12.11.24 Lender Volume Rankings; Xactus' Shelley Leonard on the Modern Mortgage; Consumer Price Index Data

Thanks to today's podcast sponsor Bundle, the attorney-prepared legal documents company that is dedicated to the real estate, mortgage, and title industries. Their tech-enabled platform fuels the operations and execution of documents from deeds to subordinations to assignments and everything you need for any order in one bundled price. Save 20% with the discount code "Chrisman" all week.

Transcript

“I love Christmas lights! They remind me of the people who voted for (insert name of politician). They all hang together, half of them don’t work, and the ones that do aren’t all that bright.” There are, however, bright people who read this Commentary. In response to yesterday’s opening about what your plan should be upon finding someone lurking behind your shower curtain, Karen F., the wife of a world-famous economist, wrote, saying, “You have now reclaimed the element of surprise and can meet your attacker face to face. It's best to confront your intruder with some household object that can easily be weaponized.” Speaking of defending property, half of home sellers say they'd be more likely to use an agent on their next home sale if they didn't have to pay the buyer's portion of the commission fee. Funny, because 47 percent of sellers think their home would have sold for more money if they'd used an agent. In the end, 80 percent of sellers who did not use an agent have regrets about their home sale, and 54 percent wish they had used a real estate agent. (Today’s podcast can be found here and this week’s podcasts are sponsored by Bundle, the attorney-prepared legal documents company that is dedicated to the real estate, mortgage, and title industry. Save 20 percent all week with the code “Chrisman.” Hear an interview with Xactus’ Shelley Leonard on what lenders should be thinking about in 2025 to push the edge of innovation and advance the modern mortgage.)

Employment, transitions, and exec available

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An East Coast IMB with a 20-year plus successful track record is in search of Senior Ops leader. The candidate must have experience overseeing in Senior Management of an IMB previously and have a well-versed background in all things related to the mortgage industry. 

Please send resumes to Chrisman LLC’s Anjelica Nixt for confidential forwarding and specify this opportunity.

The Loan Store, a leading wholesale mortgage lender, announces Jason Lee as its new President to lead the next phase of growth. With over 20 years of experience in mortgage and banking, Lee brings a proven track record in capital markets, leadership, and strategic expansion. Previously, Lee served as EVP and Head of Capital Markets at Flagstar Bank, where he led key initiatives in secondary marketing and interest rate risk management, enhancing Flagstar’s industry prominence. “Jason’s expertise and vision make him the ideal leader to elevate The Loan Store,” said Phil Shoemaker, CEO. “He will drive innovation and strengthen our partner relationships." Lee will spearhead growth initiatives, focusing on expanding product offerings and enhancing partner experiences. “I’m excited to join The Loan Store and advance its legacy of service and innovation,” Lee said.

“You know what’s better than an old bearded fellow sneaking down your chimney? The gift of becoming your own boss. Unwrap Motto Franchising’s Mortgage Brokerage-in-a-BoxSM for your very own mortgage brokerage, but without all the heavy lifting that usually comes with launching a business. That’s because we provide: *a guided office launch* *an intuitive technology ecosystem* *a growing library of professional marketing content* *product mix and established wholesale lender relationships* and *industry-leading training and support*. Give yourself the gift that keeps on giving and OWN the benefit of every home loan transaction, chimney included or not. Email franchise@mottomortgage.com for brokerage ownership details.”

“Are you a seasoned loan officer who is primed to make 2025 your year? Consider bringing your talents to Citizens to join our dynamic home mortgage lending team. We are looking for loan officers in the Northeast, MidAtlantic, Florida and the Midwest, who are passionate about putting their customers first by offering a robust suite of products and services. Citizens 3rd quarter earnings proved our strong execution of our key initiatives leading to strong growth in deposits and new customer acquisition. Our specialty programs such as condo/co-op financing, along with an amazing Private Wealth discount value proposition for high net worth banking clients, ensures you have all the tools to win. As a nationally ranked top 10 bank mortgage lender, with numerous affordable lending programs, dedicated Operations partners and a tenured leadership team, Citizens is poised to hit the ground running in 2025. If you are interested in joining the team, or just hearing more about what we can offer your clients, contact Natalia Santilli to learn more.”

A 22-yr mortgage vet and CMB is looking for opportunities as an SVP/EVP. Experienced in end-to-end mortgage operations design & improvement, capital markets, hedging & loan sales/securitization, automation, product development, relationship management, technology stacks & integration, vendor management, data analytics, team building & coaching, consumer direct, & TPO. Interested companies can send me a confidential note for forwarding to the individual.

