Daily Mortgage Commentary
Aug. 22: AE jobs, LO products, company moves; state-level power of attorney changes; tweak LIBOR rather than eliminate?
August 22, 2017
This week I am in Overland Park (KS) and Nashville (TN), and San Francisco – different real estate markets. Yet the story I hear from LOs to investors is the same: “Loosen up the credit guidelines all you want, but if there’s no inventory of houses for sale or being built, then I’ll merely have 20 prequals on my desk instead of the 10 I have now.”
Jobs, personnel, LO products, & company news
It’s official! The wait is over. Yesterday, Nationstar Mortgage became Mr. Cooper. “It’s the beginning of a new era in home loans. Our transformation to Mr. Cooper is a triumph for our team, a bold opportunity for our partners and a fresh approach for our borrowers. More than a brand name change, we’ve made significant investments to ensure customers have a caring, transparent and seamless experience. On our journey to Mr. Cooper, we’ve invested in the customer experience by introducing a newly redesigned website, launching a mobile app, reimagining the new borrower experience, and moving our customer service call center operations to the U.S. We are grateful to our clients who trust us as a partner. While we are excited for our transformation to Mr. Cooper, we are far from done. We look forward to introducing new products to our customers and providing valuable solutions for our partners.”
Pacific Union Financial, LLC continues its expansion of the West Division with the hiring of Dennis Waller as the new Regional Wholesale/Non-Delegated Correspondent Sales Manager for the Northwest and Rocky Mountain States. Mr. Waller is an industry veteran who brings years of experience leading Sales. "I am very excited to join the Pacific Union Financial Wholesale and Non-Delegated Correspondent Division. The West Division team is truly providing the best experience for our Broker and Non-Delegated partners and their borrowers. My goal is to attract like-minded sales professionals and continue to aggressively grow our footprint in these markets," Waller said. Mr. Waller is looking to build a strong team of Account Executives and will be hiring in WA, CO, OR, UT, ID, MT, WY and AK. If you are an experienced Wholesale or Non-Delegated Account Executive and interested in joining a company that is financially strong with competitive products and pricing, please contact Dennis Waller or Susan Trejo, Corporate Recruiter.
Get your complimentary whitepaper from XINNIX, “Source, Train, and Assimilate New Loan Officers." Written by XINNIX CEO Casey Cunningham and featured in The Mortgage Professional’s Handbook, this resource shares powerful strategies you can use to bring incredible new talent onto your team and empower them to reach their full potential! Click here to download your free copy today!
“Did you know that LendingQB has a fully integrated AUS that can support non-QM loans better than any pricing engine? In fact, LendingQB’s AUS is one of the few systems that can dissect an entire credit report for non-QM loan eligibility analysis – a tremendous value for any lender providing non-QM loans. Just another example of how LendingQB keeps you ahead of the curve. For more information, visit LendingQB. LendingQB stands out from the competition. Request a demo TODAY! Call 1.888.285.3912.
I’m confident in the future of non-bank lenders. Tech companies provide low-effort deployment of digital mortgage solutions for them to compete. Maxwell, who recently shared that LendingQB joined their Connected Apps platform, is a great example. Maxwell is the leading digital mortgage solution for independent mortgage companies and TPOs alike. They’re scaling quickly, having facilitated $5B in origination volume in the last year. It’s incredible to see how a user-friendly experience can take the industry by storm! Automated doc collection, verifications, smart 1003, text and email notifications, Realtor updates, dynamic team collaboration, and more. I almost wonder how we lived without a tool like this! As lenders, you should expect digital mortgage platforms to be deployed quickly, with minimal effort. The team at Maxwell has told me they are closing mortgages 45% faster than the industry average, substantially boosting production for their clients. The industry standard has already moved to the digital mortgage. Learn more about it here.
