Nov. 13: CFO position wanted, MLO, cap. mkts. jobs; private money, marketing products; private MI company updates

Welcome to the first Friday the 13^th of 2020 since March. What an eight months! Cindy E. writes, “The longer I stay at home, the more homeless I look.” I start fielding emails every year around this time about the following year’s conforming loan limits and the impact on home ownership. It was a bigger deal in the past, when the price difference between jumbo and conforming was greater, but every year the threesome of Fannie, Freddie, and the FHFA announce conforming parameters around or after Thanksgiving. Stay tuned for a few weeks, but the jungle drums are beating somewhere around $535k (versus 2020’s maximum of $510,400 and 2019’s of $484,350; units and states aside). With rates these low, with these high loan amounts, plenty of renters are considering owning a home. 80.4% of renters paid their rent payment by November 6, up from the 79.4% of renters who paid by October 6, but down from the 81.5% who paid by November 6, 2019.

Jobs & transitions

A strategic CFO with a track record for generating millions in annual savings is looking to join a great company. This candidate is confident they can pay for themselves 10x over through creative savings strategies, negotiations, automation, and unit costing. Additionally, the candidate is experienced in both expense branches and corporate branches in Consumer Direct and Retail environments. To start a conversation, please email Chrisman LLC’s Anjelica Nixt for details. Credentials include a master’s in financial engineering, experience at Fortune 20 companies, and CFO positions at independent mortgage banks.

MortgageCTO (“MCTO”) is seeking new Account Managers to support the company’s rapidly growing userbase of its industry-leading fee disclosure platform, FeeWise™. Candidates should have a solid understanding of the loan manufacturing process and preferably have experience with the Ellie Mae Encompass product suite, too. If you are technology savvy, have a thirst for knowledge and are ready for exciting work around a cutting edge product, send your resume to letsbegin@mortgagecto.com. MCTO offers competitive compensation and a flexible work environment.

“We’ve maintained an upward trajectory for several years running, with no sign of slowing down. Fundings have exceeded $1 billion 7 months running, and November is on track to make it 8. The key to our success lies in our company culture and the team we’ve built. American Financial Network, Inc. (AFN), approaching its 20th year in business, thrived through the great recession in 2007 and has grown exponentially every year since. We are a true national lender, closing loans from coast to coast and each branch that comes aboard offers its community a local expert with the power of a big organization behind them. When asked, our people say the best thing about being a part of Team AFN is the culture. Although we’ve grown and expanded, we haven’t lost the “family” feel and the collaborative mentality that makes us a cohesive team. We are always looking for people who don’t want to feel like they’re on an island (unless of course, they’re actually on an island like our Hawaii branch). If you’d like to join our winning team, contact https://joinafn.com/.”

“On Q Financial is proudly expanding employment opportunities in the mortgage industry! We currently seek a Secondary Marketing Manager and a Mortgage Trader. The ideal candidates will be energetic and analytical with a proven record of accomplishments. We are looking for out-of-the-box thinkers who can hit the ground running and bring in fresh ideas. These positions ensure effective management of complex hedging functions, pipeline governance, loan sales, buy side bidding, pooling, and trade settlements for Retail/TPO channels. Additionally, these positions are responsible for managing existing partnerships and building new relationships. At On Q Financial, we are passionate about making the dream of homeownership a reality! We are highly collaborative, extremely innovative, and like to have fun – and we move FAST! If you are someone who accelerates and propels Capital Markets to the next level, we want to meet you! Interested candidates please email your resume to Juan Rodas.”

We’ve created something EPiQ! CMG Financial and Realty One Group launched a true joint venture partnership EPiQ LENDING. This dynamic lender gives loan officers unparalleled support to maximize their growth. Clients and partners get the hands-on service of a direct lender and the unique experience of the powerful Realty One Group, UNBROKERAGE. Mortgage industry veteran Raffie Kalajian will lead as Joint Venture President and is staffing a team to demonstrate the power of EPiQ LENDING’s industry influence. Chris Harris, Senior VP, National Joint Venture Manager, CMG Financial stated, “With a combination of our proven mortgage platform and engaged partner with a network of over 15,000 agents, EPiQ LENDING is poised to be one of the best destinations for loan officers.” To discuss joining EPiQ LENDING’s team contact Raffie Kalajian (626-705-2506). To learn more about joint venture opportunities with CMG Financial contact Kevin McGarrity (856-287-2659).

Sun West Mortgage Company, [NMLS 3277] a leading full-service national mortgage lender, is excited to announce the expansion of its west coast operations. Tyler Fowler recently joined Sun West Mortgage Company as the new Producing Branch Manager for Middletown, CA. Tyler, along with his experienced team of mortgage professionals, are dedicated to guiding customers through the mortgage process with transparency and trust. With nearly 23 years of banking and lending experience, Sun West is pleased to have Fowler a part of the company’s continued growth. For more information on Sun West Mortgage Company, please contact Managing Director, Leif Boyd or SVP, Business Development, Peter Schwartz at 916-770-0053. For Sun West Mortgage Company, Inc. licensing information and disclosures, please click here.

Thrive Mortgage has the largest complement of diverse product offerings. Clearly, many lenders are experiencing amazing growth in 2020, but few have also included an emphasis on Reverse. In 2019, Thrive hired Loren Riddick to lead the company’s national initiatives regarding Reverse Lending. Since then, Thrive has seen this niche product become a rapidly growing component of their record-breaking total business in 2020.  Recently joining Riddick and Thrive Mortgage in expanding that message is industry veteran Mike Stanley. “The Reverse Lending market is poised for some amazing success in the days ahead,” stated Stanley. “Because of Thrive’s focus on expanding that message, more of our client base is learning how valuable a tool this product can be as component of a smart financial strategy.” Thrive is seeking mortgage operations and sales professionals who are “Hungry, Humble, & Smart”! To learn more about your new opportunity to Thrive, visit join.thrivemortgage.com.

First Community Mortgage has named Antonio Roundtree VP of Community Engagement, a new role responsible for increasing lending activities, promoting homebuyer and financial education programs, and community outreach efforts.

Out of Arizona comes news that Geneva Financial Home Loans (130 branches in 43 states) has a new National Head of Underwriting: Tiffany Graves. She’ll “focus on industry-leading rapid underwriting turn-times while maintaining the integrity of the company’s underwriting policies and standards and protect and support the company’s risk management goals.”

Broker & lender products & services

According to Inman, the real estate media company, a whopping 73% of agents are re-evaluating their current relationships or looking for new ones. Momentifi is launching its new solution at the Inman online conference this week and at the Finovate online conference later this month that helps mortgage companies and LOs protect their current relationships and find new ones. “The challenge we’ve found is that LOs are too busy to get in front of referral sources, and COVID is also making live events impossible,” says Momentifi CEO, Gibran Nicholas. “Meanwhile, agents still need CE credits. So, what if we could turn the process of earning CE credits into an online networking opportunity? Your LOs don’t need to do anything other than invite their referral partners. We teach the classes and handle everything else. The referral partners walk away with RESPA-compliant free CE and co-branded marketing with their LO.” Click here to email Gibran directly and get a sneak preview.

