Rob Chrisman's

Daily Mortgage Commentary

  • Mar. 24: LO, AE, sales mgt. jobs; Experian fined by CFPB; jumbo program news; lender & Agency technology updates

    March 24, 2017

    Let’s end the week by me stating that I will never be pregnant. But if I was, I don’t think I’d want my labor streamed around the world. But such is the plight of April the Giraffe, sponsored by Toys R Us.
     
    In retail news, Mountain West Financial is excited to announce that James Butschek has accepted the position of RVP of Production for AZ, CO, NM, NV, UT. James has 25 years of experience with a variety of roles including Top Producing LO and Branch Manager, Regional Management and Ops Management. “I’m very excited to be joining Mountain West Financial. This is a long-established and well respected company, that’s the perfect size for today’s environment – large enough to enjoy all the product and underwriting benefits of being a direct seller/servicer, but not too large to still be nimble and aggressive in individual markets. 2017 is a purchase market. But Loan Officers need an edge to compete, and I’m most excited about the MWF platform that I’ll be able to share with purchase-focused Loan Officers. Superior products, cutting edge marketing, great pricing and seamless operations support will help my LOs thrive,” said James. If you would like to join our growing channels, please contact him at 480-454-2555 or click his name.
     
    In wholesale news, REMN Wholesale understands that when it comes to the financial institutions channel, relationships and customer service are everything. With that in mind, the lender recently announced that David Margulies, a 30-year industry veteran, has joined the company in the role of Director of National Sales of Financial Institutions and Strategic Alliances, specifically to reinforce REMN’s commitment to credit unions and community banks across the country. A nationwide wholesale lender, REMN has continued thrive through its diverse product line, supported by a dedicated helpdesk team and industry leading commitment to same-day turn times on new files. As Margulies looks to cement relationships and expand REMN’s reputation with financial institutions, he is seeking out experienced account executives in all markets who share the lender’s dedication to customer service both in Iselin, N.J., and key regions around the country. Interested applicants should send their resumes to aerecruiting@remn.com for consideration.
     
    Today, choosing the right sub servicer is more difficult than ever.  Adding to the complexity of that choice, is the fact that some of the firms traditionally providing sub servicing may be under tremendous financial pressures limiting their abilities to continue as going concerns or at a minimum curtailing their operational capabilities to afford proper levels of customer and client service.  A company’s financial wherewithal is fast becoming a prominent part of the diligence guiding the right sub servicer choice. RoundPoint is a strong financial institution and a great choice on all fronts as a sub servicer.  For complete information on RoundPoint’s sub servicing, please contact Allen Price at 704.426.8846.
     
    Banks supported by the Embrace Home Loan’s operational fulfilment services program last year enjoyed 3-times industry average growth rates! Optimizing Embrace’s technology and talent, each bank differentiated themselves in their markets by the exceptional experiences created for their loan officers, referral partners and customers. Buoyed by these record performances, and now the support system needed to compete, each bank is eager to grow their sales teams in 2017 – and so is Embrace. Up to now, all banks supported have come to Embrace via word-of-mouth…today Embrace is looking for a seasoned sales professional, with a demonstrated history of presenting outsource solutions to C-level bank executives. Embrace is licensed nationally, and thus this position can reside anywhere. Interested candidates should contact Derek Lombard, Director of HR (800.333.3004 x3097).
     
    On the retail side, Assurance Financial continues to expand after increasing production by 29% in 2016 while opening several offices in new markets throughout the country! The company has a solid reputation for closing loans on time, appealing to anyone wishing to grow their origination business. Our back office supports its mortgage loan originators and branch managers so they can focus on originating more new loans rather than worrying about closing their pipeline. Assurance plans to expand its footprint further this year by selectively hiring producing branch managers and MLOs in good markets. For more information, contact Paul Peters, CMB at 225-239-7948 or visit LendTheWay.com/Careers.
     
    Upcoming events
     
    MBA Education is hosting a webinar on March 28th to review the OCC’s special purpose national bank charter and its potential impact on mortgage lenders.  This special purpose charter could be an attractive option for residential mortgage lenders who would benefit from a more streamlined supervisory and examination regime, exportation of interest rates and certain fees, and preemption of certain state lending requirements, including licensing. Attendees can expect to learn how the charter can help lower compliance costs, how to begin preparing an application and business plan, and how the new administration and regulators may impact the charter. This webinar is complimentary to MBA members; click here to register.
     
    If you’re interested in, “Attracting Millennial Buyers: Insights For Mortgage Lenders,” Erin Lantz, VP & GM of Mortgages at Zillow Group is hosting a webinar on Wednesday, March 29th, at 2PM ET/11AM PT. Register here.
     
