5.30.23 Rate Cuts Incoming?; Flagstar Bank's John Gibson on TPO; Debt Ceiling Drama In Rearview

Thanks to Lenders One, one of the largest mortgage co-ops in the country with a diverse mix of 250+ member companies and providers of an end-to-end solution independent mortgage professionals trust to drive profitability and growth. 

Transcript

When I grow up, I want to own a place at the beach. It turns out that if I’m not too picky, and don’t mind being within a mile of the surf, I might be able to swing it. Here are the “Cheapest Places to Own a Place at the Beach in the U.S.” People living there had better pay their property taxes, but it’s no surprise that more than $14 billion in property taxes go unpaid each year, according to the National Tax Lien Association (who knew there was such a thing?!). Each year, the average American household spends, if they pay it, $2,690 on real-estate property taxes plus another $444 for residents of the 26 states with vehicle property taxes. WalletHub's 2023’s Property Taxes by State report reveals that Hawaii has the lowest real-estate tax, $700, while New Jersey is highest at $6,057. Twenty-six states levy some form of vehicle property tax. “Blue” states have 30 percent higher real-estate property taxes than “Red” states, averaging $2,991 versus averaging $2,297. (Today’s podcast can be found here and this week’s is sponsored by Lenders One, one of the largest mortgage co-ops in the country with a diverse mix of 250+ member companies and providers of an end-to-end solution independent mortgage professionals trust to drive profitability and growth. Listen to an interview with Flagstar Bank’s John Gibson on the third-party originator (TPO) space and tips for originators.
Employment & transitions_________________________________________________
M&A and the “by design” compression wave that is crushing the mortgage industry does not have to impact you, or your team, negatively. Why be forced into what your upper management team thinks is best for you? You always have choices and now is the time to explore them! Strategic Growth Partners 360 is very pleased to announce the addition of Buffy Penttila based out of Vancouver, WA. A very successful independent & corporate mortgage recruiter for 17+ years, Buffy has helped her clients grow from $1B to over $4B with top tier candidate placements. She has national reach and specializes in identifying top mortgage professionals & teams that are interested in changing the mortgage landscape on their own terms! Message Buffy to talk opportunity before your upper management team tells you what your next move / brand will be! SGP360 Recruiters, AZ, CA, CO, DE, WA are National Recruiters!
Are you a loan officer or mortgage banker frustrated with the constraints of retail lending? Tired of competing against lower rates, fees and closing costs? Then now’s the time to take control of your pipeline and career by making the switch to wholesale lending as an independent mortgage broker. Whether you’re looking to open your own brokerage or join a team as a loan officer, you can get up and running without missing a beat with support from the team at BeAMortgageBroker.com. You have nothing to lose and only clients, greater flexibility and compensation to gain. 
FHA has one Housing Program Specialist vacancy in Philadelphia whose duties include the use of data systems to analyze and/or report results of education, outreach and communication improvements. Ability to communicate with diverse partners, customers, and cohorts through both oral and written communication skills. Process and provide technical assistance and response to non-profits. Lender and broker products, software, and services___________________________________________________
What do dozens of decision-makers know that would lead them to invest in their origination technology in a market as tough as this one? What would you do if you knew the same? In Black Knight’s white paper, “Why Lenders Are Rethinking Their Tech Right Now,” lenders sound off on why a challenging mortgage environment is in fact the perfect time to re-evaluate your tech stack – and how to go about it. Learn the five key recommendations that 32 banks, credit unions and IMBs of various sizes have adopted to navigate a mortgage market in decline and see how your business can prepare for when borrowers return. Download your complimentary copy of the white paper here, and then schedule your talk with Black Knight to get started today.
Discover the secret behind Foundation Mortgage's remarkable transition to wholesale lending: OptifiNow TPO. In a recent press release, CEO Marc Halpern revealed that OptifiNow TPO played a pivotal role in rapidly propelling their business to new heights within the wholesale lending space. OptifiNow TPO stands out as the ultimate CRM solution tailored specifically for wholesale lending. With its unrivaled expertise in wholesale lending, seamless integrations with loan origination systems and pricing engines, and a comprehensive set of marketing and account management features, OptifiNow TPO is the only choice. Don't miss out on the opportunity to experience the same success as Foundation Mortgage. Read the full story in the press release and schedule a conversation with OptifiNow to learn why wholesale lenders everywhere are embracing this game-changing solution.
