9.16.24 Loan Limit Independence; Glenn Stearns on Life in Mortgage; FOMC Look Ahead

Thanks to today's podcast sponsor, Visio Lending. Visio is the nation's premier lender for buy and hold investors with over 2.5 billion closed loans for single-family rental properties, including vacation rentals. Visio is fast, simple, and dependable when it comes to financing rental properties. They believe time is money, and strive to be upfront and consistent about their qualifications. Using a simple DSCR rather than a complicated NOI calculation, there are no tax returns or personal financial statements, and their pricing is set, so you always know your rate. Learn more, including about Visio’s top-notch broker program, at https://www.visiolending.com/. 

Transcript

The Pirate goes to the dermatologist and says, “Arrg, I got moles.” The dermatologist says, “Don’t worry, they’re benign.” The Pirate replies, “Arrg, count again, I think there be ten!” Health care, astronomy, and mortgage banking are filled with numbers. Losing daylight is the name of the game these days in the Northern Hemisphere. Chicago, where I head this weekend, is losing three minutes per day of sunlight, Anchorage five minutes, Honolulu one minute. Thanksgiving will be here before we know it; The official conventional conforming loan limits, issued by the FHFA/Freddie/Fannie triumvirate, doesn’t occur until Thanksgiving. But in recent years investors have “jumped the gun;” more below. Speaking of jumping the gun, today is Mexican Independence Day, marking the battle of independence after nearly 300 years of being ruled by Spain, but the celebrations began yesterday in places like Chicago. Things kick off September 15. On this day back in 1810, Father Miguel Hidalgo y Costilla gave a historic speech and rang the church bell which helped inspire the fight for freedom, and the date is helped by it being the birthday of Porfirio Diaz, president and dictator from 1876 to 1911. (Today’s podcast is found here and this week’s is sponsored by Visio Lending. Visio has a top-notch broker program and is the nation's premier lender for buy and hold investors with over 2.5 billion closed loans for single-family rental properties, including vacation rentals. Hear an interview with Glenn Stearns on the choices that have shaped his mortgage career.)

Employment, a business opportunity, and another retirement

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A mid-sized, direct lender with a strong industry reputation and incredible culture is seeking a Director of Recruiting to join its leadership team. This role will report directly to the President and will play a key role in continuing to grow the organization through the recruitment of Loan Officers and Retail Branches with no territories. This role is ideal for a self-driven individual who wants no pay cap, along with the opportunity to make a difference and grow with the company. To take the next step in your career, forward your resume to Chrisman LLC’s Anjelica Nixt.

Commercial Lending is experiencing hyper growth due to $1.5 trillion in ballooning loans over the next 3-5 years. There is a shortage of commercial mortgage brokers, and with banks liquidity issues, a perfect storm is brewing for the secondary market that will create massive deal flow. Chris Perez, Envestion Commercial Lending, a 25-year veteran, is offering a broker partnership, turnkey with training, custom web site, tools, and marketing / leads. He is looking for 5-10 brokers per state where they are given the marketing and leads, take the application, and then turn the commercial loan over for processing, underwriting, and closing, all while continuing to do your normal residential business. Schedule an appointment today to see if you qualify or join the free weekly seminar every Wednesday 1PM EST. Adding commercial to your book of business is a way to expand your current product line while substantially increasing revenue.

Congratulations to Brien McMahon who retired from Radian and his post as Senior Executive Vice President, Chief Franchise Officer on Friday. “Finally going to work on my golf handicap! We’ve also welcomed my second grandchild!”

Lender and broker software, services, and loan programs

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To offset today’s tight margins, many lenders are assessing their loan origination process to identify opportunities to lower costs, move quickly and drive more business. To support clients’ long-term, scalable success, ICE is making significant, continuous investments to help them operate more efficiently and provide more value to homebuyers. Explore Ice’s latest press release to see how recent upgrades to the Encompass lending platform are simplifying the loan process, including how lenders determine a borrower’s eligibility for affordable financing options.