    Hey, if you’re in Southern California on Tuesday night, April 11, the North San Diego County Escrow Association and Notary Near You are hosting “Bring Your Favorite Real Estate or Mortgage Broker to Dinner.” Cocktails at 5:30, dinner at 6:15 at the Shadow Ridge Country Club in Vista, and yours truly will be speaking afterward. Please contact Tracie Gressmen for more details and registration.
     
    In legal news…
     
    Experian, one of the nation’s three major credit reporting bureaus, misled consumers by telling them that the credit scores they purchased from the company were the same ones that lenders used to make credit decisions, the Consumer Financial Protection Bureau said yesterday. And for that deception, the CFPB is fining Experian $3 million. Peers Equifax and Transunion reached a settlement on similar allegations in January.
     
    Jay Clayton, President Donald Trump’s nominee to be chairman of the Securities and Exchange Commission, said the Dodd-Frank Act should be looked at to see if its objectives are being achieved, but he doesn’t have "specific plans for attack" against the law. The SEC should continue its work on rules mandated by Dodd-Frank that haven’t yet been completed, he said.
     
    Technology & system updates? Yup!
     
    Gibran Nicholas, CEO of CMPS Institute and creator of the CMPS Platform recently wrote a white paper called How Technology Changes the Game for Mortgage Lead Conversion. I was astonished that a 1% uptick in lead conversion rates has a whopping $450,000 impact on annual profitability per 100 loan officers. Conversely, a 1% decrease in lead conversion rates carries an annual cost of $450,000 per 100 loan officers to your company’s bottom line. Click here to download the white paper.  Reach out directly to Gibran@CMPSInstitute.org if you’re interested in meeting up with him at MBA technology conference next week.
     
    The FHFA released an update on the implementation of the CSP and SS for the GSEs. Release 2 now calls for the SS to be introduced during Q2 2019 vs. what was initially expected to be during 2018 due to more time needed "for the development, testing, validation of controls, and governance processes necessary to have the highest level of confidence that the implementation will be both smooth and successful."
     
    C.L.A. Title has a new free online quoting calculator. Give it a try.
     
    loanDepot, launched its proprietary digital lending platform (DLP), part of an $80 million investment in technology over the last 18 months. The first three proprietary technology solutions comprising loanDepot’s DLP, appropriately named mello™ includes an intuitive web-based consumer portal, a state-of-the-art mobile point of sale system, and a fully digital mortgage loan application experience. These solutions will be seamlessly integrated with the company’s scalable web-based loan origination system (LOS), accessible to consumers and lending professionals via collaborative dashboards from mobile or desk top devices. loanDepot’s mello™ exists within a larger fintech ecosystem boosted with the integration of digital marketing tools and by third-party data enrichment that ensure greater accuracy, speed and certainty throughout the origination experience. mello™ will evolve loan origination to become a fully digital practice on a massive scale that intuitively becomes a faster, easier, and more accurate experience with greater certainty.
     
    Pacific Union announced that FlexKey – Expanded and FlexKey – Restart have been combined into a single Program Guide as part of a redesign effort to promote better functionality for determining FlexKey eligibility and remove duplicate policies. A new FlexKey Credit Grade Calculator has been developed to assist in determining the credit grade for a loan scenario.
     
    To streamline and expedite the Credit Review process, Pacific Union will soon be changing the way that non-delegated correspondents upload credit packages. Rather than submitting a single credit package as one bulk upload, new functionality will allow users to upload documents contained in the Credit Package by document type. To watch a quick video and learn more about this pending enhancement, click here
     
    Jumbo news
     
    One way to obtain leads is through advertising, right? How about this Redwood Trust ad for its 90% LTV jumbo product?
     
    Caliber Home Loans has expanded its Jumbo product. Highlights include lowered FICO and 90% LTV with no MI. Jumbo pricing has been improved by at least 50 BPS and there are new enhanced guidelines on its Caliber Jumbo Fixed and ARM programs.
     
    Plaza’s Jumbo Programs have specific appraisal ordering requirements. Appraisals for Plaza’s Jumbo program MUST be ordered by selecting the Jumbo loan type in the appraisal order screen; do not select Conventional when ordering a Jumbo appraisal. If Jumbo is not selected, the appraisal will not be ordered correctly.
     
    Capital Markets
     
    The story in the markets is that stocks and bonds may be giving back the Trump reflation trade, where bonds sold off and stocks rallied on the prospect of fiscal stimulus out of Washington. Donald Trump is getting a lesson in the limitations of the bully pulpit as health care reform is tougher than he thought. Repealing and replacing Obamacare is the "pay for" for fiscal stimulus and tax reform, so if it doesn’t happen then part of the basis for the post-Trump stock market rally is in jeopardy. 
     