Synergy One Lending held its first Modern Mortgage webinar, “The Cost of Being Invisible — No Nonsense Social Media with Bill Hart” for its new digital event series on Tuesday, November 10th.  Loan officers and real estate agents in attendance listened to Coach Hart present on what real estate sales and finance professionals need to be doing right now on social media to make 2021 their highest volume year yet. Further, Coach Hart discussed how to use social media to stay top of mind with referral partners, connect with prospects through social videos, and guarantee long-term production through proactive social media strategies. In case you missed it, you can view the recorded digital session and learn more about how you can use social media to increase your volume. If you have any questions about Synergy One Lending’s new online event series, please contact Ben Green.

Amidst today’s refi boom, successful originators are also looking ahead at what their next big opportunity is. For many, it’s developing an investment real estate channel. CIVIC Financial Services is a leading institutional private lender, funding more than $4B in private money loans. With CIVIC as your private lending partner, you can serve customers throughout their entire real estate journey: purchase, refi, fix and flip or long-term rental. 15-20% of the average mortgage originator’s prospect list is a potential investor who could use a private money loan to buy an investment property as a flip or a rental property in today’s hot real estate market. To learn more about real estate investment financing check out CIVIC’s video and download the free whitepaper to help you build your business.

1981-1996 = Millennials = home buyers

Early forecasts pegged Millennials (ages 24-39 this year) as the “Peter Pan Generation,” never wanting to grow up and therefore, less likely to settle down and buy a house. Like many predictions about 2020, those predictions appear to have missed the mark. So far this year, Millennials have comprised 52 percent of purchases and 42 percent of all mortgage loans. In his November MortgageSAT Tip, MortgageSAT Director Mike Seminari offers three strategies that lenders can leverage to capture Millennial interest and loyalty. Don’t miss the new MortgageSAT Tip, “What is the Secret to Becoming the Mortgage Lending Choice of Millennials?”

Private Mortgage Insurance trends

Some industry watchers view MI companies as “barometers” in terms of equating their performance to that of the industry in general. Let’s take a look!

Given the recent vaccine headlines, KBW’s Bose George recently took a look at how some MI companies, title insurers, and mortgage originators/servicers are positioned for a recovery. Mortgage insurers, with exposure to residential mortgage credit, stand to benefit the most. Higher interest rates are neutral to positive for the sector as long as they are not high enough to impede the housing market. It’s also likely to be a positive for the title insurers, given a quick recovery in commercial real estate activity. While title insurers have benefited meaningfully from the refinance wave this year, one concern is that the decline in refinance volume will not be offset by a growing purchase and rebounding commercial market. Mortgage originators would likely fare the worst amongst the three groups during an economic recovery, as the rise in interest rates would slow refinance activity more quickly than expected. Finally, this scenario should be positive for mortgage REITs that have exposure to mortgage credit risk.

Essent posted solid quarterly results due to a lower loss provision and lower operating expenses. Expectations are now for a lower run-rate expense ratio, partially offset by a lower average premium yield. The delinquency rate continues to improve, down to 4.25% in October from 4.54% in September and 5.19% in June. The improvement is tracking pretty much in-line with overall GSE forbearance rates. Management estimated the mark-to-market LTV on the default population of loans is about 80%, suggesting there is a margin for a drop in home prices without materially impacting the frequency or severity of losses.

Radian posted a positive quarter due largely to a lower loss provision and higher singles cancellations. Delinquent inventory levels continued to decline through October month-end. As more clarity on credit emerges, it will be easier to predict future performance, though forward loss estimates should remain roughly unchanged. The company kept its default-to-claim rate assumption on new defaults unchanged at 8.5%, which is slightly more conservative than the industry average. Estimates are for a roughly 2.2% cumulative loss assumption over the 3-year period 2020-2022.

NMI Holdings beat earnings estimates in Q3, driven largely by lower credit losses. This was partially offset by lower net premiums earned and lower investment income. The reported October 31 delinquency rate was 3.41%, down from the previously reported 3.60% on September 30. The company applied an unchanged 7% default-to-claim rate assumption on new defaults in the quarter. Insurance in Force (IIF) grew 21% quarter-over-quarter, and New Insurance Written (NIW) came in at $18.5 billion, making NMI one of the fastest growers out there. PMIERs excess capital increased to $681 million (69% cushion) from $609 million (58%) last quarter, benefiting from issuing its fourth and fifth ILNs during the quarter at attractive spreads.

MGIC’s Q3 included lower losses incurred than Q2. Losses at these levels would remain below the attachment points of the ILNs. Those points increase over time as the insured portfolio runs off, though the collateralization is currently locked since delinquency triggers have been reached. MGIC’s delinquent inventory declined to 5.5% through October versus peak of 6.4% on June 30, and broader GSE forbearance rates are down to 3.5% in early November versus peak of 7.2% at the end of May, per the MBA. Additionally, home price appreciation has been very strong, which could reduce the severity and frequency of losses. In this scenario, delinquent borrowers would be more likely to be able to sell the house to pay off the mortgage in order to avoid foreclosure. Going forward, the company hopes a slightly lower average premium yield is offset by stronger IIF growth. Industry NIW volumes remain very strong, though runoff also remains quite elevated.

Capital markets

To those that were mourning the lack of volatility in the bond market throughout the summer, are you happy now? Last week’s volatility was all about the U.S. election, while this week is centered around “vaccine euphoria,” increasing COVID cases, and the implications for an already sluggish economic recovery. U.S. Treasuries & MBS rallied as three of the world’s top central bankers, including Fed Chair Powell, warned that the prospect of a coronavirus vaccine isn’t enough to put an end to the economic challenges created by the pandemic.

We learned that Initial Jobless Claims continued to trend downward but with new curfews and restrictions on business activity in many cities and states due to rising coronavirus infections, expect an increase in jobless claims in coming weeks. The Consumer Price Index figures are far from the Fed’s aim of lifting the average inflation rate. Separately, the Treasury Budget showed a $284 billion deficit in October, which is more than twice the deficit seen in October 2019 as the nation (and the world) has been forced to deal with the fallout from the pandemic. For good news, Black Knight reported that the number of mortgages in active forbearance saw another round of strong improvement, dropping by 121K (-4%) over the last week. Finally, yesterday’s Primary Mortgage Market Survey from Freddie Mac had the 30-year rate rising 6 bps to 2.84%.

Today’s economic calendar is already underway with October’s Producer Price Index (+.3%) and Core PPI (+.1%), both near expectations. The only other release on today’s calendar is the Preliminary November Michigan Consumer Sentiment Survey. Three Fed presidents are currently scheduled to speak: New York’s Williams, St. Louis’ Bullard, and Philadelphia’s Harker. Today’s MBS FedTrade purchase schedule sees the Desk conducting two operations targeting up to just $4.2 billion, starting with $975 million UMBS15 1.5% and 2%, and followed by $3.2 billion UMBS30 2% and 2.5%. We begin Friday with Agency MBS prices roughly unchanged from Thursday’s close and the 10-year yielding .88 after closing yesterday at 0.89%.

(Thank you to David S. for this one.)

The CEO of Budweiser orders a Bud Light. The CEO of Miller orders a Miller Lite. The CEO of Coors orders a Coors light. The CEO of Guinness orders a Coke.

The three CEOs are puzzled and ask him, “Why aren’t you ordering a Guinness?”

He replies, “If you guys aren’t drinking beer, then neither will I.”

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, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed 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 2020 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.)

