1.22.25 Builder Discounts; Lender Toolkit’s Joe Sorbello and VanDyk Mortgage’s Lindsey Kuhnle on Tech Implementation; Mortgage Applications Unchanged

Thanks to Lender Toolkit's new Prism. Experience a quantum leap in accuracy and efficiency as you streamline workflows, reduce errors, and close loans faster. Prism's advanced OCR boasts 99 percent accuracy across 1,450+ document types. Effortlessly index, analyze, and underwrite crucial data with their intelligent system.

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A fake image of Brad Pitt was used to scam a woman out of $850,000. (Hopefully every lender has set up policies and procedures regarding events like the CFO receiving an email from the CEO asking to blindly wire money for a “secret acquisition.”) Remember when you could buy a great house for $850k? Although Los Angeles will be under great strain for years, in many areas you still can buy a house for that, but home builders are reporting a rise in cancellations due to increased mortgage rates, which surpassed 7 percent for the first time in seven months. While builder confidence in the market for newly built single-family homes improved slightly in January, concerns about inflation, tariffs on building materials, and government deficits persist. The National Association of Home Builders forecasts modest growth in housing starts for 2025, but the ongoing impact of high mortgage rates is leading some builders to cut home prices, with 30 percent offering average discounts of 5 percent. (Today’s podcast can be found here and this week’s is sponsored by Lender Toolkit's new Prism. Experience a quantum leap in accuracy and efficiency as you streamline workflows, reduce errors, and close loans faster. Prism's advanced OCR boasts 99 percent accuracy across 1,450+ document types. Effortlessly index, analyze, and underwrite crucial data with their intelligent system. Today’s has an interview with Lender Toolkit’s Joe Sorbello and VanDyk Mortgage’s Lindsey Kuhnle on how companies can properly onboard and implement new tech offerings.)

Employment & promotions, and another loss

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You are invited to learn how Fairway Independent Mortgage is supporting loan officers and branch managers to succeed on their mortgage journey. This Thursday at 3 pm there will be an anonymous virtual meeting that will bring you behind the curtain with the executive team and others for this successful  independent mortgage bank: January Virtual Fairway Day Registration.

“A national Non-QM investor is seeking well-qualified Business Development leaders for our Delegated and Non-Delegated channels in the Southeast, Mid-Atlantic, East Coast, and California. These leaders will focus on further growing our account base, be instrumental in developing territories, and be part of an aggressively growing organization. If interested, please email your confidential resume to Chrisman LLC’s Anjelica Nixt and specify this opportunity.”

When asked what it takes to be a top-notch analyst, STRATMOR Senior Partner Nicole Yung says, “You must torture the numbers until they confess.” If you like to dig deep into analysis, STRATMOR Group is looking for an experienced Financial Analyst to join its team, offering a unique opportunity to work with industry-leading data and analytical tools. The ideal candidate has accounting and/or finance experience within a mortgage company, is proficient in Excel and PowerBI, and has strong modeling and analytical skills. This role, which can be remote, will support various STRATMOR data products and programs, including the Technology Insight® Study, MortgageCX, and benchmarking and valuation efforts. The full job description is available on LinkedIn. Qualified candidates should send their resume to talent@stratmorgroup.com.

Atlas Title Company has promoted Grant Marple and Phil Sparling to the roles of Co-President, and Trevor Fairrington to the role of EVP - Head of Marketing. “Founded by an Executive Management Team with over 150 years of national lender title and escrow experience with Fidelity National Financial and First American Title. The Atlas Team has continued to grow nationally as an underwriter and grow market share over 4 years since inception.”

Out of Indiana comes news that George Shanley, Secondary Manager with GVC Mortgage, passed away. At age 46, it is far too young.

