10.2.24 Employment Over Inflation; Clever's Jaime Seale on Realtors; Labor Market Data

Today's podcast is sponsored by Candor. Candor’s authentic Expert System AI has powered more than 2 million flawless, hands off underwrites. Every credit risk decision Candor makes is backed by a Warranty, eliminating repurchase worries.

Transcript

Whether it was Richey May’s lock picking kit, Maxwell’s milk frother, Total Expert’s socks, or Byte’s locally made sweet treats, there was plenty of vendor schwag in Las Vegas at the ACUMA event, just as there is at many conferences. (Thank you to Lisa B. for passing along this article illustrating how the tchotchke market is an economic indicator!) Byte is known for helping local merchants, unlike much of the merchandise that comes from, say, China. Speaking of imports and trade, the Fed can only do so much when it comes to trying to control inflation, and roughly 50,000 International Longshoremen’s Association (ILA) members have begun a work stoppage this morning until negotiations are resolved with the United States Maritime Alliance, which represents ocean carriers. This means that operations across East and Gulf ports are on hold. This large-scale strike has stopped the flow of a variety of goods through ports from Maine to Texas. Depending on the length of the stoppage, this could result in shortages of certain products. (Today’s podcast is found here and this week’s is sponsored by Candor. Candor’s authentic Expert System AI has powered more than 2 million flawless, hands off underwrites. Every credit risk decision Candor makes is backed by a Warranty, eliminating repurchase worries. Hear an interview with Clever’s Jaime Seale on a survey showing that 50 percent more sellers would use an agent on their next home sale if they didn't have to pay the buyer's portion of the commission fee.)

Jobs, lender wanted, and a death

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Acquisition opportunity. Are you looking to sell, are you tired of the current grind? A capital partner is looking to acquire an existing mortgage lender with a FHA Single Family Title II or HUD Title II designation with a clean corporate history, location preferred is West Coast, but not a requirement. If you are interested, please send a confidential note to Anjelica Nixt for forwarding

The mortgage industry has lost another long-time veteran, Quontic Wholesale’s Donna Bledsoe Browne. Unfortunately, after feeling poorly the doctors diagnosed her with diverticulitis and sent her home with antibiotics; Donna passed away in her sleep and an autopsy showed that the pain she was experiencing was from a heart attack, a senseless waste of a great human being. There is a Celebration of Life this Saturday, October 5th, near Sacramento on what would have marked her 63rd birthday. “Donna was truly a remarkable person whose love for her family, passion for the mortgage industry and dedication to mentoring others left a lasting mark on all of us. Her sudden passing has hit her family hard. For those that want to attend, details may be found here.”

Lender and broker software, services, and loan programs

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“U.S. Bank is pleased to share its successful migration of our HFA lenders and Housing Finance Agencies to the U.S. Bank Lender Portal technology platform. This technology implementation marks a significant milestone in our ongoing commitment to enhance the efficiency, security, and user experience for valued partners. To learn more about our innovative solutions and how we can help grow your business, connect with us at the MBA Annual Convention and Expo. Contact your U.S. Bank Account Executive today to schedule time to meet in Denver.”

“How can technology truly benefit lenders if it doesn’t tackle their real-world challenges? At Optimal Blue, our AI strategy focuses on solving these problems while ensuring our AI tools deliver tangible benefits without additional costs. One example is Trade Assistant in our CompassEdge hedging and loan trading platform. This AI-powered tool reduces the guesswork in hedge selection by analyzing current market conditions and using mathematical optimization principles to suggest the optimal combination of TBA hedges. This helps you hedge interest rate risk while managing transaction costs and better aligning cash flows between loan settlements and broker dealer wires. With just one click, you receive data-driven recommendations for sells, buys, rolls, uneven rolls, and swaps, all tailored to your specific hedge policies. Implement more effective hedging strategies, reduce costs, and maximize profitability on every loan. To learn more and optimize your advantage with Optimal Blue’s AI-powered solutions, reach out to Sales@OptimalBlue.com.”

Quick stats from Service 1st: Borrowers now have $74K more in purchasing power than October 2023. Rates are 6.08% for the week ending 9/26 (2 yr. low) and apps are up 11% for the week ending 9/20. All of this in addition to operational challenges, including ICE Mortgage SDK sunset deadline of 10/31/25 (thx! @JakiFanelli). We’re the mortgage industry’s nearly century old partner just for times like this. From ICE’s ASO, to integrated tools for near instant IRS transcripts and integrated income underwriting tools, we’re a full solution credit reporting agency supporting your day to day turn-times and deep dives into the data. Supercharge your Point of Sale with income and credit data that rapidly approves or saves the app for another day. Leverage S1 proprietary tech and make smart employee hires to support automation and time-to-close goals. Let’s go! Schedule to meet @ MBA Annual or get a price quote today.

