9.25.24 Forward Guidance; Jaime Kosofsky on Electronic Title; Data Over Rhetoric

Thanks to Silk Title Co. Silk is for lenders who have centralized operations, are tech driven, process oriented, focused on the borrower experience, standardized in their approach, and most importantly… collaborative.

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“My people skills are fine. It's my tolerance for idiots that needs work.” Fortunately, in our business we have very, very few of those, and certainly none that I’ve seen recently. At the Nebraska Mortgage Association Annual Fall Conference, some of the discussion is about four years ago. “Remember the days we had rate locks up the wazoo?” (Yes, related to the ying yang, not to be confused with yin yang.) But the focus is definitely on what’s ahead. Judging from what I am hearing and seeing, at this event and others, the general industry mood is good. Not great, but good. Optimistic. Companies have “cut their way to prosperity.” Those companies who have kept servicing rights (and the income) are hopefully not relying any longer on that servicing income to survive but could manage from production profit. In other trends, the Agencies are widely known as not “liking” cash out refi products, so the non-Agency (read: DSCR/non-QM) investors have been only too happy to step into that role. And with the yield curve “un-inverting,” shorter term home loans, like 3-1, 5-1, or 7-1, are expected to increase in popularity. (Today’s podcast is found here and this week’s is Sponsored by Silk Title Co. Silk is for lenders who have centralized operations, are tech driven, process oriented, focused on the borrower experience, standardized in their approach, and most importantly… collaborative. Listen to an interview with attorney Jaime Kosofsky on the disconnect between hype and reality when it comes to electronic closings and remote online notarization.)

Employment & transitions

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Broker’s First Funding, your BFF in Wholesale, is proud to introduce VP and top producing Salesperson, Jeff Baker. With over 33 years of mortgage experience, Jeff prides himself on having a deep understanding of each person’s role in the loan process and supporting each one’s effort to get loans closed as quickly and smoothly as possible. “Jeff has a work ethic and commitment to excellence rarely seen in this industry. I am very proud to be teammates with such an elite player,” said BFF President Shabi Asghar. Are you a Broker looking to engage with the best in the business and experience unparalleled service levels? Contact Jeff today. BFF offers a broad spectrum of products, from Agency to non-QM. Contact us to learn more, and be sure to follow us on LinkedIn, Instagram, and Facebook.

“Nations Lending continues to deliver on the promise of helping our branch partners grow. We’re excited to welcome two industry heavy hitters, Sondra Bialkowski and Andrew Carter, to the Nations family. As Strategic Growth Managers, they’ve already begun working directly with branch partners to develop and execute growth strategies across multiple fronts. From laser-targeted recruiting to new business development, our partners have boots on the ground and full access to corporate resources. For those eager to learn more about our exciting opportunities and the unique advantages of joining our team, we encourage direct contact with our Divisional Managers. In the Western Division, please contact Mike Towery at 541-951-3559 or Sondra Bialkowski at 480-201-8033. If you’re in the Eastern Division, contact Tim Dowling at 815-245-3052 or Andrew Carter at 937-818-3623. Discover how Nations Lending is dedicated to growing your business.”

You are invited to learn how Fairway Independent Mortgage is supporting loan officers and branch managers to succeed on their mortgage journey. This Thursday at 3 pm there will be an anonymous virtual meeting that will bring you behind the curtain with the executive team and others for this successful independent mortgage bank. To sign up, register here to join!

Lender and broker software, services, and loan programs

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For many non-QM lenders, real estate investors make up nearly half of their pipeline. Despite stubbornly high interest rates and low inventory, these borrowers continue to transact in this market, opening up an opportunity for lenders to capture this business. However, capturing this business with traditional marketing and sales efforts is not easy. Unless you have Privy. With Privy, you can now automate real estate investor and borrower acquisition and retention. With just a click of a button, borrowers are able to engage with you at any stage of the transaction process, from just browsing to ready to transact. Let effective technology help drive your DSCR, asset depletion, and fix and flip loan volume. Contact Brad Bieber to learn more about Privy’s Enterprise Solutions.

VA appraisal fees have always been a pain to collect, but not anymore! Using Fee Chaser, you click a button in Encompass® by ICE Mortgage Technology™, borrower gets an email and/or text message, pays from their device, and everything flows back into the LOS. A receipt is automatically the eFolder and everyone gets notified. Fee Chaser even reminds the borrower if they forget. Check out Fee Chaser and get 94% of your fees paid within 24 hours.

