11.7.23 Mortgages in Texas; Jay Arneja on the nCino Mortgage Suite; Slowing Economy?

Today's podcast is brought to you by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite's three core products -- nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics -- unite the people, systems, and stages of the mortgage process. See how nCino can support a homeownership journey that your borrowers and your team will love at nCino.com.

Transcript

Yes, WeWork has filed for bankruptcy, but if you look at GDP and employment, our economy is doing pretty well. Did you know that the Dallas metro area is home to the headquarters of companies responsible for originating 78 percent of residential volume? You probably didn’t, as I just made that up out of thin air. Texas’ growth and not having state income tax both help the economy and mortgage banking. Here in Dallas at the TMBA Education Symposium, there is plenty of discussion about the industry incorporating non-traditional products into their lineups, such as reverse mortgages, bond programs, buydowns, renovation loans, construction to perm financing, and jumbo loans, all have value to lenders. Meanwhile, loan originators are looking at a “full stack” loan origination & processing platform like Realfinity.io to go “independent” allowing them to get the most competitive pricing directly from wholesale lenders with no overlays due to corporate expenses. (No, this is not a paid ad… Check out this WSJ article which really opened my eyes. To learn more about going independent reach out to Luca Dahlhausen.) Today’s podcast can be found here, and this week is sponsored by nCino makers of the nCino Mortgage Suite. With three products tailored to the needs of the modern mortgage lender, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics unite the people, systems, and stages of the mortgage process. Hear an interview with nCino’s Jay Arneja on the company’s rebrand and the seamlessness of the nCino Mortgage Suite.

Employment & transitions

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Merchants Bank of Indiana, continues to grow. The Carmel, IN based Bank knows these are challenging times, but also sees opportunity. Having recently reached $16 billion in assets, they continue to leverage their diversified business model to grow market share and assist their lending partners. They offer Correspondent Lending, Non delegated and Delegated; a Dedicated Wholesale platform for Banks and Credit Unions; Retail Lending and Warehouse financing. Their LO centric platform along with the strength and balance sheet of the bank allows them to expand market share in their regional markets. Contact Ron Berry, Retail Sales Leader to learn more about their LO opportunities. With the TPO market experiencing frequent Investor shakeup their committed, focused, and growing TPO channel is worth a look. Contact Rob Wilson, Correspondent Sales Executive to learn more about their Servicing Released Non Delegated, Delegated platforms and their Financial Institutions dedicated BCU Mortgage Services platform.

FHA has two vacancies for a Housing Program Policy Specialist. Duties include monitoring and evaluating agency operations to ensure policies and standards are maintained, up-to-date, and in compliance with respective guidance and procedures. Resolve many types of program policy issues involving single family mortgages and appraisal/valuation requirements presented by field staff, lending institutions, and other housing interests. Collect, review, and analyze a variety of data including statistical information. Announcement 23-HUD-2577-P.

FHA is accepting applications for a Management and Program Analyst, Announcement Number 23-HUD-3104-P. Responsibilities include development of procedures and systems for assessing the effectiveness of programs/management processes. Analyze and evaluate on a quantitative/qualitative basis the effectiveness of line program operations in meeting established goals and objectives. Direct and develop plans for project teams or other groups in accomplishing/producing projects/studies.

FHA is hiring a Single-Family Housing Specialist. This position is responsible for providing technical assistance and advice to the Single-Family Homeownership Centers on matters concerning risk management and monitoring of program participants. Serve as technical expert on established policies and procedures for monitoring lender/servicer performance.

View Job Announcement Number 23-HUD-3102-P for all job duties.

FHA has an open position for a Deputy Director, Quality Assurance Division. Job duties include exercising full managerial authority in assisting the Director in the planning and execution of assigned program operations and functions. Provide technical assistance and advice to the Single-Family Homeownership Centers on matters concerning risk management and monitoring of program participants. Prepare bulletins highlighting notable trends for management in Headquarters and the Homeownership Centers. For details, view Job Announcement Number 24-HUD-141-P.