American Pacific Mortgage Corporation (APMC), has selected Total Expert to be their CRM, Marketing, and Co-marketing technology platform for the future. This selection was made based on a rigorous vendor selection process. A Request for Proposal was issued to 17 different CRM vendors. Based on in-depth feature and technical discussions to ensure that APMC has the most robust solution both now and in the future, Total Expert was selected as the platform best suited to help APMC grow production. Keith Becher, Chief Operating Officer at APMC stated: “Finding the right CRM was one of our highest priorities. The vendor had to provide excellent marketing resources and support, social media management capabilities, and seamless system integration with our other platforms, and be as serious as we are about providing tools to make our producers look great. Total Expert was the only solution that fully met these requirements!” To learn more about Total Expert, visit https://totalexpert.com/.
No starter homes? One reason is that big companies are buying them up for rentals. More and more companies buying up single-family homes to rent out to American families that cannot own a home on their own. Recently 2 of the largest companies in this space merged to create a stock jump for each company – Blackstone’s Invitation Homes (INVH) and Starwood Waypoint Homes – and accounts for almost 100,000 homes nationwide.
State-level power of attorney news
Yes, California has 20 million people more living in it than New York. The Census Bureau reports the top 10 largest states in population in 2016 are: CA (39.2mm), TX (27.9mm), FL (20.6mm), NY (19.8mm), IL (12.8mm), PA (12.8mm), OH (11.6mm), GA (10.3mm) and NC (10.2mm). All told, this group of states represents 51% of the US population.
What does California have in store for housing? Due up soon: “The package of housing bills, the statement said, will include ongoing funding for low-income development, a bond on the 2018 statewide ballot and regulatory changes to make it easier to build housing.” Homeownership in California has dropped to 1940s levels. And rents have skyrocketed. Among the top 10 least affordable counties in the nation, seven of them are in California, and six of those clustered around San Francisco.
New Hampshire enacted provisions concerning its Uniform Power of Attorney Act. These provisions are effective on January 1, 2018. Under the Act, a power of attorney is a writing or other record that grants authority to an agent to act in the place of the principal. When a power of attorney is created under chapter 564-E:102(15), it will be durable unless expressly provided that it is terminated by incapacity. A power of attorney is effective when it is executed, unless the principal provides in the power of attorney otherwise.
At that time in NH to execute a general power of attorney, the principal must sign (not electronically) and it must be acknowledged before a notary public. An Affixation must accompany to the power of attorney that includes specific language regarding facts. A principal may designate two or more persons to act as co-agents under the power of attorney. Additionally, a principal may designate one or more successor agents. Duties of the agent under a power of attorney include acting in accordance with the principal’s reasonable expectations, acting in the principal’s best interest, acting in good faith, and acting only within the scope of authority granted in the power of attorney.
North Carolina recently enacted the Uniform Power of Attorney Act (the Act), effective January 1, 2018. The Act amends the North Carolina General Statues by adding Chapter 32C, cited as the North Carolina Uniform Power of Attorney Act. Power of Attorney is defined as “a writing or other record that grants authority to an agent to act in the place of the principal, whether the term power of attorney is used.”
Article 1 of the Act outlines definitions and general provisions, including applicability, durability, execution, and validity of the power of attorney. A power of attorney created pursuant to Chapter 32C is durable unless the instrument expressly provides that it is terminated by the incapacity of the principal. Article 2 of the Act includes provisions regarding the general and specific authority that a principal may give an agent in a power of attorney, such as authority involving real property, tangible personal property, and stocks and bonds. Article 3 provides statutory forms.
Effective as of August 31, 2018, North Carolina House Bill 584 serves to clarify the process for correcting nonmaterial errors in recorded instruments of title, creates a curative procedure for obvious description errors in documents of title, and creates a seven-year curative provision for certain defects in recorded instruments of title.
Notice of a nonmaterial typographical or other minor error in a deed or other recorded instrument may now be given by recording a corrective notice affidavit. Prior to recording a curative affidavit, the authorized attorney will serve a notice of intent and a copy of the unsigned proposed curative affidavit to individuals as set forth in the bill. The act provides a recommended form for the curative affidavit, and specifies that “no particular phrasing is required for the curative affidavit.” Additionally, an instrument conveying or purporting to convey an interest in real property that contains a defect, irregularity, or omission shall be deemed effective to vest title as stated therein and to the same extent as though the instrument had not contained the afore mentioned if two specified conditions are met.
