Non-QM, QC, Construction Loan Products; Events and Training; Big Bank Mortgage Stats
I woke up this morning trying to remember if I was working where I am living, or living where I am working. “Personal” and “professional” often overlap. Caliber, and other wholesalers, are taking the high road inthis week’s awful mix of personal and professional lives. Flagstar Bank summed up this week’s controversy in the wholesale channel. “We want to respond to the recent statements highlighted in the news by the chairman of AIME. While we strongly support the broker community and the vision and purpose of AIME, we do not in any way support the recent public words and behavior of its chairman. As a company, Flagstar Bank is committed to treating its employees with respect and creating an environment that is free of the kind of harassment, abusive language, and personal attacks made by the chairman of AIME. We expect no less of our business partners. That is why we are taking the step of suspending all relationships with the organization at this time. Again, this action does not reflect on AIME as an organization nor does it diminish our commitment to the broker channel, which is the foundation of Flagstar’s 30-year commitment to the mortgage business.”
Lender Services and Products
Identifying and successfully recruiting high-performing loan officers has become a real challenge as lenders manage increased volume. Seroka can support your current LO recruiting efforts with a customized marketing strategy that targets the LOs you are most interested in hiring and positions your company as a great place to work. Seroka will help you identify the key messages you should be conveying to attract talent and then develop a robust strategy that includes direct marketing, social media content and deployment, targeted ads, and public relations tactics. Is your website up to attracting great talent? If you’re uncertain, Seroka will review it and make sure it is! Check out this video to learn more. For additional information about how Seroka can bolster your recruiting efforts, click here and get ready to #turnupyourbrand.
Discover how JFQ Lending is using direct mail with Monster Lead Group to surpass $4.2 billion in originations for 2020: In just its first 3 years, the JFQ team has grown to approximately 120 MLOs, funding upward of $400 million in a given month. JFQ Lending’s President, John Kresevic reveals “75%-80% of our growth comes from Monster.” Kresevic explains, “We’ve been successful with the strategies we get from Monster. I know what’s certain every week; Monday around 12 o’clock Pacific the phones are going to start ringing and they’re going to ring the rest of the week. I know that as long as I spend ‘X, my return’s going to be Y.” If you want consistent phones and predictable ROI from your direct mail like JFQ, go to https://www.monsterleadgroup.com/jfqlending/ right now.
Truepic Helps OneTrust Home Loans (“OneTrust”) Increase Construction Loan Velocity: Truepic’s virtual inspection platform is being used by OneTrust, a national mortgage bank and balance sheet lender, to increase the velocity and accuracy of its inspections for the Agency and Portfolio construction and rehab loan programs it offers. They are leveraging Truepic’s technology to drive virtual verification of the condition and/or current state of a construction-related lending project, dramatically speeding up a borrower’s ability to submit a draw request, reducing the ability to fulfill draws to under 24 hours. The technology enables a borrower to capture 100% authentic and verified photos and videos directly from their own smartphone while running fraud detection and prevention tests behind every image submitted. This allows OneTrust to minimize their reliance on 3rd-party physical site inspections. Click here to learn more or to schedule a live-demo via a screen share email: [email protected]
The underserved deserve “historically low rates” too! Not all 600’s are risky (nor, are all 700’s safe!). But overlays, shuttered programs, and jacked spreads hurt those most in need, an unforced error. “Inclusive lending” doesn’t have to mean more risk. The actionable Mortgage Risk & Fairness Score is a powerful, predictive & prescriptive, data-driven “intelligence” tool that enables lenders, servicers, investors, and MI’s to know borrowers holistically. Then, use that deep, incremental risk & behavioral intelligence (propensity, segmentation, ability, resiliency, and “willingness” to pay) to better manage crisis-cycle credit risk & blind spots, latency, financial inclusion, pricing, capacity, regulation, and servicing. Bottom line: MRS delivers powerful incremental intelligence for origination, underwriting, secondary, and servicing to increase volume, inclusion, confidence, margins, efficiency, and capacity, while decreasing risk. MRS is plug-n-play, validated (top 10 bank) and vetted (CFPB, OCC, Fed). CLICK for Info
QC NOW Web Series – Key Data Elements for Impactful Reporting – Making Your Data Work For You. The upcoming video in ARMCO’s QC NOW web series will be July 23rd, 2020 at 11 a.m. PST and hosted by ARMCO Executive Vice President, Sharon Reichhardt. Topics covered include what data is needed for an effective QC program, how to leverage the power of data through robust reporting, and leveled reporting that speak to each target. QC NOW features insights and tips to help QC professionals navigate the changes impacting your business today. Register Today!
Calculated Risk Analytics LLC, dba Excelerate Capital (“Excelerate”) announces the RE-launch of NON-QM 2.0 for Investor Programs and Prime Borrowers. As a proud industry leader and early adopter of Non-QM lending, Excelerate Capital is pleased to announce the roll-out of “NonQM 2.0” which includes the classic Non-QM Full Doc and Bank Statement Programs as well as DSCR Cashflow Investor Programs. The Non-QM sector was temporarily tested by the coronavirus-driven liquidity crisis that seized the capital markets in March and April of this year. Now in July, NonQM lending has returned and is even out-performing Agency QM loans, eagerly returning capital to the RMBS markets. Excelerate Capital remains highly confident in the quality and viability of Non-QM financing and remains eager to serve borrowers in their pursuit of homeownership and real estate investment though they may not qualify for Agency QM loans. Contact Excelerate for more information.
