Aug. 21: DSCR, HELOC, VA IRRRL, market analysis, and AVM products; training and events up to, and past, Labor Day
This morning, I head from Los Angeles to Orlando, FL for the big NAMMBA Connect event. I received this question. “Rob, in your travels, are you hearing that there might be new thinking when it comes to LO comp issues?” The industry, the MBA, the CFPB, and others know that the firm guidelines for LO compensation need to be reviewed, and hopefully with industry input. If you ask any LO out there, they’d like to see the rules change for bond loans, for competitive reasons (which actually help borrowers), or for mistakes. Oddsmakers in Las Vegas believe that if and when a change in LO comp happens, it will be centered on bond loans since changing LO comp rules would actually help bond borrowers, often low- or moderate-income people, “get on” the home ownership train. (Today’s podcast is found here and this week’s is sponsored by Candor. Candor’s authentic Expert System AI has powered more than 2 million flawless, hands off underwrites. Every credit risk decision Candor makes is backed by a Warranty, eliminating repurchase worries. Hear an interview with Argyle’s John Hardesty on the latest happenings from his company, including the intensive vetting and testing required to earn status as a GSE-approved provider.)
Lender and broker software and services
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Ask yourself this question: when evaluating the current market value of a subject property, are you using the best AVM on the market? We understand that when making critical business decisions, accuracy, and details matter. That’s why we’re highlighting First American Data & Analytics and their Procision AVM to have your back. First American’s Procision AVM updates and tests every residential property in the United States and updates the models' underlying data on a daily basis. And the best part? Their AVM is designed for your specific business need – so you get the best results and highest satisfaction. But don’t just take our word for it – their data speaks for itself. As a nationwide, single-source data provider, First American Data & Analytics will fuel your biggest ideas so you can focus on growing your bottom line. Learn more about the Procision AVM and receive a free data sample.
ICYMI: Optimal Blue released the Market Advantage report last week with July origination activity leveraging daily rate lock data from the Optimal Blue PPE, the industry’s most widely used product, pricing, and eligibility engine. Notably, July showed a surge in mortgage refinance demand amid softening interest rates, hitting the highest levels since September 2022. “The July report shows a notable uptick in rate-and-term refinances, which jumped 12% as borrowers responded to declining interest rates,” said Brennan O’Connell, Optimal Blue’s director of data solutions. The Optimal Blue Mortgage Market Indices 30-year conforming rate ended July at 6.67%, down 26 basis points from June, playing a significant role in the refinance demand. Released monthly, the Optimal Blue Market Advantage offers early insights into U.S. mortgage trends. Unlike self-reported surveys, this report uses direct-source mortgage lock data, accurately reflecting in-process loans in lenders’ pipelines. Read the news release to access July origination data.
Did you know it’s possible to close loans in an average of 15 days? Investing in automation now is key to streamlining your underwriting processes and setting yourself up for future success. Click here to learn how the ICE Mortgage Analyzers™ and ICE Data & Document Automation™ can help you improve accuracy and loan quality, accelerate closings and provide a better borrower experience.
Maxwell’s newly released Q2 2024 Mortgage Lending Report sheds light on current lender challenges and the home buyers driving volume in today’s market. In Q2, industry loan volume fell 4% YoY, and rates remained elevated at 7.2%. As homeowners looked for other ways to access their equity, HELOCs more than doubled compared to their historical average. Maxwell data also found that many average income earners were edged out of the market as median home buyer income rose to $8,000 per month, or $96,000 per year. Want to gain exclusive lending data, including a deep dive into the home buyers driving market activity? Click here to download Maxwell’s Q2 2024 Mortgage Lending Report and gather takeaways from Q2’s performance that will help you optimize your mortgage volume in the second half of 2024.
Home equity and other broker & correspondent products
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“Arc Home is excited to announce the upcoming launch of HomeEQ, a fully digitized Home Equity Line of Credit (HELOC) solution designed to streamline the borrowing process. With HomeEQ, brokers can offer their clients a seamless, all-digital experience—from application to funding in as little as 5 days. This innovative product will help you expand your offerings and meet the growing demand for fast, flexible financing. Want to learn more and get ready for the October launch? Visit our website for more details or email Shea Pallante to see how HomeEQ can enhance your business. With HomeEQ, it's equity made easy.”