“Spring EQ Wholesale is the mortgage industry’s top second lien TPO lender, offering a suite of adjustable rate HELOCs and fixed rate HELOANs. Pricing home equity second mortgages just got faster & easier with Spring EQ’s NEW pricing engine tool! Simply adjust loan parameters and get instant quotes. Want a crash-course on using the tool? Register for our upcoming webinar on June 13, 2023, at 1:00pm ET! We’ll review all features of the tool and show you how you can start using it. Don’t forget, with Spring EQ you can earn traditional broker compensation on HELOCs and HELOANs. You can see rates and guidelines here. At Spring EQ our primary focus is second mortgages. So, think of us first for all your seconds. Become a partner now or contact your Account Executive to learn more.”
SitusAMC, the most trusted name in due diligence, brings that experience to residential originations with component support services combined with licensed underwriting*. SitusAMC’s world-class team takes a consultative approach with each client resulting in increased cost savings, reduced turn times and improved efficiencies. Behind the scenes we take a “6-eyes” approach on every loan, at no additional cost, to ensure the highest levels of quality are achieved and while providing guaranteed turn-times (SLAs). SitusAMC’s suite of services is tailored to each lender’s specific needs, product set, and reps & warrants. In addition, dedicated Client Relationship Managers ensure that lenders get the first-class experience they deserve. With proven experience in agency, jumbo, non-QM, home equity, DSCR products, and more, SitusAMC is committed to helping lenders stay ahead of the competition and deliver an exceptional borrower experience. Contact Tom Costanzo or visit the website. *SitusAMC only operates in jurisdictions where appropriately licensed.
“TENA Companies, Inc. is the leading provider of Mortgage Quality Control Services & Software since 1982. Our in-house team of auditors leverages their expertise to deliver the highest quality audit and QC services, ensuring your firm stays compliant with all relevant regulations, policies, and procedures. TENA’s Servicing Division specializes in reviewing Mortgage Servicing activities such as payment processing, loss mitigation, claim submissions, foreclosure and more. TENA’s Origination Division covers Pre-Funding and Post-Closing reviews, improving overall loan quality by verifying the accuracy of documentation and confirming loans meet all regulatory requirements. TENA’s Quality Control services are tailored to fit the needs of each individual firm; ensuring your firm’s QC program stays compliant, remains effective, and minimizes risk. Contact TENA today to learn more about our Mortgage Quality Control services and how we can help your business!”
Sales and marketing products___________________________________________________
Everyone wants to make their borrowers “sticky” but it’s getting more difficult as companies like Zillow, NerdWallet and Bankrate spend tens of millions trying to pull your borrowers away from you so they can be sold as leads. Keep your pre-qualified borrowers in YOUR ecosystem with QuickQual by LenderLogix. Loan officers send QuickQuals right from the LOS which lets borrowers run accurate payment and closing cost scenarios and lets borrowers and Realtors update pre-qual letters within guardrails set by the loan officer. Check it out here and get a sample QuickQual texted to your phone.
“Rising home prices. Increasing mortgage interest rates. Heavy consumer debt loads. Is it any wonder why people in the mortgage industry may feel confused and overwhelmed right now? Luckily, 2023 isn’t all bad news. In fact, by making a few simple changes, many mortgage professionals can tap into opportunities they may not have even thought about yet. Just like with your investment portfolio, diversification is the key to your success. Download our complimentary eBook Want More Mortgage Business? Increase the Diversity of Your Customer Base today to learn more about diversification and how you can increase your customer base, the latest homebuyer landscape and ways you can expand into diverse markets. Follow Birchwood Credit Services to access even more industry-related news and informational content that will help you close more loans quickly!
“Introducing a Reverse Mortgage Point-of-Sale Solution! Lenderful Solutions is excited to announce our latest release, a point-of-sale solution specifically for Reverse Mortgage. With support from industry veteran Joe Rinner, at Watermark Capital, we have designed an intuitive tool to help you grow your business. Borrowers can learn about reverse mortgage options, calculate their benefits, select their preferred payment options, and apply for a reverse mortgage in minutes! This Reverse Mortgage solution adds to our strong lineup of point-of-sale solutions including Mortgage with PreQual Express, Home Equity, Auto, Personal Loans, Commercial and more. Plus, you can customize your solution with automation including credit pull, AVM, Employment & Income Verification, insurance, title quotes and ordering, etc. Click here or contact us at (313) 910-3070.”
Agencies, investors, and lenders tweak FHA & VA offerings_________________________________________________
“Government” products continue to be sizeable in terms of overall business at 25 percent. The latest application data from the MBA showed that the FHA share of total applications hit 12.5 percent, the VA share of total applications increased to 12.5 percent, and the USDA share of total applications increased to 0.5 percent.