Big Banks and Mortgages
Wells Fargo earnings showed the bank had a net loss ($2.4 billion in the second quarter) for the first time since 2008. Revenue of $17.8 billion was also weaker than analysts’ estimate, and the bank set aside $8.4 billion in loan loss reserves tied to the coronavirus pandemic. Origination volumes at WFC rose +23% Q/Q, and gain-on-sale (GOS) margins were +96 bp Q/Q. (WFC books GOS income when the loan is sold versus at the time of rate lock which is the common method for most lenders.)
JPMorgan shares jumped upward after record trading revenue drove stronger-than-expected second quarter profit. Earnings per share also exceeded expectations. Mortgage production income was up sharply Q/Q, gain-on-sale (GOS) margins were strong, although JPM saw a slight decline in volumes. Origination volumes decreased -13% Q/Q but the GOS margin rose +193 bp Q/Q to 307 bp, which KBW’s Bose George attributes to both mix (the higher-margin retail channel grew from 50% to 74%) and wide primary/secondary spreads. The MSR valuation was down just -2% Q/Q, a bit better than his expectation for the industry of around -5%. CEO Jamie Dimon still said the bank faces much uncertainty regarding the future path of the economy.
Events This Week
VantageScore has partnered with American Banker to host the webinar “Consumer Dislocation and Credit Score Impacts”, next Wednesday, today at 2PM EST.
MBA/MW is providing a webinar, today at 2:00, Ginnie Mae, eNotes and You: Let’s Begin
Join Berkadia for a Conversations with the C-Suite: Affordable Housing, Register for the Webinar on Thursday July 16th at Noon ET.
Join MCT on July 16th at 11AM PT for a webinar on Advanced Hedging Strategies. MCT’s Director of Analytics, Bill Berliner, will discuss the use of human intuition as a hedging model, the implications of current securitization practices on hedging/trading, and how to address current market quandaries.
NAMMBA is hosting a special state of the industry town hall series titled The COLOR of COVID on Friday, July 17, from 1- 4PM ET which will include an open discussion on how COVID 19 has impacted communities of color across the country and solutions the industry can implement to reduce foreclosures. This month’s townhall will feature CEO’s Patty Arvielo (New American Funding), Casey Crawford (Movement Mortgage), and Sanjiv Das (Caliber Home Loans) as well as the leaders from NAHREP, AREAA and NAREB. Additionally, MBA’s President/CEO Bob Broeksmit, CMB will share a state of the industry update. To register, CLICK HERE (to get a copy of the recording).
Save the date! Josh Friend will be going live with Rob Chrisman (me!?), Capital Markets Consultant. You don’t want to miss this Insellerate conversation as they discuss the economy, industry trends, and provide an outlook on the second half of 2020. It’s taking place on Tuesday, July 21st at 10:00 AM PST.
LBA Ware is hosting The Sophisticated Payroll Coordinators Guide to the LO Comp Rule on Thursday, July 23 at 2:00 pm ET, a webinar designed to bring your staff up to speed on LO comp dos, don’ts and best practices.
Easily Find Industry Events at The Mortgage List Event Calendar. July webinars include What You Need About the Index Moving from LIBOR to SOFR (Join the National Association of Mortgage Brokers and Finance of America TPO, on July 21st to find out what you need to know about the transition from London Interbank Offered Rate – LIBOR – to Secured Overnight Financing Rate – SOFR), HELOC Loan Program (Join Finance of America TPO on July 21st as they share an overview of their new HELOC Loan Program), and Arch MI – Creating Customer Communication Strategy Plan (Arch MI, on July 24th, partners with Ginger Bell to share how to create a customer communication strategy plan that will keep consumers engaged and informed). For a complete list of industry events go to The Mortgage List. To find out how to add your events onto The Mortgage List, contact Ginger Bell.
FHA-Approved Lender Notifications and Updates: What FHA Needs to Know and When. Register for this free FHA Webinar on Wednesday, July 22nd from 2:00-3:30 PM (Eastern).
To showcase their new integration and address trends and mounting challenges in the mortgage market, Wipro Gallagher Solutions and DocMagic will be holding a webinar on
July 22nd at 11 AM CT: Digital innovations for lenders during the times of social distancing.
COVID gave us lemons; and we made lemonade, Register for the September 16th-18th Sales Mastery 2020 Live Digital Experience. Individual Advanced Pricing of $299 is available until July 15th, register now.
To view the AEI Housing Center’s July 1st Housing Market Indicators briefing presentation, please click here.
