12.2.24 Fancy Homes; Rate's Shant Banosian on Orgination; Payrolls Follow Consumer Data

To stay competitive in this market, lenders need to find efficiencies and understand their operations in a much deeper way. Richey May’s consulting, cybersecurity, business intelligence, and automation services are designed by mortgage experts to help you continue to drive growth and increase profitability. Visit https://richeymay.com to learn more.

Transcript

I recall Zillow doing a study on the color of the front door impacting sales price. What does $22.5 million get you in Charleston, SC, especially if the place is owned by Trump’s nominee for the Secretary of Treasury? “Scott Bessent and his husband bought the historic mansion in 2016 for $6.5 million. They performed a major renovation on the three-story pink home before finally moving in at the end of 2019. The seven-bedroom, eight-bathroom home has four bars, a pool, spa, formal garden and a three-bedroom carriage house.” Bessent listed the place for $22.5 million, which would set the record for the most expensive home sale in Charleston history.” Meanwhile, lenders deal with the day-to-day of helping ordinary people finance their homes, and tomorrow’s Advisory Angle featuring the STRATMOR Group, Senior Advisor Sue Woodard and Principals Jennifer Smith and Kris van Beever explore the latest AI innovations, challenges, and opportunities transforming the future of home financing. (Today’s podcast can be found here and Richey May is sponsoring this week’s. Richey May’s consulting, cybersecurity, business intelligence, and automation services are designed by mortgage experts to help you continue to drive growth and increase profitability. Hear an interview with Rate’s Shant Banosian on what he does that has helped to make him the #1 originator in America for six years running.)

Lender and broker software, services, and products

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“Sleigh your DMI Subservicer Review with MQMR this winter and make your annual subservicer review seamless and stress-free! Through our Better Together partnership with DMI, we’re here to help you save time, reduce costs, and step into the new year with confidence. MQMR’s comprehensive audit and report include a Subservicing Compliance Audit, compliance and regulatory oversight, and in-depth reviews of compliance and QC documents, servicing technologies, loan file servicing processes, financial condition, call center operations, consumer complaints, and vendor management. For those seeking additional assurance, optional Loan Level Testing is available. By partnering with MQMR, you’ll receive expert guidance and detailed insights to ensure compliance and efficiency throughout your servicing operations. Plus, ask us how you can save $500! Don’t let the winter rush delay your subservicer review: contact MQMR today and let us sleigh your compliance challenges with ease and expertise.”

Kick off your 2025 by scaling your growth with mortgage-specific reporting and insights. In our competitive and data-driven industry, timely and accurate information is crucial. Maxwell’s comprehensive business intelligence and data reporting solution, Maxwell Business Intelligence, is designed to address the unique challenges faced by lenders, enabling you to streamline operations, enhance decision-making, and boost profitability, especially in a high-interest rate environment. Toss out your expensive data analytics tools that lack mortgage-specific stats and unlock new growth opportunities with actionable, data-driven insights. Schedule a demo of Maxwell Business Intelligence today.

Last week, Americans spent an average of seven hours cooking their Thanksgiving meal, and that’s not even counting the time spent planning, shopping, prepping and defrosting. Too bad there’s no home chef equivalent of the Empower LOS from Dark Matter Technologies to take over tedious, manual tasks like chopping onions and peeling carrots. Empower’s all-in-one functionality provides an intelligently bundled platform right out of the box with every critical ingredient you’ll need (POS, LOS, and AI/ML-powered document management, an integrated network of third-party services, compliance testing, and more) to help lenders improve ROI by streamlining workflow, reducing costs, and improving data consistency. It effectively raises your origination game to Gordon Ramsay level, while providing unrivaled automation efficiency, exceptional user experiences, and, ultimately, borrower satisfaction, making your team more productive and, well, Thankful. See how Empower can earn its place at your table.

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.

