Banking

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Two Orange County, California, individuals face charges of conspiracy, bank fraud and identity theft, accused of targeting elderly members of the local Vietnamese community and duping banks into distributing $2.2 million of their accrued home equity.  

Thao Thi Kim Nguyen and Nghiep Chinh Nguyen were arraigned in United States District Court in Santa Ana, California, on Monday. Both entered not guilty pleas to the charges against them and were granted bond. They each face a single count of conspiracy to commit bank and wire fraud. 

Thao Nguyen was also charged with multiple other counts of both bank fraud and aggravated identity theft. Nghiep Nguyen, meanwhile, faces an additional two counts of bank fraud and another of aggravated identity theft.

The purported violations occurred over a four-month period in 2018 after Thao Nguyen opened accounts in her name at two banks, who were not identified in the court indictment. Later, she would return to the banks accompanied by Ngiep Nguyen and other participants involved in the fraud, who posed as homeowners. 

Using stolen identities and phony documents, including California driver’s licenses and Social Security cards, Ngiep Nguyen and the other alleged fraudsters would typically impersonate elderly Vietnamese homeowners to take out mortgages. This gave them access to the victim’s accrued equity, through obtaining reverse liens after forging signatures on banking documents and grant deeds. Thao Nguyen also added the victims’ names to the accounts she had previously opened at the banks, claiming, in at least one case, they belonged to her parents.

She then reportedly received wire transfers of the withdrawals made by the other parties from the fraudulent mortgage accounts. Thao Nguyen subsequently moved those funds to different bank accounts she owned. 

The scheme netted almost $2.2 million, according to the indictment, with Thao Nguyen taking in approximately $1 million while distributing the remaining amount to her cohorts.

A trial date for the two defendants is scheduled to begin on Sept. 26. If convicted, both face a maximum sentence of 30 years in federal prison for each conspiracy and fraud charge. They would also be required to serve two years for each count of aggravated identity theft if found guilty. 

Neither the identities of others participating in the scheme, who were not part of this indictment, nor of the victims were reported.

The charges against Thao Nguyen and Ngiep Nguyen follow another recent trial involving elderly homeowners in California. In that case, the head of an investment company promised homeowners he could help distressed borrowers avoid foreclosure through transfer of their deed title to his business. After losses totaling more than $7 million and the eventual seizure of all homes belonging to the victims between 2015 and 2019, Robert Sedlar was found guilty on more than 100 felony counts earlier this year, including conspiracy, grand theft and elder abuse.     

Source: nationalmortgagenews.com

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Amid the fallout of the Silicon Valley Bank and Signature Bank collapses in March, depositors looked for safer places for their savings, and big banks benefited from some customer flows during the flight to safety. Earnings for JP Morgan Chase and Wells Fargo also beat expectations, easing concerns about the health of the country’s banking system.

Deposits at Bank of America were above $1 trillion for the seventh straight quarter, posting $1.91 trillion in the first quarter of 2023, down 1% from $1.93 trillion during the same quarter in 2022. 

Consumer banking division posted a net income of $3.1 billion, a 13.1% decline from the previous quarter’s $3.58 billion, but still up 4.4% from the previous year’s $3 billion, according to its filing with the Securities and Exchange Commission (SEC).

“We had a great quarter for our micro products (…) We have positive returns there. So mortgages, credit, munis, financing, futures, FX, all of them had a pretty good quarter,” Alastair Borthwick, Bank of America’s chief financial officer, told analysts.

Mortgage, home equity business 

Its mortgage business, however, reported disappointing numbers, an issue led by elevated 30-year fixed mortgage rates.

Mortgage originations totaled $3.9 billion during the first quarter, a 25% drop from $5.2 billion posted in the second quarter, and 76.2% below the $16.4 billion in the first quarter of 2022. 

BofA’s production decline follows the track of JPMorgan Chase and Wells Fargo, which also posted double-digit mortgage loan production decreases during the first quarter.

The bank’s home equity originations remained flat in the first quarter, posting $2.6 billion from the previous quarter. That’s up from the first quarter of 2022, when BofA originated $2.0 billion in home equity loans.

Bank of America had $229.3 billion in outstanding residential mortgages on its books through March 31, down from $229.4 billion from Q4 2022 and $224 billion in the first quarter of 2022.

The home equity portfolio was $26.5 billion at the end of the first quarter, down from $27 billion from the previous quarter — and a decline from $$27.8 billion a year prior.

Bank of America’s total mortgage-backed securities reached a $32.1 billion fair value as of March 31, compared to $32.5 billion as of December 31, 2022.  

Looking forward, Borthwick expected the Federal Reserve to raise interest rates one more time, followed by a couple of cuts this year. 

“That obviously assumes our current client positioning and the forward rate expectations. We continue to expect modest loan growth (…) driven by credit card, and to a lesser degree, commercial,” Borthwick said.