Tuesday was a pretty good carbon copy of Monday for the market: not much news but comments from a Fed President making headlines. U.S. Treasuries ended Tuesday rallying in curve-flattening fashion (on a relative basis, it may occur when short-term rates move a little higher, long-term rates move a little lower, mid-maturity rates don’t do much). Quarterly reports from three big banks showed increases in loan loss reserves while Fed Governor Lael Brainard said that the central bank’s policy needs to shift from stabilization to a more accommodative stance, and that yield curve control policies may be helpful in the future, but more analysis must be done. Economic releases included CPI for June, which increased slightly more than expected and core CPI posted its first increase since February, though inflation remains in a subdued state.
Mortgage applications for the week ending July 10 kicked off today’s economic calendar, increasing 5.1 percent from one week earlier, including an adjustment for the Independence Day holiday. We’ve also had Empire manufacturing for July (17.2, first positive number since February) and June import & export prices (both +1.4 percent). Later this morning brings industrial production and capacity utilization. The lone scheduled Fed speaker sees Philadelphia President Harker speak on the economic outlook with the latest Beige Book released in the afternoon. The Desk will conduct three FedTrade operations totaling up to $4.9 billion starting with $1.5 billion GNII 2.5 percent and 3 percent followed by $2.5 billion UMBS30 2 percent through 3 percent and $868 million UMBS15 2 percent and 2.5 percent. We start Hump Day with Agency MBS prices worse/down a few ticks and the 10-year yielding .66 after closing yesterday at 0.62 percent.
Employment and Personnel Moves
Digital mortgage and fulfillment solutions provider, Promontory MortgagePath, announced the opening of its new Denver fulfillment center, building on its ongoing success and supporting its accelerated growth. Promontory MortgagePath (PMP) combines a collaborative digital-mortgage platform with comprehensive fulfillment services, giving lenders the technology and scalability required to compete in today’s market. PMP’s chief operating officer and Denver-area resident, Deb Aydelotte, said: “Expanding fulfillment operations into Denver better positions us to expertly service our clients nationwide and gives us the opportunity to tap into the area’s rich talent pool.” The Denver site joins PMP’s current Danbury operations site and bolsters the company’s recruiting strategy, with plans to add senior underwriters, processors and closers, lock desk analysts, and more to its ever-growing team. Denver-area mortgage experts interested in learning more about Promontory MortgagePath’s employment opportunities, including great benefits and the opportunity for a generous signing bonus, email [email protected]
“Due to the economic impact of COVID-19, Home Point Financial saw many Associates’ spouses, partners, and family members lose their jobs. As a result, we launched a program called ‘Family First,’ which gives priority to applicants from extended family regardless of their experience in the mortgage industry. Since launching in April, Home Point has hired 84 new Associates as a result of Family First, and we’re not stopping there. We currently have hundreds of open remote positions that we’re looking to hire by the end of the year. Join our team, and we promise always to support yours whenever and however we can.” For immediate consideration, please send your resume to John Eite.
“Our operations staff at Stearns Wholesale Lending helps foster growth and empowers our employees to achieve their goals. With an array of products, marketing programs, innovative technology, and dynamic retention strategies, we have created a kinetic culture that supports collaboration amongst our team members to produce extraordinary results. Darrin Miller, one of our Account Executives, has praised his relationship with our operations, which has helped develop his career and transformed him into a leader at Stearns Wholesale. Click HERE to see Darrin’s thoughts on what makes the Stearns very special.”
“Just like Dallas in mid-July, Mr. Cooper is HOT! We are proud to continue to deliver exciting enhancements, which includes being one of the first investors to allow Remote Online Notarizations (RONs), strengthening our eNote offering as well as lowering our FHA minimum FICO to 600. Mr. Cooper provides our clients a robust suite of execution options across Mandatory, Best Efforts and Co-issue across all Conventional and Government products. Living our core values, we’re Champion for our Customers and deliver on this promise by providing industry-leading turn times, access to capital and a client-focused team. Contact our Regional Sales team for more information. If you’d like to be part of our dynamic Delegated and Non-Delegated Operations teams, we’re hiring! Contact Pamela Peak. Mr. Cooper is a Top Correspondent Lender, proud to be certified as a Greatest Place to Work and the largest non-bank servicer with a portfolio of $600B+.”
“At Wyndham Capital Mortgage, we enable our loan officers to lead the charge in establishing a culture of innovation and human potential. Leveraging the power of the four pillars of a Fintech Mortgage Lender (Intelligent Automation, Perpetual Marketing Operating System, Deep Data Utilization and Corporate Culture) Wyndham Capital has broken the mold of mortgage lending. This drives the delivery of enhanced efficiency, maximum success, and an elevated work/life balance. But it’s not enough to say you have technological solutions or to say you’re entering the digital lending space. Success depends on the ability to take the next step – to use the Fintech Mortgage Lender pillars to empower your loan officers. Empower them to have the highest success rates, offer five-star customer service, fund twice the industry average in loans per employee and more. Click here to learn more about how you can be a part of the future of mortgage lending.”
The StoneHill Group announced that Julie Joseforsky is its new Director of Fulfillment Services to provide senior leadership for strategy and execution of the Company’s robust suite of loan origination fulfillment services.