8.15.24 No News is Good News; Duke University's Marvin Chang on Product Development; Data for Digestion

This week’s podcast is sponsored by Truv. Truv lets applicants verify income, employment, assets, insurance, and switch direct deposits. Unlock the power of open finance, with Truv. 

Transcript

Looking at the attendees of various mortgage events around the nation over the last several months, I remember back to when a “new hip joint” meant some place that I wanted to go on a Friday night. Here at the MMLA Conference in Boyne Falls (if you ever have a chance to visit in the summer or autumn, do so!), where there is definitely some youth appearing, one of the dinner discussions was “remember back when everyone was hiring” and whether hiring is on the upswing. For some companies, the answer is definitely “yes” and this month’s STRATMOR blog is titled, “Hiring: Do You Remember How to Do That?” Another discussion topic is the feeling that most lenders have definitely “turned a corner” in terms of profitability and had a good second quarter for various reasons. Let’s hope your numbers validate that! (Today’s podcast is found here and this week’s is sponsored by Truv. Truv lets applicants verify income, employment, assets, insurance, and switch direct deposits. Unlock the power of open finance, with Truv. Hear an interview with Marvin Chang on how mortgage originators can tailor products and services for the next generation.)

Employment & transitions

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Some exciting news from AmeriHome Correspondent! It is growing its Non-Delegated business and sales team with the addition of Jordan Higgins to cover the Southeastern United States. Jordan’s experience in correspondent lending and her knowledge of conventional, government and non-agency products will be a tremendous asset for clients and prospects. Non-Delegated isn’t the only team that’s growing! AmeriHome is currently recruiting a VP, Senior Trader as well as an AVP, Pricing and Trading to join the ever-expanding AmeriHome team. AmeriHome also announced that it will now purchase loans secured by Manufactured Homes from select Delegated clients–connect with your sales rep to confirm eligibility. As the primary sponsor of the All-Attendee Party at the Western Secondary Conference next week, the AmeriHome team will be there in force! Reach out directly to schedule a meeting and, for details on where AmeriHome will be through the rest of 2024, check out its Upcoming Events.

As part of its ongoing commitment to expand its non-QM expertise, and provide non-agency loans to homeowners, brokers and sellers, Carrington Mortgage Services, LLC (CMS) recently hired Paul Howarth to serve as Regional Sales Manager for its Western Division. In addition to his 20-plus years of mortgage industry experience, Howarth has 10-plus years’ experience as a mortgage originator. His recent non-QM and alternative lending experience includes VP positions at Sprout Mortgage and Deephaven Mortgage. Howarth also was Director of Sales at Homeloancenter.com and helped run purchase loan production at Nationstar Mortgage/Mr. Cooper. Come see Howarth and other members of the CMS Third-Party Origination team at the Originator Connect Conference August 15-18, 2024, at Planet Hollywood in Las Vegas. For more information about CMS, contact your Account Executive or go to https://carringtonwholesale.com/ or https://carringtoncorrespondent.com/.

Angel Oak Mortgage Solutions announced the reorganization of its leadership team with key personnel promotions, including naming Tom Hutchens as President, alongside three internal promotions to take on the roles of EVP of Production, Credit and Operations. Effective Sept. 2, Tom Hutchens, previously EVP of Production, will serve as President of Angel Oak Mortgage Solutions. Hutchens’ role will be assumed by John Jeanmonod, formerly Angel Oak’s Regional VP of Sales. And Alysse Prosnick and Travis LaLonde have been promoted to EVP of Operations and EVP of Credit, respectively. Congratulations all the way ‘round!

(As a reminder, anyone searching for employment can post their resume at no charge at www.lendernews.com, and potential employers can view all resumes for several months for only $75.)

Lender and broker software, services, and products

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ICYMI: Last month, Optimal Blue unveiled three new AI capabilities in the CompassEdge hedging and trading platform as part of its ongoing strategy to address real-world challenges for mortgage lenders. The first, Profitability Assistant, designed for CFOs, uses generative AI to write a succinct summary of the top drivers that caused a gain or loss of profitability in a pipeline. The second, Projections Assistant, assists capital markets leaders in predicting the real-time impact of various factors on the risk profile of a hedged mortgage pipeline. Finally, Trade Assistant suggests a combination of sells, buys, rolls, and swaps to maximize effectiveness in alignment with a lender’s hedge policy, while minimizing transaction cost. These AI assistants aim to reduce manual processes, aligning with Optimal Blue’s mission to maximize lenders’ profitability on every loan. These new AI capabilities come at no additional cost to CompassEdge users. Read more in the press release.

“Wholesale mortgage lenders! What if you could read a mortgage broker’s mind? How would that change the way you market and sell your loan products? Join OptifiNow and Modex for our webinar, “Riding the Data Wave: How Wholesale Lenders Harness Data to Boost Loan Volume” to find out how mortgage market data reveals everything you need to know about a mortgage broker (location, funded volume, loan officer roster, loan volume characteristics) and how this data can be combined with CRM technology to power your sales and marketing strategy. We’ll share insights on how wholesales lenders are using this data today and explore the potential benefits that AI and machine learning can provide. Join us live on Thursday, August 22, 2024, at 10 am PT / 1 pm ET. Register today!”