(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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“2024 has been a year for innovation, and ICE is delivering the future of servicing with technology that simplifies work in the back-office and streamlines homeownership for millions of customers. From a new, conversational UX for the industry’s leading loan servicing system, to digital, self-service tools that inform borrowers of their home, loan and equity information, ICE is making servicing simple for our clients and their customers. See for yourself how ICE continues to deliver powerful servicing technology and how it is helping clients increase retention through an exceptional homeownership experience.”

“French chemist and pharmacist Louis Pasteur once opined “Fortune favors the prepared mind,” meaning that success often comes to those who prepare. We agree. As we close out 2024, we’re urging CU leaders to follow the father of microbiology’s lead by penciling in ‘Closing the Gap: How Credit Unions Can Build an Integrated Tech Stack to Compete with Fintech-Powered Lenders,’ a free ACUMA Inside Track webinar on Tuesday, Dec. 17, 2024, starting at 1 pm CST. The online event will feature panelists from the University Federal Credit Union, Floify, and Bonzo to explore how credit unions can leverage modern technology to streamline operations, enhance borrower satisfaction, and maintain their unique, member-focused advantage. A curious mind and thoughtful questions are encouraged as we put technology under the microscope to help you build a stronger, more resilient tech stack tailored to your credit union’s needs. Register Now.”

Correspondent and wholesale product news

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“Happy Holidays from eRESI! As the year comes to a close, we want to express our gratitude for your continued partnership and extend warm wishes to you and your loved ones. We're excited to kick off 2025 with fresh Non-QM opportunities and are hitting the ground running in January! eRESI's Lisa Schreiber will join panelists at the IMN 2nd Annual Residential Lenders Forum on DSCR & RTL in Aventura, FL. Also, meet with Amer Ahmed, Kris Willoughby, and Lisa Schreiber at the IMB25 Conference in Austin, TX, to explore our latest Non-QM growth strategies. We're excited to continue our journey together in 2025 and remain committed to delivering the exceptional service you have come to expect from us. For more information, please get in touch with your eRESI Representative or email sales@eresimortgage.com. Here’s to a joyful holiday season and a prosperous new year ahead.”

“As 2024 winds down and we take a moment to pause and reflect, Citi’s Correspondent Lending Team would like to express our heartfelt gratitude and appreciation to our Correspondents and partners for making this past year such a resounding success. The relationships we fostered in the midst of a challenging market will endure, and we are proud to be a trusted investor for so many within the mortgage industry. Looking ahead to the new year, we’re excited to continue on a path focused on sustainable growth, delivering opportunities to our clients and the communities we serve. Our warmest wishes to all for a holiday season filled with joy, laughter, and time with loved ones!”

“U.S. Bank is pleased to announce Connecticut Housing Finance Authority has selected U.S. Bank as a servicer for its “Time to Own” and “DAP” downpayment assistance programs, specifically designed to support first-time homebuyers. Connecticut Housing Finance Authority aimed to partner with qualified servicers capable of purchasing, securitizing, and servicing mortgage loans for its programs, and U.S. Bank is honored to be chosen as one of its trusted partners. Together, we will empower sustainable homeownership.”

AI and the Mortgage Industry

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Yesterday, the Commentary mentioned an article on What Homebuyers Need From the 2025 Tax Bill that is housed in the Thought Leadership section on the new Chrisman Commentary website. We have new (no pay-to-play) articles for you most days of the week. Today, TidalWave's Diane Yu explores How Artificial Intelligence is Transforming the Mortgage Industry by tackling inefficiencies and cutting costs in an ever-complex landscape. With lenders spending over $10,000 to originate a single loan and with most still facing losses, AI-powered solutions are revolutionizing the origination process using generative AI to streamline workflows, engage borrowers in real-time, and provide secure, transparent, and accurate loan options… All while saving time and money. Ready to explore how AI is reshaping the future of mortgages? Read the full article and see how innovation is solving the industry's biggest challenges.

Rankings are a numbers game

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In mortgage banking, metrics are critically important, as are bragging rights. The MBA’s forecasts include dollar volume and units, but most people mention the former: $1 trillion, $2 trillion, $3 trillion. Would you rather do those three loans and breakeven on them or fund one profitable loan for the same total dollar amount?

With that in mind, here are the “Top 50” lenders through the 3rd quarter of 2024 based on dollar volume. The data here shows who the actual lender is, e.g., these are the lenders of the money such as it is with HMDA. This data is a blend of deed data, HMDA data, NMLS consumer direct data, census data, and mix of other sources to create the accuracy of the data overall. A big thank you to InGenius CEO Jeff Walton for this information, and questions about the InGenius product should be addressed to him! So here you go, for bragging rights on the dollar volume for the top 50 through Q3 ’24.