(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 services, software, and products

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Congratulations to Floify's President and General Manager Sofia Rossato who appeared on a recent “Big Picture” podcast (with Rich Swerbinsky and Rob Chrisman) to discuss hot topics in mortgage and the transformative impact of generative AI and its potential to reshape the industry. The three-way conversation took a deep dive into advances in system integrations, the future of AI-driven personalization for borrowers, and the challenges lenders face navigating an increasingly crowded and complex tech landscape. Rossato joined Floify in 2022 and has since strengthened the point-of-sale’s market footprint with her customer empathy and business acumen. Rossato was formerly managing director and COO for the billion-dollar information division of $17B fintech, IHS Markit. She also was CEO of SnapEngage, an omni-channel messaging platform and early adopter of AI. Her insights provide a deep dive into how innovation and regulation are reshaping the mortgage world in real time. Watch the podcast here.

Are you looking to close more loans this year? The answer may lie in the secret of habit replication. Dan Harrington, co-founder of Usherpa, shares insights in his book Authentic Intelligence, focusing on the habits of top-performing Loan Officers. Usherpa, using data analytics, AI-powered alerts, and years of industry experience, has helped thousands of LOs increase production in any market. By studying successful producers’ habits, Usherpa pinpoints the most effective strategies for success. With Usherpa’s Pipeline technology and these key insights, you can simplify your workflow and reach peak performance. Ready to elevate your business? Learn more and download Usherpa’s eGuide: "3 Habits of Top Producing Loan Officers (You Can Duplicate)."

"Crack the Code to DPA Success! Join the Essex Mortgage Correspondent team on January 28th at 10:00 AM PST for an exclusive webinar: "Essex Mortgage National DPA Program: A Webinar for Mortgage Professionals." This must-attend session will provide a comprehensive overview of our nationwide Down Payment Assistance solutions. Discover how these programs can empower your borrowers to achieve their dream of homeownership while learning what sets our offerings apart in today’s competitive market. Whether you're looking to better support your clients’ needs or expand your market in 2025, this webinar will provide the tools and insights to help you succeed as a mortgage professional. Don’t miss this opportunity to strengthen your knowledge and help more clients achieve their financial goals! Click here to register!  Secure your spot today and take the first step toward taking your business to new heights!"

First American Data & Analytics is hosting its annual Housing Market Outlook webinar next week on Thursday January 30th at 1pm Eastern. This complimentary one-hour session will cover essential topics such as the health of the U.S. economy, supply and demand dynamics, and affordability challenges. Register today and hear directly from First American’s Deputy Chief Economist, Odeta Kushi, on how policy shifts might influence mortgage rates and the overall housing landscape and get answers to pressing questions about the economy's trajectory and regional market variations. Register here.

If you're headed to Dallas for MBA Servicing, join Covius and Guardian Asset Management at our private cocktail reception downtown Tuesday, 2/4 at 6 p.m. Serving farm-to-table fare and scratch cocktails with a vintage twist, our evening at 3Eleven Kitchen & Cocktails is sure to be the perfect kick-off to MBA Servicing! Be sure to also schedule a meeting to talk with the Covius team while at the conference to learn more about our solutions designed to help servicers control risk and assure compliance, including default title, loss mitigation, title curative, REO & auction, doc prep, compliance solutions and more.

With homeowners sitting on roughly $11.2 trillion in tappable equity and first mortgage interest rates holding steady in the high 6-7% range, will 2025 be the year of home equity? Are you ready to capitalize on this market and help your borrowers leverage their equity? Join FirstClose at the next month's ICE Experience to see first-hand how our cutting-edge technology can give you the competitive edge you need to thrive in 2025. Schedule a meeting with FirstClose.

Want a simple way to connect with Spanish-speaking homebuyers? Built specifically for lenders using Encompass® by ICE Mortgage Technology™, the LiteSpeed POS by LenderLogix offers a Spanish mortgage application, so you can serve more customers and build their trust from the start. By speaking their language, you'll make the process smoother and show you care about their needs. Let LiteSpeed help you open doors to new opportunities and stronger relationships.