On May 26th, Ginnie Mae announced the collection and incorporation of additional loan-level data elements in the Reporting and Feedback System (RFS) investor reporting process inan All Participants Memorandum (APM) 23-05. The data elements provide additional information about the risk of collateral for Ginnie Mae mortgage-backed securities (MBS). Further information about Issuer testing requirements, schedules, processes, and procedures will be provided in a subsequent APM.
FHA published Mortgagee Letter (ML) 2023-11, Update to ML 2023-03, Regarding Loss Mitigation Options for Non-Borrowers Who Acquired Title through an Exempted Transfer.This ML will allow mortgagees to review exempted transferee non-borrowers who became successors in interest and are in default or imminent default for the FHA-HAMP loss mitigation options, which include the necessary credit review for the non-borrower as required by the National Housing Act. The provisions of this ML may be implemented immediately; however, they must be implemented no later than July 21, 2023.
The Department of Housing and Urban Development (HUD) has awarded $15 million to help provide affordable housing and support services for low-income seniors and people with disabilities. This is terrific news for those struggling to find affordable housing and need additional support. These funds will help make a difference in the lives of those who need them most. Read the full article about this positive step forward, and let's continue to advocate for affordable housing solutions for all.
Expand your VA pipeline and reach more clients with a new offering from LoanStream Mortgage, 2/1 and 1/0 Buydown Programs. Buydown loans provide a lower rate for the first one or two years, paid by the seller. Additionally, High Balance option is also available.
Temporary Buydowns from Plaza Home Mortgage® have expanded again! Offer more home financing possibilities to your borrowers with FHA High Balance loans with Temporary Buydowns or support military vets by offering VA Jumbo loans with Temporary Buydowns, both products available now. Plaza also offers buydowns on renovation, Fannie Mae®/Freddie Mac, HomeReady® and Home Possible, and FHA, VA, and USDA programs. Download Plaza’s Temporary Buydown Calculator to see if buydowns may be good options for your borrowers. Personalized training and resources are available to help get you familiar with all our product offerings.
PRMG Product Update 23-28 includes clarification regarding an identity-of-interest between the buyer and seller on FHA Products, USDA Product relative to borrowers with a loss paid on a prior USDA loan, borrowers with an ownership interest in another residential property on CO CHFA Products.
Pennymac Correspondent Group posted Announcement 23-36: Updates to Government LLPAs.
Loan Stream Mortgage MaxONE and MaxONE Plus are 100% CLTV FHA DPA programs that may help you qualify more borrowers and expand your market reach. MaxONE features include FHA DPA, Purchase Only, Min FICO 600 - DU Approve/Eligible (no manual underwriting), No First Time Home Buyer Requirement, Non-occupied Co-borrowers allowed per FHA guides. MaxONE Plus Features include 100% CLTV FHA Loan (Combines 1st and Subordinate Lien), 2nd lien with an interest rate 2% greater than 1st lien, payment amortized over 10 years, Monthly payments required, 600 Minimum FICO, Borrower’s minimum contribution of $0.00.
Capital markets: moving on from the debt ceiling headlines_________________________________________________
I’m sure plenty of you were ready for the long weekend after lenders pushed mortgage rates back over 7.00 percent to close last week, in part due to stronger than expected growth and inflation data from Friday. The release of the Personal Income/Outlays report for April showed in-line income growth (0.4 percent month-over-month) coupled with higher-than-expected spending growth (0.8 percent month-over-month) and a persistently high PCE Price Index growth (4.4 percent year-over-year). The report was released alongside a stronger than expected Durable Orders report (up 1.1 percent month-over-month).
The Federal Reserve knows that data lags, but there have not been clear signals of a recession the central bank has so desperately hoped for. Rate hike expectations continue to increase with the fed funds futures market now showing a 2/3 implied likelihood of another 25 basis points increase in June, up from less than 20 percent a week ago.
Aside from the aforementioned data and potential Fed moves, the U.S. debt ceiling was the main focus over the last week as the Treasury was quickly approaching its ability to fund the county. U.S. Treasury rates rose over the week as investors priced in the possibility of a default although a tentative deal looks likely. However, despite higher rates over the last month, new home sales increased 4.1 percent in April to a 683k annual rate. New home sales have been boosted by the lack of existing home inventory.
It's a labor-focused week! This holiday-shortened week includes the May payrolls report on Friday which will be preceded by several other labor market indicators including ADP employment, JOLTS, and weekly jobless claims. Fedspeak is on the lighter side, though the Beige Book will be released on Wednesday afternoon when month-end index-related trades will occur. After this commentary goes out we’ll have some house price and consumer confidence data. But for now… Tuesday starts with Agency MBS prices a few ticks better/up from Friday afternoon, the 10-year’s yield at 3.72, and the 2-year hovering around 4.51.

I came across these commercials (again) the other day. They still crack me up. This ad agency was genius.

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