The bank expects further Fed balance sheet reductions to continue to reduce deposits for the industry, leading to lower deposits and rotational shifts.

Source: housingwire.com

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Rates are high, housing inventory is down, and competition for new originations is fierce. Leaders across mortgage and banking are turning to their marketing partners with some variation of the same ask: “We need to improve the effectiveness and profitability of our campaigns, increase originations, and oh, by the way, budgets have been slashed — so any ideas better be cost-effective.” Easy, right?

Sure, multi-million-dollar ad campaigns and exciting new lead sources would be great, but often lenders can find opportunities more efficiently by referring to the data and resources they already have. Many lenders have access to a large amount of consumer data, namely their customers and prospects, and the attributes they know about them.

Here’s how to turn those existing data assets into origination opportunities, all while creating a better experience for customers. 

Get your data in shape.

For example, Americans move on average 11.4 times in their lifetime and alerting their bank to a change of address is not always a priority, especially for those who interact with their financial institutions digitally. So, until the consumer volunteers that new address, direct mail offers are likely piling up at their old one. At scale, this can generate enormous marketing waste. 

If you’re relying on consumer information collected years ago, it’s good to score it for accuracy and update it regularly. Refreshing your data avoids the risk of misplaced marketing expenses and missed opportunities to engage with customers and prospects. This goes for phone, email and digital identifiers as well. To market effectively it is crucial to have accurate consumer information.

Taking it a step further, consider whether data is being collected accurately to begin with, especially on lead submissions. Many consumers are, rightfully, hesitant to submit a correct phone number on a lead form. This hesitation not only hinders lenders from reaching them, but also poses a compliance risk to the business if incorrect numbers are dialed.

Expand on what you know.

Even if you have the right information and tools to engage customers and prospects, you likely can’t engage with all customers at all times, nor should you want to. 

This is where expanding what you know about the consumer comes into play. Demographic, financial, and psychographic attributes can all help in segmenting target audiences for more effective engagement and deliver a more meaningful experience for the consumer. Consider developing an “ideal customer profile” that correlates with a higher conversion rate, then find and prioritize these “ICPs” within your database. This will be significantly more effective than “one size fits all” campaigns. 

You can also use these insights to build out digital audiences for acquisition. It’s remarkable how many financial institutions deploy a universal model when there will be significant variation across how their prospects and customers respond to their marketing. By understanding and leveraging this variation, lenders can cut wasted spend and improve profitability. As with getting data in shape, these insights can also be leveraged at the point of lead submission to inform things like scoring, routing, and messaging from the first consumer interaction onwards. 

Remember that great marketing requires great timing.

Most lenders leverage credit triggers to try to prevent competitive fallout, and it’s often considered table stakes for any retention strategy. 

However, consider this: a credit trigger means a consumer is likely applying elsewhere and solely relying on that insight is akin to showing up to the game in the fourth quarter. And because other lenders are also getting that trigger, it’s like showing up to play against five other teams. Not surprisingly, there’s even a legislative proposal to ban credit triggers entirely in the name of consumer experience. Delivering an effective and relevant consumer experience requires engaging with consumers earlier in their homebuying journey. 

We’ve historically seen consumers first start shopping online for a new mortgage or home around 100 days before a credit trigger, a timeline that’s expanded even further with the current rate environment and limited housing inventory.

Evaluate internal and external resources that can help you determine who might be at the beginning of that shopping process. It’s going to be a long process, so create touch points to offer the consumer resources that will keep them engaged with your brand throughout their homebuying journey. 

Galen Foote is an enterprise account executive at Verisk Marketing Solutions.

Source: housingwire.com

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Rohit Chopra, director of the Consumer Financial Protection Bureau, has said the bureau is “no stranger” to litigation challenging the agency’s constitutionality. The Supreme Court is poised to hear oral argument on another such case this fall that could hold much of the agency’s rulemaking agenda in the balance.

Bloomberg News

The Consumer Financial Protection Bureau has a jam-packed agenda ahead with final rules coming soon that would cut credit card late fees to $8, create a registry of corporate “bad actors,” and require nonbanks to disclose terms waiving consumers’ rights to arbitration.

But the CFPB is operating under a cloud of uncertainty with the Supreme Court scheduled to hear oral arguments in October in a case challenging whether the bureau’s funding is constitutional. The legal and regulatory uncertainty will continue until the high court rules on the case by June 2024 at the latest. CFPB Director Rohit Chopra has been clear that the bureau is “not holding back” on rulemaking or enforcement.

“The CFPB is certainly no stranger to these types of challenges,” Chopra told American Banker in a recent interview. 

But the CFPB got hit with further legal turbulence this week when a federal judge in Texas temporarily blocked implementation of the bureau’s small business data collection rule until the Supreme Court case is decided. Bankers have since urged the bureau to halt all bank data collection under the rule until after the outcome of the Supreme Court’s decision.