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Nov. 13: CFO position wanted, MLO, cap. mkts. jobs; private money, marketing products; private MI company updates

Welcome to the first Friday the 13^th of 2020 since March. What an eight months! Cindy E. writes, “The longer I stay at home, the more homeless I look.” I start fielding emails every year around this time about the following year’s conforming loan limits and the impact on home ownership. It was a bigger deal in the past, when the price difference between jumbo and conforming was greater, but every year the threesome of Fannie, Freddie, and the FHFA announce conforming parameters around or after Thanksgiving. Stay tuned for a few weeks, but the jungle drums are beating somewhere around $535k (versus 2020’s maximum of $510,400 and 2019’s of $484,350; units and states aside). With rates these low, with these high loan amounts, plenty of renters are considering owning a home. 80.4% of renters paid their rent payment by November 6, up from the 79.4% of renters who paid by October 6, but down from the 81.5% who paid by November 6, 2019.

Jobs & transitions

A strategic CFO with a track record for generating millions in annual savings is looking to join a great company. This candidate is confident they can pay for themselves 10x over through creative savings strategies, negotiations, automation, and unit costing. Additionally, the candidate is experienced in both expense branches and corporate branches in Consumer Direct and Retail environments. To start a conversation, please email Chrisman LLC’s Anjelica Nixt for details. Credentials include a master’s in financial engineering, experience at Fortune 20 companies, and CFO positions at independent mortgage banks.

MortgageCTO (“MCTO”) is seeking new Account Managers to support the company’s rapidly growing userbase of its industry-leading fee disclosure platform, FeeWise™. Candidates should have a solid understanding of the loan manufacturing process and preferably have experience with the Ellie Mae Encompass product suite, too. If you are technology savvy, have a thirst for knowledge and are ready for exciting work around a cutting edge product, send your resume to letsbegin@mortgagecto.com. MCTO offers competitive compensation and a flexible work environment.

“We’ve maintained an upward trajectory for several years running, with no sign of slowing down. Fundings have exceeded $1 billion 7 months running, and November is on track to make it 8. The key to our success lies in our company culture and the team we’ve built. American Financial Network, Inc. (AFN), approaching its 20th year in business, thrived through the great recession in 2007 and has grown exponentially every year since. We are a true national lender, closing loans from coast to coast and each branch that comes aboard offers its community a local expert with the power of a big organization behind them. When asked, our people say the best thing about being a part of Team AFN is the culture. Although we’ve grown and expanded, we haven’t lost the “family” feel and the collaborative mentality that makes us a cohesive team. We are always looking for people who don’t want to feel like they’re on an island (unless of course, they’re actually on an island like our Hawaii branch). If you’d like to join our winning team, contact https://joinafn.com/.”

“On Q Financial is proudly expanding employment opportunities in the mortgage industry! We currently seek a Secondary Marketing Manager and a Mortgage Trader. The ideal candidates will be energetic and analytical with a proven record of accomplishments. We are looking for out-of-the-box thinkers who can hit the ground running and bring in fresh ideas. These positions ensure effective management of complex hedging functions, pipeline governance, loan sales, buy side bidding, pooling, and trade settlements for Retail/TPO channels. Additionally, these positions are responsible for managing existing partnerships and building new relationships. At On Q Financial, we are passionate about making the dream of homeownership a reality! We are highly collaborative, extremely innovative, and like to have fun – and we move FAST! If you are someone who accelerates and propels Capital Markets to the next level, we want to meet you! Interested candidates please email your resume to Juan Rodas.”

We’ve created something EPiQ! CMG Financial and Realty One Group launched a true joint venture partnership EPiQ LENDING. This dynamic lender gives loan officers unparalleled support to maximize their growth. Clients and partners get the hands-on service of a direct lender and the unique experience of the powerful Realty One Group, UNBROKERAGE. Mortgage industry veteran Raffie Kalajian will lead as Joint Venture President and is staffing a team to demonstrate the power of EPiQ LENDING’s industry influence. Chris Harris, Senior VP, National Joint Venture Manager, CMG Financial stated, “With a combination of our proven mortgage platform and engaged partner with a network of over 15,000 agents, EPiQ LENDING is poised to be one of the best destinations for loan officers.” To discuss joining EPiQ LENDING’s team contact Raffie Kalajian (626-705-2506). To learn more about joint venture opportunities with CMG Financial contact Kevin McGarrity (856-287-2659).

Sun West Mortgage Company, [NMLS 3277] a leading full-service national mortgage lender, is excited to announce the expansion of its west coast operations. Tyler Fowler recently joined Sun West Mortgage Company as the new Producing Branch Manager for Middletown, CA. Tyler, along with his experienced team of mortgage professionals, are dedicated to guiding customers through the mortgage process with transparency and trust. With nearly 23 years of banking and lending experience, Sun West is pleased to have Fowler a part of the company’s continued growth. For more information on Sun West Mortgage Company, please contact Managing Director, Leif Boyd or SVP, Business Development, Peter Schwartz at 916-770-0053. For Sun West Mortgage Company, Inc. licensing information and disclosures, please click here.

Thrive Mortgage has the largest complement of diverse product offerings. Clearly, many lenders are experiencing amazing growth in 2020, but few have also included an emphasis on Reverse. In 2019, Thrive hired Loren Riddick to lead the company’s national initiatives regarding Reverse Lending. Since then, Thrive has seen this niche product become a rapidly growing component of their record-breaking total business in 2020.  Recently joining Riddick and Thrive Mortgage in expanding that message is industry veteran Mike Stanley. “The Reverse Lending market is poised for some amazing success in the days ahead,” stated Stanley. “Because of Thrive’s focus on expanding that message, more of our client base is learning how valuable a tool this product can be as component of a smart financial strategy.” Thrive is seeking mortgage operations and sales professionals who are “Hungry, Humble, & Smart”! To learn more about your new opportunity to Thrive, visit join.thrivemortgage.com.

First Community Mortgage has named Antonio Roundtree VP of Community Engagement, a new role responsible for increasing lending activities, promoting homebuyer and financial education programs, and community outreach efforts.

Out of Arizona comes news that Geneva Financial Home Loans (130 branches in 43 states) has a new National Head of Underwriting: Tiffany Graves. She’ll “focus on industry-leading rapid underwriting turn-times while maintaining the integrity of the company’s underwriting policies and standards and protect and support the company’s risk management goals.”

Broker & lender products & services

According to Inman, the real estate media company, a whopping 73% of agents are re-evaluating their current relationships or looking for new ones. Momentifi is launching its new solution at the Inman online conference this week and at the Finovate online conference later this month that helps mortgage companies and LOs protect their current relationships and find new ones. “The challenge we’ve found is that LOs are too busy to get in front of referral sources, and COVID is also making live events impossible,” says Momentifi CEO, Gibran Nicholas. “Meanwhile, agents still need CE credits. So, what if we could turn the process of earning CE credits into an online networking opportunity? Your LOs don’t need to do anything other than invite their referral partners. We teach the classes and handle everything else. The referral partners walk away with RESPA-compliant free CE and co-branded marketing with their LO.” Click here to email Gibran directly and get a sneak preview.

