12.12.24 Bank Consolidation; Bundle's Courtney Dec and Carissa Orozco on Title and Settlement; PPI Goes Up

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

What? You’re a builder who’s short on nails? Well, bring in some folks from Japan… they don’t necessarily need them. Of the nearly 300 types of nails made in the United States today, most are used in residential housing construction. The average wood frame house uses between 20,000 and 30,000 nails of various types and sizes. (I don’t know what percent of nails used in the United States are made in places like China.) On a side note, Walmart says that 70-80 percent of its merchandise is made in China. But interestingly, Walmart’s stock price is at its all-time highs despite tariff talk. Lender and bank stocks, however, are more complicated. Investors and advisers are anticipating increased consolidation among smaller U.S. banks under President-elect Donald Trump, viewing merging as a way to compete with larger firms. Regulatory scrutiny under President Joe Biden slowed mergers, but the potential for a more business-friendly environment under Trump has already led to deals. And STRATMOR, known in the industry as involved in many deals, reports that lender interest is strong. (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 Bundle’s Courtney Dec and Carissa Orozco on setting online services technology to serve the speed and expectation of clients.)

Employment, transitions

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“Highlands Residential Mortgage, a strong IMB based in North Texas, is excited to announce that we’re hiring a new head of Marketing to join its veteran leadership team. Ranked #1 by Experience.com in customer service, a Scotsman Guide Top 50 Lender, and Best Company to Work For (National Mortgage News, Energage), we thrive on providing high value experiences for our customers, partners, and employees! What we’re looking for: an experienced retail mortgage marketing leader who is passionate about providing high quality marketing solutions for our originators and managers, must be deeply experienced with CRM optimization, content management, and process flow. This person will manage a team of skilled marketing staff to drive growth nationwide. DFW metro area preferred. Please submit resumes to Becky Hale for consideration.”

Ready to frame your retail origination success in 2025 by adding builder business… no rate drop needed? Planet Home Lending helps top originators and branch managers lay a solid foundation for success with tools that build pipelines and close more deals. Picture your business growing like a well-planned development: adding builder partnerships with custom builder Construction-to-Perm loans, Low Cost Forward Commitments for production home builders, and affordable Manufactured Home Loans that create dealer connections. Keep past borrowers in your blueprint with personalized servicing statements featuring your name and automated marketing that nails client retention. Ready to break ground on your best year yet? Reach out for a confidential conversation with SVP Doug Long at (407) 399-5505. Let’s build and thrive in 2025! 

“HMA Mortgage continues to grow and is proud to announce two new key additions to its executive team: Matt Stokes as Chief Financial Officer and Amanda Avila as Senior Vice President of Secondary/Capital Markets. These strategic additions underscore the HMA commitment to excellence and innovation in pursuing growth objectives. Matt Stokes brings extensive experience in Accounting, P&L Management, Business Intelligence, and Forecasting to help effectively drive growth and maximize efficiency and profit to his new role as Chief Financial Officer at HMA Mortgage. With a career highlighted by impactful roles in the finance sector, Matt's previous tenures showcase his ability to drive organizational success through strategic insights and financial expertise.

“Joining as Senior VP of Secondary/Capital Markets, Amanda Avila offers over 20 years of diverse experience in the mortgage industry. Amanda began her career in closing before finding her passion in Secondary Marketing. Her expertise extends into Capital Markets and Servicing, giving her a comprehensive understanding of industry dynamics. Amanda is committed to focusing on Investor and Agency relationships, as well as ensuring HMA loan officers have the product and pricing they need to win in today’s competitive market.

“David Holland, President of HMA Mortgage, said, "We are focused on our goal of being one of the best, most efficient, and productive companies in the industry. The addition of Matt and Amanda are massive steps toward that goal. Both have made a massive impact in such a short period of time, and we are excited to partner with the best in the industry in their roles.”

For more information, visit here or contact us at 888-HMA-1080. HMA Mortgage is an IMB dedicated to guiding individuals and families toward achieving their homeownership dreams.”

(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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Are you prepared to get ahead in 2025? Optimal Blue is here to help with five strategic advantages you can implement in your planning now so you're ready to maximize profitability in the new year. These strategic advantages include creating intentional space for innovation in your business so you're ready to capitalize on emerging technologies, as well as leveraging your technology partnerships to uncover untapped value within your existing tech stack. Read about all five strategic advantages today to position your organization for success and get ahead in 2025.