DocMagic has promoted Chris Lewis to the role of Director of Sales, tasked with “building on DocMagic’s success as a market leader while also driving strategic sales initiatives for the company’s new innovations.” “His primary goal is to lead a team of subject matter experts in offering a consultative approach. This approach assists lenders of all sizes in realizing the cost-saving benefits and operational efficiencies of eClosings, which are becoming more prevalent in the industry.”

Morgan Barnes has joined the Real Estate Connection team as Director of Lender Relations. “As a licensed Real Estate Agent with keen organizational expertise, Morgan is committed to offering streamlined industry support to our lenders and agent partners.”

Lender and broker software, products, and services

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Is down payment assistance (DPA) actually making an impact in a brutal housing market? The answer is a resounding "yes" according to a newly released Urban Institute (UI) study. UI partnered with Down Payment Resource (DPR) to analyze 2022 HMDA data and DPA data from the 10 largest MSAs. Among the findings, 43.6% of purchase loans were potentially DPA-eligible. 36.7% of declined loans fell through because of DTI. 30.7% of declined loans (46,370) could potentially have been salvaged with DPA. This is especially relevant because it shows that DPA can prevent more declined loans by improving DTI ratios, a growing issue as interest rates rise. To get insight into how many DPA programs are available to help you save declined loans in your service area, schedule a demo with the DPR team.

Servbank is dedicated to creating excellence with every customer and client experience. Having personally experienced how subpar service can negatively impact your businesses and brand, we have consistently elevated our own standards through substantial investments in our people and technology to ensure we are delivering a consistent, best-in-class experience at every interaction point. Our efforts have yielded remarkable results: a 92% first-call resolution rate, a 99% customer satisfaction score, an 85% Net Promoter Score, with wait times of under 10 seconds. This forward-thinking commitment to creating excellence with every experience has positioned Servbank as a market leader and one of the nation’s 10 largest subservicers. As a genuine, collaborative partner, Servbank has the capability and determination to enhance your brand, keep your customers loyal, and improve your bottom line. Ready for a subservicer who goes above and beyond? Partner with Servbank.

Now available: New MERS® Automated Lien Release™ Now, loan servicers and sub-servicers can optimize efficiency and accuracy on process lien releases, all while significantly lowering cost, with the recently announced MERS® Automated Lien Release. Leverage the combined power of the MERS® System and the Simplifile® Document Builder lien release framework to streamline the lien release process for loans registered with MERS®. When a paid-in-full transaction is completed on the MERS® System, this triggers the creation of a compliant lien release package and processing workflow in Document Builder. With pre-populated compliant document templates, Automated Lien Release ensures accuracy and compliance with the latest regulatory requirements. By leveraging the loan updates already sent daily to MERS®, the solution is compatible with the servicing platform you use today, alleviating implementation challenges. Click here to learn more.

While the industry strives for a “fully digital” real estate transaction experience, we cannot lose sight of how important it is to make it easier for loan officers and other staff members to do their jobs. The experts at ICE understand this, which is why any new solution that is developed prioritizes the back-office experience just as much as the front-end experience. As EVP of Product Strategy Sandra Madigan tells HousingWire in a new interview: “You can put the most incredible technology in front of the consumer, but if you don’t work on streamlining the back-end part of the process, you have not delivered effective technology.” Read her full interview here, and see how ICE Mortgage Technology is digitizing the mortgage and servicing processes, while still providing the human-guided experience borrowers want.

It’s no secret. The industry is going through tough times, and Xactus, the leading verifications provider, is here to help guide you in navigating through these challenges. It anticipates credit costs will soon increase as much as 30-100 percent due to several external factors including inflation and out-of-pocket fees. This will, in turn, have a far-reaching impact on all lenders. At the MBA Annual, we heard a lot of “Survive until ’25.” But how is a lender supposed to do that with these rising costs? One way is to work with a partner like Xactus who has the experience to help you strategically review processes to efficiently and cost-effectively manage milestones, improve workflows, optimize outcomes and enhance margins. The right partner can even assist you with capturing market share by helping you mine leads within your existing portfolio and identify more prospects. That’s how lenders will survive until ’25 and eventually thrive. Collaborate more in ’24 with Xactus. Email Xactus today to schedule a consultation!

