10.11.24 Origination Data; Figure's Michael Tannenbaum on HELOC Lending; PPI Follows CPI

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

Preparing for the next hurricane in Florida? Or Louisiana? Or Texas? Call this really smart or really humorous, it’s up to you. (And no, I don’t know how it fared.) We do, however, know how lenders and vendors are faring. Sure, headlines blared that rates were going down, but as we all know they went up after the Fed’s 50 basis point cut a few weeks ago, and locks have not shot up much, if at all. Looking at September, according to Curinos' new proprietary application index, refinances increased 62% in September; the purchase index increased 21% for September as a whole. September 2024 funded mortgage volume increased 21% YoY and decreased 3% MoM. The average 30-year conforming retail funded rate in September 2024 was 6.45, 30bps lower than August 2024 and 53bps lower than the same month last year. Purchase rates were 33bps lower MoM and 67bps lower YoY, while Refinance rates were 29bps lower MoM and 48bps lower YoY. Curinos sources a statistically significant data set directly from lenders to produce these benchmark figures. (Today’s podcast is found here and this week’s is sponsored by LoanCare. The mortgage subservicer is known for delivering superior customer experience through personalization and convenience. LoanCare is part of Fidelity National Financial, a Fortune 500 company and leading provider of services to real estate and mortgage industries. Hear an interview with Figure’s Michael Tannenbaum on how borrowers are paying down debt and the ways in which his company is utilizing OpenAI GPT.)

Employment & transitions

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Forta Solutions is excited to announce the addition of Todd Berlent as Chief Operating Officer. Formerly the Chief Technology Officer at Cantor Fitzgerald for 18 years, Mr. Berlent brings extensive experience in leadership, the financial industry, and technology. He also served as President of Helix Financial Systems, addressing the demands of the Global Securities Finance industry. With Forta Solutions' Agility platform now supporting four clients and nine more in contracts for next year, the company continues to expand its team to meet growing demand, enhance platform functionality, and ensure top-notch customer service, all while maintaining SOC 2 Type 2 compliance.

Did you miss Rocket Pro TPO’s introduction of new General Manager, Dan Sogorka, at last week’s IGNITE Live? Watch now to learn how he is thinking about the business today and his vision for the days ahead. What is your purchase-market competitive advantage? Partners are loving Welcome Home RateBreak - the new 2-1 Rocket Mortgage-Paid Temporary Buydown for HomeReady and Home Possible purchases. With lower rates in the first two years, you can offer thousands in savings! To learn about this special product and more, contact Rocket Pro TPO.

In the Northwest and California, Banner Bank is searching for Mortgage Loan Officers looking to create lasting Realtor and builder relationships at a bank focused on the market today. Banner has opportunities for lenders looking for local decision making with FHA, VA, USDA, state bond and true Portfolio lending opportunities along with servicing retained Fannie and Freddie loans to assist in client retention. Additional highlighted products cover CRA lending with private label no payment down payment assistance to help assist all borrowers with the right opportunity. Banner is the right fit for an established team, or the individual looking to grow their business and take the next step in their career. Please send resumes to Aaron Miller.

First Street™, the standard for climate risk financial modeling (CRFM), has recently strengthened its team by adding correspondent industry veteran Amanda Johnson, CMB, and climate scenario expert Lucas Edberg to expand the distribution of its new Enterprise Climate Risk Model. Their expertise will help financial institutions and non-regulated lenders/servicers better understand and model impacts from climate-related risks such as flooding, wildfires, hurricanes, extreme heat and poor air quality across a lending or servicing portfolio. (Amanda will be at the MBA Annual Convention in Denver if you'd like a portfolio risk demo or if you'd like to see First Street's climate loss estimates on your personal property.)

(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 loan programs

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Put leads directly in your loan officers’ hands with the latest recapture solution from LoanCare®, a leading national subservicer. The newest release within LoanCare’s proprietary digital platform, the new Digital Refinance tools provide additional retention touchpoints along the customer journey helping participating lenders enhance their recapture strategy and extend borrower relationships throughout the life of their loan. LoanCare’s streamlined process engages homeowners looking for financial flexibility with customizable solutions such as a cash-out refinance, home equity line of credit, or a rate and term refinance based on lender preference and homeowner eligibility. Generate actionable leads, improve conversion rates, and strengthen borrower-lender relationships with Digital Refinance from LoanCare. To learn more about the full range of recapture capabilities available from LoanCare, reach out to David Vida, Chief Revenue Officer, today! Meet with the team in person at the MBA Annual Convention & Expo in Denver, CO, October 27-30.