Deliver the best customer experience in mortgage servicing. LoanCare®, a leading national mortgage subservicer, helps you deliver exceptional customer experiences at a fixed cost. Powered by proprietary software, our consumer digital experience is designed to help you maximize brand engagement, customer relationships and recapture opportunities. Frictionless functionality coupled with advanced security features, intuitive design, and a comprehensive line of oversight puts you in the driver’s seat in the development of long-lasting customer loyalty. We offer an award-winning homeowner web portal and mobile app, an end-to-end white label program, omni-channel marketing services, multilingual translations, and more. To learn more about the full range of servicing solutions available from LoanCare, reach out to David Vida, Chief Revenue Officer, today.

Correspondent and wholesale product news

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“Foundation Mortgage Corporation, one of the fastest growing NonQM Lenders, is proud to announce that we have entered into a partnership with one of the world’s largest banks, globally ranked in the top 20, to offer our own portfolio NonQM (Bk Statement, Asset, 1099, P&L, WVOE and DSCR) Closed End Second Lien product with loan amounts up to $750,000 and higher by exception. Elliot Salzman, President, stated “We are extremely excited by this incredible opportunity. Our new partner recognizes the strong value and expertise Foundation brings to the table. This helps provide a competitive advantage to our business partners and accelerates Foundation’s continuing rapid growth. Combining our unique strengths, superior customer service, and innovative solutions we can deliver an even more exceptional value to Foundation’s business partners.” For Inquiries please contact our Chief of Production, Dean Ayres.

As we approach the final weeks of 2024, AmeriHome Correspondent would like to thank clients and partners for supporting AmeriHome and making them the largest bank owned correspondent investor in the country! Looking ahead to 2025, AmeriHome has big things planned (eNotes, a Non-Agency product suite and more) so if you’re not signed up, make it a New Year’s resolution! And don’t forget the benefits and synergies that AmeriHome’s parent, Western Alliance Bank, brings to the relationship. Their suite of products - Warehouse Lines, MSR Financing, Treasury Management services and Corporate Credit Cards – all have value add features when loans are sold to AmeriHome. Financial institutions, IMBs, and Emerging Bankers alike benefit from AmeriHome’s Delegated and Non-Delegated options, full suite of conventional and government products, and Bulk, Bulk/AOT, and Best-Efforts delivery options. Find your sales rep here or send them an email to learn more about partnering with AmeriHome! They wish you all a happy and healthy holiday season!

What is "STINK, STANK STUNK?" It is your credit card bill after Christmas! Don’t be a Grinch; reach out to friends/ family & offer them a HELOC from Symmetry Lending. It doesn’t need to be wrapped up under the Christmas tree. They can use it to pay bills and at least they will have enough left over to buy the Christmas Roast Beast. Symmetry Lending has piggybacks, post-close, and standalones galore. We even have non-owner occupied HELOCs for sure! You will have referrals like never before. Maybe Christmas, perhaps doesn’t come from a store. Maybe our service and pricing mean a little bit more. Merry Christmas!!!

MSRs: always changing

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The mortgage servicing rights (MSR) market is a high-stakes arena shaped by volatility, risk, and opportunity. Amid unprecedented rate movements and tightening mortgage spreads, effective hedging has emerged as a critical strategy for unlocking value while mitigating risk, argues MIAC Analytics Dan Libby in his recent thought leadership article for the Chrisman Commentary. This article dives into the evolving dynamics of the MSR market, explores the impact of interest rates and yield curves, and unveils best practices for managing risk with precision. Discover how advanced risk models, strategic asset allocation, and emerging policies are transforming the way issuers navigate this complex landscape. Read the full article to stay ahead in this rapidly changing market.

Rankings are a numbers game

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When you say a person is “The #1 LO in the United States,” that is not a simple statement. It seems that there are many of them out there, roaming real estate agent meetings and financial planner conferences. Is the person #1 in overall volume? Units? Purchase business? Native American lending? First time home buyer percentage? It pays to ask.

Mortgage banking, although people talk a lot about dollar volume, is a game of units, of which our industry funded roughly 4.5 million last year. Put another way, units keep companies busy, like three loans for $150k each or one loan for $450k. And 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 100” lenders through the 3rd quarter in 2024 based on units. 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 number of units through Q3 ’24.