Sagent’s Five Principles for the Future of Servicing. A better homeowner experience begins, ends, and emanates out of simplified, unified operations, a key component as Sagent delivers on their future-of-servicing model for the industry at large. Check out their COO Marianne Sullivan’s latest blog, where she shares relevant intel about how an open ecosystem provides open opportunities to power a better customer experience while reducing total operational costs and powering real-time compliance for servicers. Read the full piece here where she breaks down their 5 guideposts for servicing innovation. (Spoiler alert: end-to-end servicing tech IS the future.)

Click button, collect fee. It’s as easy as that with Fee Chaser. No more missed appraisal fees. No more awkwardly taking down credit card numbers over the phone. No more data entry into the LOS. With Fee Chaser’s integration into Encompass® by ICE Mortgage Technology™, borrowers get a text message to pay a fee, and everything’s automatically updated including a receipt into the eFolder. Check out the borrower experience here.

Broker & correspondent programs

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Every lender is looking for a competitive advantage in today’s tight lending environment. With AFR Wholesale® (AFR) take your Delegated Correspondent business to the next level. With competitive best effort and mandatory pricing, our partners can maximize their profitability. AFR will purchase a diverse program catalog, including completed Renovation, Construction, and Manufactured Homes on all program types. We are fully integrated with BAM and Resitrader for those who wish to shadow bid on their loans prior to signing up. Activate AFR in your pricing engine or contact the AFR Bulk Bid desk today or 973-298-8003. Not yet a partner? Sign up today to start taking action! Have questions? Contact AFR at afrwholesale.com, email us or call 1-800-375-6071.

Long-term Rental or Vacation Rental? Visio Lending is the nation’s leader in Non-QM Investor DSCR loans for buy and hold SFR rentals with nearly a decade of experience and over $2.5 billion in originations. No-DTI, 30-year terms, rate buy downs, free 45-day rate locks; I/O and Sub-1 DSCR options available. Through our top-notch Broker Program, brokers are able to earn up to 2 points YSP, and 5 points total. Visio Brokers can count on a designated Account Executive and in-house processing.

Training & events, in-person or virtual, fast approaching

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Deephaven Mortgage invites you to join its educational webinar “Opportunities in Today’s Mortgage Market With Deephaven and CoreLogic” on November 9th at 1:00 pm EST. Chief Sales Officer Tom Davis with Deephaven Mortgage and Chief Economist Selma Hepp, PhD at CoreLogic will discuss opportunities in today’s challenging mortgage environment. Selma brings extensive experience in analytics offering actionable and straightforward insights that are important to know. Selma and Tom will provide an update on the housing market, forecasts, demographic trends, and the non-QM products to expand offerings and increase volume. Don’t miss it! Register today.

A good place for longer term conference planning is to start is here, and click on “events” for conferences in the future.

Today, Tuesday, 11/7, is the next Mortgages with Millennials with Kristin Messerli and Robbie Chrisman. Tune in every Tuesday at 10AM PT to the weekly video show designed to empower mortgage professionals to tap into the millennial market. This show demystifies the psychology of first-time homebuyers and offers strategies to win more market share with a key segment of the market. Sign up for a weekly reminder with the link to join and a sneak peek into the next episode. Special guest Jordan Nutter, VP of the Influencer Division at NFM.

Join CAMP on today at 1PM PT to hear expert insurance panelists discuss why insurance companies are leaving California, what new regulations to expect, what are the best practices for your new home-buying clients and what happens if their insurance is cancelled.

Join NYMBA and Proof (formerly Notarize) for a webinar on operationalizing RON in New York, November 7th, 12-1pm. Learn the latest developments in New York State’s rollout of remote online notarization (RON) including the benefits for lenders, attorneys, and your customers. See a live demo of the Notarize platform and learn how RON can help your business from lending to servicing.

Discover what lies ahead in the world of home financing and interest rates with our upcoming webinar, "What Does the Road Ahead Look Like? Navigating Home Financing, Interest Rates, Planning, and More in 2024." Join us on November 8th: Secure your spot now!

Tomorrow, looking for more in-depth commentary on weekly mortgage news? Register here for "Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT is a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Listen to a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. This week's episode features respected attorney Brian Levy.

