5.14.24 Central Park and Funded Volume; Mitchell Sandler's Daniella Casseres on Disparate Impact; Latest PPI Figures

Thanks to today's podcast sponsor, LoanCare. LoanCare has successfully navigated clients and homeowners through market change for 40 years. The mortgage subservicer is known for delivering superior customer experience through personalization and convenience. Its award-winning portfolio management tool, LoanCare Analytics™, supports MSR investors with a focus on customer engagement, liquidity, and credit risk. LoanCare is part of Fidelity National Financial, a Fortune 500 company and leading provider of services to real estate and mortgage industries.

Transcript

Attendees are gearing up for the upcoming MBA Secondary Conference in Manhattan. Basketball fans know it as the home of Madison Square Garden and are hoping for the Knicks to play the Celtics during the conference. Manhattan is also the home of Central Park. The Park, with some nice walks and runs, is large but not even in the top 100 in terms of acreage of city parks in the United States. 4 bedrooms and 3,300 square feet overlooking the place will set you back some. (And who would want to deal with a co-op board?) Speaking of outdoors and parks, the other day we took my granddaughter Kozette to a much smaller park, with a pond, to feed the ducks. Just as I was breaking out the week-old Wonder Bread, a woman commented, “Bread is one of the worst things you can feed ducks!” Sure ‘nuff, she was right! So, I gave them some leftover foie gras. Okay, just kidding. (Found here, this week’s podcasts are sponsored by LoanCare. The mortgage subservicer is known for delivering superior customer experience through personalization and convenience. Its award-winning portfolio management tool, LoanCare Analytics, supports MSR investors with a focus on customer engagement, liquidity, and credit risk. Hear an interview with Mitchell Sandler’s Daniella Casseres on fair lending jurisprudence and proving discrimination based on disparate impact.)

Employment and transitions

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“Luxury Mortgage welcomes top performing industry veteran Carlos Betancourt as our newest Account Executive! With over a decade of industry expertise, Carlos has consistently ranked among top-performing sales representatives and his decision to join Luxury Mortgage reflects our commitment to excellence and reinforces our position as a leader in non-QM lending. David Adamo, CEO of Luxury Mortgage, stated, "Carlos' choice to join us underscores our unique value proposition and dedication to excellence, further solidifying our path to market leadership in Non-QM lending. We eagerly anticipate leveraging Carlos' expertise and leadership to maintain exceptional service for our clients." Carlos said, "Joining Luxury Mortgage is more than a career move. It's a chance to be part of something exceptional. I look forward to collaborating with a team of excellence, and together, we'll build an environment that not only offers exceptional non-QM loans to brokers but sets a new standard in our industry." Welcome, Carlos! Your wealth of experience and dedication is poised to propel Luxury Mortgage to new heights of success.”

Yes Communities, a Denver based REIT, is hiring a Senior Director of Sales and Inventory to spearhead strategic initiatives in its Denver office. Responsibilities include optimizing sales processes, managing loan flow, and coordinating between sales and inventory teams. The ideal candidate will have extensive experience in mortgage processes, inventory control, and operational optimization. Key duties involve developing and implementing sales strategies and analyzing sales data to drive business growth. The role requires exceptional leadership skills to mentor and lead cross-functional teams effectively. Additionally, the Senior Director will collaborate with senior management to align sales and inventory objectives with overall business goals. Required qualifications include 5+ years of corporate management experience. Experience in mortgage banking, real estate, inventory, or related industries is preferred. This role offers a competitive salary of $125,000 plus performance-based bonuses. Send resumes to Rachel Hannah. 

Out of Ohio came word that myCUmortgage named Ben Rempe President of the mortgage services provider to lead the mortgage CUSO which provides a comprehensive suite of mortgage solutions to nearly 200 credit union partners across the country. myCUmortgage is a Credit Union Service Organization (CUSO) and wholly owned by Wright-Patt Credit Union (WPCU). Ben replaces Interim President Paul Sutor who will continue his role as VP of Risk Management for myCUmortgage.