“In today’s competitive mortgage marketplace, customizing workflows and borrower experience is crucial to differentiation. With the industry-first configurability of Maxwell Point of Sale, lenders can define workflows for any mortgage product, while configuring triggers and business rules to align the borrower experience to operational processes. Maxwell Point of Sale also features more than 60 third-party integrations, allowing lending teams to seamlessly connect with other vital pieces of their workflow, from credit and verifications to pricing and disclosures. Maxwell Point of Sale also sees a 14% increase in pull-through from Rate Lock to Close on the vs a top competitor. Want to learn more? Let us know and we’ll show you what Maxwell can do for you and your borrowers.”

“MAXEX’s industry leading Jumbo Express program is getting its biggest update ever on October 7. Streamline your ops and turn your capital quicker by using your AUS and underwriting to current Agency guides. Close more borrowers with a range of sought-after features including loan limits up to $3.5mm, non-warrantable condos, RSU income and higher DTIs. Get all of this with multiple premier buyers competing daily for your loans, all through MAXEX. Now available for select originators as low as $2.5mm net worth. Join our upcoming webinar on October 3 at 2 p.m. ET to learn more.”

Leadership Matters: Insights of Success and Strategies from Industry Leaders, led by Ginger Bell and Fobby Naghmi with a foreword by Barry Habib, offers practical tools and powerful stories from 25 top professionals in the mortgage and real estate industries. Launching at NAMB National on October 19th, this essential guide empowers leaders at every level to navigate challenges, inspire growth, and drive success.

Correspondent & broker product news

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Newfi Correspondent’s Fixed Rate Home Equity Loans have Base Rates in The Low 7’s! Start offering this competitive Delegated HELOAN (Agency Guidelines) up to 85% CLTV, $50k-$500k loan amounts with a Max Price of 106. If you want to win in today’s market with home equity, you need to reach out to Newfi Correspondent to learn more today about becoming an approved seller! Contact John Wise, EVP Sales.

HMA Mortgage Launches Renovation Lending Division and Makeover Mortgage Product Suite! HMA Mortgage proudly announces the launch of its new Renovation Lending Division, spearheaded by expert, Jeff Onofrio. This strategic expansion is set to enhance HMA's offerings, providing specialized renovation lending services designed to help clients realize their home improvement dreams. Jeff Onofrio, serving as the SVP of Renovation, leads the new division. With over 15 years of experience in the mortgage sector, Jeff brings a wealth of renovation lending knowledge to the table. "I’m thrilled to take this role and guide a team of specialists who are just as passionate as I am helping homeowners achieve their renovation goals," says Onofrio. The addition of Onofrio and this division has been welcomed by HMA's President, David Holland and Managing Partners, Robert Fillyaw, and Tom Mills. "We’re excited to have Jeff join our team and lead the Renovation Lending Division," said Holland.

HMA's Makeover Mortgage Product Suite includes the Homestyle & 203K Loans, allowing homeowners flexible renovation options for new purchases and existing homes with projects ranging from basic repairs to landscaping and luxury upgrades. “There are more Products being released this fall. I'm excited to expand and grow HMA Mortgage's offerings across the country," says, Onofrio. Fillyaw added, "The inclusion of renovation lending to our portfolio marks a significant milestone for HMA Mortgage. We are committed to staying ahead of the curve and offering top-notch services for our clients. To support the division, our team is crossing the country to feature Makeover Mortgage in our Renovation Nation Event Series with special featured realtor presentations in Marlton, NJ, Crofton, MD, Gainesville, FL, Chicago, IL, Pittsburgh, PA, and Katy, TX.” HMA Mortgage invites industry professionals to learn more. Call 877-309-1555 or visit here.

“Here at the New AFR, we are on a journey, one focused on enhancing the broker experience like never before. We’re excited to announce that new escalation and discussion technology is on its way, designed to make your interactions with us faster, easier, and more efficient. Soon, you’ll benefit from quicker answers to your questions and streamlined solutions to any challenges you face. Our goal is to reduce stress and improve clarity by providing a more direct and transparent communication path. With this enhanced support, we’re dedicated to making your business operations smoother and more effective. Our team is here to support you every step of the way. Stay tuned for more updates as we continue to elevate the AFR broker experience! Join the journey and experience the AFR difference! Contact us at sales@afrwholesale.com, call 1-800-375-6071, or visit www.afrwholesale.com. We can’t wait to hear from you! (NMLS 2826)”

STRATMOR and loan repurchases

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Did you know an investor can force a lender to repurchase a loan if appraisal defects are discovered? That could cost lenders anywhere from $30,000 to $60,000 per loan. Even with Reps and Warrants, the lender is still responsible for things like accuracy and completeness of all data on the appraisal, which means it must still be reviewed. STRATMOR Group is looking to better understand how lenders are handling and being affected by loan repurchases, particularly due to appraisal defect, as well as the potential for reducing underwriting costs on appraisal reviews. They’re asking lenders to take just a few minutes to take a brief survey to help them better understand just how much potential for time and cost savings might be hiding in this area. Once they’ve collected and analyzed the data, STRATMOR will share a summary report with you. Just a few minutes of your time will help shape the future of the space. Take the survey.