Calling all HEI companies! Stewart is the premier title services company supporting Home Equity Investment originators. Beginning at lead generation and continuing through credit, verification, valuation, title/settlement services, eClosing and portfolio servicing, the Stewart family of companies has innovative technology and fulfillment solutions to meet all your needs. Representatives from the Stewart family of companies (Informative Research, Stewart Valuation Intelligence and NotaryCam) will be attending the IMN HEI & Home Equity Capital Markets Forum on Sept. 5-6 in Austin. Catch us at one of the following sessions, and/or contact solutions@stewart.com to set up a meeting! 9/5, 8:20 am CT – The Macroeconomy, Valuation & Mortgage Risks, The Housing Market & Which Markets Are Hot. 9/5, 9:15 am CT – An Overview of The HEI & Home Equity Loan Universe of Products. 9/6, 9:25 am CT - Consumer Facing: Underwriting, Origination, Marketing, Analytics & Education.

NAR rule changes go into effect this Saturday, 8/17? Get ready for the fallout with Maxwell’s new eBook. The way home buyers interact with lending and real estate professionals is changing. NAR practice changes take effect this Saturday, 8/17/24, and the new FCC rule, set for 1/27/25, shifts the way lenders can purchase and pursue mortgage leads. Now is the time to get ahead of rule changes with a well-crafted lead generation strategy. Download Maxwell’s new eBook to learn how NAR and FCC rule changes will impact lenders, new challenges and opportunities lenders can expect, and 3 tips for building a strong mortgage lead funnel in today's market. Click here to get your copy of New Rules, New Strategy: How to Drive Mortgage Leads in the Aftermath of NAR & FCC Rule Changes.

STRATMOR on avoiding referral fallout

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Imagine training your whole life to compete at the Olympic level, finally achieving that goal, then showing up at the wrong venue on the day of your race! Sometimes, you can do everything right along the way, then get tripped up by one costly mistake at the end. In his latest Customer Experience Tip, STRATMOR Group Customer Experience Director Mike Seminari reveals that even the seemingly smallest of miscues can mean the difference between a raving fan and a disgruntled borrower who will redirect new business elsewhere. In “Overcome Mortgage Miscues Like an Olympic Champion,” Mike shares how lenders can channel their inner Olympic athlete to protect against referral fallout when miscues happen.

Conferences, training, and webinars: planning for September

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September 4-6 the NY MBA is taking over the Turning Stone Resort Casino in Verona, NY with a slate of top-notch speakers and information.

In the inaugural edition of IMN’s HEI & Home Equity Capital Markets Forum, September 5-6 at the Marriott Downtown in Austin, TX. The initial response has been overwhelmingly encouraging and we are anticipating 400-500 attendees, including all of the notable Issuers, Originators, Investors, and Servicers in the space.

Join Optimal Blue, Tuesday, September 10, 12 p.m. CT for the next session in its Hedging webinar series, Hedging 301, as they take a deeper dive into more advanced capital market strategies and how to effectively manage your mortgage pipeline.

A&D Mortgage is looking forward to attending the Great Northwest Mortgage Expo in Seattle on September 11, Washington's largest gathering of mortgage professionals. Come meet with members of the A&D Team to learn about the exciting loan and tech solutions. Use ADFREE promo code to get complimentary access to the exhibit hall, breakout sessions, and networking events.

Register for the New England Mortgage Bankers two-day conference, September 11-13 in Portsmouth NH. Hear from a range of speakers, learn about new technologies and products, join golf and social events.

9/12-9/13, the Mississippi MBA’s Fall Conference will be held at the Sheraton Refuge in Flowood, MS. “Our theme, Elevate Your Impact, reflects our commitment to empowering mortgage bankers with the latest insights, strategies, and tools to make a significant impact in our industry.”

There’s the Zelman & Associates 2024 Housing Summit, Thursday, September 12th & Friday, September 13th in Boston, MA. The cost to register is $1,595.

In Colorado, don't miss this chance to protect your business and stay ahead of emerging fraud threats in real estate. Join CoAMP and top panel of experts on Thursday, September 19th; 2-4 PM MDT for a robust fraud presentation at 7979 E Tufts Ave., Denver. Many believe these issues won't affect them, but fraud and cyber threats are everyone's problem, and you could be held liable if something happens.

There’s the upcoming 2024 Pacific Northwest Mortgage Leaders Conference Sunday, September 22 – Tuesday, September 24 at the Seattle Grand Sheraton. As the industry continues to evolve through technology, innovation, and adaptation, the conference will present an impressive lineup of local and national industry leaders who will share insights on critical topics impacting the mortgage industry.