**KASTLE** (Winner of Digital Mortgage 2024)!

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- Contact Rishi to learn more or to meet at MBA Annual.

ALCOVA Mortgage transformed its operations by reintegrating Informative Research’s AccountChek digital verification platform. This strategic move accelerated asset verification that supports income and employment verification, reduced errors, and improved borrower satisfaction. ALCOVA now enjoys faster processing times, streamlined operations and significant cost savings. See how digital verification can redefine your loan process and keep you ahead of the competition.

Correspondent offerings

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“Attending the MBA Annual Conference? Meet up with NexBank. We are part of a financial services company with $15 billion in assets. NexBank’s Mortgage Banking division supports all channels: Wholesale, Non-Delegated & Delegated Correspondent with Portfolio, Conventional, FHA, and VA products. We also offer Delegated & Emerging Banker Warehouse Lending and Escrow Deposit Management. Our products and services, fast turnarounds, and competitive rates have awarded us recognition as a top mortgage lender by Inside Mortgage Finance, ranking as a Top 25 Lender for Warehouse, Wholesale, and Third-Party Production. Committed to our clients’ success, we offer unique products, and our portfolio lending suite with Full Doc and Non-QM (Reduced Doc) is highly competitive, like our 6-month ARM. If you have loans underwritten to agency standards but unsaleable due to investor overlays, we have a team dedicated to purchasing investor fallout loans. Contact us. Restrictions apply. Subject to change. For mortgage professionals. Not intended for general public. Member FDIC | Equal Housing Lender | NMLS672886.

“As a leader in Non-QM lending, Arc Home is proud to introduce HomeEQ, a fully digitized Home Equity Line of Credit (HELOC) solution that empowers brokers to offer more to their clients. HomeEQ features a seamless, borrower-driven process, putting the control in the hands of your clients, from application to funding in as little as 5 days. This gives them fast, efficient access to their home equity. Brokers earn 2% compensation on every funded loan, making HomeEQ a valuable addition to your product lineup. By offering HomeEQ, you can help your clients tap into the multi-trillion-dollar U.S. home equity market. Now is the perfect time to update your broker agreement or become a partner and expand your offerings. For a closer look at how HomeEQ can grow your business, visit our video page , or contact Shea Pallante directly. With HomeEQ, equity is made easy.”

In-person events and activities after Halloween

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Sometimes it is nice to have a little time to plan things out, given crowded flights.

October Research, LLC is happy to announce this year’s Women’s Leadership Summit (WLS) will be held Nov 3-4 in Cleveland, OH. Built around the four diamonds: Develop, Grow, Support and Empower, attendees walk away with the tools for success. Learn how to manage effectively, negotiate for what you need, build a network and much more. Visit OctoberResearchWLS.com for more information and to register today.

The California Mortgage Expo returns to Pasadena on Tuesday, November 5, bringing in the industry's best, with educational sessions that show you how to make more money, be a better sales pro, and keep your pipeline full.

Fusion '24: The Midwest’s Premiere Lending Event! Formerly known as the Servion Lending Conference, Fusion 24 Nov. 6-8 is your best value in comprehensive residential and commercial lending insights and education. Happening at the JW Marriott - Mall of America, Fusion 24 promises to be packed with expert speakers, networking, and live entertainment ideal for all experience levels. Sponsorship and exhibitor opportunities available here. Act now, the JW Marriott-Mall of America room block expires 10/7! Learn more at myservion.com/fusion.

If you’re in Georgia, certainly Atlanta, come to the luncheon on November 12th for the Atlanta Mortgage Banker’s event in Dunwoody!

Join MBA-NJ at the 2024 Northeast Region Wholesale Lending Fair, November 12- 15 at the Hard Rock Hotel and Casino in Atlantic City for an unparalleled opportunity to enhance your lending strategies and drive your business forward. Get ready for an unforgettable experience packed with opportunities to connect, learn, and grow. Secure your spot at the 2024 Wholesale Lending Fair now and be part of the transformation. Only $145 for members and $155 for non-members. Exhibit Table only $1350.