Training, in-person events, and webinars this week

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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, Justin Demola, Robbie Chrisman, and Rob Chrisman will discuss recent conference topics and focuses.

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 Teresa Bryce Basemore: Radian’s President for 10+ years, ran FHLB San Francisco for the last 3-4 years before recently retiring, and is on several notable boards.

Join MMLA’s Virtual Compliance Seminar on Thursday, October 3, 2024, 12:30 pm – 3:00 pm to stay updated on the constantly evolving compliance changes. Interact directly with CFPB and Freddie Mac representatives, Kevin Stevens, CFPB and Mia Jones, Freddie Mac.

Join us on October 3rd from 10 AM to 5:30 PM as the MMBBA proudly hosts the RECHARGE Baltimore Summit, bringing together the Real Estate Community for Collaboration on Housing Advancement and a Resilient Growth Economy in Our City and Region. Professionals who recognize Baltimore's vast potential and stay informed on the latest developments and future plans will be positioned for unprecedented success in this thriving market. Don't miss this chance to get informed and PLUGGED IN!

Join Canopy Realtor® members and members of the Charlotte Regional Mortgage Lenders Association, in-person for a Charlotte Region Housing Market Update, Thursday, October 3, 9:30 a.m. – 11:00 a.m. Magda Esola, Canopy 2024 President-elect, will present current housing data, trends, and insights to help you determine what the housing market has in store for the remainder of 2024.

Stay ahead of compliance changes, join MMLA for an important seminar, Thursday, October 3rd, 11:30 am – 3:00 pm at Italian Cultural Center to get the latest updates from CFPB and Freddie Mac representatives in person. You can also share your questions beforehand to ensure they're answered directly. Plus, take part in a roundtable discussion with fellow professionals to exchange best practices.

Ready to take your mortgage career to the next level? Get a sneak peek at what’s in store at the Mortgage Loan Officer Summit in Orlando on October 9! Meet the industry leaders who are reshaping the game. Don’t miss out! View the full schedule and secure your spot by Thursday, October 3rd.

Friday the 4th 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.

Capital markets: focus has shifted from inflation to employment

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The Fed is convinced that the risks of inflation have decreased while concerns about employment have risen, hence the 50-basis points rate cut. The upcoming September jobs report on Friday will provide a key data point for the Federal Open Market Committee, as strong job growth could delay further rate cuts, while weak numbers may raise concerns about the Fed's timing. Meanwhile, U.S. post-pandemic economic growth has been revised upward, driven by consumer spending, but potential strike by dockworkers at East Coast and Gulf ports could disrupt supply chains and impact the economy.

Economic released yesterday included the September Institute of Supply Management Manufacturing Index, which remained steady at 47.2 percent, indicating a prolonged contraction in the manufacturing sector for the sixth consecutive month, with a weakening employment index reflecting ongoing economic challenges. Total construction spending fell by 0.1 percent in August, contrasting with a slight increase in public construction, while private construction also showed weakness, particularly in new single-family homes despite lower interest rates.

Additionally, the S&P Global U.S. Manufacturing PMI rose slightly to 47.3 yet remained lower than the previous month. Job openings increased to 8.040 million in August, but the overall sentiment suggests business capital expenditure plans are stalled due to uncertainty around interest rates and the upcoming presidential election, as inflation concerns recede but job security becomes increasingly pressing.

Today’s economic calendar kicked off with mortgage applications from MBA, which decreased 1.3 percent from one week earlier for the week ending September 27. We’ve also received ADP employment for September (+143k, stronger than expected). Later today brings some Treasury auctions and remarks from St. Louis Fed President Musalem, Fed Governor Bowman, Cleveland Fed President Hammack, and Richmond Fed President Barkin. We begin the day with Agency MBS prices worse about .125 versus Tuesday’s close, the 10-year yielding 3.78 after closing yesterday at 3.74 percent, and the 2-year at 3.63.

Two Scottish nuns have just arrived in U.S.A. by boat, and one says to the other, "I hear that the people of this country actually eat dogs."

"Odd," her companion replies, "but if we shall live in America, we might as well do as the Americans do."

Nodding emphatically, the mother superior points to a hot dog vendor and they both walk towards him. "Two dogs, please," says one.

The vendor is only too pleased to oblige, wraps both hot dogs in foil and hands them over the counter. Excited, the nuns hurry to a bench and begin to unwrap their “dogs.”

The mother superior is first to open hers. She begins to blush and then, staring at it for a moment, leans to the other nun and whispers cautiously, "What part did you get?"

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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(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.)