Verus Mortgage Capital is reminding lenders that almost 50% of mortgaged residential properties in the U.S. are considered equity-rich according to ATTOM’s Second Quarter 2024 U.S. Home Equity & Underwater Report. Verus Home Equity Lines of Credit (HELOCs) help your borrowers get the most out of their home’s equity. Give them access to cash for home improvements, education, high-interest rate debt consolidation and more. Standard income or alternative income documentation accepted with loan sizes up to $500k. Think beyond conventional. Trust the leader in non-agency. To learn more, contact Jeff Schaefer, EVP – National Sales, at 202-534-1821.
“Be a Hero for Veterans with Kind Lending's VA IRRRL Hero Pricing! Supercharge your business and empower your Veteran clients to save with our limited time offer giving a .25 price improvement on ALL VA IRRRL loans. Regardless of loan amount, term, occupancy type, or credit score, you’ll put more money back in your client’s pockets with this pricing incentive. Tired of trigger leads? Kind Lending permits one credit score, mortgage only, soft pull credit reports! Don’t miss out on locking unbeatable rates for your active military and Veteran clients! Hop into Kwikie, our advanced Broker portal, to experience a happy beginning AND ending with Kind Lending. Contact your Kind Account Executive to learn more and get your VA IRRRL loans locked before this offer ends. Not a partner with Kind? Visit Kind to get started today!”
“Visio Lending is breaking records with a relentless focus on improving our Broker Experience. Visio is the nation’s leader in Non-QM Investor DSCR loans for buy and hold SFR rentals with nearly a decade of experience and over $3 billion in originations. No-DTI, 30-year terms, rate buy downs, free 45-day rate locks; I/O and Sub-1 DSCR options available. New broker processing fee and now choose your own title company (including on refinances). Through our top-notch Broker Program, brokers are able to earn up to 2 points YSP, and 5 points total. Visio Brokers can count on a designated Account Executive and in-house processing.”
Events
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A good place for longer term conference planning is to start is here for in-person events in the future.
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’s guest is Jon Gwin of Fathom Holdings.
Thursday, August 22nd, will be another episode of The Big Picture at 3PM ET… Rich Swerbinsky hosts a variety of guests, including Kristin Messerli and Dave Savage this week discussing FirstHome IQ.
Whether you are an entry-level individual or a seasoned professional, MBA Education offers learning solutions from loan production basics to in-depth explorations of profitability, risk management, regulatory compliance, and best practices. Check out other online offerings, including webinars and select self-studies that are free to members. View all MBA Education complimentary offerings.
NAMMBA CONNECT 2024, August 21-23: Whether you specialize in innovative technology, leadership strategies, or industry trends, you’re invited to join in shaping the future of the mortgage industry. It is always a fine event as Tony Thompson fires up the crowd!
Guild Mortgage is offering a webinar on Reverse Mortgages on Thursday 8/22 at 10AM PT. With Guild’s new reverse mortgage calculator, you can quickly estimate borrower benefits and broker/LO comp on one screen. Share webinar link with your mortgage partners.
Join NAMB and MLOs Branding Academy for a two-day Masterclass, Monday, August 26 and Tuesday, August 27 at 11am PT. Learn a simple and actionable strategy to generate leads like clockwork with “Mortgage Webinar Marketing Secrets.”
The MISMO Fall Summit is in Reston, Virginia, August 26-29 for a jam-packed program filled with presentations and strategy sessions focused on some of the most pressing issues in the industry. In-person and virtual attendance options are available. Early bird pricing extends through July 15, but space is limited, so register before it's too late.
Come join MBAH for an informative event at BoxJelly | Hawaii's Original Coworking Space, Wednesday, August 28 · 5 - 7:30pm HST, and hear discussions how the NAR settlement will affect real estate strategies, lending practices and buyer behavior. Guest Presenter: Patrick O'Neill, Hawaii Association of Realtors, Standard Forms Committee Chair.
Fannie Mae has two new property insurance training modules to help ensure that lenders and servicers are well-versed in the unique needs for one- to four-unit properties and project developments (PUDs, condominiums, and co-ops). Review the one- to four-units module and View the PUDs, condominiums, and co-ops module. Available later this summer, new flood insurance training will provide a thorough understanding of the key flood insurance requirements for the same property types.
National MI upcoming September 2024 webinar sessions:
September 4-6 the NY MBA is taking over the Turning Stone Resort Casino in Verona, NY with a slate of top-notch speakers and information.