Join Optimal Blue for the next session in its hedging series, Wednesday, Nov. 8th at 11a.m. CT, Hedging 201: The Components of Pipeline Valuation. Take a deeper dive into the different components that make up your pipeline valuation. From data integrity to gain/loss reconciliation, this webinar will cover features and functionality that Optimal Blue’s hedging and loan trading services provide.

On Wednesday, November 8th at 11:30am–12:30 pm PT, join Orrick’s fourth session zoom conversation about what’s next in fair lending enforcement.

Join USDA Rural Development first live, virtual training for fiscal year 2024. Back to the Basics...SFHGLP Overview: 101 on Wednesday, November 8th | 2:00 pm - 3:00 pm ET.

Beginning in 2024, USDA-RD will be offering free monthly virtual live training events: USDA Rural Development 2024 training schedule.

Learn more about HFA Advantage® features and benefits, borrower eligibility, homebuyer education requirements and product enhancements. Register for a free Freddie Mac webinar on Wednesday, November 8, 2 pm – 3:30 pm ET.

The MBA of Eastern Pennsylvania is hosting its annual President’s Banquet on Thursday November 9, welcoming CNBC commentator Ron Insana for the keynote address. This event is open to members and nonmembers. Tickets can be purchased here.

Join Land Gorilla for an upcoming webinar on November 9 at 11 a.m. PT, "Florida Lien Law Overview For Construction Lenders," which will cover statutory requirements and lender strategies for managing construction loans in the Sunshine State. If you can’t make the live session, register anyway and you will be sent the recording.

In support of the Credit Score and Credit Reports Initiative, FHFA will host a series of stakeholder forums. The initial topics will focus on the historical credit score files and the timing/sequencing of key project milestones. To register for any of the sessions outlined below and to stay up to date on future discussions, send your name, affiliation and contact information to CreditScores@fhfa.gov. Forum Schedule: Tuesday, November 7, 3-4 p.m. ET: Uses of Historical Data for Stakeholder Analysis. Tuesday, November 14, 3-4 p.m. ET: Sequencing of Project Milestones. Tuesday, November 28, 3 –4 p.m. ET: Uses of Historical Data for Stakeholder Analysis (cont’d). Tuesday, December 12, 3–4 p.m. ET: Sequencing of Project Milestones (cont’d).

In September, the CFPB included Loan Originator Compensation in its supervisory highlights. Are your compensation policies compliant? Register for the MMBA MLO Compensation Program Webinar on November 9th, 10:00 – Noon.

Friday the 10th is The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. This Friday’s features David Karandish with Capacity.

Capital markets: GDP, labor market don’t suggest slowing

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There was a big rally over the last week as the sentiment that the Fed could be done raising rates swept through markets, allowing Treasuries to build on gains. However, this week opened with substantial sales as a knee jerk reaction to how far bond yields fell over the past seven days. That selling hasn't really put in a dent in how much yields have risen over the past 18 months and the last time U.S. government bond yields climbed so far, so fast, the nation plunged into back-to-back recessions. And even with markets firmly in "bad news is good news" mode, everyone who has predicted a downturn since early last year has been incorrect. Even with the chance of a rate cut in March increasing to nearly 25 percent, for now, the Fed will continue to feel the pressure to keep rates high to battle price surges.

Today’s economic calendar is light and kicked off with the September trade deficit ($61.5 billion, moving higher). Expectations were for the trade deficit to deteriorate to $59.2 billion from $58.3 billion with consumer credit increasing $15.0 billion following the surprising $15.6 billion decline in August. Later today brings September consumer credit, Redbook same store sales, a Treasury auction of $48 billion 3-year notes, and a litany of Fed speakers. We begin the day with Agency MBS prices better than Monday night by a few ticks and the 10-year yielding 4.62 after closing yesterday at 4.66 percent; the 2-year is at 4.94.

(Warning: Rated PG.)

An old married couple was at home watching TV.

The husband had the remote and was switching back and forth between a fishing channel and the porn channel.

The wife became more and more annoyed and finally yelled, “For god's sake! Leave it on the porn channel. You already know how to fish!"