Synergy One Lending held its first Modern Mortgage webinar, “The Cost of Being Invisible — No Nonsense Social Media with Bill Hart” for its new digital event series on Tuesday, November 10th.  Loan officers and real estate agents in attendance listened to Coach Hart present on what real estate sales and finance professionals need to be doing right now on social media to make 2021 their highest volume year yet. Further, Coach Hart discussed how to use social media to stay top of mind with referral partners, connect with prospects through social videos, and guarantee long-term production through proactive social media strategies. In case you missed it, you can view the recorded digital session and learn more about how you can use social media to increase your volume. If you have any questions about Synergy One Lending’s new online event series, please contact Ben Green.

Amidst today’s refi boom, successful originators are also looking ahead at what their next big opportunity is. For many, it’s developing an investment real estate channel. CIVIC Financial Services is a leading institutional private lender, funding more than $4B in private money loans. With CIVIC as your private lending partner, you can serve customers throughout their entire real estate journey: purchase, refi, fix and flip or long-term rental. 15-20% of the average mortgage originator’s prospect list is a potential investor who could use a private money loan to buy an investment property as a flip or a rental property in today’s hot real estate market. To learn more about real estate investment financing check out CIVIC’s video and download the free whitepaper to help you build your business.

1981-1996 = Millennials = home buyers

Early forecasts pegged Millennials (ages 24-39 this year) as the “Peter Pan Generation,” never wanting to grow up and therefore, less likely to settle down and buy a house. Like many predictions about 2020, those predictions appear to have missed the mark. So far this year, Millennials have comprised 52 percent of purchases and 42 percent of all mortgage loans. In his November MortgageSAT Tip, MortgageSAT Director Mike Seminari offers three strategies that lenders can leverage to capture Millennial interest and loyalty. Don’t miss the new MortgageSAT Tip, “What is the Secret to Becoming the Mortgage Lending Choice of Millennials?”

Private Mortgage Insurance trends

Some industry watchers view MI companies as “barometers” in terms of equating their performance to that of the industry in general. Let’s take a look!

Given the recent vaccine headlines, KBW’s Bose George recently took a look at how some MI companies, title insurers, and mortgage originators/servicers are positioned for a recovery. Mortgage insurers, with exposure to residential mortgage credit, stand to benefit the most. Higher interest rates are neutral to positive for the sector as long as they are not high enough to impede the housing market. It’s also likely to be a positive for the title insurers, given a quick recovery in commercial real estate activity. While title insurers have benefited meaningfully from the refinance wave this year, one concern is that the decline in refinance volume will not be offset by a growing purchase and rebounding commercial market. Mortgage originators would likely fare the worst amongst the three groups during an economic recovery, as the rise in interest rates would slow refinance activity more quickly than expected. Finally, this scenario should be positive for mortgage REITs that have exposure to mortgage credit risk.

Essent posted solid quarterly results due to a lower loss provision and lower operating expenses. Expectations are now for a lower run-rate expense ratio, partially offset by a lower average premium yield. The delinquency rate continues to improve, down to 4.25% in October from 4.54% in September and 5.19% in June. The improvement is tracking pretty much in-line with overall GSE forbearance rates. Management estimated the mark-to-market LTV on the default population of loans is about 80%, suggesting there is a margin for a drop in home prices without materially impacting the frequency or severity of losses.

Radian posted a positive quarter due largely to a lower loss provision and higher singles cancellations. Delinquent inventory levels continued to decline through October month-end. As more clarity on credit emerges, it will be easier to predict future performance, though forward loss estimates should remain roughly unchanged. The company kept its default-to-claim rate assumption on new defaults unchanged at 8.5%, which is slightly more conservative than the industry average. Estimates are for a roughly 2.2% cumulative loss assumption over the 3-year period 2020-2022.

NMI Holdings beat earnings estimates in Q3, driven largely by lower credit losses. This was partially offset by lower net premiums earned and lower investment income. The reported October 31 delinquency rate was 3.41%, down from the previously reported 3.60% on September 30. The company applied an unchanged 7% default-to-claim rate assumption on new defaults in the quarter. Insurance in Force (IIF) grew 21% quarter-over-quarter, and New Insurance Written (NIW) came in at $18.5 billion, making NMI one of the fastest growers out there. PMIERs excess capital increased to $681 million (69% cushion) from $609 million (58%) last quarter, benefiting from issuing its fourth and fifth ILNs during the quarter at attractive spreads.

MGIC’s Q3 included lower losses incurred than Q2. Losses at these levels would remain below the attachment points of the ILNs. Those points increase over time as the insured portfolio runs off, though the collateralization is currently locked since delinquency triggers have been reached. MGIC’s delinquent inventory declined to 5.5% through October versus peak of 6.4% on June 30, and broader GSE forbearance rates are down to 3.5% in early November versus peak of 7.2% at the end of May, per the MBA. Additionally, home price appreciation has been very strong, which could reduce the severity and frequency of losses. In this scenario, delinquent borrowers would be more likely to be able to sell the house to pay off the mortgage in order to avoid foreclosure. Going forward, the company hopes a slightly lower average premium yield is offset by stronger IIF growth. Industry NIW volumes remain very strong, though runoff also remains quite elevated.

Capital markets

To those that were mourning the lack of volatility in the bond market throughout the summer, are you happy now? Last week’s volatility was all about the U.S. election, while this week is centered around “vaccine euphoria,” increasing COVID cases, and the implications for an already sluggish economic recovery. U.S. Treasuries & MBS rallied as three of the world’s top central bankers, including Fed Chair Powell, warned that the prospect of a coronavirus vaccine isn’t enough to put an end to the economic challenges created by the pandemic.

We learned that Initial Jobless Claims continued to trend downward but with new curfews and restrictions on business activity in many cities and states due to rising coronavirus infections, expect an increase in jobless claims in coming weeks. The Consumer Price Index figures are far from the Fed’s aim of lifting the average inflation rate. Separately, the Treasury Budget showed a $284 billion deficit in October, which is more than twice the deficit seen in October 2019 as the nation (and the world) has been forced to deal with the fallout from the pandemic. For good news, Black Knight reported that the number of mortgages in active forbearance saw another round of strong improvement, dropping by 121K (-4%) over the last week. Finally, yesterday’s Primary Mortgage Market Survey from Freddie Mac had the 30-year rate rising 6 bps to 2.84%.

Today’s economic calendar is already underway with October’s Producer Price Index (+.3%) and Core PPI (+.1%), both near expectations. The only other release on today’s calendar is the Preliminary November Michigan Consumer Sentiment Survey. Three Fed presidents are currently scheduled to speak: New York’s Williams, St. Louis’ Bullard, and Philadelphia’s Harker. Today’s MBS FedTrade purchase schedule sees the Desk conducting two operations targeting up to just $4.2 billion, starting with $975 million UMBS15 1.5% and 2%, and followed by $3.2 billion UMBS30 2% and 2.5%. We begin Friday with Agency MBS prices roughly unchanged from Thursday’s close and the 10-year yielding .88 after closing yesterday at 0.89%.

(Thank you to David S. for this one.)

The CEO of Budweiser orders a Bud Light. The CEO of Miller orders a Miller Lite. The CEO of Coors orders a Coors light. The CEO of Guinness orders a Coke.

The three CEOs are puzzled and ask him, “Why aren’t you ordering a Guinness?”

He replies, “If you guys aren’t drinking beer, then neither will I.”

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, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed 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 2020 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.)