The ruling could change the calculus for the CFPB’s regulatory agenda going forward, potentially holding off several rules from going into effect. The judge granted a preliminary injunction to members of two bank trade groups and a private bank that had sued the CFPB, setting the stage for other trade groups to follow suit. 

“This creates the precedent that fundamentally alters the CFPB’s agenda for the next year,” said Ed Mills, managing director at Raymond James. “The biggest development in favor of the industry is the most recent ruling and that there is a judge that says the CFPB can’t do anything until the Supreme Court has decided.”

The big question for banks, consumers and investors is not whether industry trade groups will sue the CFPB to block any final rules from going into effect but when and where they will sue. Trade groups have already threatened to sue the CFPB over the credit card late fee proposal, with the choice of venue likely in Texas, where Republican jurists dominate the U.S. Court of Appeals for the Fifth Circuit.

The CFPB “is going to get sued for everything and part of the reason why they get sued is because a number of the lawsuits have been successful,” added Mills.  

The industry’s playbook for how to successfully gut a CFPB rule — and challenge the constitutionality of the bureau — is the years-long litigation over the payday lending rule. The bureau issued the payday rule in 2017 and was sued in 2018 by two Texas payday groups. Last year, a three-judge panel on the Fifth Circuit ruled that the CFPB was unconstitutionally funded through the Federal Reserve System and invalidated the payday rule. The CFPB appealed that ruling last year, teeing up the current constitutionality case before the Supreme Court. 

In the case this week that temporarily halted the small business data collection rule for banks, the two bank trade groups also had appealed to the Fifth Circuit. 

CFPB Director Rohit Chopra is poised to issue four final rules by year-end that could be challenged. A rule on credit card late fees is expected to be finalized in September or October and go into effect early next year. The rule is a priority for Chopra and many experts think the CFPB will not change its proposal to drop late fees to $8 from between $30 to $41 currently. 

“Chopra has the authority to issue the rule on credit card late fees, and trade groups likely will look to file a lawsuit in Texas to get before the Fifth Circuit,” said Dan Smith, president and CEO at the Consumer Data Industry Association and a former CFPB assistant director.

Todd Zywicki, a law professor at the Antonin Scalia Law School at George Mason University, said the credit card late fee rule “does seem more likely to get the chopping block if the final rule resembles the proposal.”

Two more final rules expected by year end on nonbank registries — one for so-called “bad actors,” and the other that is a workaround of the CFPB’s invalidated arbitration rule  — are also expected to be challenged. The CFPB proposed a rule in December that would create a public database of corporate lawbreakers, requiring nonbanks to report any state and local court orders or judgments involving consumer financial products. A second registry proposed in January would require nonbanks to register contract terms waiving consumers’ rights to arbitration. 

“The bad actors’ registry just puts a bull’s eye on the industry,” said Eric Johnson, a partner at Hudson Cook. “I can see somebody challenging both of those rules while we’re waiting for the Supremes to act, especially now that two banking associations have had success before a judge.” 

Finally, a much-anticipated proposal on open banking that would give consumers control over their personal financial data is expected to be finalized in 2024. 

Chopra is mindful of the timeframe and deadlines for getting rules from the proposal stage through the public notice-and-comment process, and to the final rule stage before enactment. If the CFPB waits too long, there is always a threat — albeit a minor one, experts say — that a rule could be repealed by Republicans, assuming they take control of the Senate and Presidency and retain the House in 2024. Republicans used an obscure legislative process called the Congressional Review Act to overturn the CFPB’s arbitration rule in 2017 by a vote of 51-50. 

The Congressional Review Act is one of the reasons the CFPB is moving quickly to propose other rules and get them finalized next year before the election. Proposed rules are coming in 2024 on overdraft fees, nonsufficient funds fees and credit reporting.

By halting compliance with a rule, industry hopes to stall or at least put off enactment until another day. 

“The delay is really important for the industry because it opens up other avenues,” said Mills. “If there is an effective delay, could industry be saved by a Supreme Court decision and by the 2024 presidential election?”

The CFPB is moving quickly on rules to appear as though it is “business as usual,” despite the threat of the Supreme Court case, experts said. 

“I can see where Chopra has sped up the bureau’s activities because they are trying to show all the good they think they’re doing for consumers to justify their existence and prove their worth to Congress,” said Johnson.

Source: nationalmortgagenews.com

Apache is functioning normally

US economy added fewer new jobs than expected last month.

The US non-farm payroll rose by 187,000 in July, data just released shows, below forecasts of an increase of 200,000.

June’s NFP has been revised down too, from +209,000 to +185,000, while May’s has been cut by 25,000, from +306,000 to +281,000, meaning fewer jobs were created in the spring than we thought.

The U.S. Bureau of Labor Statistics has also reported that the unemployment rate fell to 3.5%, down from 3.6% in June.

