various sectors of the real estate industry alongside Vice Presidents Adam Ostler, Alex Shaia and Jordan LaMarche. We hope that it will be a lively discussion!

This Friday at noon PT is the next edition of The Mortgage Collaborative’s Rundown with Rich and Robbie Chrisman. We’ll will be covering current events in the mortgage market for 45 minutes starting at noon PT in “The Rundown with Rich and Rob”! 

Take advantage of National MI upcoming October 2022 webinar sessions, brought to you by National MI University, with a commitment to delivering high-quality educational content to our customers. Available sessions include P&L and Balance Sheet Analysis for Self-Employed Borrowers with Marianne Collins - Oct. 4 at 10am PT. Affordable Homeownership with Fannie Mae with Krissy Hefton - Oct. 20 at 11am PT.

Tuesday the 4th, Mortgage Pros 411 with Audrey Boissonou and Kevin Casey: Two LOs discuss all things mortgage with industry leaders every Tuesday at 11AM PT: register here.

The MBAC 66th Annual Convention, October 2nd – 5th, an opportunity for mortgage executives to bring your loan originators, servicers, and associates who serve both states. MBAC CE Registration Page must supply NMLS # and select CE session, Promo Code will follow. 

Freddie Mac New Webinar: Rent Payment Assessment with Loan Product Advisor, October 5th

Your time is valuable, don't waste it on boring Continuing Education! The Knowledge Coop offers exciting and entertaining CE by providing live in-person training and webinar events. October 4, Webinar Continuing Education Event: register. October 6 Denver, Colorado register 20% Discount Code: 20Denver. October 20 Portland, Oregon: register.

Capital markets: little above par with premium pricing for LOs

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A common question for months has been, “Why can’t I find a program with a few points back, or even a par rate? The rapid rise in interest rates has been so swift that there aren’t any higher interest rates to offer, which means a lot of loan scenarios are pricing below par. It takes time for a market for higher interest rates to be established, and there are a lot of moving parts involved. We’ve seen close to 350 bps in price movement over the past 10 days. Unfortunately, there’s not a quick fix and it’s going to take some patience, fortunately this is an industry-wide issue and not one unique to just us. Put another way, one can’t order investors to pay a higher price, and mortgage prices are indeed a function of natural supply and demand.

Rates continued their upward march yesterday, sparked higher by central bank tightening programs and a worsening energy crisis in Europe. Data on the day showed that new home sales surged 28.8 percent month-over-month in August to a seasonally adjusted annual rate of 685,000 units, aided by a sense of urgency for buyers to sign contracts as mortgage rates came down. Due to the strong sales number, the months’ supply declined by 2.3 months to 8.1, though inventories of new homes for sale still moved higher 0.4 percent. 

U.S. home prices fell for the first time in a decade, per Case-Shiller’s national measure of prices in 20 large cities. The biggest month-over-month declines in San Francisco (-3.6 percent), Seattle (-2.5 percent) and San Diego (-2 percent). Additionally, the FHFA house price index number for July fell 0.6 percent month-over-month, its first month-over-month decrease since May 2020 when the U.S. economy experienced lockdowns as a result of COVID-19. The rate of growth continues to moderate across all census divisions, but was still up 13.9 percent on a year-over-year basis. This index only looks at mortgages within the conforming loan limits, so it is more centered on the median home since it ignores the luxury market and cash-only transactions.

Despite plenty of grim news, the Conference Board's Consumer Confidence Index rose beyond expectations in September, the second straight monthly increase. That is likely good for spending, but won't help ease concerns about Fed tightening given the Fed's belief that there needs to be some softening in the labor market to help temper wage-based inflation pressures.

Overnight news broke that the Bank of England will suspend the planned start of its gilt selling next week and begin temporarily buying long-dated bonds in order to calm the market chaos unleashed by the new government’s so-called “mini-budget.”

As mortgage rates continue to increase to multi-year highs following more aggressive policy measures from the Federal Reserve to bring down inflation, we learned today that MBA mortgage applications decreased 3.7 percent from one week earlier. We’ve also received advanced indicators for August consisting of the goods trade deficit, retail inventories, and wholesale inventories – non-market moving numbers.

Later this morning brings August pending home sales, a Treasury auction of $36 billion 7-year notes, and remarks from several Fed speakers (Atlanta’s Bostic, St. Louis’ Bullard, Chair Powell, Governor Bowman, Richmond’s Barkin, and Chicago's Evans). We begin the day with Agency MBS prices better by roughly .5 and the 10-year yielding 3.87 after closing yesterday at 3.96 percent after the Bank of England move.

When my wife gets a little upset, sometimes a simple, “Calm down” in a soothing voice is all it takes to get her a lot upset.