Tips to Sell Your House Safely Right Now [INFOGRAPHIC]

Some Highlights

• Your agent now has over 6 months of experience selling houses during the pandemic and can make the process easier and safer for you today.
• COVID-19 protocols and technology usage recommendations from the National Association of Realtors (NAR) are making it possible to sell houses right now, while agents continue to abide first and foremost by state and local regulations.
• Reach out to a local real estate professional to discuss how to sell your house safely in today’s housing market.

The post Tips to Sell Your House Safely Right Now [INFOGRAPHIC] appeared first on Keeping Current Matters.

Tips to Sell Your House Safely Right Now [INFOGRAPHIC]

Some Highlights

• Your agent now has over 6 months of experience selling houses during the pandemic and can make the process easier and safer for you today.
• COVID-19 protocols and technology usage recommendations from the National Association of Realtors (NAR) are making it possible to sell houses right now, while agents continue to abide first and foremost by state and local regulations.
• Reach out to a local real estate professional to discuss how to sell your house safely in today’s housing market.

The post Tips to Sell Your House Safely Right Now [INFOGRAPHIC] appeared first on Keeping Current Matters.

from Mortgage News https://ift.tt/3nrsMc9
via IFTTT

Nov. 12: MLO, Ops jobs; Marketing, non-QM, jumbo products; company news re: lenders, investors, & originators

Are the election results under control? Thank you to Hawai’i’s Joe G. who sent along this site where the odds of who the next president will be are posted; you can buy shares in your favorite! Is COVID under control? In some parts of the nation, it is as if there is no pandemic at all, despite rising cases in 49 states. With this pandemic uncertainty, and hopes for a viable commercial vaccine a long way off, and possible further shutdowns, how is senior management expected to make decisions about office space? No one wants to request employees come back into the office, and then have some come down sick. Or will everyone be working from home permanently? (STRATMOR’s blog is, “Time to Call the Landlord?”.) Parents are grappling with children returning, or not, to school. Remember: Education is important, but opening up the bars is importanter.

Jobs

 

On Tuesday, Nov. 10, Caliber Home Loans CEO Sanjiv Das joined an outstanding lineup of industry executives at #NEXTDC20, a women’s executive mortgage summit. Caliber was one of several sponsors of this interactive online event, which featured an array of lending professionals on its agenda. Das participated on a prominent panel of experts and discussed the critical issues that have affected our industry for the past two decades. You’ll be able to catch the replay soon on the #NEXTDC20 website. “Caliber is a company with smart, strategic leaders who are enthusiastic about sharing knowledge. Come work for a company that will help you grow professionally. Visit our website today to view open opportunities.” To be immediately considered for Operations or Sales positions, email Jonathan Stanley or Brian Miller respectively.

NEXA Mortgage is a “pure broker” with dedicated underwriting teams that boast CTC in 16.9 days on average. Come learn why over 250 producing MLOs are moving to NEXA Mortgage each year. Come learn about our “7 non-negotiables” and why NEXA MLOs feel they have the edge on 1) Interest Rates 2) Products 3) Compensation 4) Support 5) Processing 6) Benefits and 7) Marketing/Technology. We host a weekly “Why NEXA” webinar at 11am MST each and every Thursday. Just find the Why NEXA link and login. The CEO and Co-Founder Mike Kortas will be covering a full demonstration about how all “7 non-negotiables” work.

Lender products & services

The approaching holidays are a perfect time for lenders to evaluate their goals, projects, and strategic decisions to improve their businesses for next year. There is no better opportunity to find and implement the right tech platform in your business. For small to midsize community lenders looking for a digital mortgage point-of-sale platform, Maxwell stands out from the competition because it uniquely caters to these lenders’ platform and partnership needs. Today, the 200+ community lenders on Maxwell gather documents over 73% faster and close loans 45% faster than the national average. That level of performance, along with a platform and team dedicated to adoption and implementation in weeks, not months, is a recipe for success for lenders in this year’s likely short “slow” season. To learn more schedule a demo today.

MCT recently released two pieces in its Newsroom blog, only a small part of MCT’s commitment to clients and industry members alike to promote understanding and profitability in the secondary marketplace. Both Best Execution Analysis in the Secondary Mortgage Market and History of Best Execution for Mortgage Loans provide solid and understandable industry tips on best execution, while also being quite enjoyable reads. At the end of the day, it’s all about yielding profits, and no hedge advisory does that for clients quite as well as MCT. Between the award-winning software, best-in-class client services and learning center, you are doing the most with MCT on your side. To be notified of future whitepapers, blogs, market commentaries, and webinars, join MCT’s Newsletter.

Have you seen the simple innovation that quadrupled productivity and revenues for a division of American Pacific Mortgage? The division’s manager Charlie Christensen says a simple change to their daily processes boosted efficiency and revenues by 280%–without outsourced processing or hiring more staff. Director of Operations, Indica Weatherwax also reports that despite the significantly higher volumes she sleeps better at night knowing that every task, file, deadline, and detail is tracked so that nothing falls through the cracks. The team now serves four-times the customers while working remotely from anywhere. How did they do it? Charlie explains how they used a simple process automation tool to scale production and automate their entire “lead to loan” process. Work smarter. Discover TeamworkIQ.

Are you ready for VA IRRRL and FHA Streamline refinance opportunities in this market?  Learn how to efficiently submit your files once for a final approval!  Join Freedom Mortgage Wholesale for live webinar training sessions on VA IRRRL or FHA Streamline mortgage products and origination processes. Ideal for new or experienced government originators. Sign up for a VA IRRRL or FHA Streamline webinar on 11/13 (FHA SL), 11/20 (VA IRRRL) or 11/24 (VA IRRRL).

Expand your loan offerings with MAXEX, the first exchange for buying and selling residential loans through a single, trusted clearinghouse. Get fast, consistent liquidity and competitive pricing on Jumbo, Conforming and Non-QM loans from a marketplace of ready-to-buy institutional investors. MAXEX has several recently introduced programs. Jumbo Express: Leverage certain results from Desktop Underwriter® (DU) and/or Freddie Mac’s Loan Prospector Advisor^SM (LPA) to reduce the complexity of underwriting Jumbo Loans. Include loan amounts from $510,401 – $1.5M for transactions that are DU Approve / Ineligible or LPA Accept / Ineligible for loan size only. Non-QM: Access a broad range of fixed, ARM, fully amortized and IO options for loan amounts from $150K to $2.5M. Better serve self-employed borrowers with Full Doc and Alt Doc programs. To learn more about MAXEX, visit us at maxex.com.

If you’re like the average lender, you have a database of 5,000 records, and only retain 20% or less of your borrowers. In one month, you’ve lost over 39 loans to your competitors. That’s a whopping $10 million of loan originations! Sales Boomerang notifies mortgage lenders when someone in their database is ready for a loan. Our clients retain more than 65% of their borrowers. The longer you delay, the larger that loss becomes on your bottom line. We want to be your retention hero and win back the loans that you’re losing. “I have LO’s that only work Sales Boomerang leads, and my ROI is in the 20-30X Range.” (John Kresevic, CEO, JFQ) The numbers speak for themselves: 20X Avg ROI, $240 Avg Cost Per Acquired Loan, 10-20% Avg Lift to Loan Volume. Want to see exactly how much you lost this year? Request your report today.