In the inaugural edition of IMN’s HEI & Home Equity Capital Markets Forum, September 5-6 at the Marriott Downtown in Austin, TX. The initial response has been overwhelmingly encouraging and we are anticipating 400-500 attendees, including all of the notable Issuers, Originators, Investors, and Servicers in the space.
The Federal Housing Finance Agency (FHFA) announced the first meeting of the Advisory Committee on Affordable, Equitable, and Sustainable Housing (ACAESH). The ACAESH meeting will be in person September 10-11 at FHFA’s headquarters in Washington, D.C., with video and audio coverage available. Members of the public interested in watching the ACAESH meeting can attend in person or virtually. The meeting agenda and registration information will be available at https://www.fhfa.gov/programs/acaesh. In-person attendance will be limited. Full details on the meeting can be found in the Federal Register notice.
Advanced Underwriting the Self-Employed Borrower with Marianne Collins: September 10th at 1pm ET.
Join Optimal Blue, Tuesday, September 10, 12 p.m. CT for the next session in its Hedging webinar series, Hedging 301, as they take a deeper dive into more advanced capital market strategies and how to effectively manage your mortgage pipeline.
A&D Mortgage is looking forward to attending the Great Northwest Mortgage Expo in Seattle on September 11, Washington's largest gathering of mortgage professionals. Come meet with members of the A&D Team to learn about the exciting loan and tech solutions. Use ADFREE promo code to get complimentary access to the exhibit hall, breakout sessions, and networking events.
Register for the New England Mortgage Bankers two-day conference, September 11-13 in Portsmouth NH. Hear from a range of speakers, learn about new technologies and products, join golf and social events.
9/12-9/13, the Mississippi MBA’s Fall Conference will be held at the Sheraton Refuge in Flowood, MS. “Our theme, Elevate Your Impact, reflects our commitment to empowering mortgage bankers with the latest insights, strategies, and tools to make a significant impact in our industry.”
There’s the Zelman & Associates 2024 Housing Summit, Thursday, September 12th & Friday, September 13th in Boston, MA. The cost to register is $1,595.
Have you heard about (read: registered for) some of our expanded media offerings? 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, presented by BILT Rewards), 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: cautious eye on labor trends
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With most capital markets folks here in LA at the California MBA’s Western Secondary Market Conference, it was a quiet day in the bond markets yesterday ahead of today's main events: the benchmark revisions for nonfarm payrolls for April 2023-March 2024 and the release of the minutes for the July 30-31 Federal Open Market Committee meeting. Though the “flash crash” from 10 days ago seems like a distant memory, the notion still exists that many of the world's leading central banks, particularly the Federal Reserve, will soon be shifting to a less restrictive policy stance (if they haven’t already). There has also been some chatter about origination volumes starting to pick up, but most people remain cautiously optimistic ahead of any impending cuts.
That optimism is good because the labor market seems to be deteriorating. The proportion of job seekers has increased dramatically in recent weeks to the highest rate in a decade, almost all of the growth in the number of jobs is due to statistical adjustments (accounting for births, deaths, expected retirements, etc.), and summer surveys have reported lowered satisfaction of one’s job.
Today’s economic calendar kicked off with mortgage applications from MBA, which decreased 10.1 percent from one week earlier. Later today brings the nonfarm payrolls preliminary benchmark revision, several Treasury auctions that will be headlined by $16 billion new 20-year bonds, and the minutes from the July 30/31 FOMC meeting. The U.S. Treasury will also conduct a buyback in the 1-year to 7.5-year TIPS sector for up to $500 million. We start “hump day” with Agency MBS prices unchanged from Tuesday’s close, the 10-year yielding 3.82 after closing yesterday at 3.82 percent, and the 2-year at 3.99.
Occasionally the Commentary has a fictional story about the evolution of a word using the initials from "Stack High in Transit" in shipping. It turns out there is a banking tie-in when I received this note:
"My brother receives your commentary and was telling me of his own 'Stack High In Transit' story.
“He worked for a local community bank many years ago where occasionally a loan application would come back from loan committee rejected and marked ‘NFW.’
“The compliance officer of the bank hated to see that noted, of course, until my brother told him to think of it as, ‘No Financial Wherewithal’ versus what we all know it meant.
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 blog is titled, “Hiring: Do You Remember How to Do That?” 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.)