Quicken Loans/Rocket Mortgage (536,286), United Wholesale Mortgage (412,806), CrossCountry Mortgage (164,450), Fairway Independent Mortgage (133,941), DHI Mortgage (129,903), loanDepot (125,391), Pennymac Loan Services (119,665), Guaranteed Rate (101,581), Movement Mortgage (101,542), Navy FCU (99,238), Guild Mortgage, Lennar/Eagle Home Mortgage, JPMorgan Chase Bank, US Bank, NewRez LLC/Caliber, CMG Mortgage, Wells Fargo Bank, New American Funding, State Employees Credit Union, Nationstar Mortgage, Freedom Mortgage, Bank of America, The Huntington National Bank, Fifth Third Bank, TD Bank NA, American Pacific Mortgage, PrimeLending, Cardinal Financial, Citizens Bank, NA, Union Home Mortgage, Pulte Mortgage, Prosperity Home Mortgage, Mutual of Omaha Mortgage, NVR Mortgage Finance, Paramount Residential Mortgage Group, NFM Inc., Regions Bank, Everett Financial, Flagstar Bank, Truist Bank, PNC Bank, Guaranteed Rate Affinity, Provident Funding, Citibank NA, Morgan Stanley Private Bank, Finance of America Reverse, and BMO Harris Bank (10,352).

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

Capital markets: rate cut in Europe

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Mortgage Capital Trading (MCT) and FICO are set to redefine credit risk assessment in the secondary mortgage market through their strategic integration of FICO Score 10 T on MCT Marketplace. The collaboration, announced today, delivers measurable advantages for capital markets professionals, including boosting mortgage originations by up to 5% without increased credit risk, reducing default risk and potential losses by 17%, enabling more favorable loan terms for borrowers, and enhancing cash flow projection accuracy. MCT Marketplace, which already handles 35% of mandatory and delegated mortgage volume, provides the ideal platform to test and implement this advanced scoring model and will be available to all MCT Marketplace users mid-2025. Read the full press release.

The fight against inflation appears largely won, even if yesterday’s release of the consumer price index (CPI) report for November showed that U.S. inflation is taking a breather on its way down. The consumer price index rose 0.3 percent in November, while core CPI, which excludes volatile food and energy costs, rose by the same amount.

Of note, November’s reading showed the mildest increase in the shelter component since mid-2021. The report basically gives the Federal Reserve the green light for a 25-basis point rate cut at its December meeting next week, as the reading helps to confirm that we are still making progress on inflation even though it remains sticky.

Following yesterday’s report on consumer price activity, today’s economic calendar kicked off with the November producer price index (PPI) (+.4 percent for the month, year over year +3.0 percent, core year over year +3.4 percent). Expectations were for headline increases of 0.3 percent month-over-month and 2.6 percent year-over-year, versus 0.2 percent and 2.4 percent previously. We’ve also received weekly jobless claims (242k). And following yesterday’s strong $39 billion 10-year note reopening, today the Treasury announces the auction sizes for next week’s reopened 20-year bonds and 5-year TIPS followed by the auctions of $22 billion reopened 30-year bonds. The only other economic release of note is Freddie Mac’s Primary Mortgage Market Survey for the week ending December 12.

Also of interest, monetary policy decisions were announced overnight by the SNB (a rate cut in Switzerland) and ECB (cutting rates, as expected). After these overseas rate cuts and the U.S. producer price data, we have Agency MBS prices little changed from Wednesday’s close, the 2-year yielding 4.14, and the 10-year yielding 4.28 after closing yesterday at 4.27 percent.

Holiday Food Tips (Part 2 of 3.)

4. As for mashed potatoes, always ask if they're made with skim milk or whole milk. If it's skim, pass. Why bother? It's like buying a sports car with an automatic transmission.

5. If you come across something really good at a buffet table, like frosted Christmas cookies in the shape and size of Santa, position yourself near them and don't budge. Have as many as you can before they become the center of attention. They're like a beautiful pair of shoes: If you leave them behind, you're never going to see them again.

6. Same for pies. Apple, pumpkin, mincemeat. Have a slice of each. Or if you don't like mincemeat, have two apples and one pumpkin. Always have three. When else do you get to have more than one dessert, Labor Day?

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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