They add:

Job gains occurred in health care, social assistance, financial activities, and wholesale trade.

Economists are hopeful that the US economy is on track for a soft landing, after US employers added 187,000 jobs in July, less than expected.

July’s jobs report is a sign that the labor market is cooling after a series of interest rate hikes by the Federal Reserve have driven rates to their highest level in 22 years.

July’s gains were just 2,000 more than the jobs added in June. The BLS revised June’s job gain down to 185,000, a cut of 24,000 jobs. It also cut May’s jobs number. Together, June and July represent the two weakest monthly gains in two and a half years.

Here’s the full story:

US economy adds 187,000 July jobs in sign labor market is coolingRead more

In the UK, there are fears the economy is caught in a ‘low growth trap’, after the Bank of England cut its GDP forecasts yesterday and hiked interest rates to a 15-year high.

UK car sales have risen for 12 months in a row….but rising interest rates have been blamed for another fall in housebuilding.

Shipping giant AP Møller-Maersk has warned of a longer and deeper contraction of global trade than previously expected.

Inflationary pressures in the food sector are on the rise, with the UN reporting that global food commodity prices rose in July.

Revolut is shutting down its crypto trading operations in the US amid a regulatory crackdown.

a crackdown on crypto exchanges, by the Securities and Exchange Commission (SEC), which has accused industry giant Binance of a range of securities violations, including mishandling customer funds and misleading investors and regulators, and alleged Coinbase of skirting SEC rules by letting users trade crypto tokens that were actually unregistered securities.

Revolut said users will be blocked from buying cryptocurrencies from 2 September, and that access would be fully disabled by 3 October, meaning customers will no longer be able to buy, sell, or hold any cryptocurrencies after that date.

Revolut said in a statement:

“This decision has not been taken lightly, and we understand the disappointment this may cause. This suspension does not affect Revolut users outside of the US in any way, and impacts less than 1% of Revolut’s crypto customers globally.”

A spokesperson stressed that the decision would not affect customers in any other markets, including the UK, where Revolut has been registered as a crypto asset provider since September 2022.

The company – which has been waiting more than two years for a decision on its UK banking licence – said it would not disclose how much of its revenues rely on crypto services, but said in 2021 that they made up around 15-20% of its revenues.

https://t.co/87Kh5YO8U4

— Bloomberg Economics (@economics) August 4, 2023

August 4, 2023

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The unemployment rate fell a tick to 3.5% and remains near the lowest rates recorded in half a century. We haven't had unemployment this persistently low for this long in decades. Layoffs are incredibly low and workers report feeling confident they can find work.

&mdash; Justin Wolfers (@JustinWolfers) August 4, 2023

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With the slower jobs growth this month and recent downward revisions, it seems clearer that jobs growth has slowed meaningfully.

But there's no cause for pessimism here. Put recent growth of around +200k into context, you'll discover that this is still remarkably robust growth.

&mdash; Justin Wolfers (@JustinWolfers) August 4, 2023

pic.twitter.com/jeG0GfdQPW

— Heather Long (@byHeatherLong) August 4, 2023

https://t.co/uMFAo4MqKp pic.twitter.com/gRkuMC2xLU

— Jeffry Bartash (@jbartash) August 4, 2023

Economics, suggests the Fed shouldn’t be worried that US wage growth was steady last month, rather than slowing as expected:

The news that average hourly earnings growth increased by 0.4% m/m in July, and 4.4% over the past 12 months, might seem like a problem for the Fed. With productivity growth accelerating, however, it may not be.

A chart showing US jobs changes

today’s US jobs data.

US jobs report in July is still consistent with a strong labour market, despite lower-than-expected and the smallest monthly job gains since December 2020.

Job gains cooled with the Fed’s tightening campaign and a slower economy, but still decent at 187K in July. Weakness is contained in the manufacturing sector where payrolls dropped by 2K, reflective of the sector’s downturn and more cyclical nature.

Higher-than-expected wage growth of 4.4% YoY means compensation is outpacing inflation and a boost for workers.

August 4, 2023

Carson, has fired over some ineresting thoughts on today’s US jobs report:

the ecommerce giant beat Wall Street forecasts last night with sales up 11% to $134.4bn in the last quarter.

The company reported a quarterly profit of $6.7bn, nearly double what analysts expected.

$DXY The Dollar heading lower after NFP pic.twitter.com/XazkDNbevl

— Andrew Moss, CMT (@Andy__Moss) August 4, 2023

Source: theguardian.com

Apache is functioning normally

If you’ve ever had to repair your credit, you know how much of a struggle removing inaccuracies from your reports can be. The bad news is that in many cases, after removing negative accounts from your credit history you may only see a slight increase or maybe even no change at all to your credit score.