Effective October 31, 2017, Alaska has enacted the Revised Uniform Fiduciary Access to Digital Assets Act as Title 13, Chapter 63 of the Alaska Statutes. The Act addresses four common types of fiduciaries: executors or administrators of estates, guardians or conservators, agents acting under a power of attorney, and trustees of a trust. The Act allows a fiduciary, in accordance with a user’s estate plan, to compel the disclosure of digital assets stored by a custodian. The Act only applies to a custodian if the user resides in the state of Alaska or resided in the state of Alaska at the time of the user’s death. The Act does not apply to the digital assets of an employer used by an employee in the ordinary course of business.
Most lenders are focused on debt, not equity. This debt and its corresponding receivable, of course, is often securitized – think mortgage-backed securities, for example. But the overall level of debt is raising some eyebrows: Household debt rose for the 12th straight quarter in Q2 of 2017, and is $12.8 trillion, a record. But our economy has grown: the Q2 level amounts to 67% of GDP, compared to 87% in 08Q3, when household debt last peaked. But credit card and auto loan delinquencies are rising despite debt service payments being just 10% of disposable income, a near all-time low, and household savings is 3.8%, a near decade low. Not ideal, huh?
A big chunk of this debt is tied to LIBOR, and amending the structure of the London Interbank Offered Rate, which is due for termination in 2021, might be simpler and cheaper than replacing it with an interest-rate benchmark that has yet to be established. This author suggests adjusting Libor to embrace data from real-time transactions, such as bond-clearing prices, credit default swaps and commercial paper.
Is it quiet out there, or what? U.S. Treasuries started the week on a modestly higher note, but activity was on the light side. Longer-dated issues finished the day near their overnight highs while the 2-yr note climbed into the close. The benchmark 10-yr yield hit 2.18% and settled at its lowest level since June 26. The 2s10s spread ticked up to 89 bps from 88 bps on Friday. Agency MBS prices roughly unchanged. Blah blah blah.
Today we’ve had the Philly Fed’s Non-Manufacturing Indices for August; coming up are weekly chain store sales from Redbook, the FHFA Home Price Index for June, and some forgettable Richmond Fed release. In the early going we find our friend the 10-year yielding 2.21% and agency MBS prices worse an .125.
Husband’s Text Message: “Honey, a car hit me when I was out of the office. Cindy brought me to the hospital. They’re doing tests and X-rays. I had a blow to my head, very strong, fortunately, it did not cause serious injury, but I have three broken ribs, a compound fracture in my left leg, and they may have to amputate the right foot. And I am now on dialysis, and fading in and out of consciousness."
Wife’s Response: “Who’s Cindy?
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, “Does Everyone Want a Job?” 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.
(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.)
Aug. 21: AE, LO, Controller jobs; important Freddie, Fannie, & lender shifts in appraisal and inspection policies
August 21, 2017
What does $980k buy in the SF suburb of Vallejo, CA? A property designed by Julia Morgan (think Hearst Castle) with floating stairways, over-sized eves, massive beams, decks, and the use of exquisite wood wainscoting. The photos are sure impressive. Jobs, new channels, & personnel “One of Utah’s fastest growing mortgage bankers, Citywide Home Loans, is seeking a full-time Branch Controller to join our dynamic accounting team. Applicants must have strong analytical skills, as well as outstanding attention to detail. A great attitude and upbeat personality is always a must. Applicants must be extremely organized, with experience in all areas of accounting. AMB software experience is a plus. Send resumes and questions to Fawn Bird.” You spend your time, talent, and expertise getting loan applications and taking care of your borrower. You’ve earned their trust. What you
August 19, 2017
Let’s move away from politics (for example, someone sent me: “Dear God – If you want us to impeach Trump, show us a sign! Like blot out the sun. Any time in the next week. Thanks – Americans.”) and turn our eyes to…rent! Mr. Thorogood starts us off. Want to tell you a story About the house-man blues. I come home one Friday Had to tell the landlady I’da lost my job. She said that don’t confront me Long as I get my money next Friday. Now next Friday come I didn’t get the rent. And out the door I went. So I goes to the landlady I said you let me slide? I’ll have the rent for you in a month Next I don’t know So said let me slide it on. I notice when I come home