“Struggling with social media and website compliance? ActiveComply is here to help. Our solutions automate the monitoring process, ensuring you stay ahead of regulatory requirements and avoid costly penalties. Plus, streamline your branch audits with our efficient virtual inspections for branch and remote offices. Meet the ActiveComply team at the MBA Compliance & Risk Management Conference in Washington, DC, from September 22-24 by reaching out to hello@activecomply.com or Schedule a virtual demo today to discover how our innovative solutions can save you time and reduce compliance risks. Don’t miss this opportunity to enhance your compliance efforts and protect your organization.”

Struggling with the current rate environment? Figure’s platform can help you thrive: Offer your customers the ability to tap their equity fast without losing their low-rate mortgage, while you earn your commissions. Leading lenders are already leveraging Figure’s HELOC platform. Our streamlined, customer-driven process is low-touch and can be completed in just a day. With an application time of as few as 5 minutes, online income and property verification, autopay and credit union discounts, plus e-notary in most states, our platform provides competitive rates and a fast process. Elevate your offerings and partner with Figure, email Anthony Stratis to get started!

Lenders across the country are still looking for ways to cut costs without sacrificing revenue. Start off easy by collecting fees upfront. Fee Chaser by LenderLogix makes it as easy as clicking a button... literally.

In today’s competitive market, efficiency isn’t just a goal; it’s a necessity. Western Alliance Bank’s Specialized Mortgage Services Group offers cash management solutions that independent mortgage bankers can rely on. Its commercial credit card program 

simplifies your business by automating travel and expense reporting, as well as Accounts Payable spending. With quick reconciliation and robust reporting, you gain more than time savings… You gain revenue. Plus, purchases made through Western Alliance Bank’s program earns valuable revenue share. You can create a conversation piece by fully customizing your card to your name and logo. Discover how Western Alliance Bank’s commercial card and specialized Treasury Management tools tailored to the needs of IMBs can help you optimize efficiency and drive profitability. Reach out to their responsive team to find out what they can do for you. Western Alliance Bank, Member FDIC.

You’re invited to Mortgage Machine’s ™ exclusive webinar featuring Kara Lamphere, a seasoned 20-year C-suite executive in the mortgage industry, as she shares her valuable experience using Mortgage Machine™. Kara is currently the Chief Operating Officer at Click n' Close and has previously worked with industry leaders like InterLinc Mortgage, Guaranteed Rate, and CMG Financial. In this webinar, Kara will provide unique perspectives on leveraging technology to enhance mortgage operations. Kara and Dan McGrew will demonstrate how Mortgage Machine™ has improved digital mortgage workflows, boosted production and reduced origination costs. Don't miss this opportunity to learn from a HousingWire Women of Influence and MBA Tech All-Star as she reveals practical strategies for success in the shifting digital mortgage landscape. Click here to Register  and secure your spot for this must-attend webinar on Thursday, September 26th at 12PM CT!

“Exciting news: American Financial Resources, LLC (AFR) is taking things to the next level with even more competitive pricing across the board! Powered by the strength and vision of our new ownership, we’re bringing a fresh approach that delivers more value and flexibility to the market than ever before. AFR has long been recognized as a leader in specialized programs like One-Time Close Construction (OTC), Renovation, and Manufactured Home loans. Now, we’re also making a name for ourselves with competitive conventional and government pricing, particularly for loan amounts under $300K. This marks a major shift in our offerings, and if you haven’t checked out our pricing recently, you owe it to yourself—and your clients—to explore what’s new! Let’s connect to discuss how these updates can help you grow your business. Contact us, call 1-800-375-6071, or visit here. We can’t wait to hear from you! (NMLS 2826)”

Maxwell Capital September Savings: Save $300 on admin fees until Sept 30th. Looking for ways to pass savings on to your borrowers? Take advantage of Maxwell Capital’s limited time $300 discount on admin fees. Now more than ever, lenders need solutions that allow scale while reducing operational costs and increasing revenue per loan. With Maxwell Capital, lenders can access competitive secondary market pricing on a wide array of products, including agency, jumbo and non-QM across wholesale, delegated and non-delegated delivery options. Schedule a call with the Maxwell team today, and start doing more for your bottom line.