Why? Because you need a healthy credit profile to have a healthy credit score. If all you have is negative items on your credit reports and you’ve removed them all, you might not have much of a report left to build a credit score with. 

One of the easiest ways to build a good credit score is to improve your credit utilization ratio. You can do this by expanding the total amount of credit available to you by applying for a new credit card. 

If you’re currently working with a low credit score right now, and are worried about being approved for a credit card, we’ve got you covered. Here’s our top 4 easy approval cards.

Best Overall Card: Chime

Secured Chime Credit Builder Visa® Credit Card

  • Qualifying direct deposit of $200 or more. Checking account required.
  • No annual fee. No minimum* security deposit. No credit check to appy
  • *Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
  • Build credit history with your own money on everyday purchases
  • View and track your FICO® Score right in the Chime app. FICO Scores are used by 90% of top lenders*
  • Chime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC. The Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.

If you’re ready to start building your credit history, we suggest Chime as a simple, easy way to start. Unlike most other secured cards, Chime does not require a minimum security deposit to get started.* 

So if you don’t have a large chunk of cash to put down up front, you can put down however much you’re able to afford. That amount becomes your credit limit, so you can start building up your limit over time. 

Even better – they also don’t have a minimum credit score required to get started! In fact, they don’t run a credit check at all, so you don’t have to worry about a hard credit pull popping up on your report.

*Note: To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Checking Account.

Other Recommended Secured Credit Cards

Most secured credit cards require the user to put down a cash deposit to secure their line of credit, which makes them a great option for people looking to build up their credit with on-time payments. Here are a few other secured cards we’d recommend.

Self – Credit Builder Account + Secured Visa® Credit Card

Self – Credit Builder Account + Secured Visa® Credit Card

  • Combined credit builder account and secured card products to help you build credit and save* money (minus interest and fees) No credit check.
  • No credit check. No credit history required.
  • Start with a credit builder account that reports to all 3 credit bureaus. Each on-time monthly payment builds credit history and savings. Choose the plan that works for you.
  • Make at least 3 monthly payments on time, have $100 or more in savings progress in your account, and be in good standing* You’ll automatically be eligible for the Self Visa® Credit Card, without a credit check.
  • Your savings progress from your Credit Builder Account acts as your refundable security deposit.
  • The Self Visa® Credit Card is accepted at millions of locations in the U.S.
  • Stay on track with credit utilization monitoring, auto pay, account reminders, a mobile app, and dedicated customer support.
  • *Sample Product for Credit Builder Account: $48 monthly payment, 12 month term with a $9 admin fee at a 15.92% Annual Percentage Rate. Please refer to www.self.inc/pricing for the most recent pricing options.
  • **Disclaimers, Rates and Fees: https://www.self.inc/card-agreement and https://www.self.inc/terms-of-service

We like the Self – Credit Builder Account + Secured Visa® Credit Card combo because it uses your progress on your credit-builder loan to approve you for a credit card, allowing you to side-step a credit inquiry to qualify for your card.

OpenSky Secured Visa

OpenSky® Secured Visa® Credit Card

  • No credit check to apply and find out instantly if you are approved
  • OpenSky gives everyone an opportunity to improve their credit with an 85% average approval rate for the past 5 years
  • Get considered for a credit line increase after 6 months, with no additional deposit required
  • You could be eligible for the OpenSky Gold Unsecured Card after as few as 6 months
  • Reports to all 3 major credit bureaus monthly, unlike a prepaid or debit card. Easy application, apply in less than 5 minutes right from your mobile device
  • View your FICO® Score through your OpenSky account, an easy way to stay on top of your credit
  • Nearly half of OpenSky cardholders who make on-time payments improve their FICO score 30+ points in the first 3 months
  • Your refundable* deposit, as low as $200, becomes your OpenSky Visa credit limit
  • Offer flexible payment due dates which allow you to choose any available due date that fits your payment schedule
  • *View the cardholder agreement

We like OpenSky Secured Visa because there is no credit check required to apply, and you can request an extension on your credit line after six months. Unlike most other secured cards, OpenSky also allows you to fund your security deposit in payments, making it even easier to get started.

Best Balance Transfer Card: UNITY® Visa Secured Credit Card – The Comeback Card™

UNITY® Visa Secured Credit Card – The Comeback Card™

  • Unlike your Prepaid Card, UNITY Visa secured card can help you build your credit. Apply online in less than 5 minutes, and you could be approved today!
  • No Minimum Credit Score required; low fixed interest rate of 17.99%; Fully refundable FDIC security deposit* required at time of application; if you have a min of $250 to deposit immediately, you can start now!
  • No application fee or penalty rate
  • Monthly reporting to all 3 major credit bureaus
  • 24/7 online access to your account
  • *See the Cardholder Agreement for more details.

