10.25.24 All Things Annual; Rob Chrisman on...MBA Annual; Mixed Home Sale Messages

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

“A herd of cows broke into a Colorado weed farm. Police and animal control are on the scene, and the steaks are high.” This will be the last day in the office for thousands of people heading to Denver this weekend for the MBA’s Annual Convention and Expo. Printers are churning out schedules, neckties are being picked up at the cleaners, and attendees are coming to the realization that the Denver convention space is 2.2 million square feet. Where’s the Segway concession booth? The conference goes until almost 10/31, and a new survey asked Americans what they were going to wear for Halloween. My 16-month-old granddaughter will be a piggy, but gone are the simple animal or a witch; 44 percent are going as a “fictional person or character” and 19 percent going as “an animal or creature,” fully 16 percent are going as “a concept.” Huh? And for treats being handed out, apples didn’t make the top 10: Reese's Peanut Butter Cups, Peanut M&M's, Regular M&M's, Tootsie Pops… (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. After Hear an interview between Robbie and myself on what to look forward to at next week’s MBA Annual.)

Employment & transitions

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In the Northwest and California, Banner Bank is searching for Mortgage Loan Officers looking for a diverse product group to create lasting client, Realtor and builder relationships. At Banner you have Portfolio lending, Construction to Perm financing, Fannie, Freddie, FHA, VA, and USDA along with equity products for HELOC, bridge financing and Lot Loans to serve your clients. Banner has opportunities for lenders looking for local decision looking to build or build onto their career with support for homebuyer education, CRA lending (state bond and Portfolio) as well as access to internal and external DPA to add value to your eligible clients and make more loans possible. 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.

ServiceLink is reinforcing its commitment to innovative technology enhancements and expanding its best-in-class products and services with the appointment of Hemanth Panyam as its senior vice president of product innovation. Panyam will be responsible for bringing new, innovative products and services to life at ServiceLink, teaming up with operations and sales to meet the needs of our clients. He will report directly to chief technology officer Kiran Vattem and build a team that is focused on systematically identifying ways to improve and innovate the mortgage space through products and services.

(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 products

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“MortgageFlex Systems, Inc. is proud to announce that our Ginnie Mae investor reporting processes have been officially approved. This significant milestone underscores our commitment to providing exceptional mortgage servicing solutions and adhering to the highest industry standards. Our successful Ginnie Mae reporting approval is a testament to our team's hard work, dedication, and expertise. We have invested in state-of-the-art technology and processes to ensure accurate and timely reporting, enabling us to deliver reliable and efficient services to our clients. By achieving Ginnie Mae's reporting approval, we solidified our position as a trusted partner in the mortgage servicing industry. This accomplishment further strengthens our ability to support our client's needs and contribute to the housing market's overall health. MortgageFlex remains committed to providing innovative and compliant mortgage servicing solutions. We look forward to continuing our journey of excellence and serving the needs of our clients with the highest level of professionalism. See you in Denver! To connect with us reach out to John McCrea.”

OptiFunder and FundingShield integrate to enhance security and efficiency in lending!

OptiFunder, the leading provider of advanced warehouse lending technology for the mortgage industry, is excited to announce a new collaboration with FundingShield, the industry's leading provider of live source data driven wire and title fraud prevention solutions. This alliance will integrate FundingShield’s popular fraud prevention solutions into OptiFunder’s WMS for mortgage originators and its innovative Greyhound WMS for warehouse lenders. The integration with FundingShield enhances OptiFunder’s security and risk management capabilities, allowing mortgage originators and warehouse lenders to access top-tier fraud detection and compliance tools while optimizing and automating their funding processes. Together, OptiFunder and FundingShield are set to provide the mortgage industry with a safer and more efficient lending experience. Stay updated on OptiFunder's initiatives by subscribing to their monthly newsletter and be sure to catch the OptiFunder team in Denver at the MBA Annual Conference. Schedule a demo to learn more about Greyhound WMS for warehouse lenders.

“Join Truv at the Mortgage Bankers Association Annual Conference in Denver from October 27-30! Visit us at booth #119 in The Hub Expo to discover how Truv’s instant, automated #VOIE and #VOA solutions can streamline your processes with industry-leading coverage of over 96% of the U.S. workforce. From the federal government to Fortune 1000, NASDAQ, healthcare, and gig platforms, we’ve got you covered. Plus, enjoy unlimited, free re-verifications and a user experience designed for fast and easy payroll connections. Schedule a 1:1 meeting with our team now.”