Lender and broker software, products, and services

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Top originators are automating the entire funding process from warehouse funding decisions to purchase advice reconciliation and paydowns. By automating funding decisions through OptiFunder's system, originators have saved millions of dollars of warehouse expense while enjoying the many workflow efficiencies OptiFunder has to offer. Customers are talking about their success. “Our funders love it.” “Outperforms expectations.” Check out these testimonial videos from Revolution Mortgage and V.I.P. Mortgage. OptiFunder is bringing the same incredible efficiencies to warehouse lenders. The news is out about Greyhound by OptiFunder, a modern alternative to legacy warehouse lending solutions. Greyhound by OptiFunder was recently recognized by Progress in Lending as a 2024 Innovations Award Winner. Visit with OptiFunder at TMBA Annual Conference or MBA Secondary and Capital Markets Expo to learn more. Sign up for OptiFunder’s monthly warehouse lending trends, out on the second Tuesday of each month.

The Secret Weapon Helping Industry Leaders Manage Risk! As we enter the next technological revolution, how can you maintain transparency in a lending landscape fueled by AI and algorithms? Inglet Blair, a QC Ally company, is the premier provider of credit risk management and due diligence services for the residential mortgage industry. By focusing on quality and emphasizing service, we help clients identify, evaluate, and quantify risk, while maximizing opportunity. Now is the time to ensure you are partnering with a due diligence provider that can give you the peace of mind needed to enable long-term success. Read Founder, Craig Inglet’s, thoughts on the need for transparency in the digital mortgage era here.

“Free eBook: “How to Lower Costs, Boost Profitability, and Surge Ahead of the Competition in 2024.” Want to position your business to win in today’s challenging market? By upleveling your plan, you can reduce fixed costs, improve your bottom line, and set the groundwork to win market share as volume begins to improve. Want to learn how? We spoke to senior members of the Maxwell team, each with decades of industry experience, and the result is our new eBook: an actionable guide that will teach you the likely path for rates and volume in 2024, strategies to bulk up your pipeline, why reevaluating your cost structure is vital to achieving profitability, and more. Get your free copy today to inform your 2024 planning: Click here to download Make More Out of ‘24: How to Win Market Share as Your Competition Lags.”

Now is the time for a loan origination system that can do it all. Mortgage Machine™ is an out-of-the-box, all-in-one LOS designed to accelerate lenders’ operational velocity and support an end-to-end digital origination process. Created by eMortgage pioneer Jeff Bode, Mortgage Machine’s key platform features include AI-powered data management and task automation, a scalable cloud-based infrastructure, flexible APIs, pre-configured workflows for retail and TPO channels, integrated document management and POS functionality. Mortgage Machine also offers comprehensive eClosing capabilities, including an eClose room, eNotes, eVault and RON, and utilizes MISMO SMARTDoc® data and security standards. If you’re ready to harness the time- and cost-savings digital mortgages deliver, register for the live Mortgage Machine demonstration at 12 pm CT on May 30th. Can’t make it? Schedule some time with the Mortgage Machine team.

Servicing product offerings

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“Heading to MBA Secondary next week? The Clayton team will be there ready to discuss how our 30+ years of experience can help smooth industry challenges and capitalize on the opportunities in today’s market. A recognized leader in due diligence, servicing oversight and compliance solutions, Clayton has the scale and expertise to manage any size residential or commercial engagement, ensuring assets and processes meet quality, compliance and reporting standards and comply with regulatory, rating agency and investor requirements. Our new digital platform, Focus, allows clients to efficiently access deal information and seamlessly upload, validate and work exceptions, all in one place with a single sign-on. Schedule a meeting with Clayton VP-Business Development Tom Coffey and learn more about how Clayton can help get your deal done and done right.”

LoanCare is celebrating over 40 years of servicing successes through award-winning innovation and data-driven insights. Experience for yourself how it feels to lock in a fixed servicing cost, wow your customers with sleek, modern self-serve tools, and recapture their business with tailored ad content at any touchpoint. Reach out to meet the team in person at the Times Square EDITION Penthouse during the MBA Secondary & Capital Markets Conference May 19-22, or schedule a servicing demo today!