Correspondent and wholesale products

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“Struggling with the current rate environment? Figure’s platform can help you thrive. Offer your customers the ability to tap their equity fast without losing their low-rate mortgage, while you earn your commissions. Leading lenders are already leveraging Figure’s HELOC platform. Our streamlined, customer-driven process is low-touch and can be completed in just a day. With an application time of as few as 5 minutes, online income and property verification, autopay and credit union discounts, plus e-notary in most states, our platform provides competitive rates and a fast process. Elevate your offerings and partner with Figure, email Anthony Stratis to get started!”

LoanStream wants you to boost your volume and close out the year with a full pipeline with its Holiday Specials! Up to 60 BPS price improvements (when combined with select specials on qualifying loans). 25 BPS price improvement on Government (FHA/VA), Non-QM and Closed End Seconds. Plus, select price improvements: 35 BPS on Government Loans FICO 680+ and loan amount $250K+ (excludes DPA). Specials are valid for loans locked 12/1/2024 through 12/31/2024. Offers subject to change at any time, terms and conditions apply. Restrictions apply so contact your AE to learn more.

Since 2017, Gateway Correspondent has proudly partnered & served as the Program Administrator with the Texas Veterans Land Board to offer participating clients access to aid Texas Veterans in purchasing a home through the VLB Veterans Housing Assistance Program (VHAP). This initiative provides Texas Veterans with access to below-market interest rates, helping thousands of Veterans achieve the dream of Homeownership. As The Elected Program Administrator, we have the opportunity and responsibility to review all TVLB originated loans for approval, in this uniquely competitive program for Texas Veterans. Eligible Texas Veterans and Military members are offered a competitive, low interest rate loan with little to no down payment and Veterans with a service-connected disability rating of 30% or greater qualify for a discounted interest rate up to .50%. What a GREAT opportunity to thank and further serve our veteran community. For more information on the TVLB program and other Gateway offerings, please reach out, we look forward to partnering with each of our clients who dutifully serve our Veterans through homeownership.

Training, events, and webinars

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How are top originators and lenders gearing up for the MBA’s predicted surge in purchase and refinance activity? Find out what strategies they’re using in this week’s NMP Webinar, “2025 Playbook: Learn Why Credit Optimization is an Essential Tool Used by Top Lenders and Producers.” On Thursday, December 5th, at 2:00 PM ET / 11:00 AM PT you’ll see how Credit Optimization differs from credit repair, which borrower segments benefit most, and the measurable business impact—including higher lead conversion rates and reduced costs, such as lower interest rates and LLPAs. Don’t miss this chance to discover why Credit Optimization is a game-changer for 2025. Reserve your spot here.

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.

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.

As 2024 draws to a close, Curinos is bringing together its experts for a deep dive on what’re likely to be the four most consequential and influential factors on banking performance in 2025: the direction of rates, changing customer behavior, personalization and accelerating AI, and regulatory changes and possible restructuring. Join for this give-and-take webinar, Tuesday, December 3, 2024 11:00 AM - 12:00 PM PST.

OMBA’s Holiday Housing Forecast is on December 4th, 12:00pm - 1:00pm. An enlightening real estate panel will unpack pivotal 2024 law changes and trends and anticipate what's on the horizon for 2025. Connect with Industry Leaders for in-depth insights and essential strategies to confidently navigate the evolving Market.

Join CWDL for a discussion with industry veterans Michael McCauley, Paul Hubbard, and Trevor Reinhart on what, when, and how the accounting department should report to owners, warehouse banks, investors, and other key stakeholders of the company. Join The Accounting Department’s Guide to Communicating with Key Stakeholders Dec 5, at 11:00 AM in Pacific time.

IMBA has, on Dec. 5, at 10:00am, a for a Virtual Session to hear Joel Kan, Vice President, Deputy Chief Economist for the Mortgage Bankers Association, discuss what the economy and mortgage and housing markets are looking like heading into the new year. Interest rates, inflation, market volatility and more will be discussed.