Registration is now OPEN for the 2024 Loan Vision Innovation Conference. With a focus on innovation, growth, and doing more with less, the new and improved annual conference is taking place in Chicago, Illinois from Monday, September 23rd – Wednesday the 25th. If you’re interested in sponsoring this event, please contact Haleigh Heilman. To learn more about this conference, register, and book your hotel, please visit here.

9/24-9/25 the Nebraska Mortgage Association’s Annual Fall Conference will be held at the Nebraska Innovation Campus in Lincoln, NE. “It will feature an outstanding line-up of great speakers, along with the presentation of our 2023-24 ‘Champions Circle’ awards and the announcement of our 2024 ‘Mortgage Professional of the Year’ recipient.”

When you attend NRMLA’s Annual Meeting & Expo, you'll not only learn new and innovative sales strategies that can help grow your business, but you'll also hear from top regulatory and legal experts who will share timely and important updates on the status and trajectory of the HECM program. Register for this event, September 24 at 1:00 pm - September 26 at 12:00 pm, and receive “best in class” educational content presented by the industry’s top thought leaders and subject matter experts to help you excel at your job.

Join MBAMW on September 25 at 9:00 AM EDT for a One-Day Lenders Conference.

Attend the AzAMP Annual EXPO, Luncheon, and 8-Hour AZ CE Class September 25th and 26th at the We-Ko-Pa Resort and Casino. Members are Free, membership must be active on the day of the event.

Join NALHFA and Moody's Analytics Economist, Shannon Brobst, for an exclusive member-only webinar, Friday, September 27, at 1:00 PM ET to explore the short-term outlook for the housing market and interest rate environment, as well as potential impacts of the November election on the housing market. Trends, Challenges and Opportunities Housing supply and demand are unbalanced. The market is struggling with a shortage of unaffordable homes to rent and own. Current homeowners are locked into their homes with ultra-low mortgage rates, while potential buyers are locked out of the market due to elevated rates.

Join ACUMA at The Bellagio Hotel & Casino in Las Vegas, NV, from September 29th - October 2nd for 2024 Make Your Mark Annual Conference. An event filled with insights, networking, and innovation featuring an impressive lineup of industry experts and leaders who will share their insights on the latest trends and critical issues impacting the mortgage industry.

Capital markets: rates hit by the consumer being alive and well

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Looking for more ways to minimize hedging costs? Pricing and hedging loans successfully in today’s market requires more advanced strategies like cross-hedging. Chris Bennett, Principal at Vice Capital Markets, details multiple approaches and specific real-market examples in a free white paper, which offers insights into effective hedging in the current environment, the factors driving the decisions on cross-hedging and how to do so most effectively. Download it here (no email needed).

The relationship between mortgage loan pricing and conditions in the capital markets is a poorly understood phenomenon, even within the mortgage industry. So how do lenders generate loan offerings and mortgage loan prices? While it’s superficially useful to contemplate the impact of MBS and mortgage spreads on primary loan offerings, spread levels are not incorporated into loan pricing methodologies. Learn about The Links Between MBS Markets and Loan Prices in this whitepaper written by MCT to debunk myths about how mortgage pricing is created. This resource provides a comprehensive look at these common misconceptions and the process of generating loan offerings. Download the whitepaper for an in-depth understanding of the function of inputs that impact residential mortgage pricing.

In terms of the bond market, and therefore interest rates, no bad news is good news. July consumer price data met expectations, showing a 0.2 percent month-over-month increase in both headline and core CPI, which supports the ongoing narrative of disinflation. This leaves the Federal Reserve in a holding pattern, with markets divided on whether there will be a 25 or 50 basis point rate cut in September. While a 50 bps cut is expected, the final decision will likely depend on the upcoming August employment and CPI reports.

Today’s economic calendar kicked off with a bang with retail sales for July (+1.0 percent, stronger than anticipated), Empire and Philadelphia Fed manufacturing for August (-4.7 and -7, respectively), import / export prices for July (imports were +1. percent) and jobless claims (fell to 227k; continuing claims at 1.864 million). Later today brings industrial production and capacity utilization for July, June business inventories, the NAHB Housing Market Index for August, Freddie Mac’s Primary Mortgage Market Survey, and remarks from St. Louis Fed President Musalem and Philadelphia Fed President Harker. We begin the day, after the salvo of strong data, with Agency MBS prices worse .125-.250 from Wednesday’s close, the 10-year yielding 3.90 after closing yesterday at 3.82 percent, and the 2-year at 4.06.

A group of Northern Michigan friends went deer hunting and paired off in twos for the day. That night, one of the hunters returned alone, staggering under the weight of an eight-point buck.

"Where's Dan?" the others asked.

"Dan had a stroke of some kind. He's a couple of miles back up the trail," the successful hunter replied.

"You left Dan laying out there and carried the deer back?" they inquired.

"A tough call," nodded the hunter. "But I figured no one is going to steal Dan!"