Lower income families and lending

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In recent years, lower-income households have faced mounting financial strain due to slower wage growth, rising costs for essentials, and increased reliance on credit. While higher-income households are better positioned to weather inflationary pressures, the widening gap between these groups has significant economic and political implications, writes Robbie Chrisman in the latest Thought Leadership piece on the new Chrisman Commentary website. The disparity in consumer spending, where wealthier households account for a disproportionately large share of overall expenditures, has been masking the struggles of lower-income consumers, whose financial health continues to deteriorate. With declining savings rates, rising debt levels, and increased delinquencies, many lower-wage earners are finding it harder to maintain their purchasing power. As the Federal Reserve grapples with inflation control, policymakers must balance the need to stabilize the economy with the risks of exacerbating the financial challenges faced by vulnerable workers. This growing divide underscores the need for a nuanced approach to monetary policy that considers the disproportionate impact on lower-income households. Read on.

No quick fix in California’s Los Angeles County

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Lenders and servicers, dealing with fire damage in Hawai’i, flooding and wind damage in much of the Southeast, are now girding their loins for the damage in LA County. Data is being tabulated, and that will take a long time, but the fires will probably be the costliest disaster in US history, and may top $300 billion, or 1% of GDP. Five major banks are offering forbearance, but if one thinks about the local bank financial concentration, it is going to be tough. Of course, land value is not insured, replacement building codes will be different, replacing structures will be problematic if you can rebuild at all given the changing of zoning over the decades. Forbearance gives owners a limited time to figure all this out, and then deal with replacement requirements, the lack of supply of builders, labor, and material.

Of course, more than just owners, well-off and not well-off, are impacted. Think of all the pool boys, house cleaners, gardeners, the small businesses in burned areas, what has gone into the skies, what will happen in heavy rain.

Federal and state financial regulatory agencies issued an interagency statement on supervisory practices regarding financial institutions affected by the California wildfires and straight-line winds.

“California MBA has been monitoring the wildfire crisis in Los Angeles, and we are deeply saddened by the devastation that has occurred for so many homes and businesses. The recovery and rebuilding process will be complex, and the real estate finance industry will be an important partner in ensuring that borrowers can access the information, resources, and relief programs available.

“California MBA worked with the Governor Newsom’s Administration and five major financial institutions to develop a plan to provide mortgage relief for the fire victims, offering up to a 90-day grace period on mortgage payments, 90-day waiver of late fees, and 60- to 90-day moratorium on new foreclosures for property owners whose structures were damaged or destroyed. The Governor’s press release on this plan is here. The initial commitments were made by Bank of America, Citi, JPMorgan Chase, U.S. Bank, and Wells Fargo; please note that lenders licensed by the DFPI will be contacted to confirm that similar commitments can be made by servicers across the state.”

PHH Mortgage announced it is suspending the purchase of all loans located in Los Angeles County due to the recent and ongoing wildfires.

Webinars and training to finish the week

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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. Nearly 50-year vet Joe Garrett joins the call today.

Join MMA for an hour of learning about and how to use this tool in your profession. Danielle Swerczek, Senior Account Manager from MGIC, will be leading this instructional webinar. Register for Mortgageconnects Webinar on January 22, 9:00-10:00am., free for Members and $15 for Non-Members.

MAXEX has its 2025 Kickoff Webinar on January 22 to learn more about new offerings.

We have the Mortgage Bankers Association’s Chief Economist, SVP, Research and Business Development, Dr. Michael Fratantoni, on the 2025 Economic Outlook: Navigating Trends and Opportunities webinar January 22nd from October Research, LLC. Gain a deep understanding of the key trends shaping the housing market and national economy, including the latest on interest rates, home price dynamics, the growing housing inventory, potential market recovery and the effect of tax policy changes.

