10.22.24 Fed Urges Patience; nCino's Ben Miller on Artificial Intelligence; Sell Sell Sell

Today's podcast is brought to you by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite's three core products -- nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics -- unite the people, systems, and stages of the mortgage process. See how nCino can support a homeownership journey that your borrowers and your team will love at nCino.com.

Transcript

“An eye for an eye, Tooth for a tooth. Vote for me and I'll set you free! Rap on, brother, rap on. Well, the only person talking about loving thy brother is the preacher. And it seems nobody's interested in learning, but the teacher. Segregation, demonstration, integration, determination, aggravation, humiliation, obligation to our nation.” So sang The Temptations in “Ball of Confusion” from 1970. (Yes, 54 years ago.) Politics aside, some in our industry were confused when rates went up instead of down after the last Federal Reserve meeting, but face it, there has been a lot of positive economic news recently that has kept long term rates higher. The Fed can only control so much: Extreme weather across southern Asia has sent the price of black tea sharply upward, with the benchmark auction price of tea in northern India coming in up 30 percent year over year. Beyond heavy rains in June that hurt the harvest, a fungus has been afflicting India’s tea plantations. Harvests in Sri Lanka are likewise down, and the export markets are going to suffer the most: Japan, for instance, gets 60 percent of its black tea imports from India and Sri Lanka. (Today’s podcast can be found here, and this week’s is sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite's three core products, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics, unite the people, systems, and stages of the mortgage process. Hear an interview with nCino’s Ben Miller on a topic that’s dominating industry conversations right now: artificial intelligence and machine learning.)

Lender and broker software, services, and products

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Due to high interest rates, origination volume remains low across all loan-purpose types. Adversely, equity continues to increase, creating a bright side for lenders. ICE suite of valuation solutions can help streamline home equity lending by determining the value of a property and estimated equity, faster and more cost-effective than traditional or drive-by appraisals. Download the eBook, How to grow a successful home equity lending business, to learn how ICE can help you improve your business operations, increase profitability, and gain an advantage in today’s home equity lending market.

Things move fast these days. People’s schedules are busier than ever. And we all seem to be on the go, all the time. That makes staying connected with your customers and prospects more challenging if you don’t have the right tools. Engage SMS from Total Expert is a compliant, conversational messaging service that lets you keep conversations moving forward whether you’re at your desk or on the move. View full conversation histories in the Total Expert platform, weave SMS into automated Journeys, send bulk messages, and connect with customers in real time… All from your unique local phone number. Learn how Engage SMS can help deepen relationships, elevate your customer experience, and drive conversions!

Servicing tools & risk products

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“Is a standing call with your servicer enough for proper oversight? Is there a specified cadence for how often a lender should meet with their servicer? Ultimately, you are responsible for overseeing your subservicer, so you must understand what is expected of you and the key actions you need to take to maintain oversight and comply with regulations. Tune in to this video, where the experts at Richey May answer the most frequently asked questions about subservicer oversight requirements. Whether you’re considering a subservicer or navigating the general complexities of oversight, Richey May’s mortgage compliance experts can help. Contact us today for more information.”

“At Servbank, we know that details matter. Which is why we focus on the details, both the big and small, so you can concentrate on what really matters: your business. We understand how challenging managing your portfolio can be. That is why we provide you with a single point of contact for all your needs, ensuring you that nothing falls through the cracks… so that you can focus on the growth and success of your business. Whether it's an individual loan issue or an entire portfolio need, we’ve got you covered. With timely, transparent, and efficient communication, we make your experience with us frictionless and hassle-free. Make your life easier and let Servbank handle the details, so you can focus on taking your business to the next level. Learn more about the nation’s premier bank subservicer.”

Heading to Denver for MBA Annual next week? Schedule some time to meet with the Covius team and learn more about why we are trusted by 9 of the top 10 lenders and servicers, 14 of the top 20 banks and thousands of settlement agents and attorneys. Covius’ technology-enabled solutions deliver operational efficiencies, mitigate risk, and empower compliant decisions and borrower interactions. Covius solutions are recognized leaders in loss mitigation, document and data solutions, title and settlement services, compliance and critical borrower communications, lien release tracking and preparation, HOA tracking, quality assurance, REO asset management and auction services, credit reporting and verification and more. Click here to schedule a meeting and discover how our innovative solutions can streamline your mortgage operations.

“Get ready to achieve excellence in mortgage servicing QC! Check out ACES’ new ebook “Mastering Mortgage Servicing QC,” containing insightful information from our recent webinar presented. With practical tips for both beginner and master levels, this guide offers best practices for defining quality standards, implementing controls, and fostering a culture of continuous improvement. By applying these strategies, you can drive meaningful advancements in your operations, ensuring your credit union is equipped to deliver superior service. Download the guide.”

STRATMOR’s Customer Direct Workshop

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The Federal Reserve cut came in September, but now future rate cuts are unknown. What does it mean for the mortgage industry? STRATMOR Group Senior Partner Garth Graham believes that even a small drop could be helpful to the mortgage market, but it will help some companies more than others. With a lot of smaller IMB’s selling their production to aggregators for the last few years, many of the larger players control the related servicing rights and may have an edge in customer retention as refinancing increases. He writes more about this here. By the way, STRATMOR is also conducting a well-attended Consumer Direct Workshop in Dallas in November that focuses on the CD channel. CLICK HERE TO LEARN MORE AND RESERVE YOUR SEAT.

Philadelphia Fed non-manufacturing indices for October () kicked off today’s economic calendar. Later today brings Redbook same store sales, Richmond Fed manufacturing and services for October, some short-duration Treasury auctions, and more remarks from Philadelphia Fed President Harker after he dominated headlines yesterday. We begin the day with Agency MBS prices roughly unchanged from Monday, the 10-year yielding 4.19 after closing yesterday at 4.18 percent, and the 2-year at 4.05.

There was a Scottish painter named Smokey Macgregor who was very interested in making a penny where he could, so he often thinned down his paint to make it go a wee bit further.

As it happened, he got away with this for some time, but eventually the Baptist Church decided to do a big restoration job on the outside of one of their biggest buildings, next to an old graveyard.

Smokey put in a bid, and, because his price was so low, he got the job. So he set about erecting the scaffolding and setting up the planks, and buying the paint and, yes, I am sorry to say, thinning it down with turpentine.

Well, Smokey was up on the scaffolding, painting away, the job nearly completed, when suddenly there was a horrendous clap of thunder, the sky opened, and the rain poured down washing the thinned paint from all over the church and knocking Smokey clear off the scaffold to land on the lawn among the gravestones, surrounded by telltale puddles of the thinned and useless paint.

Smokey was no fool, and quickly gathered his wits among the tombstones. He knew this was a judgment from the Almighty, so he got down on his knees and cried, “Oh, God, Oh God, forgive me; what should I do?”

And from the thunder, a mighty voice spoke. “Repaint! Repaint! And thin no more!”

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.)