The California MBA hosts the 2024 Legal Issues and Compliance Conference for an exclusive opportunity to attend our dynamic panel on Enforcement, Litigation, and Fair Lending Trends. This year's conference is being held on Monday, December 9 - Tuesday, December 10, the Irvine Marriott Hotel. Dive into the latest developments and priorities shaping the landscape of fair lending, as our expert panelists unravel the complexities of enforcement and litigation.

CAMP has the Broker Round Table with Michelle Berman, Thursday, December 12th at 11:00 am PST., Leverage: How to Prospect on Instagram and Win. Michelle will teach you how to understand the power of leverage and how you can use it to create opportunities off Instagram.

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.

Hopefully you registered in time for the 2024 MBAH Annual Meeting & Holiday for an evening of food, fun, and fellowship in Honolulu, December 4th, 5:00-8:00 HST at Cafe Julia.

If you’re in Florida, there’s the LO Summit on 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: https://mbaofflorida.regfox.com/2024-fall-loan-officer-summit.

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, 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.)

End this week with The Mortgage Collaborative’s The Fix with Melissa Langdale covering current events in the mortgage market for 30 minutes starting at noon PT.

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.

Capital markets: quiet

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We received a lot of data last week, and the focus was on the consumer. The second estimate of GDP was unchanged from the preliminary estimate of 2.8 percent growth in the third quarter. However, the details of the report showed consumer spending was a little softer while an increase in business spending on intellectual products offset that change. Additionally, corporate profits were up 6.1 percent from one year ago despite higher costs and slowing demand.

One outstanding question for the markets, post-election, is if businesses will increase capital expenditure spending in a similar fashion following the 2016 election which saw a 7 percent increase over twelve months from October 2016. Personal income was up 0.6 percent in October due mostly to service-producing industries. Inflation in the service sector continues to hold back a quicker decline to the Fed’s preferred level and further evidence that the return to the long run target will be slow. Despite this, monetary policy is still considered restrictive, and expectations are that the Federal Open Market Committee will cut the fed funds rate another 25-basis points following its December meeting.

The first week of December means the November jobs report, which will be released this Friday and is expected to register 200k. The payrolls reading will come after the number of jobs added in October plunged to just 12k, due to the hurricanes and a prolonged strike at Boeing. Prior to payrolls, markets will get updates on PMIs, construction spending, trade, and several labor market indicators before jobs with Michigan sentiment and consumer credit afterwards. Fed speakers resume after the Thanksgiving break including Chair Powell on Wednesday ahead of the December 17/18 FOMC meeting. Final November S&P Global manufacturing PMI kicks off today’s calendar later this morning and will be followed by October construction spending. We begin the week with Agency MBS prices slightly worse than Friday’s levels, the 2-year yielding 4.19, and the 10-year yielding 4.21 after closing the abbreviated Friday session at 4.18 percent.

We’re coming up on the holiday travel season, so let’s skip the usual humor or trivia and put out some advice from a retired flight attendant who flew for 35 years. Weather delays, equipment or crew issues, and computer glitches seem to have become the norm. (Part 1 of 5.)

1. If your destination is less than 7 hours, consider driving.

2. Download and use the app of the airline you are flying. You can do everything on it: get your boarding pass, track your bags, see your incoming plane, and change flights. It sure beats waiting in the long line to talk to an agent! Trust me, usually these apps will tell you a flight is cancelled before the crew even knows.

3. Fly much earlier than you need to. A whole day early if it’s important! People miss important things like weddings, funerals, cruises, international connections, and graduations. The tears were very real, for very real reasons, and there was nothing I could do! If you must be somewhere, spend the extra money, go a day early. Have a glass of wine and stay in a hotel, enjoy your night without being stressed while everyone else misses their events. Work remotely.

4. Always fly the first flight in the morning so you have all day to be rebooked if things hit the fan. Yes, that means it might be a 3AM alarm, but morning flights don’t cancel nearly as often.

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.)