“Looking for targeted services for aged or occupied inventory? We have you covered. Unlock the future of real estate with RealtyBid! For more than 20 years, RealtyBid has had one focus: connecting buyers and sellers through our cutting-edge, online auction platform. Experience hassle-free transactions, expert support, and unbeatable value. Discover how RealtyBid can enhance your sales and streamline your process. Contact us today to learn more about how to elevate your property disposition game with increased sales and shorter timelines.”

“Production leaders, how many potential top producers slip through your fingers because you can’t stay in touch? Some best practices to consider as a recruiting manager are to define your messaging to attract top talent by showcasing production trips, coaching resources, and your cutting-edge technology stack. Highlight your vibrant company culture and the unique strengths of your company and team. Then to keep your name in front of recruits, you need a solid follow-up system in place. With Usherpa, you’re not alone! Our custom automated marketing, robust Pipelines task management system, and strong reporting ensure you stay connected, nurturing relationships and guiding top recruits seamlessly into your organization. Don’t let another opportunity pass by. Let’s turn your recruits into your next top producers! Schedule a demo today to see how Usherpa makes this easy.”

Broker and correspondent products

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“eRESI Mortgage is ready to meet you at the MBA Annual Conference next month! Join us at the Curtis Hotel in downtown Denver, just minutes from the Colorado Convention Center. We look forward to talking to lenders about the upcoming enhancements to our non-delegated program and how expanding your options with Non-QM can enhance your 2025 business strategy. To get more information and to schedule a meeting with us at the MBA, contact your eRESI Representative or email us today.”

Orion Lending is proud to announce the release of its Elevate Grant DPA Program which includes either a Conventional or FHA 1st! That’s right, it is a GRANT Down Payment program, meaning there is NO 2ND LIEN (so no 2nd TD payments!!!) Keep in mind, new Brokers can get Express Approved by clicking here and start submitting loans as soon as the end of the day! Additionally, Orion Lending is offering a 30 bps Fall New Broker Price Special on Titan Flex, COIN DSCR and COIN Fuel DSCR and 15 bps on all other programs! With a broad range of new products and more on the horizon plus our 48-Hour SLA’s on select Purchases, with every loan Underwritten in-house!! Now is the time to “hyperspeed” your business with Orion!

Webinars, training, and events to wrap up September

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A good place for longer term conference planning is to start is here for in-person events in the future.

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. Today our guest will be Rusty Bresse, CEO of ScoreNavigator®. Renowned for his visionary leadership in the credit industry, Rusty has an unwavering commitment to advancing financial understanding and accessibility. ScoreNavigator’s Mortgage Action Plan™ is the newest entrant in the credit optimization space, providing lenders with the specific data points to create an action plan to maximize your borrower’s credit scores.

Join MMBA for a panel discussion featuring industry experts who will delve into the intricacies of establishing and managing a compliant ROV program. Registration for this virtual seminar on September 25th (9:30 AM -11:30 AM) will be for companies and not individuals. You may invite any of your staff to attend this seminar without registering separately. Login information may be shared.

FHA’s free, on-site Appraisals training in Philadelphia PA, September 25, 1:00 PM to 3:30 PM will provide an overview of the appraisal requirements outlined in FHA's Single Family Housing Policy Handbook 4000.1.

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 the Michigan Mortgage Lenders Association as it hosts a mPower luncheon with the MBA. A great line-up of distinguished CEOs will share their leadership stories. September 26 at Lovett Hall @ The Henry Ford in Dearborn. Click here for all the details and to register.

Tomorrow will be another episode of The Big Picture at 3PM ET. Rich Swerbinsky hosts a variety of guests. You can click here to register for Thursday’s 3 PM ET show. Tomorrow features Jim Parrott discussing housing & politics!

MCT & Lender Price Webinar, Strengthen Pricing & MSR Strategies, is scheduled for September 26, at 11:00 AM PT. In this webinar, MCT’s David Burruss and Azad Rafat are joined by Lender Price’s Paul Orlando and David Colwell to discuss MSR strategies and how the right MSR strategy can increase your bottom line.

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.

Friday the 27th 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 guests are Gabe del Rio with the Homeownership Council of America and Natasha Waddy from NFM Lending.

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.

Ranieri Solutions and SAP Fioneer are hosting a webinar on Monday, September 30th from 1-2pm ET to discuss how modern technology can help address challenges facing mortgage servicers. Panelists include Meg Burns EVP of Housing Policy Council, Ramesh Lakshminarayanan Managing Partner of Riskmate LLC, Mike Vough VP of Optimal Blue, and Karen Bellezza COO of Ranieri Solutions. The panelists will discuss the challenges related to customer retention and regulatory compliance while delving into how new technology is changing the landscape. Learn more and register here.

