5.9.24 Equity Trading Pace; Joe Ziebert on FICO Mortgage; Slow Times for Traders

Today’s podcast is brought to you by Matic, the digital insurance marketplace built for the mortgage industry. Matic works with over 100 financial institutions to integrate home insurance shopping into the lending and servicing experience. Customers can shop over 50 carriers and find a policy in minutes. See how mortgage leaders can create a new revenue stream that boosts customer happiness today at go.matic.com/chrisman. 

Transcript

Lenders are always working with money and doing their utmost to avoid scams. On a personal level, maybe not so much: Do you know those automatic keypads at cash registers that ask you, after plugging your card in, the percent you’d like to tip? Thank you to Maryland’s Ken S. who sent a short video of this potential scam if you don’t select “custom.” Be careful out there! Capital markets departments and hedging companies are very careful about trading mortgage-backed securities and whole loans at the best price, and timing hedges with lock volume. In the stock market, recent data highlights a significant shift in stock trading patterns, with approximately one-third of all S&P 500 transactions now occurring in the final 10 minutes of the trading session. This concentration of activity, driven by the proliferation of passive investing, is causing concerns about market liquidity and the potential for price distortions. (Found here, this week’s podcasts are sponsored by Matic, the digital insurance marketplace built for the mortgage industry. Matic integrates home insurance shopping into the lending and servicing experience, allowing customers to shop carriers and find a policy in minutes. Create a new revenue stream that boosts customer happiness today! Hear an excerpt of an interview with FICO’s Joe Ziebert on the company’s interaction in the mortgage space and how it handles feedback from lenders.)

Corporate partner sought, and transitions

_________________________________________________

A national title Insurance agency in New York State is looking for a partner to increase its sales. The title & escrow agency has been around for over 18 years with a staff of 12 including an attorney. The ideal partner is someone with many banking and real estate connections looking to either merge, joint venture or become partners with the sole principal of the title agency. This individual or company understands the profitability within the title industry and is looking to get involved on the title side. It's a dream scenario for someone(s) to walk in here and use this national platform to get involved in the title industry. Interested principals should send a confidential note of interest to Chrisman LLC's Anjelica Nixt to pass it along to the president of the company; specify opportunity.

The Mortgage Collaborative (TMC) is thrilled to announce the appointment of Faith Howard-Mooney to SVP of Member Engagement, Toni Bramley to Director of Membership Growth, Ashleigh Alexander, to Sr Member Benefit Advocate, and Mimi Paxson to VP of Business Development! TMC is extremely excited about the future of our network and the unique value that we offer to small and mid-sized IMBs, Credit Unions and Community Banks across the country. As the largest independent mortgage cooperative in the country, TMC currently has Lender Members representing approximately 10 percent of the mortgage volume in the United States and a best-in-class network of Preferred Partners offering exclusive discounts and solutions. If you’d like to explore the benefits of joining our network, we’d love to hear from you! Please reach out to us here.

Lender and broker software, products, and services

_________________________________________________

A 30-minute meeting with Planet Home Lending’s Correspondent sales team at the MBA Secondary & Capital Markets Conference could be the catalyst for a year-round boost in your business. Join us in the Gotham III Ballroom at the InterContinental New York Times Square. Don’t wait: secure your spot now before they’re all booked! Get in touch with your Regional Sales Manager or SVP Correspondent Sales, Jim Loving (414-270-0027) to explore our continually refined product lineup spanning vanilla to niche products all tailored to your unique needs: Best effort, mandatory AOT, delegated, or non-delegated.

Did you know that house prices nationally are now 52 percent higher than when compared to pre-pandemic levels in February 2020? It's true! In case you missed it, First American Data & Analytics recently released its March Home Price Index (HPI) report where you can receive the most current insights into home price changes at the national, state, and metropolitan CBSA levels. In the report, First American Chief Economist Mark Fleming says, “Persistent inflation has diminished any optimism that the Federal Reserve may start to cut rates in June, meaning mortgage rates seem more and more likely to remain ‘higher for longer’ this year.” For additional insights, and to see their data in action, download a full copy of the report.

Exclusive for ICE Mortgage Technology’s customers, the best and most valuable sessions from ICE Experience 2024 are now at your fingertips, online and free now through May 31. Log in to view everything from inspiring keynotes and compelling fireside chats to popular breakout sessions and panel discussions. This content is only available for a limited time, so start watching now to catch all the sessions most important to you before they are gone. Register here for access.

Dara by Sagent: A GPS for the $14 trillion servicing sector! Innovation in mortgage servicing has been stuck for quite some time and the announcement of Sagent’s latest platform, Dara, the first mortgage software platform to unify all data and user experiences for servicers and homeowners across the entire servicing lifecycle: changes everything by providing a complete view of all operations in real time, whether you're a servicer, consumer, regulator, or investor. For a deep dive into Dara and its six components (Core, Consumer, Default, Movement, Data, AI), check Sagent CEO Geno Paluso’s latest in National Mortgage News here.