“Leading the Way with Digital! Our commitment to investing in self-serve digital tools has earned us the winner of the 2024 ICE Innovation Award for Best Use of Mobile Technology in Servicing. And we continue to push into the future with a digital-first, omnichannel communications strategy, part of our philosophy to prioritize the needs of homeowners by allowing them to do business with us wherever, whenever, and however they feel most comfortable. Let’s discuss how Cenlar delivers the very best homeowner experience. Call 1-888-SUBSERV (782-7378) or visit here. We want to be your trusted partner, each and every day.”

Events, webinars, and training

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

Join Land Home Financial Wholesale today on a call, 8:00 AM - 9:00 AM PDT, to go over the SETH MyHome Plus Affordable Housing Program Webinar (Wholesale).

Free, in-person FHA Appraisal Training May 15, 9:00 AM – 4:00 PM (Eastern) in Louisville, KY 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.

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. Tomorrow features Paulina McGrath of the CHLA!

Join FirstHome IQ in launching its monthly Impact Mastermind series on May 15th at 10am PT / 1pm ET. This month, don't miss "How to Create Viral Content that Converts" with Amir Syed and Mo Ismail, Ambassadors of FirstHomeIQ and two of the best leaders in the space around marketing and sales leadership. Register at firsthomeiq.com/mastermind.

Through OMBA's partnership with Diehl Mortgage Training and Compliance, a detailed 8-hour live webinar training in two 4-hour segments is scheduled May 15 & 17, 1:00 - 5:00 pm EST. The course will bring you up to speed on current guidelines and procedures, so that you can effectively underwrite, process and originate VA loans. Participants will have the ability to ask questions throughout the presentation. Registrants from OMBA member companies receive a $100 discount. Call Jay Pascoe at 202-731-6495 to receive the discount code to input when registering.

Thursday, May 16th at 3PM ET, Rich Swerbinsky is interviewing the MBA’s Bob Broeksmit about what is on the MBA’s radar screen.

Unlock new opportunities with Manufactured Housing, join USDA’s free, virtual training on Thursday, May 16, 2:00 p.m. - 3:00 p.m. ET. Learn how taking advantage of USDA's Single Family Housing Guaranteed Loan Program for manufactured housing gives you the potential to tap into new customer bases and provide more options for homebuyers.

This Friday we’ll see an episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30 minutes starting at noon PT, 3PM ET, in “The Rundown”.

There’s the MBA's Secondary & Capital Markets Conference & Expo in New York City at the Marriott Marquis New York on May 19-22 for the largest gathering of secondary and capital markets professionals in real estate finance.

Get More in '24 at TMBA's 108th Annual Convention, May 19-21 at the Austin Marriott Downtown.  Offering the best value for your conference dollars by providing opportunities for direct access to mortgage professionals, unparalleled insights, networking opportunities, and a dynamic environment and growth in Texas and beyond.

ACES ENGAGE 2024 conference will take place at the Ritz Carlton Dove Mountain hotel in Tucson, Ariz. on May 19–21. Attendees learn from industry experts and thought leaders, network, and leave with the knowledge necessary to increase efficiencies, improve productivity and further quality at their organizations.

The next edition of Information Management Network (IMN’s) Single Family Rental Forum is scheduled for May 20th – 22nd back at the Loews Miami Beach. IMN's SFR Forum, established as the most renowned and largest industry gathering, will once again convene the key industry players, with 1,800 projected attendees.

The National Settlement Services Summit (NS3) is the premier annual destination for all professionals involved in the real estate transaction to come together for unrivaled networking and education. This year’s event is being held May 21-23 at the Naples Grande Beach Resort. This year’s attendees will hear a variety of perspectives including regulators, mortgage lenders, attorneys, technologists and more.