We like this card because not only does it report your on-time payments to all three credit bureaus (helping you build up those positive credit signals) but it also offers a promotional rate for balance transfers of 9.95% for six months. Considering how difficult it can be to find a good balance transfer card with an easier application process, we especially recommend this card if your goal is to rearrange your credit card debt.

Building (and Protecting) Your Credit

While your score may not be strong enough to allow you apply for credit cards that offer better cashback or rewards, there are many credit cards in our list above that offer at least some of those same benefits and provide more support for reporting your good credit behavior to the bureaus. 

Just as a reminder, payment history can be the heaviest factor when it comes to calculating your credit score. Although you may want to improve your score by applying for a new credit card, make sure that you can avoid any late payments that may hit your reports and jeopardize all your hard work. 

Source: credit.com

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TPO Programs, Broker Locking, New Media Company, CRM Products; Investor News; Capital Markets

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TPO Programs, Broker Locking, New Media Company, CRM Products; Investor News; Capital Markets

By:
Rob Chrisman

13 Min, 13 Secs ago

Planet Home’s Michael B. reminds me, “I miss every shot I don’t take.” The topics here in Orlando at the FAMP convention include not only prospecting, prospecting, and… prospecting, but also not missing a shot by offering clients more than a couple products. Freddie, Fannie, FHA, and VA are fine, but every client and referral source is precious, and what happens if someone walks through the door and needs a loan for a renovation (remodel), or a condotel, or a non-warrantable condo, or qualifies for a bond program, or… the list goes on. In the category of leads, have you looked into any local real estate investment clubs as a source of business? What about going after leads from divorce attorneys or local hard money lenders? Persistence! Another big topic at the FAMP conference is saving money, and STRATMOR’s current blog is titled, “Improving Revenue Might Be Right Under Your Nose.” (Today’s podcast can be found here and is sponsored by Candor. Candor’s patented automated underwriting decision engine, CogniTech, is a state-of-the-art, 100 percent machine platform that can handle infinite loan scenarios. Listen to an interview with Ally Home’s Glenn Brunker on the homebuyer affordability issue and potential ways to alleviate it.)

Lender and Broker Software, Products, and Services

School is back in session for the majority of America’s youth. But just because you are an adult doesn’t mean you should pass up on opportunities to polish your professional skillset. Surefire℠, Black Knight’s CRM and Mortgage Marketing Engine, has created Mortgage Marketing University (MMU) with free 101, 201 and 301-level courses designed to help brokers, LOs, LOAs and your marketing team get up to speed on best mortgage marketing practices and stay on top of their game. The MMU companion eBook is an ideal resource for your team to keep at its fingertips. Download the MMU eBook today.

Debuting Rebel Chics Media! “We understand the needs of the real estate industry and are here to help you engage, “edutain” and inspire homebuyers with branded social content. Our agency-quality subscription content, along with writing prompts, allows you to address the questions and concerns of potential homeowners. This content is ideal for LOs, banks, credit unions, and Realtors looking to build a strong social brand. Benefit from 50+ years of combined industry experience of our founders, Jillian Sorensen & Dana Trajcevski. Move beyond generic posts like Spring Cleaning tips and Pumpkin Pie recipes, and instead, unlock the power of storytelling. Now is the perfect time to build your brand, and Rebel Chics Media is here to support you. We understand that you’re busy and don’t have the time, energy, or tools to create content yourself. Leave that to us and focus on growing your brand and connecting with your audience.”

Brokers can now shop, lock, and deliver on one platform that seamlessly connects brokers, lenders, and originators. In this market, hustle is everything. You can’t afford to waste a single deal… or a single minute. That’s why ReadyPrice has launched its innovative new Shop, Lock & Deliver loan exchange platform, designed to help independent mortgage brokers like you save time and money. Now you can shop competitive loan offerings from multiple lenders, get rate lock guarantees in real time, receive underwriting findings, and deliver the borrower’s complete loan file to lenders, and all on a single platform, at no cost to brokers. It’s the industry’s most powerful universal delivery portal, and it’s already helping thousands of brokers around the country thrive and compete in even the toughest market environments. Multiple lenders. One platform. Zero b.s. Come check ReadyPrice out today.

TPO Programs for Brokers and Correspondents

Profitable mortgage companies are focused on the long-term value of the customer relationship. Essex Mortgage’s partners enjoy greater customer retention, GNMA pass-thru pricing, no overlays, no LLPAs, NO EPOs, and NO EPDs. They also receive Tax Deferred asset growth and a long-term cash flow stream without having to be a GNMA issuer themselves. Please contact us to discuss how the Essex GNMA Excess MSR program can help retain and enhance your customer relationship, broaden guidelines, and expand into new markets. Please contact Kimberly Schenck.