Curbio does a settlio

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Curbio is a Maryland-based pre-listing renovation company that offers pay-later services for home sellers upgrading or repairing their homes, Curbio is a “fix now, pay-at-closing” home improvement solution for real estate professionals, operating in more than 55 markets nationwide.

The company is settling a lawsuit filed by the Attorney General of the District of Columbia that accused the company of violating consumer protection laws through “systematically” deceiving homeowners with its practices and marketing.

In the suit, filed Nov. 20, Schwalb alleges Curbio engaged “in a scheme of deception, intimidation, and fraud that traps District residents (targeting the elderly and financially disadvantaged) into unconscionable contracts, while performing overpriced, substandard work that often takes months, or years, longer than promised.”

According to the AG’s statement, the lawsuit also alleges that Curbio is violating the Consumer Protection Procedures Act, a broadly written law that allows the OAG to pursue injunctions and monetary relief without proving damages. In addition, the OAG alleges violations of the district’s Abuse, Neglect and Financial Exploitation of Vulnerable Adults and the Elderly Act.

Schwalb’s November press release details how Curbio allegedly lied to consumers by “misrepresenting nearly every aspect of its work” such as level of risk, absence of fees or interest, rigorous vetting of its contractors, return investment, extended time working on homes and much more.

According to the court filing, “Curbio pitches itself as a pre-sale home renovation company that can fix up rundown properties 65% faster than the competition, with no risk, hassle, stress, interest, fees or payments until the newly repaired home is sold. But the reality is that Curbio utilizes a collection of low-cost subcontractors to deliver an over-priced, low-quality product, after locking consumers into a one-sided contract from which there is no escape.”

Additionally, Schwalb seeks to ban Curbio’s alleged fraudulent practices in the District of Columbia to protect vulnerable residents, and hopes to recover financial penalties and monetary damages. The OAG claims that the elderly have fallen victim through a network of associated real estate agents that receive undisclosed incentive compensation for fostering Curbio contracts.

“In reality, Curbio traps consumers with exploitative contracts that threaten them with financial ruin,” said Schwalb in the November release. “From its marketing, to its contracts, to its filing of liens against title, to its renovation work itself, to its unauthorized and exploitive lending practices, every aspect of Curbio’s business model is designed to line its pockets by taking advantage of District homeowners.”

A second suit was brought against Curbio in February, “Anita Johnson vs. Curbio”—named after the sole plaintiff—by an elderly homeowner who reportedly experienced such claims made by the Office of the Attorney General. “This case concerns Curbio’s practice of deceiving limited-income, elderly homeowners like Ms. Johnson into signing contracts for thousands (in this case, over $130,000) in home renovations based on the promise that the homeowners will be able to pay for the renovations when they sell their homes for an increased price, only to turn around and deliver substandard, overly priced work that leaves those like Ms. Johnson with a home in which they can barely live, let alone sell.”

Tune in this week to…

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Special Podcast Alert for today: Now Next Later with Jeremy Potter and Sasha Stair will feature CFPB's Mark McArdle at 1 PM Eastern Time. This conversation will only be available live. Sign up here to see this.

Tuesdays at 11am PT, two veteran LOs discuss all things mortgage with Industry Leaders: Mortgage Pros 411 with Audrey Boissonou and Kevin Casey. Tomorrow’s features Dr. Selma Hepp, the chief economist with Core Logic.

Looking for more in-depth commentary on weekly mortgage news? Register here for Wednesday’s 11AM PT "Mortgage Matters: The Weekly Roundup” presented by Lenders One.

On Wednesday, 9/18, at 1PM ET, the MBA offers a chance to join industry leaders to explore innovative strategies for reducing borrower communication costs in today’s challenging economic landscape. Learn how to overcome outdated technology and third-party inefficiencies with actionable insights that leading mortgage servicers use to accelerate processes, ensure compliance, and better meet borrower needs.