Climate Changes and Property Insurance Insights for Brokers webinar is on May 21 at 1 PM Eastern presented by A&D Mortgage. Gain invaluable insights from top industry leaders: Valerie Saunders, President of the National Association of Mortgage Brokers; Danny Black of Sihle Insurance Group; and Nathaniel Bittman, President of the Florida Association of Mortgage Professionals.

LeverageCon, the nation’s only Build | Flip | Rent Finance Expo is coming up on Thursday, May 23rd, 10am- 6pm EST. Meet over 1,000 of the nation’s residential real estate investment experts in Miami, FL for high level networking, latest trends, raising investment capital and expanding your network.

There’s the Excess Equity webinar which is a complimentary recording available. The complimentary recording of the Excess Equity webinar produced by October Research is now available. When a property is sold at tax sale and the owner has equity over and above the amount owed for delinquent taxes, what legally must happen to those funds? Quick answer: it varies tremendously by state and county. Join The Legal Description and an incredible lineup of speakers as they highlight the impacts of the U.S. Supreme Court Tyler v. Hennepin County case, and the ripple effect across the country.

Capital Markets: are the dog days of summer here already?

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Much like most days of late, there was little in the way of market moving news yesterday. And unlike most days of late, there was no supply from the Treasury to help dictate market direction. In lieu of much going on, investors were able to focus on what has so far been a disappointing corporate earnings season.

The New York Fed's latest Survey of Consumer Expectations showed an increase in year-ahead inflation expectations to 3.3 percent from 3.0 percent, while the three-year outlook dipped to 2.8 percent from 2.9 percent, and the five-year outlook rose to 2.8 percent from 2.6 percent. On a macro scale, a softening labor market has reignited hopes that the current restrictive rate environment is having the desired effect, and the Fed will be able to cut rates multiple times later in the year. 

How about some good news? It has been a really strong purchase year-to-date as we move through spring home buying season. Inventory is up, housing values are strong, and there's a lot of demand in the market. In fact, Optimal Blue's April Originations Market Monitor report showed that mortgage purchase lock counts rose year-over-year for the first time since the Fed began rate hikes two years ago. The 5 percent annual increase in mortgage lock counts is encouraging because lock counts control for home prices and are less volatile than rate-driven refi activity. That is despite the 30-year conforming fixed rate rising 51 basis points to finish the month at 7.24 percent, 80 basis points higher than one year ago. Total rate lock volume increased by 8.7 percent month-over-month driven by an 11.0 percent month-over-month increase in purchase lock volume. Nonconforming loan products, including jumbo and non-QM loans, increased their market share by 1.85 percent to 13.7 percent. Meanwhile, shares for conforming, FHA and VA loans declined. Overall purchase volume is expected to remain strong through the second and third quarters.

Today brings this week’s first big inflation report with April producer prices: PPI, which was +.5 percent (+2.2 percent year over year), ex food & energy +.4 versus expectations for increases of 0.3 percent month-over-month in both the headline and ex-food/energy and 2.2 percent and 2.5 percent year-over-year, respectively, compared with 2.1 percent and 2.4 percent in March. Before PPI, NFIB small business optimism for April was released, rising for the first time in several months. It was seen ticking down to 88. Later today brings Redbook same store sales, some short-duration Treasury auctions, and remarks from a couple of Fed speakers. We begin the day with Agency MBS prices worse about .125 from Monday’s close and the 10-year yielding 4.52 after closing yesterday at 4.48 percent; the 2-year is up to 4.89.

Best of Marcus Lam (part 2 of 5, and yes, he will be at the conference)

Having TV commercials at gas pumps has to be one of the worst uses of technology to date.

BMW self-driving cars probably won’t use their turn indicators.

That rebellious rock and roll from the 60s and 70s is now the acceptable, soothing Home Depot background music.

Flip phones were so much more satisfying for ending annoying conversations.

November 2, 2000, was the last time all living humans were on earth at the same time. Ever since the ISS has been occupied continuously, traveling 5 miles per second.

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).

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