Push strongly through the summer buying season with Luxury Mortgage Corp. (“LMC”). LMC is offering a 100-bps price special for newly locked Full and Alt Doc (Bank Statement, 1099 Only, Asset Qualifier) purchase loans until August 31st. LMC’s elite team isn’t stopping there; they are also offering a 50-bps pricing improvement on DSCR purchase loans! Click here for full details of the specials. Are you, not an approved broker? It’s time to align with true partners who will be here for you and execute at the highest levels. Take your business to sustainable new heights with the elite team. Click here to become an approved wholesale broker.

Investor and Agency News

Ginnie Mae launched a New Environmental, Social, and Governance (ESG) Composite and Webpage, view the Press Release.

USDA Rural Development issued Updated HB-1-3555, Chapter 3, Lender Approval bulletin on 07/24/2023.

On 7/26/2023, with Amendment No. 6 to DR-4720, FEMA declared federal disaster aid with individual assistance made available to Vermont’s Orleans County affected by severe storms, flooding, landslides, & mudslides from 7/7/2023 and continuing. See AmeriHome Mortgage Disaster Announcement 20230706-CL for inspection requirements.

AmeriHome Correspondent 20230702-CL Disaster Announcement. On 7/14/2023, with DR-4720, FEMA declared federal disaster aid with individual assistance has been made available to 6 Vermont Counties; Chittenden, Lamoille, Rutland, Washington, Windham and Windsor affected by severe flooding from 7/7/2023, and continuing. See the attached announcement for inspection requirements.

PHH Mortgage had a Disaster Alert for Vermont and California. “The following disaster declaration is being issued or modified today pertaining to: Vermont DR-4720: New Disaster declared 07/14/23, and California DR-4699: Update to End Date of Occurrence.

Citi Correspondent Lending Bulletin 2023-06 includes credit policy updates on mortgage assumptions, public assistance & Section 8 income, and unplanned buydowns. Mandated screening – submitting non-obligated party detail notification, and clarifications on restricted stock & non-vested stock, and Chinese assets.

Collectively, average older homeowners sit on over $9 trillion in equity and have an average retirement savings is less than $60,000. But through a reverse mortgage, senior homeowners can maximize their financial stability by unlocking the accumulated equity without selling their property, allowing them to access the increased value of their homes and provide a financial cushion in a rising housing market. The time is now to build your reverse mortgage business with Plaza Home Mortgage®. We have the programs, including FHA HECM. Plus, we offer training and dedicated reverse mortgage staff to get you rolling into this right. Email [email protected] to get in touch or submit your details for a full reverse pre-qual.

In Pennymac announcement-23-49, the go-live date of Extended Lock Commitments was revised to “TBD,” and the updated schedule will be communicated through a future announcement.

American Heritage Lending Wholesale offers DSCR No Doc Loans including Non-Warrantable Condos.

On June 27, 2023, FHA published ML-2023-13 announcing that it is adopting the Fannie Mae/Freddie Mac Form 1103, Supplemental Consumer Information Form (SCIF) for mortgage applications dated on or after August 28, 2023. See AmeriHome Mortgage Product Announcement 20230705-CL.

Fairway Wholesale Lending Client Announcement 2022-07-27 issued a reminder about its new Admin Fee schedule that went into effect for all applications dated on or after 7/26. They will work through a transition period with the Admin Fee as this change becomes effective with applications taken & loans disclosed on & after Wednesday, 7/26. Fairway will begin using the new fee schedule for all loans we issue initial disclosures effective Wednesday, 7/26.

Capital Markets

Call it whatever you want, or believe whatever you want, in the rating agency Fitch’s downgrade of U.S. Treasury debt, one of things highlighted was the Jan. 6 insurrection. Once again, a reminder that politics, interest rates, and mortgage banking are intertwined. But overall, despite the increased hikes by the Federal Reserve, for the most part the U.S. economy continues to chug along.

Today we saw the “first Friday of the month” jobs situation figures. But it seems that the unemployment rate is not a leading economic indicator. Looking back at changes in U.S. unemployment rate data since 1953, a period including 10 recessions, on average the unemployment rate has not noticeably changed during the 12 months leading up to a recession. Dr. Elliot Eisenberg, Ph.D. points out that, “But once the recession begins, the unemployment rate slowly rises and peaks 12 months later at a level three percentage points higher than when the recession began.”

Yesterday began with the Bank of England raising UK rates to a 15-year high, though investors domestically continued to react to the U.S. credit downgrade by Fitch Ratings, which led to another “bear steepener” in the bond markets. “Risk-off” themes were present, and Wednesday’s route in U.S. Treasuries spilled over into yesterday’s session. The 10-year yield rose to a 9-month high as market participants took a closer look at rising debt-service levels.

The downgrade of U.S. government debt to AA+ from AAA by Fitch on Tuesday won’t affect the U.S. economy much and puts the Fitch rating at the same level as S&P, which made the downgrade in 2011. A couple other reasons not to worry include debt ratings mattering much more for emerging economies, most bond traders will keep buying U.S. debt at the same level, and the Fed can essentially set the interest rates on U.S. debt, anyway.