He Made the President’s Club While Hospitalized! Here’s a true story about the power of Relationship Engagement: On a Mortgage Company’s Production Cruise in 2003 a winner slipped near the pool and landed on the back of his head. He was unconscious for 20 minutes, but when he woke up, he felt fine. Turns out he wasn’t fine. In fact, he almost died and spent a year in the hospital. The crazy thing is he did $12 million in production that year. How? He had great relationships, a great assistant, and his marketing was automated. His Realtors and clients had no idea he was even sick. They continued to get great service from his assistant and targeted, personalized marketing from Usherpa. According to the Loan Officer, “Without Usherpa, I’d be out of business.” Local Content sent to the right people at the right time with the right message: Usherpa.com.

Who’s doing what in our business

Some will argue that real estate agents believe loan underwriting guidelines should just go away. Underwriting limits the buyer pool, right? Let’s not do that. But NAR presented its thoughts on what a Biden Administration means for Freddie Mac and Fannie Mae. Things to keep in mind: a) a full release from conservatorship will require legislation and that won’t happen under divided government, and b) we’ll see how the Supreme Court decides a lawsuit regarding the structure of the FHFA. Many believe that the Biden Administration will be in no hurry to recapitalize and release them, given the profits flowing into the U.S. Government and to continue to promote and increase affordable housing mandates.

M&A is still occurring. For example, First Citizens BancShares, Inc. and CIT Group Inc., jointly announced that they have entered into a definitive agreement under which the companies will combine in an all-stock merger of equals to create a top-performing commercial bank. The combined company will operate under the First Citizens name and will trade under the First Citizens ticker symbol FCNCA on the Nasdaq stock market with headquarters in Raleigh, NC.

The 2020 myCUmortgage Annual Awards recognized a record 55 credit unions and loan originators. Awards received included the Purchase Money Lender of the Year: Canton School Employees Federal Credit Union, Canton, Ohio. Originator of the Year: Misty Brown, Desco Federal Credit Union, Portsmouth, Ohio. Lender of the Year: Midwest Community Federal Credit Union, Defiance, Ohio. Additionally, 42 loan originators were individually recognized for each helping over 100 members with home ownership. Receiving the highest individual honor was Tim Muffley, Mortgage Lending Manager with Desco Federal Credit Union in Portsmouth, Ohio. The annual award, the Tim Mislansky Belief Award, recognizes an individual with a credit union who exemplifies former myCUmortgage President Mislansky’s belief in the importance of living one’s core values at work, home and in the community.

Mortgage market share continues to shift away from commercial banks and to independent mortgage banks (IMBs). Rocket Companies reported third quarter numbers this week, including a share repurchase authorization – even though it just went public! Volume increased 122% year-over-year to $89 billion, and Rocket reported GAAP net income of about $3 billion, a 3.4% profit margin. Gain on sale margins were wide at 4.5%.

Speaking of publicly held lenders, remember when loanDepot was going to do an IPO in 2015? A memo was sent out saying LD will give it another shot. A few months ago Bloomberg reported that Anthony Hsieh’s and Parthenon Capital Partner’s loanDepot (retail, wholesale, and correspondent) was contemplating an IPO that would see it valued at between $12 billion and $15 billion, a long way from 2015’s $2.5 billion expected valuation. It recently sold $500 million in senior notes at a 6.5% coupon.

United Wholesale Mortgage is expected to debut via a special purpose acquisition company this quarter at a valuation north of $16 billion. Guild Mortgage went public last month but its private equity firm owners sold less stock than they had planned to sell, and AmeriHome Mortgage and Caliber Home Loans postponed their planned IPOs.

Redwood Trust, which alienated many lenders in March with its retreat from buying jumbo loans, reported a strong quarter driven by mortgage banking and an improvement in asset values. Management noted on the quarterly earnings call that about half the gains in mortgage banking reflected spread tightening. The company also saw rising values in the company’s investment portfolio, and purchased $176 million of jumbo loans versus $155 million in the second quarter. March is a distant memory apparently, as jumbo rate locks spiked to $2.1 billion, which suggests higher volume levels in Q4. The company also originated $261 million of business purpose loans (BPL) and $196 million of SFR loans. The BPL segment contributed a record $52 million of earnings through both valuation gains on loans in inventory and origination income. Early stage delinquencies and forbearances have trended down meaningfully, and the portfolio appears well-positioned in terms of credit.

Capital markets

The U.S. presidential election grabbed most of the headlines last week (and this week) and proved to be the catalyst for a dip in mortgage rates once it became clear the Joe Biden would prevail, but there would be no “blue wave” that would have potentially led to a large new stimulus package to combat the economic effects of the coronavirus pandemic. Economic data released last week showed an economy that continues to improve in some areas and stagnate in others. Residential real estate continues to benefit as shifting preferences for more space boosted residential construction spending in September. Meanwhile, the service sector continues to struggle and increasing coronavirus cases makes it more difficult for close-contact services to see a similar recovery to manufacturing. Additionally, the uncertainty around the pandemic has led to an increase in COVID-related goods spending. Despite the economic headwinds, 638,000 new jobs were added in October and that number is even more impressive as 906,000 private sector jobs were added and a 200,000 decrease in government jobs was due temporary Census workers officially cycling out of employment data.

Bond markets return today to a busy economic schedule. October Consumer Price Index (flat), Core CPI (flat), initial jobless claims for the week ending November 7 (709k, lower than expected, down 48k), and continuing claims for the week ending October 31 (6.8 million). Later this morning, Freddie Mac will release its Primary Mortgage Markets Survey for the week ending November 12, and our Treasury auctions off $27 billion in 30-year bonds, along with a heavy dose of Fedspeak (Chair Powell, Fed Vice Chair Quarles, Chicago Fed President Evans, and New York’s Williams). The MBS purchase schedule sees the Desk purchase up to $5.3 billion across three operations. The Desk will also report on MBS purchases for the week ending November 11 which total $5.8 billion net per day. Thursday starts with Agency MBS prices better by a solid .125 and the 10-year yielding .92 after closing Tuesday at 0.96%.

I recently had this conversation with an older gentleman friend.

Yesterday my son e-mailed me again, asking why I didn’t do something useful with my time. “Like sitting around the pool, drinking beer isn’t a good thing?” I asked. “I served 20 years in the Army; I deserve a break.”

Talking about my “doing something useful” seems to be his favorite topic of conversation. He is “only thinking of me,” he said, and suggested I go down to the clubhouse and hang out with the guys.

I did and when I got home, decided to play a prank on him.  I sent him an e-mail saying that I had joined the Senior Parachute Club since I did that in the army. 

He replied, “Are you nuts? You’re 86-years-old and now you’re going to start jumping out of airplanes again?”

I told him that I even had a Membership Card and e-mailed a copy to him. 

Immediately, he telephoned me and yelled, “Good grief, Dad, where are your glasses?!  This is a membership to a Prostitute Club, not a Parachute Club.

“Oh man, am I in trouble,” I said, “I signed up for five jumps a week!”

The line went dead. Life as a Senior Citizen isn’t getting any easier, but sometimes it can be fun.

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, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed 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 2020 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.)

 

Nov. 12: MLO, Ops jobs; Marketing, non-QM, jumbo products; company news re: lenders, investors, & originators

Are the election results under control? Thank you to Hawai’i’s Joe G. who sent along this site where the odds of who the next president will be are posted; you can buy shares in your favorite! Is COVID under control? In some parts of the nation, it is as if there is no pandemic at all, despite rising cases in 49 states. With this pandemic uncertainty, and hopes for a viable commercial vaccine a long way off, and possible further shutdowns, how is senior management expected to make decisions about office space? No one wants to request employees come back into the office, and then have some come down sick. Or will everyone be working from home permanently? (STRATMOR’s blog is, “Time to Call the Landlord?”.) Parents are grappling with children returning, or not, to school. Remember: Education is important, but opening up the bars is importanter.