As weather events continue to increase in frequency and intensity, many individuals and businesses are met with tremendous hardships due to these climate-related incidents. Federal regulators have also put an increased focus on understanding the implications climate is having on the mortgage market. As a result, lenders and servicers need to better understand climate impact and implement processes and solutions to help mitigate potential risks. Join ICE for an informative webinar to learn how climate-related events are impacting home affordability, insurance costs and interest rates. As the regulatory focus on climate risk management grows and weather-related events further impact lenders’ loan portfolio, learn how ICE data and solutions can provide you with actionable insights to help manage and mitigate potential risk and support your customers throughout all stages of a natural disaster.

“Over the last 10 years, average restaurant prices have increased 100%! What hasn’t changed in that time is Agility 360’s continued success in providing high quality, flexible, and cost-saving services to our clients in the mortgage industry. As a trusted partner of on-demand resources, Agility 360 helps our clients stay ahead of the market cycle and optimize profitability by delivering production capacity, staffing flexibility, and technology. And, unlike a waiter who disappears when your food arrives, Agility 360 remains intimately involved with every client throughout every project. If you plan on attending the MBA Annual next week in Colorado, OR are interested in learning more about how Agility 360 can support your operations, please reach out to Raj Sharma, COO or Cesar Hernandez, CEO for a quick introductory conversation. You’ll quickly realize why Agility 360’s clients have continued to succeed and grow through every cycle!”

“In today’s fast-paced business landscape, staying ahead means embracing innovation and strengthening your defenses. Register for MQMR's AI-Powered Vendor Management Webinar here on November 7th at 12 PM CST and discover how you can do both! We’ll cover everything from Rapid Risk Identification and Efficient Document Summarization to Enhanced Cybersecurity, as well as mastering oversight that helps guard against data breaches, all while keeping compliance at the forefront. While multiple strategies are in action to increase volume, vendor management is a key tool to managing costs and ensuring success. MQMR’s vendor management program is designed by mortgage professionals for mortgage professionals. It includes Due Diligence Reviews, Financial Reviews, Risk Assessments and Contract Management. Leverage our technology or fully outsource it to our team of experts. Book a demo today!”

Correspondent, wholesale, and investor tidbits

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“Q4 is here! Time to create your business plan for the new year. If Newrez Correspondent wasn’t your partner in 2024, it’s not too late to include us in 2025. Newrez has a broad suite of loan products, expanded guidelines and an efficient process to help you grow and be successful in 2025. Sign up here. As a reminder, we will be adding to our product suite with the launch of Ginnie Mae PIIT Co-Issue along with Freddie Mac® HeritageOneSM and GreenCHOICE Mortgages®. A big thanks to our Bank & Credit Union partners that met with Rebecca Sommer & Rob Niess in Las Vegas at the annual ACUMA Conference, and Sarah Johanns at the IMA (Iowa) Conference in West Des Moines, IA. In addition, John Dubisky would like to set a meeting at the Wisconsin MBA Conference November 13-14 in Pewaukee, WI.”

Are you looking to increase business volume this holiday season? Be the broker who brings opportunity and peace of mind. With Rocket Pro TPO's Home Equity Loans, you could help your clients access up to $500,000 in fast funding. This lower-interest option allows them to cover big expenses, like getting their homes ready for the holidays or paying off credit card debt, without affecting their current mortgage rate. Plus, your clients could save money and skip the appraisal on eligible loans with Rocket’s automated valuation model. Don’t wait: Get the products, tools and resources you need to stand out in the current market and help clients thrive. Partner with Rocket Pro TPO today. NMLS #3030; Equal Housing Lender 

Verus Mortgage Capital is the leading non-agency correspondent investor, helping mortgage lenders expand their businesses by offering more flexible loan programs, such as Home Equity Lines of Credit (HELOC). As a pioneer in non-QM, Verus has the experience and expertise to get you up and running quickly so you can capitalize on this growing market. With an increasing number of borrowers seeking flexible solutions, particularly those who are self-employed or have complex income sources, non-QM products like HELOCs are key to tapping into new opportunities. Partner with Verus to lead the charge in non-QM lending and end 2024 strong! Learn more at the MBA Annual in Denver. Contact Jeff Schaefer, EVP – National Sales (202-534-1821) to set up a meeting.

A&D Mortgage has a new sales promo - Exclusive October “Fall into Savings” for mortgage brokers, offering a .250 pricing reduction on Super Prime and DSCR Rate-and-Term refinance loans. This limited-time offer is available for loans locked between October 9, 2024, and October 31, 2024.

On October 18th, 2024, additional valuation assessment options were added to the AUS Jumbo product profile to provide additional flexibility and to assist lenders in complying with the new requirements. These new valuation options are available immediately for existing and new applications. For more information, see Pennymac Announcement 24-114. 