If you’re in Eastern Missouri, on Wednesday, November 20th the St. Louis MBA is having its luncheon. Come on by!

On Thursday, November 21, the MBA Kansas City is having its annual Membership Luncheon at 11:30 at the 180 Room at Joes KC BBQ in Olathe. Come by, have a bite, and say hello.

Register now for RiskExec Connect 2024, a FREE half-day virtual event being held on Thursday, November 21 from 1:00 PM – 5:00 PM ET. Attendees will hear from industry leaders and experts as they discuss and inform on the latest regulatory compliance hot topics including post-election implications, appraisal bias and reconsideration of value, CRA final rule and more. This is one free event you don’t want to miss!

Capital markets: pretty quiet out there

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HomeLend, the direct investment platform and liquidity hub of the mortgage industry, completed a $5.0M seed round led by New Era Capital Partners to fund the accelerated growth of its platform. HomeLend is an innovative technology and operational platform for the purchase and sale of mortgage loans. For investors, HomeLend provides the entire infrastructure required to become a direct buyer of mortgages, through a plug-and-play, smart and bespoke solution, far superior to any homebuilt or other alternatives. For mortgage sellers, HomeLend offers a single point of access to a wide range of mortgage programs and liquidity avenues. For investors and sellers, there is no upfront investment or ongoing fixed costs, zero overhead, and easy onboarding. To learn more about how HomeLend is transforming the mortgage industry, visit here.

For those who care about rates, we waited with bated breath most of the week to learn that September consumer prices came in hotter than expected at the headline (0.2 percent compared to 0.1 expectations), bringing the year-over-year growth rate to 2.4 percent. Core inflation, which excludes food and energy, increased by 0.3 percent month-over-month, raising the annual core CPI growth rate from 3.2 percent in August to 3.3 last month. Energy prices, which have fallen significantly over the past year, contribute to the lower headline inflation numbers. Notably, the shelter component, the main driver of core inflation, saw its smallest increase since June at just 0.2 percent. Predictably, it led to a sell-off in the bond market as it is another data report that is unfavorable from the Fed's perspective.

In terms of the refinance “wave” that may or may not be materializing, the September prepayment speed report showed a slight decline in aggregate Fannie Mae 30-year speeds, finishing down 2 percent from the previous month. The overall market saw the one-month Conditional Prepayment Rate (CPR) decrease to 6.4 from 6.6. While this is approximately 20 percent faster than the 5.1 recorded a year ago, it marks the third slowest September in the past 20 years. Although the prepayment environment remains sluggish, it’s important for investors to monitor the performance of servicers closely.

Following yesterday’s CPI report, today's economic calendar kicked off with the Producer Price Index for September (flat, lower than expected, +1.8 percent year over year), core, for those that don’t eat or use energy, (+.2 percent, as expected). Later today brings preliminary October Michigan consumer sentiment and three Fed speakers: Chicago’s Goolsbee, Governor Bowman, and Dallas’ Logan. After the producer price number, Agency MBS prices are roughly unchanged from Thursday’s close, the 2-year is yielding 3.97, and the 10-year is yielding 4.08 after closing yesterday at 4.09 percent ahead of Monday’s holiday.

Three handsome male dogs are walking down the street when they see a beautiful, enticing, female Poodle.
The three male dogs fall all over themselves in an effort to be the one to reach her first, but end up arriving in front of her at the same time.
The males are speechless before her beauty, slobbering on themselves and hoping for just a glance from her in return.
Aware of her charms and her obvious effect on the three suitors, she decides to be kind and tells them, "The first one who can use the words 'liver' and 'cheese' together in an imaginative, intelligent sentence can go out with me."
The sturdy, muscular black Lab speaks up quickly and says, "I love liver and cheese."
"Oh, how childish," said the Poodle. "That shows no imagination or intelligence whatsoever."
She turns to the tall, shiny Golden Retriever and asks, "How well can you do?"
"Um. I HATE liver and cheese," blurts the Golden Retriever.
"My, my," said the Poodle. "I guess it's hopeless. That's just as dumb as the Lab's sentence."
She then turns to the last of the three dogs and says, "How about you, little guy?"
The last of the three, tiny in stature but big in fame and finesse, is the Taco Bell Chihuahua.
He gives her a smile, a sly wink, turns to the Golden Retriever and the Lab and says, "Liver alone. Cheese mine!"