Jobs

 

On Tuesday, Nov. 10, Caliber Home Loans CEO Sanjiv Das joined an outstanding lineup of industry executives at #NEXTDC20, a women’s executive mortgage summit. Caliber was one of several sponsors of this interactive online event, which featured an array of lending professionals on its agenda. Das participated on a prominent panel of experts and discussed the critical issues that have affected our industry for the past two decades. You’ll be able to catch the replay soon on the #NEXTDC20 website. “Caliber is a company with smart, strategic leaders who are enthusiastic about sharing knowledge. Come work for a company that will help you grow professionally. Visit our website today to view open opportunities.” To be immediately considered for Operations or Sales positions, email Jonathan Stanley or Brian Miller respectively.

NEXA Mortgage is a “pure broker” with dedicated underwriting teams that boast CTC in 16.9 days on average. Come learn why over 250 producing MLOs are moving to NEXA Mortgage each year. Come learn about our “7 non-negotiables” and why NEXA MLOs feel they have the edge on 1) Interest Rates 2) Products 3) Compensation 4) Support 5) Processing 6) Benefits and 7) Marketing/Technology. We host a weekly “Why NEXA” webinar at 11am MST each and every Thursday. Just find the Why NEXA link and login. The CEO and Co-Founder Mike Kortas will be covering a full demonstration about how all “7 non-negotiables” work.

Lender products & services

The approaching holidays are a perfect time for lenders to evaluate their goals, projects, and strategic decisions to improve their businesses for next year. There is no better opportunity to find and implement the right tech platform in your business. For small to midsize community lenders looking for a digital mortgage point-of-sale platform, Maxwell stands out from the competition because it uniquely caters to these lenders’ platform and partnership needs. Today, the 200+ community lenders on Maxwell gather documents over 73% faster and close loans 45% faster than the national average. That level of performance, along with a platform and team dedicated to adoption and implementation in weeks, not months, is a recipe for success for lenders in this year’s likely short “slow” season. To learn more schedule a demo today.

MCT recently released two pieces in its Newsroom blog, only a small part of MCT’s commitment to clients and industry members alike to promote understanding and profitability in the secondary marketplace. Both Best Execution Analysis in the Secondary Mortgage Market and History of Best Execution for Mortgage Loans provide solid and understandable industry tips on best execution, while also being quite enjoyable reads. At the end of the day, it’s all about yielding profits, and no hedge advisory does that for clients quite as well as MCT. Between the award-winning software, best-in-class client services and learning center, you are doing the most with MCT on your side. To be notified of future whitepapers, blogs, market commentaries, and webinars, join MCT’s Newsletter.

Have you seen the simple innovation that quadrupled productivity and revenues for a division of American Pacific Mortgage? The division’s manager Charlie Christensen says a simple change to their daily processes boosted efficiency and revenues by 280%–without outsourced processing or hiring more staff. Director of Operations, Indica Weatherwax also reports that despite the significantly higher volumes she sleeps better at night knowing that every task, file, deadline, and detail is tracked so that nothing falls through the cracks. The team now serves four-times the customers while working remotely from anywhere. How did they do it? Charlie explains how they used a simple process automation tool to scale production and automate their entire “lead to loan” process. Work smarter. Discover TeamworkIQ.

Are you ready for VA IRRRL and FHA Streamline refinance opportunities in this market?  Learn how to efficiently submit your files once for a final approval!  Join Freedom Mortgage Wholesale for live webinar training sessions on VA IRRRL or FHA Streamline mortgage products and origination processes. Ideal for new or experienced government originators. Sign up for a VA IRRRL or FHA Streamline webinar on 11/13 (FHA SL), 11/20 (VA IRRRL) or 11/24 (VA IRRRL).

Expand your loan offerings with MAXEX, the first exchange for buying and selling residential loans through a single, trusted clearinghouse. Get fast, consistent liquidity and competitive pricing on Jumbo, Conforming and Non-QM loans from a marketplace of ready-to-buy institutional investors. MAXEX has several recently introduced programs. Jumbo Express: Leverage certain results from Desktop Underwriter® (DU) and/or Freddie Mac’s Loan Prospector Advisor^SM (LPA) to reduce the complexity of underwriting Jumbo Loans. Include loan amounts from $510,401 – $1.5M for transactions that are DU Approve / Ineligible or LPA Accept / Ineligible for loan size only. Non-QM: Access a broad range of fixed, ARM, fully amortized and IO options for loan amounts from $150K to $2.5M. Better serve self-employed borrowers with Full Doc and Alt Doc programs. To learn more about MAXEX, visit us at maxex.com.

If you’re like the average lender, you have a database of 5,000 records, and only retain 20% or less of your borrowers. In one month, you’ve lost over 39 loans to your competitors. That’s a whopping $10 million of loan originations! Sales Boomerang notifies mortgage lenders when someone in their database is ready for a loan. Our clients retain more than 65% of their borrowers. The longer you delay, the larger that loss becomes on your bottom line. We want to be your retention hero and win back the loans that you’re losing. “I have LO’s that only work Sales Boomerang leads, and my ROI is in the 20-30X Range.” (John Kresevic, CEO, JFQ) The numbers speak for themselves: 20X Avg ROI, $240 Avg Cost Per Acquired Loan, 10-20% Avg Lift to Loan Volume. Want to see exactly how much you lost this year? Request your report today.

He Made the President’s Club While Hospitalized! Here’s a true story about the power of Relationship Engagement: On a Mortgage Company’s Production Cruise in 2003 a winner slipped near the pool and landed on the back of his head. He was unconscious for 20 minutes, but when he woke up, he felt fine. Turns out he wasn’t fine. In fact, he almost died and spent a year in the hospital. The crazy thing is he did $12 million in production that year. How? He had great relationships, a great assistant, and his marketing was automated. His Realtors and clients had no idea he was even sick. They continued to get great service from his assistant and targeted, personalized marketing from Usherpa. According to the Loan Officer, “Without Usherpa, I’d be out of business.” Local Content sent to the right people at the right time with the right message: Usherpa.com.

Who’s doing what in our business

Some will argue that real estate agents believe loan underwriting guidelines should just go away. Underwriting limits the buyer pool, right? Let’s not do that. But NAR presented its thoughts on what a Biden Administration means for Freddie Mac and Fannie Mae. Things to keep in mind: a) a full release from conservatorship will require legislation and that won’t happen under divided government, and b) we’ll see how the Supreme Court decides a lawsuit regarding the structure of the FHFA. Many believe that the Biden Administration will be in no hurry to recapitalize and release them, given the profits flowing into the U.S. Government and to continue to promote and increase affordable housing mandates.

M&A is still occurring. For example, First Citizens BancShares, Inc. and CIT Group Inc., jointly announced that they have entered into a definitive agreement under which the companies will combine in an all-stock merger of equals to create a top-performing commercial bank. The combined company will operate under the First Citizens name and will trade under the First Citizens ticker symbol FCNCA on the Nasdaq stock market with headquarters in Raleigh, NC.