    Health care reform’s vote was delayed yesterday, but is supposed to go to the House today. If it passes, that might be good for stocks and bad for bonds. If it fails, it is bad for stocks and good for bonds (in other words, if it fails, interest rates are probably heading lower). The months-long equity rally has been based largely on improved nominal growth and anticipation of US tax reform and both those underpinnings are still in place.
     
    Certainly interest rates are almost an afterthought with other news grabbing attention: stocks trading in positive territory, an AHCA (health care) vote that is now postponed until today or possibly Monday, New Home Sales in February ran at the second-highest seasonally adjusted annual rate since 2007. (February was one of the warmest on record and that should have bolstered new home sales. To keep things in perspective, between 1996 to 2006, new home sales ranged from 714K to 1389K, so the current level is extremely low.)
     
    The 10-year yield pushed back above 2.40%, with aid of a morning bounce in equities, hitting a high of 2.44% before ending the day at 2.42%. Current coupon agency MBS prices worsened about .125.
     
    Today we’ll have several Federal Reserve speakers from various districts and with varying topics. Whether they say anything new remains to be seen. Ahead of that jawboning we’ve had February’s Durable Goods orders: +1.7%, higher than forecast. Rates are nearly unchanged with the 10-year at 2.42% and agency MBS prices off a shade.
     
     
    (Thanks to Thomas A. for this one.)
    This is something all 70+ year old’s, or close to, can look forward to and is something that happened in an Aged Care Center.
    The people who lived there have small apartments but they all eat at a central cafeteria.
    One morning, one of the residents didn’t show up for breakfast so my friend went upstairs and knocked on his door to see if everything was OK. She could hear him through the door. He said that he was running late, and would be down shortly, so she went back to the dining area.
    An hour later, he still hadn’t arrived so she went back up towards his room and she found him on the stairs. He was coming down the stairs but was having a hell of time. He had a death grip on the hand rail and seemed to have trouble getting his legs to work right.
    She told him she was going to call an ambulance but he told her no, he wasn’t in any pain, and just wanted to have his breakfast. So she helped him the rest of the way down the stairs and he had his breakfast
    When he tried to return to his room he was completely unable to get up even the first step so they called an ambulance for him.
    A couple hours later she called the hospital to see how he was doing. The receptionist there said he was fine, he just had both of his legs in one leg of his boxer shorts.
     
     
    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, “Are You Sure that Rates are Going Higher?” If you have both the time and inclination, make a comment on what I have written, or on other comments so that folks can learn what’s going on out there from the other readers.
    Rob
     
    (Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. Currently there are over 300 mortgage professionals looking for operations, secondary and management roles. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2017 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)
     
     

  • Mar. 23: COO, AE, LO jobs; from apps to secondary, soup to nuts, vendors are announcing changes

    March 23, 2017

    Have you been asked to join the Trump Administration’s new group focusing on mortgage finance policy? No? My cat Myrtle hasn’t gotten the nod (yet) either, but if you want on, you’d better give them a call. Mark Calabria, chief economist to Vice President Mike Pence, said the Trump administration is developing a group to focus on mortgage finance policy. "You will see in a few months a set of principles, and then we’ll go from there," Calabria said.   Verus Mortgage Capital, a leading Non-Agency/Non-QM correspondent investor, continues to see record monthly volumes due to its “expansive product offering and new correspondent sellers joining the platform monthly.” “Many companies are looking to Verus and its innovative product offering to offset the impact from higher rates” said Dane Smith President of Verus. In February Verus’s affiliate Invictus Capital Partners completed

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  • Mar. 22: Secondary, retail, wholesale, corres. jobs; CFPB reform update; Fannie, Freddie, lender conforming changes

    March 22, 2017

    “Dance like no one is watching. E-mail like one day it may be read aloud in a deposition.” Pithier legal news below.   Arvest Bank, a privately held regional bank is seeking a Secondary Marketing Manager for its mortgage division. Arvest Bank is a $2 billion a year retail originator with a significant interest in mortgage servicing. They are a direct seller to Fannie, Freddie, and issue Ginnie Mae MBS. As a bank, portfolio lending is also part of the production mix.  This position oversees all secondary market/capital market activities for the mortgage division and is in Tulsa, Oklahoma. Serious inquiries only; please contact or send resumes President & CEO of Arvest Bank’s Mortgage Division Steven Plaisance.   Sierra Pacific Mortgage is looking to expand its Wholesale and Correspondent Lending Divisions by aggressively seeking talented account executives nationwide. The 30-year old lender recently experienced a

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