As described in Pennymac Announcement 24-115, Pennymac is aligning with FHA’s new appraisal review requirements, effective for new casefiles assigned on and after October 31, expanding reconsideration of value (ROV) requirements for underwriters, and a new borrower-initiated reconsideration of value process to enhance consistency and transparency when issues or deficiencies within the appraisal are perceived by the borrower.

Pennymac updated Jumbo LLPAs effective for all Best Efforts Commitments taken on or after Wednesday, October 16, 2024, Pennymac Announcement 24-112. 

A&D Mortgage is thrilled to announce the expansion of its Debt Service Coverage Ratio (DSCR) loan program to include first-time homebuyers (FTHBs)—both U.S. residents and Foreign Nationals. This update opens new opportunities for individuals who are purchasing their first investment property, regardless of their homeownership or investing history.

KDM Financial Small Balance Low Doc Program highlights include Max LTV 80%, Min FICO 680, Purchase, Rate/Term Refinance, cash-out, Loan amounts $250KK-$2M, no income or Job verification, No prepay option available, and more.

LoanStream Wholesale expanded DSCR 5-8 Program is designed for your Investor Clients. Highlights include Purchase, Rate and Term and Cash-Out, Residential 5 - 8 units, Occupancy: Investment - $2 million max loan amount, Min FICO 680, 15 -YR Fixed, 30 -YR Fixed.

Rocket Mortgage, the nation's largest mortgage lender and a part of Rocket Companies and Annaly Capital Management, Inc., the world's largest residential mortgage real estate investment trust have entered into a subservicing agreement. Rocket will handle all servicing and recapture activities for a portion of the mortgage servicing rights ("MSR") held by Annaly. Rocket Mortgage has ranked highest for client satisfaction in J.D. Power's landmark mortgage servicer study for an industry-best 10 years, and Annaly has built a fully scaled MSR platform which holds servicing for approximately 608,000 loans, totaling $192 billion in unpaid principal balance and $2.8 billion in market value as of June 30, 2024. The company's MSR portfolio is made up of high-quality conventional loans with a weighted average FICO of 757 at origination. Rocket Mortgage is expected to begin servicing loans for Annaly as early as December 2024.

Capital markets: home sales numbers of interest

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After three consecutive days of selling, Thursday finally brought some buying (read: relief for rates) in the bond markets. Movement was assisted by a better-than-expected weekly jobless claims report (227k) and an above-consensus New Homes Sales report for September (738k).

Yes, new home sales jumped 4.4 percent month-over-month during September, easily topping consensus expectations. On a year-over-year basis, new home sales were up 6.3 percent. The upward trend in sales reflects better affordability conditions in the new home market, though combined with existing home sales data from earlier in the week, the pace of sales sits at the lowest level in 30 years. And with rates higher now than they were before the September 18 rate cut, it is reasonable to think October new home sales won't look as good.

Speaking of rates, mortgage rates jumped again in the latest Freddie Mac Primary Mortgage Market Survey. For the week ending October 24, the 30- and 15-year mortgage rates rose 10-basis points and 8-basis points versus the prior week to 6.54 percent and 5.71 percent, respectively. Those rates are 46 basis points and 56 basis points higher from the September lows. However, versus a year ago, rates are 125 basis points and 132 basis points lower.

Durable goods orders for September kicked off today’s calendar versus expectations of orders declining 0.8 percent month-over-month. Also of note was “core” durable goods orders, a widely watched proxy for business spending on machinery and equipment, expected to have held steady. Later today brings the final look at October Michigan sentiment and remarks from Boston Fed President Collins. Sentiment probably rose higher, while households’ short-term and long-term inflation expectations aren’t expected to have changed much from last month's report. Keep an eye on 1-year and 5–10-year inflation expectations sub-indexes, as the former is at 2.9 percent and the latter 3.0 percent, the highest since July and August, respectively. With inflation expectations widely tabbed as the cause of inflation itself, the Fed certainly will. We begin Friday with Agency MBS prices roughly unchanged from Thursday’s close, the 10-year yielding 4.19 after closing yesterday at 4.20 percent, and the 2-year at 4.06.

Two men were loading up a hearse with a coffin on a steep incline, after they loaded the cargo, they both get into the vehicle.

As they start to pull away, the back door swings wide open and the coffin crashes to the ground and starts sliding down the incline, across the intersection, into the storefront of a pharmacy and keeps going!

The driver races after it and chases it into the pharmacy.

The pharmacist in the back says, “Can I help you?”

The driver replies, “Yeah… do you have anything to stop this coffin?”

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 STRATMOR blog is titled, “Help Borrowers Tap Into $36 trillion Available in Home Equity.” 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.)