The CFPB will be hosting an event to provide a first look at the CFPB’s Nonbank Registry. Attendees may register for one of two alternative dates, Monday, September 30, or Wednesday, October 9. Both dates will be virtual-only discussions and feature the same content. The event is targeted towards compliance staff that will be registering covered orders with the CFPB’s Nonbank Registry. At the event, the CFPB’s Nonbank Registry team will provide a demonstration of first-time company registration, give a tour of the features of the registry, and take technical questions.

Have you heard about (read: registered for) some of our expanded media offerings? Chrisman Commentary is pleased to bring you a variety of video shows hosted on Zoom throughout the week. Take your pick: We have a show focused on technology and innovation (Now Next Later Mondays at 1pm ET, presented by BILT Rewards), origination (Mortgage Pros Tuesdays at 2pm ET), big-name interviews (Mortgage Matters Wednesdays at 2pm ET, presented by Lenders One), headline news (The Big Picture Thursday’s at 3pm ET), opinion (Last Word Fridays at 1pm ET), advisory services (Advisory Angle first Tuesday of the month at 2pm ET, presented by STRATMOR Group), capital markets (Capital Markets Wrap second Tuesday of the month at 3pm ET, presented by Polly), regulation and compliance (Regulation Central third Tuesday of the month at 3pm ET), and reaching the next generation of homeowners (Mortgages with Millennials last Tuesday of the month at 1pm ET, presented by The Mortgage Collaborative). (If you don’t see a presenting sponsor, please reach out to Chrisman LLC’s Anjelica Nixt to inquire about opportunities.)

Capital markets: pretty quiet out there

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It feels kind of nice to talk about data rather than speculate on Federal Reserve action. Yesterday, the Conference Board's Consumer Confidence Index unexpectedly fell in September to well below the consensus estimates, marking the largest decline since August 2021. This drop reflects growing consumer pessimism regarding the labor market, which could dampen future spending.

In the housing sector, the FHFA Housing Price Index edged up 0.1 percent in July, following a minor revision from no change in June. Meanwhile, the S&P Case-Shiller Home Price Index rose by 5.9 percent year-over-year in July, slightly below the anticipated 6.0 percent. Although home prices have shown some resilience, the overall supply remains tight, with existing home sales expected to stay sluggish due to homeowners locked into lower mortgage rates.

China's central bank announced extensive stimulus measures to counter its slowing economy, including significant rate cuts and reductions in bank reserves. This international development coincided with increasing bets in the U.S. futures markets for potential Federal Reserve rate cuts, with investors pricing in nearly equal odds of a 25- or 50-basis point cut at the November FOMC meeting and anticipating about 75 basis points of easing by year-end.

Today’s economic calendar kicked off with mortgage applications increasing 11.0 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Applications Survey for the week ending September 20, 2024. New home sales for August is next up and projected around 740k, before Treasury takes over by auctioning $28 billion reopened 2-year FRNs and $70 billion 5-year notes, and we will also receive remarks from Fed Governor Kugler. We begin the day with Agency MBS prices a few ticks (32nds) worse, the 10-year yielding 3.76 after closing yesterday at 3.74 percent, and the 2-year at 3.54.

Mary Poppins was traveling home, but due to worsening weather, she decided to stop at a hotel for the night. She approached the receptionist and asked for a room for the night.

"Certainly madam," he replied courteously.

"Is the restaurant open still?" inquired Mary.

"Sorry, no," came the reply, "but room service is available all night."

"Would you care to select something from this menu?" "

Mary smiled and took the menu and perused it. "Hmm, I would like cauliflower cheese please," said Mary.

"Certainly, madam," he replied.

"And can I have breakfast in bed?" asked Mary politely.

The receptionist nodded and smiled.

"In that case, I would love a couple of poached eggs, please," Mary mused.

After confirming the order, Mary signed in and went up to her room for the night.

The night passed uneventfully, and the next morning Mary came down early to check out. The same guy was still on the desk.

"Morning madam... sleep well?"

"Yes, thank you," Mary replied.

"Food to your liking?"

"Well, I have to say the cauliflower cheese was exceptional, I don't think I have had better. Shame about the eggs, though.... they really weren't that nice at all," replied Mary truthfully.

"Oh... well, perhaps you could contribute these thoughts to our Guest Comments Book. We are always looking to improve our service and would value your opinion," said the receptionist.

"OK, I will... thanks!" replied Mary... who checked out, then scribbled a comment into the book. Waving, she left to continue her journey.

Curious, the receptionist picked up the book to see the comment Mary had written. It read...

"Supercauliflowercheesebuteggswerequiteatrocious!"

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, “Lenders and Vendors Must Pay to Play.” The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

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