Thursday, September 12th, will be another episode of The Big Picture at 3PM ET. Rich Swerbinsky hosts a variety of guests, and Thursday will be joined by Bill Dallas. You can click here to register for Thursday’s 3 PM ET show.

Registration is open for the MBA St. Louis AI Symposium, September 19, 10:00 am - 2:00 pm at St. Louis Association of REALTORS. Hear what things companies are doing to lower your costs, allow you to be more efficient, reduce risk, provide better customer service, and make it a better mortgage world.

In Colorado, 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.

The role of AVMs in appraisal is a topic of hot debate. Appraisal Institute’s webinar, September 19, 2024, 9:00AM PDT, will look specifically at what the introduction of the new minimum quality control standards means for the use of AVMs, its effects on expectations for appraisers, and the implications for further trending issues in the appraisal industry.

Solve Your #1 Problem: Attracting the Right Talent with Andrew Oxley, September 18th at 2pm ET.

Register now for LoanStream Wholesale LIVE Webinar on HELOC ONE and Closed-End Seconds, Thursday, September 19th, 2024, 11AM PT. An insightful webinar tailored specifically for mortgage brokers looking to expand their toolkit and market with these types of loan programs.

It's Not How We Start, It's How We Finish: Dominate in Q4 ​​​​​with Dr. Bruce Lund: September 19th at 1pm ET.

Friday the 20th listen in to opinions (Last Word Fridays at 1pm ET) from Kevin Peranio and Brian Vieaux!

End this week with The Mortgage Collaborative’s Rundown with Melissa Langdale covering current events in the mortgage market for 30 minutes starting at noon PT, 3PM ET. This week’s guest on Friday is Vice Capital’s Chris Bennett!

Capital markets: will we ever stop talking about the Fed?

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Last week’s main headline was the Consumer Price Index (CPI) increasing 0.3 percent from July to August, which was above analysts’ forecasts as prices for services, specifically travel, continue to rise. On an annualized basis, CPI increased 2.5 percent, which continues to trend downward as good prices have been in outright decline throughout the year. Producer prices also continued to moderate in August as the Producer Price Index (PPI) increased 0.2 percent.

Although the threat of rising prices has fallen, consumers still believe higher prices are on the horizon according to the University of Michigan Survey of Consumer Sentiment, which saw respondents’ expectations for long-term inflation at 3.1 percent. Taking into account last week’s employment data which was mixed and suggests the labor market is softening, it is possible to see 50 basis points rate cuts by the Fed this year should that deterioration accelerate. For the moment, the market is still weighing the likelihood of a 50-basis point rate cut this week at 50 percent versus a smaller 25 basis points cut.

This event-filled week brings (what should be) the highly anticipated first rate cut from the FOMC with the Statement and Summary of Economic Projections released following the two-day meeting, followed by Chair Powell’s press conference. After the Fed, Norges Bank, and the BoE will be out with their decisions on Thursday then the BoJ on Friday. This week’s notable data includes retail sales, industrial production / capacity utilization, business inventories, and housing data with a sprinkling of Fed surveys.

Bond prices, and therefore interest rates, are largely a matter of supply and demand. If you’ve got some loose change, now’s the time to buy some debt. Treasury coupon supply this week includes $13 billion reopened 20-year bonds and $17 billion 10-year TIPS to be auctioned on Tuesday and Thursday, respectively. For MBS, Class B and C 48-hours are on Tuesday and Thursday. Empire manufacturing for September kicked off today’s calendar, coming in with strength. We begin the week with Agency MBS prices little changed from Friday’s close, the 10-year yielding 3.63 after closing Friday at 3.65 percent, and the 2-year down to 3.54.

I can’t afford an Ancestry DNA kit to learn about my relatives. So instead, I posted online that I’d won the lottery.

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, “Hiring: Do You Remember How to Do That?” The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

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(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2024 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman. The views and opinions in this newsletter are mine alone unless otherwise specifically stated herein.)