It’s 2024 and borrowers miss out on houses because they are waiting on their loan officer to call them back. Full stop. Pre-approved borrowers have to navigate a horrible, manual process to just get a pre-approval letter updated to match their offer. This is why lenders using QuickQual are outperforming in this market. Get a demo here and deliver an outstanding experience to your borrowers and Realtors.

Webinars, events, and training fast approaching

_________________________________________________

One place for longer term conference planning is to start is here, and click on “Conference List” for in-person events in the future. There’s only a week left in April, and May begins next week already, and vendors and lenders are taking a critical look at travel & entertainment budgets.

Today, Thursday, May 9th, at 3PM ET, Rich Swerbinsky is interviewing the fabled Steve Richman about what companies are doing out there in terms of marketing and LOs gaining clients.

Chase Correspondent Lending continues to invest in the Community Lending Program (CLP) launched in 2022. “We invite our clients, as well as prospective clients, to join us for a webinar on Thursday, May 9 at 2:00 ET where we’ll share tips and best practices, recent enhancements and what frequent users of the program have discovered. RSVP here.”

Join CMB Southeast Chapter on Thursday, May 9th from 11:30 a.m. - 1:30 p.m. to hear from co-author, MMLA Board Member, and social media guru, Brian Vieaux, CMB speak about his new book on why the Next Gen Loan Officer is uniquely positioned to be the most trusted resource for financial education and preparation for the next generation of homebuyers.

Tomorrow we’ll see an episode of 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”.

Attention all Georgia mortgage bankers and industry partners! Don't miss out on the upcoming "MBAGLIVE" convention, hosted by the Mortgage Bankers Association of Georgia. This year's convention will be held at the stunning One Ocean Resort in Atlantic Beach, FL, from May 12-15th. The convention will feature keynote speakers, including MBA President and CEO, Bob Broeksmit, CMB, and Matt Troiani, Sr. Legal Counsel with NAR. Make sure to register today to secure your spot at this exciting event. Click here to register!

The Single-Family Housing Guaranteed Loan Program (SFHGLP) Servicing Office in St. Louis, MO announced free, in-person training to lending partners, May 13-17 at the Charles F. Prevedel Federal Building. The training will offer multiple sessions to provide technical training on Loss Claims, Loss Mitigation, and Lender Reporting. USDA will not charge a registration fee. Attendees are responsible for all travel costs. USDA will not be blocking hotel rooms. Attendees may search for hotel accommodations near the training facility located at 9700 Page Ave, St. Louis MO 63132.

USDA Lender Default Servicing Training is coming up, May 13-17 in St. Louis, MO. The Single-Family Housing Guaranteed Loan Program (SFHGLP) Servicing Office is offering free, in-person training to lending partners. The training will offer multiple sessions to provide technical training on Loss Claims, Loss Mitigation, and Lender Reporting. This is an in-person event only and will not be streamed live. Limited space is available, so registration will be honored on a first come, first basis method.

Free, in-person FHA Underwriting Training in Kansas City, KS., May 14, 8:30 AM – 12:00 PM (Central)  will provide an overview of FHA underwriting procedures as outlined in FHA’s Single Family Housing Policy Handbook 4000.1 and addresses several industry-related frequently asked questions (FAQs). This training will also take an in-depth look at a variety of topics including credit, income, and asset (CIA) documentation; manual underwriting; automated underwriting systems (AUS); closing; and more.

Free, in-person FHA Appraisal Training in Kansas City, KS., May 14, 1:00 PM – 4:30 PM (Central). This free, half-day, in-person training will provide an overview of FHA appraisal protocol and updates to FHA appraisal policy as outlined in FHA’s Single Family Housing Policy Handbook 4000.1. This training will also take an in-depth look at a variety of appraisal-related topics including property acceptability criteria; minimum property requirements; property defects; appraiser responsibilities and requirements; and more.

Please join the WMBA and moderator Tony Blodgett, CMB, for an impactful discussion with Rose Marie David, SVP, Retail Sales Executive, CMG Home Loans, Brady Yeager, National Director of Sales, Movement Mortgage, and David Neylan, President and Chief Operating Officer, Guild, about the state of the mortgage industry from an executive leadership perspective. Wednesday, May 15th, 5:30PM - 8:00PM at Ridgewood Corporate Square. Dinner and drinks will be served. Parking is free.

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 join Robbie Chrisman and Justin Demola for a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements.

Attention all TPO and wholesale lenders! Don’t miss out on “The Wholesale Lending Sales Machine” webinar hosted by OptifiNow and Lender Price on May 15th at 10 am PT. The webinar will discuss how wholesale lenders are finding success in today’s challenging market by equipping their account executives with technology tools that are proven to generate more submissions and fundings. Make sure to register for this webinar today! 

