11.25.24 Homeowner Equity Use Cases; Polunsky Beitel Green’s Marty Green on the Fed; Yield Curve Flattening

Lenders can easily integrate income verification into their workflow and verify any borrower at any point during the application process with Truework Income. By connecting every verification method into one platform, Truework helps lenders eliminate process disruptions, maintain a competitive borrower experience and reduce the fiscal impact of verifying income. Banks, credit unions and wholesale lenders are using Truework because it’s the only platform making income verification as easy as clicking a button. 

Transcript

“Pro tip” to start the week: Be sure to bring up politics at your family's Thanksgiving dinner. You'll save a lot of money on Christmas gifts. A tip that I posted last week received a lot of thanks: If your business is an LLC or corporation, including a single member LLC, you must fill out this form by the end of 2024. Many companies are thankful for home equity loans, and here’s another tip: know your customer. TD Bank released two surveys: its 2024 HELOC Trend Watch Survey, which looks at how homeowners are using their equity, and 2024 Merry Money Survey, which examines shopping and money management habits around the holidays. To the surprise of no LO, 66 percent of homeowners view their homes as a source of generational wealth, and 73 percent of Gen Zers and 66 percent of Millennials indicated they’re likely to apply for a HELOC or home equity loan in the next 18 months. 41 of adults are saving for a major life event this holiday season, with retirement (13%) and buying a home (11%) being the most prevalent savings buckets. (Today’s podcast can be found here and this week’s are sponsored by Truework. By connecting every verification method into one platform, Truework helps lenders eliminate process disruptions, maintain a competitive borrower experience, and reduce the fiscal impact of verifying income. Hear an interview with Polunsky Beitel Green’s Marty Green on why the Fed is still maintaining a restrictive monetary policy but acknowledging that the need for drastic measures is over.)

Jobs available

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“Sierra Pacific Wholesale (SPW), one of the industry’s most successful privately held mortgage banking firms in the nation, is searching for AEs. From cutting-edge technology to full-service operational support, we equip our Account Executives with the tools, product, and resources they need to excel in any market. Each of our new hires is embraced by our family-oriented company culture and reassured that this can be a forever home like so many others in our tenured workforce who have been with Sierra Pacific for 20+ years. Our reputation as a reliable, resourceful, and innovative lending partner is why 12 AEs have already joined our team this year, with several more to be announced soon. If you’re looking for an opportunity to work with some of the best leadership in Wholesale today, contact Jon McCash.”

“Loan Officers! Is Your Career Aligned with Your Potential? You know your worth, but is your current role allowing you to reach your full potential? At radius, we believe in pushing boundaries and helping our loan officers achieve what they didn’t think was possible. Let’s talk about how we can unlock your true potential. For confidential inquiries, contact Carla Herrera (781-742-6500).”

Lender and broker software, services, and products

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SVP of Mortgage Lending at America's First Credit Union, Austin Coleman, shares the success they are having with Truv. 65% Conversion Rate and 80% Cost Savings! Watch now.

“Your Investments. Strengthened. As the #8 and fastest-growing non-prime sub-servicer, Planet’s loan servicing division manages $107B+ in assets with expertise that delivers tangible savings and portfolio resilience. Our cost-effective strategies, advanced technology, and client-focused service help you unlock the full potential of your SFR investments. Let’s talk about optimizing your portfolio. Book your appointment today to meet with us at IMN SFR West 2024 in Scottsdale, December 3-5.”

Want to eliminate underwriting review on 70% of your appraisals? Get the only appraisal review software with a repurchase warranty. When an eligible appraisal passes Reggora’s automated review, we cover any financial loss associated with a repurchase / LLPA adjustment due to an appraisal defect. This allows you to significantly reduce the underwriting resources required to handle increased volume. Learn more about the Reggora Appraisal Review Warranty here.

“Prepare for 2025 with the only mortgage point of sale fully customized for your business. 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. It’s no wonder that Maxwell Point of Sale is the top ranked mortgage point of sale on Capterra with 4.8/5 stars. Want to learn more? Let us know and we’ll show you what Maxwell can do for you and your borrower.”

“eRESI recently announced an additional investment by KKR, which will expand funding capabilities plus increase our liquidity offering to clients. "With KKR's support, we have achieved remarkable goals, and we look forward to accomplishing even more in the future," said Gregory Tsang, Chief Executive Officer and Tim Wang, President of eRESI. Our partnership with KKR speaks to the strength of our platform and our commitment to providing exceptional service and next-level liquidity to our partners. As part of this ongoing focus to provide best-in-class support to our Sellers, eRESI is rolling out additional features in our Seller web portal, including online Funding Packages, Seller-led reporting capabilities, and an expanded Resource Center. Stay tuned for much more, as we are thrilled about our mission of increasing access to Non-QM financing options in the mortgage market. For more information, contact your eRESI Representative or email sales@eresimortgage.com.”

Events, training, and webinars to launch December and beyond

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

Technology and innovation in residential lending are the focus of Now Next Later Mondays at 1pm ET.

Tomorrow and all Tuesdays at 11am PT, two veteran LOs discuss all things mortgage with Industry Leaders: Mortgage Pros 411 with Audrey Boissonou and Kevin Casey.

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. (This week is off for the holiday.)

Thursday following Thanksgiving 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.

Friday after Thanksgiving, listen in to opinions (Last Word Fridays at 1pm ET) from Kevin Peranio and Brian Vieaux! Register here. (This week is off for the holiday.)