Join ActiveComply’s webinar series: Compliance & Coffee with Melissa Grindel, where top industry experts break down the latest mortgage compliance trends over your favorite brew. Each session delivers valuable insights into regulatory updates, best practices, and strategies to navigate the complex mortgage landscape. Join in on Wednesday, January 22nd, at 2pm ET to hear from industry expert Mitch Kider, Chairman and Managing Partner of Weiner Brodsky Kider, PC. To secure your spot, register here.

Thursday 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. This week’s has Peter Benjamin who heads up ACUMA!

What 2025 Will Bring for Mortgage Regulation: MBA of Metropolitan Washington’s webinar to learn how to start the year right in regulatory compliance. Thursday, January 23, 1:00 - 2:00 ET., free to members, $25 for non-members.

Joe Leone, Group VP at Genesee Regional Bank, and Richard Grieser, VP of Marketing at Truv, are on January 23, 2PM ET for a live demonstration showing how Truv’s innovative solution delivers significant savings without compromising data quality. Between 2017 and 2023, the leading provider increased prices by an astounding 141%. It’s no surprise lenders are searching for better, more affordable options.

The National Association of Realtors® (NAR) is holding a policy forum this Friday, January 24, in Washington, DC, entitled "A Nation of Homeowners: How Tax Reform Can Boost the American Dream". NAR is hosting this forum as a new Congress and Administration address the expiring Tax Cuts and Jobs Act provisions. The forum will bring together policymakers and national thought leaders to discuss how tax reform in 2025 can create new pathways to homeownership for more Americans.

Friday, listen in to opinions (Last Word Fridays at 1pm ET) from Jodi Hall, Kevin Peranio, Christy Soukhamneut, and Brian Vieaux! Register here.

Capital markets: pretty quiet out there

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Without many, or any, economic releases of note yesterday, attention turned squarely to news stories emanating from Washington D.C. Fed funds futures are signaling no change to the Fed Funds rate next week, and there's still uncertainty for the remainder of 2025, with futures predicting anywhere from no cuts to one, or possibly two or more. If the U.S. central bank isn't driving rates lower, it’s tough to imagine what could. President Trump may have signed a slew of executive orders over the course of his first two days in office but is yet to impose tariffs. It has been reported that a 25 percent tariff on Canadian and Mexican goods kicks in on February 1 and the President is still considering universal tariffs.

Mortgage pricing is based on supply and demand, so investors watch early pay offs. An updated look at February agency prepayments was released yesterday, and according to consensus, FN30 speeds are now seen decreasing 15 percent month-over-month on average versus -17 percent previously. The suspected culprit is weaker turnover seasonals more than offsetting a modest uptick in refinancings (day count is unchanged). FN15s are seen slowing slightly less at 12 percent on average versus -14 percent previously, with GNII slowing more at 23 percent versus 22 percent in most preliminary outlooks. Month-to-date gross issuance of $70.9 billion is currently running behind recent months.

An MBA report showing that mortgage applications increased last week 0.1 percent from one week earlier kicked off today’s economic calendar. During the reporting period, the 10-year yield fell 16-basis points (after increasing 17-basis points the prior week), with the 30-year benchmarks from Mortgage News Daily and Bankrate falling 16-basis points and 3-basis points, respectively, to 7.08 percent and 7.31 percent.

Later today brings leading indicators for December, Treasury activity that will be headlined by an auction of $13 billion reopened 20-year bonds and a buyback (for liquidity’s sake) in 3-year to 5-year coupons for up to $4 billion. We begin Wednesday with Agency MBS prices unchanged from Tuesday’s close, the 2-year yielding 4.27, and the 10-year yielding 4.57 after closing yesterday at 4.57 percent.

A building contractor was being paid by the week for a job that was likely to stretch over several months. He approached the owner of the property and held up the check he'd been given. "This is two hundred dollars less than we agreed on," he said.

"I know," the owner said, "but last week I overpaid you two hundred dollars, and you never complained."

The contractor said, "Well, I don't mind an occasional mistake. But when it gets to be a habit, I feel I have to call it to your attention."