The 2020 myCUmortgage Annual Awards recognized a record 55 credit unions and loan originators. Awards received included the Purchase Money Lender of the Year: Canton School Employees Federal Credit Union, Canton, Ohio. Originator of the Year: Misty Brown, Desco Federal Credit Union, Portsmouth, Ohio. Lender of the Year: Midwest Community Federal Credit Union, Defiance, Ohio. Additionally, 42 loan originators were individually recognized for each helping over 100 members with home ownership. Receiving the highest individual honor was Tim Muffley, Mortgage Lending Manager with Desco Federal Credit Union in Portsmouth, Ohio. The annual award, the Tim Mislansky Belief Award, recognizes an individual with a credit union who exemplifies former myCUmortgage President Mislansky’s belief in the importance of living one’s core values at work, home and in the community.

Mortgage market share continues to shift away from commercial banks and to independent mortgage banks (IMBs). Rocket Companies reported third quarter numbers this week, including a share repurchase authorization – even though it just went public! Volume increased 122% year-over-year to $89 billion, and Rocket reported GAAP net income of about $3 billion, a 3.4% profit margin. Gain on sale margins were wide at 4.5%.

Speaking of publicly held lenders, remember when loanDepot was going to do an IPO in 2015? A memo was sent out saying LD will give it another shot. A few months ago Bloomberg reported that Anthony Hsieh’s and Parthenon Capital Partner’s loanDepot (retail, wholesale, and correspondent) was contemplating an IPO that would see it valued at between $12 billion and $15 billion, a long way from 2015’s $2.5 billion expected valuation. It recently sold $500 million in senior notes at a 6.5% coupon.

United Wholesale Mortgage is expected to debut via a special purpose acquisition company this quarter at a valuation north of $16 billion. Guild Mortgage went public last month but its private equity firm owners sold less stock than they had planned to sell, and AmeriHome Mortgage and Caliber Home Loans postponed their planned IPOs.

Redwood Trust, which alienated many lenders in March with its retreat from buying jumbo loans, reported a strong quarter driven by mortgage banking and an improvement in asset values. Management noted on the quarterly earnings call that about half the gains in mortgage banking reflected spread tightening. The company also saw rising values in the company’s investment portfolio, and purchased $176 million of jumbo loans versus $155 million in the second quarter. March is a distant memory apparently, as jumbo rate locks spiked to $2.1 billion, which suggests higher volume levels in Q4. The company also originated $261 million of business purpose loans (BPL) and $196 million of SFR loans. The BPL segment contributed a record $52 million of earnings through both valuation gains on loans in inventory and origination income. Early stage delinquencies and forbearances have trended down meaningfully, and the portfolio appears well-positioned in terms of credit.

Capital markets

The U.S. presidential election grabbed most of the headlines last week (and this week) and proved to be the catalyst for a dip in mortgage rates once it became clear the Joe Biden would prevail, but there would be no “blue wave” that would have potentially led to a large new stimulus package to combat the economic effects of the coronavirus pandemic. Economic data released last week showed an economy that continues to improve in some areas and stagnate in others. Residential real estate continues to benefit as shifting preferences for more space boosted residential construction spending in September. Meanwhile, the service sector continues to struggle and increasing coronavirus cases makes it more difficult for close-contact services to see a similar recovery to manufacturing. Additionally, the uncertainty around the pandemic has led to an increase in COVID-related goods spending. Despite the economic headwinds, 638,000 new jobs were added in October and that number is even more impressive as 906,000 private sector jobs were added and a 200,000 decrease in government jobs was due temporary Census workers officially cycling out of employment data.

Bond markets return today to a busy economic schedule. October Consumer Price Index (flat), Core CPI (flat), initial jobless claims for the week ending November 7 (709k, lower than expected, down 48k), and continuing claims for the week ending October 31 (6.8 million). Later this morning, Freddie Mac will release its Primary Mortgage Markets Survey for the week ending November 12, and our Treasury auctions off $27 billion in 30-year bonds, along with a heavy dose of Fedspeak (Chair Powell, Fed Vice Chair Quarles, Chicago Fed President Evans, and New York’s Williams). The MBS purchase schedule sees the Desk purchase up to $5.3 billion across three operations. The Desk will also report on MBS purchases for the week ending November 11 which total $5.8 billion net per day. Thursday starts with Agency MBS prices better by a solid .125 and the 10-year yielding .92 after closing Tuesday at 0.96%.

I recently had this conversation with an older gentleman friend.

Yesterday my son e-mailed me again, asking why I didn’t do something useful with my time. “Like sitting around the pool, drinking beer isn’t a good thing?” I asked. “I served 20 years in the Army; I deserve a break.”

Talking about my “doing something useful” seems to be his favorite topic of conversation. He is “only thinking of me,” he said, and suggested I go down to the clubhouse and hang out with the guys.

I did and when I got home, decided to play a prank on him.  I sent him an e-mail saying that I had joined the Senior Parachute Club since I did that in the army. 

He replied, “Are you nuts? You’re 86-years-old and now you’re going to start jumping out of airplanes again?”

I told him that I even had a Membership Card and e-mailed a copy to him. 

Immediately, he telephoned me and yelled, “Good grief, Dad, where are your glasses?!  This is a membership to a Prostitute Club, not a Parachute Club.

“Oh man, am I in trouble,” I said, “I signed up for five jumps a week!”

The line went dead. Life as a Senior Citizen isn’t getting any easier, but sometimes it can be fun.

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, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed 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 2020 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.)

 

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Winter Will Bring a Flurry of Activity to the Housing Market

In the second half of this year, the housing market surged with activity. Today, real estate experts are looking ahead to the winter season and the forecast is anything but chilly. As Lawrence Yun, Chief Economist for the National Association of Realtors (NAR), notes:

“It will be one of the best winter sales years ever.”

The typical winter slowdown in the housing market is simply not on the radar. Here’s why.

While today’s historically low mortgage rates are expected to remain low, they won’t be this low for much longer. This could be the last chance for homebuyers to secure such low rates, and they’re ready to take action. In a recent article, Bankrate explained:

“If you’re looking to buy a home…expect mortgage rates to remain low into 2021. However, the possibility of rates falling to 2.5 percent or lower has faded as the U.S. economy has rebounded.”

As long as we continue to see low interest rates, we’ll see hopeful buyers on the hunt for their dream homes. Yun confirmed:

“The demand for home buying remains super strong…And we’re still likely to end the year with more homes sold overall in 2020 than in 2019…With persistent low mortgage rates and some degree of a continuing jobs recovery, more contract signings are expected in the near future.”

The challenge, however, is the lack of homes available for sale. With that in mind, all eyes are on homeowners to see if they’ll sell this winter or wait until spring. Danielle Hale, Chief Economist for realtor.com, says it’s best for sellers to capitalize on this moment sooner rather than later:

“We currently see buyers sticking around in the housing market much later than we usually do this fall. If that trend continues, we will see more buyers in the market this winter, too. So, this winter is likely to be a good time to sell.”

With buyers ready to stay active this winter, sellers who want to close a deal on the best possible terms shouldn’t wait until spring to put their homes on the market.

Bottom Line

Experts agree the winter housing market could potentially be bigger than ever. Whether you’re ready to buy or sell, contact a local real estate professional today so you can be in your dream home by the new year.

The post Winter Will Bring a Flurry of Activity to the Housing Market appeared first on Keeping Current Matters.

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