Are you ready to take your appraisal skills to the next level? The Appraisal Institute’s Online 75-Hour Licensed Residential Appraiser Upgrade Package is specifically designed for real estate professionals seeking to enhance their expertise and credentials. This package provides an in-depth look at essential appraisal techniques, helping you stay competitive and informed in today’s dynamic market.

National MI’s upcoming December 2024 webinar sessions include: Calculating Variable Income with Marianne Collins, Tuesday, Dec. 3, 10:00 AM - 11:30 AM PST. Your 2025 Plan: Driving Your Business or Just Driving Around the Block? Join Andrew Oxley on Wednesday, Dec. 4, 11:00 AM - 12:00 PM PST. Generate More Business & Income with the Database Wealth Formula with Rebecca Lorenz, Thursday, Dec. 5, 10:00 AM - 11:00 AM PST. Income Case Studies with Marianne Collins, Tuesday, Dec. 10, 10:00 AM - 11:30 AM PST. On Tuesday, Dec. 17, at 11:00 AM, join Freddie Mac’s Mia Jones and Kim Carr for an informative webinar on Expanding Origination Opportunities in Today's Market. And join Dr. Bruce Lund and Maggie Mae for Business Planning for Expected Rate Cuts in 2025, Thursday, Dec. 19, 10:00 AM - 11:00 AM PST.

Join the MBA of Florida’s Loan Officer Summit on December 4, 2024, hosted by MBA of Central Florida, 10:30 AM - 3:00 PM at the Azalea Lodge at Mead Botanical Garden.

Join the 2024 MBAH Annual Meeting & Holiday for an evening of food, fun, and fellowship December 4th, 5:00-8:00 HST at Cafe Julia. Registration will close November 27 at 9:00 PM.

LO Summit – New Date: December 4th! 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! Meet the industry leaders who are reshaping the game. Don’t miss out! View the full schedule and secure your spot by Tuesday, November 26th: https://mbaofflorida.regfox.com/2024-fall-loan-officer-summit

Register for California MBA’s 2024 Legal Issues and Regulatory Compliance Conference, Monday, December 9 - Tuesday, December 10 at the Irvine Marriott Hotel. This an annual event brings together legal, compliance, and regulatory professionals within the mortgage industry. Hosted by the California Mortgage Bankers Association, the conference covers critical legal updates, compliance trends, and regulatory changes impacting the industry.

CFOs and finance pros, unlock the power of AI at MBA’s Accounting and Financial Management Conference, December 11-13, Phoenix, AZ. Offering the latest guidance on what’s ahead for accounting and financial management professionals in both the single-family and commercial/multifamily markets. Hear an analysis on the current state of the markets and insights into accounting implications caused by today’s top real estate finance issues. Earn CPE credits in mortgage specific topics.

If you’d like to spend some time advocating for our biz in early April, the MBA’s NAC25 registration is now live!

Under the “way in advance” heading, April 1-3, 2025, is the Great River MBA in Memphis, TN: www.greatrivermba.com

The 2025 MBA Annual Convention & Expo will begin October 19 in Las Vegas.

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), 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: the yield curve has flattened again

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Housing data was in the spotlight last week as there were not many other significant economic releases. Existing home sales increased 3.4 percent in October to an annualized pace of 3.9 million units. For context, despite the increase, the annualized pace is well below the pace of 6.1 million units from 2021. Given that resale data is based on closings, those sales likely were with mortgage rates locked in prior to the recent runup in rates. Supply remains sparse, which is keeping home prices elevated and with rates about 75-basis points higher than in August, it’s possible the increase in existing sales could be short-lived. Single family housing starts declined in October with a pronounced decrease in the southern states affected by hurricanes Helene and Milton.

However, builder optimism has increased following the election on hopes for a more friendly regulatory environment. Additionally, the new home market has experienced less volatility in demand due to higher interest rates since they have been able to offer steep rate buydowns and other incentives.

This Thanksgiving week includes updates on house prices (with a new official conforming loan limit expected after FHFA) and other housing data, Fed surveys, consumer confidence, and durable goods orders, along with Fed-favorite PCE on Wednesday. No Fed speakers are currently scheduled, though the minutes from the November 6/7 FOMC meeting will be released tomorrow afternoon. Today’s calendar is under way with the Chicago Fed National Activity Index for October, while later today brings Dallas Fed manufacturing for November, and Treasury auctions that will be headlined by $69 billion of 2-year notes. The U.S. risk-free 10-year T-note ended last week yielding 4.41. We begin the week with Agency MBS prices better than Friday afternoon by about .125, the 2-year yielding 4.31, and the 10-year almost at the same level yielding 4.33: the yield curve is flattening.

(Warning: Rated PG.)

A 17-year-old male walks into a drug store. He says, "I've been invited to Thanksgiving dinner at my new girlfriend's house. Afterwards I hope there is a chance I get ‘lucky,’ you know what I mean?"

The pharmacist replies, "How about condoms then? They could come in handy. Here's a pack." The young man after paying walks to the door, stops, smiles, comes back.

“You know what, the mom is also smoking hot, I think I'll take another pack, just in case I get extra lucky."

Thanksgiving comes around, the mom asks the boy to lead the family in saying grace. So, the boy complied and started praying, and praying, and praying.

After a while, the daughter leans over and quietly says to him, "I had no idea you were so religious," to which the boy replies, "I had no idea your dad was a pharmacist."

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 “A Lender’s Personal Touch Can Help After a Disaster.” 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.)