United Wholesale Mortgage ($154,382.7M), Quicken Loans/Rocket Mortgage ($146,180.0M), CrossCountry Mortgage ($59,736.8M), JPMorgan Chase Bank ($47,514.9M), Fairway Independent Mortgage ($45,972.6M), DHI Mortgage, LoanDepot, US Bank, Guaranteed Rate, Wells Fargo Bank (#10 with $38,524.1M), Lennar/Eagle Home Mortgage, Movement Mortgage, Mortgage Research Center, Bank of America, CMG Mortgage, Guild Mortgage, Navy FCU, Pennymac Loan Services, Citibank NA, NewRez LLC/Caliber (#20 $21,263.4M), New American Funding, Freedom Mortgage, Morgan Stanley Private Bank, Mutual of Omaha Mortgage, Pulte Mortgage, American Pacific Mortgage, TD Bank NA  , Citizens Bank, NA, PNC Bank, Prosperity Home Mortgage, PrimeLending, Cardinal Financial, The Huntington National Bank, Nationstar Mortgage, Truist Bank, Paramount Residential Mortgage Group, NVR Mortgage Finance, NFM Inc., Finance of America Reverse, Union Home Mortgage, Guaranteed Rate Affinity, State Employees Credit Union, Provident Funding, Everett Financial, Fifth Third Bank, BMO Harris Bank, Flagstar Bank, and Regions Bank ($7,794.5M).

Once again, a big thank you to InGenius CEO Jeff Walton for this information.

Capital markets: more inflation data (as expected)

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Feel confident about your balance sheet by utilizing MAXEX for your bulk trades. Our team has facilitated more than $1 billion in bulk trades in 2024 and can help your business roll confidently into 2025. MAXEX’s dedicated transaction team reduces the burden of complex seasoned loan transactions while our large and growing roster of end investors makes it easier for sellers to find liquidity and maximize execution for pools of seasoned and unseasoned loans. Contact our team today, trading@maxex.com, to set yourself up for growth in 2025. 

Ahead of today’s release of November’s Consumer Price Index (the last major data point before the Fed meeting/rate decision next week), markets yesterday digested a large jump in the NFIB Small Business Optimism Index for November, reflecting post-election confidence raising the index to levels not seen since mid-2021. Small business optimism was expected to have jumped, as business owner sentiment brightened in anticipation of tax and regulatory relief in the coming months. Outside of that, trading stayed mostly flat as investors awaited today's key inflation (CPI) report. Revised data for Q3 productivity and labor costs had little market impact, though lower unit labor costs suggested some easing inflation pressures. Treasury's $58 billion 3-year note auction drew solid demand, keeping markets steady.

Today’s economic calendar kicked off with mortgage applications increasing 5.4 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending December 6. Last week’s results included an adjustment for the Thanksgiving Holiday.

We’ve also received the release of November CPI (+.3 percent as expected, +2.7 year over year) and Core CPI (+.3 percent as expected). Both figures were expected to come in at 0.3 percent month-over-month. Later today brings a couple of Treasury auctions that will be headlined by $39 billion reopened 10-year notes, the November budget statement from the Congressional Budget Office (markets will pay more attention to the monthly statement than usual, as the president-elect has stated reducing government spending and deficits as some of his foremost priorities), and the latest monetary policy decision from the Bank of Canada (expected to be a 50-basis points cut for the second straight meeting). After the CPI data we find Agency MBS prices roughly unchanged from Tuesday evening, the 2-year 4.14, and the 10-year yielding 4.23 after closing yesterday at 4.22 percent.

(Holiday Food Tips (Part 1 of 3)

1.  Avoid carrot sticks. Anyone who puts carrots on a holiday buffet table knows nothing of the holiday spirit. In fact, if you see carrots, leave immediately. Go next door, where they're serving rum balls.  

2. Drink as much eggnog as you can. And quickly, as it's rare. You cannot find it any other time of year but now. So, drink up! Who cares that it has 10,000 calories in every sip? It's not as if you're going to turn into an eggnog-alcoholic or something. It's a treat. Enjoy it. Have one for me. Have two. It's later than you think. It's Christmas!  

3. If something comes with gravy, use it. That's the whole point of gravy. Gravy does not stand alone. Pour it on. Make a volcano out of your mashed potatoes. Fill it with gravy. Eat the volcano. Repeat.

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).

qoɹ

(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.)