There’s Getting Frank about Data Privacy Compliance at 1 p.m. ET, May 15. Agencies overseeing the mortgage transaction are paying attention to how consumer data is being used and stored. The proposed 1033 rule was created to provide guidelines on what is necessary to protect consumers. Do you have the proper processes in place? Two leaders from JPMorgan Chase and Mayer Brown will be breaking down what this rule would mean and how to manage the data in compliance with other rules as well on the upcoming Dodd Frank Update webinar, Getting Frank about Data Privacy Compliance on May 15th. Register Today!

Join MQMR Resources for an exclusive webinar, "Beyond Mortality, Ensuring the Legacy Thrives", on May 15th at 1 PM CST. Expert speakers, Margaret Apgar, Robert Gardner, and Scott Weintraub, will guide you through the essential steps to develop a robust succession plan tailored to your organization's unique needs.

Register for an IMLA special event, Thursday, May 16 · 11:30am - 1pm MDT, hear how three Treasure Valley Mayors are managing their cities through growth and development. Don’t miss this exciting event at the Riverside Hotel - Northstar Room. Registration is REQUIRED.

National MI presents “Understanding the Personalities of Your Clients and Partners ​​​​​with Rebecca Lorenz” on May 16th at 1pm ET. And “Your Event Playbook to Network and Form Referral Partnerships with Kendra Lee” on May 21st at 1pm ET.

Capital Markets

_________________________________________________

As the landscape of mortgage pricing shifts, staying ahead is crucial for maintaining and enhancing your profit margins. MCT has created the Base Rate Generator, allowing mortgage lenders to directly inform their front-end rate sheet pricing with their back-end capital markets executions. The solution combines live agency API connections, co-issue executions, aggregator pricing, and custom TBA indications with decades of experience advising clients on custom rate sheet creation. “MCT’s Base Rate Generator has helped us to be more exact in our pricing which, as a result, has generated more business for us,” said Brian Gilpin at Embrace Home Loans. Discover a range of industry-first features for float carry, specified settlement, spec margin holdback, and best execution blending that optimize pricing and protect against margin-killing outliers. Register for the upcoming webinar to learn more.

Looking to get premium liquidity without premium overhead? MAXEX provides a growing network of more than 325 IMBs, banks, credit unions and business purpose lenders with access to non-agency liquidity from more than 25 top institutional buyers. Build your jumbo business with our industry-leading AUS offering. Get better pricing and avoid costly LLPAs for Agency-eligible second homes and investment properties (our program reached record volumes in April). Start or scale your expanded credit offering with multiple non-QM and DSCR options. Do it all the way that works best for your business—flow, forward or bulk. Learn more by visiting online at maxex.com or meet with our team at MBA Secondary.

Ever wonder where FHA and VA loans go? Ginnie Mae’s mortgage-backed securities (MBS) portfolio outstanding grew to $2.57 trillion in April, including $34.8 billion of total MBS issuance, leading to $14.1 billion of net growth. April’s new MBS issuance supports financing for more than 110,000 households, including more than 53,000 first-time homebuyers. Approximately 73 percent of the April MBS issuance reflects new mortgages that support home purchases because refinance activity remained low due to higher interest rates. The April issuance includes $34.2 billion of Ginnie Mae II MBS and $549 million of Ginnie Mae I MBS, including $463 million in loans for multifamily housing. For the 2024 calendar year to date, Ginnie Mae has supported the pooling and securitization of more than 190,000 first-time homebuyer loans. For more information visit Ginnie Mae Disclosure.

It was another light day yesterday in terms of economic data and any market moving headlines. Focus was mostly on corporate earnings and the market didn’t move much through the completion of a $42 billion 10-year note sale, even though the offering met weaker demand than Tuesday's 3-year note auction. We learned yesterday that wholesale Inventories decreased by 0.4 percent in March, as expected, after increasing a revised 0.2 percent in February. Don’t forget that mortgage applications rose for the first time in three weeks as mortgage rates followed yields lower after hitting year-to-date highs in the prior week.

Today’s economic calendar is also sparse, though already under way. The Bank of England was out with its latest monetary policy decision, holding rates steady at 5.25 percent for the sixth consecutive meeting, but the policy statement laid some groundwork for a June rate cut. The U.S. calendar kicked off with the usual jobless claims: 231k, higher than expected. Later today brings Treasury auctions headlined by $25 billion 30-year bonds, Freddie Mac’s Primary Mortgage Market Survey, and remarks from San Francisco Fed President Daly. We begin the day with Agency MBS prices little changed from Wednesday and the 10-year yielding 4.51 after closing yesterday at 4.49 percent.

What did the lazy boy say to his mom on Mother's Day when she was about to do the dishes? “Relax Mom… you can just do them in the morning.”

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is titled, “Relying on the Fed: How Did This Happen?” The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