On the data front, weekly jobless claims increased by 6k to 227k while the ISM Non-Manufacturing Index and the Manufacturing PMI report showed a deceleration in growth consistent with reports from other major economies. Services sector activity continued to expand in July, but at a slower pace than the prior month. Even so, the report said that the majority of respondents remain cautiously optimistic about business conditions and the economy. Finally, productivity increased 3.7 percent in the second quarter, well above 1.7 percent expectations, with output up 2.4 percent and hours worked down 1.3 percent. Unit labor costs, meanwhile, were up 1.6 percent, lower than expected and which reflected a 5.5 percent increase in hourly compensation and a 3.7 percent increase in productivity. The pickup in productivity and the deceleration in unit labor costs is a good combination for the soft-landing view. After one of the better-than-expected releases this week was the ADP report which reported 324k in private jobs creation versus 189k expected, risks for an upside surprise in nonfarm payrolls were raised.

As for that BLS report, nonfarm payrolls increased 187k versus 200k expectations and back months were revised down 49k jobs. The unemployment rate dropped to 3.5 percent, and average earnings are still solid versus 0.3 percent month-over-month and 4.2 percent year-over-year expectations. After any knee jerk reaction, the Treasury market will begin setting up for next week’s $103 billion Quarterly Refunding beginning Tuesday with $42 billion 3-year notes followed on Wednesday and Thursday by $38 billion 10-year notes and $23 billion 30-year bonds. Both 3-years and 30-years were increased by $2 billion and 10-years by $3 billion versus the prior Quarterly Refunding. We begin the day with Agency MBS prices unchanged from Thursday, the 10-year yielding 4.19 after closing yesterday at 4.19 percent, and the 2-year up to 4.89.

Jobs and Transitions

William “Bill” Sohan, an industry veteran and former Senior Vice President with Academy Mortgage, has joined employee-owned USA Mortgage as a regional Vice President. Sohan will oversee USA’s Maryland operations and work to expand its national footprint. “I found USA’s loan-officer-first mentality, freedom for their regional leaders, and transparent work environment very attractive,” he said. “I am in business for myself, but not by myself. It’s a huge advantage that USA is run by former high-producing loan officers who understand the needs of their salespeople. I’m excited to give my sales team access to some great new resources, while still maintaining their access to Fannie and Freddie direct and dozens of loan programs.” Founded in St. Louis in 2001, USA has offices in 34 states and is licensed in 49 states plus the District of Columbia. For a confidential conversation about joining USA, contact Brooke Anderson at 609-500-1520.

Presidential Bank Mortgage is expanding into the Southeast! John Pruitt, former Director of Fidelity Bank Mortgage in Atlanta, has joined the senior management team of the Bethesda, Maryland-based Community Bank as SVP of Production and Strategic Initiatives. “I’m so excited to join Presidential at this opportune time in the industry to help grow a best-in-class mortgage lending platform,” Pruitt said. “The combination of a solid Community Bank and entrepreneurial mortgage lending model is truly unique in our industry.” Expansion plans are underway to open full-service lending markets in Georgia and the Carolinas. Leadership, Sales, and Operations positions are available throughout the region. Please send your confidential inquiry to John Pruitt.

Academy Mortgage is proud to be among the small number of lenders who have been selected to offer the Freddie Mac BorrowSmart Access℠ program. This equitable housing program allows qualified first-time homebuyers looking to purchase a home within one of 10 eligible metropolitan markets to obtain a credit for their down payment and/or closing costs through combined contributions from Freddie Mac and Academy Mortgage. Through this assistance, borrowers can fund 100 percent of the cash required to close; prepare for long-term sustainability through homeownership; and receive pre-purchase homebuyer counseling through the Freddie Mac BorrowSmart Access program. Academy is proud to support this initiative to bring equitable housing opportunities to traditionally underserved communities. Academy is committed to fulfilling its Vision to Inspire Hope, Deliver Dreams, and Build Prosperity in all communities by helping its clients build generational prosperity through homeownership. Join a team with the loan products and the Vision to advance housing for underserved communities: contact Scott Starr to explore the possibilities that await at Academy.

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Source: mortgagenewsdaily.com

Apache is functioning normally

Ahsana Abeza, 9, with her mother, Sophie Mutamuliza, and father, Adam Abeza, at their new home in New Gloucester on Wednesday. The family had been renting an apartment in Portland for many years and was finally able to buy a house through a new program offered by Androscoggin Bank that complies with Sharia law. Sofia Aldinio/Staff Photographer

Sophie Mutamuliza and Adam Abeza came to the United States from Rwanda 10 years ago, eager to pursue the American dream.

By 2016 they had settled in Portland and began saving to buy a house for their growing family. A few years later they were ready to spend their nest egg, but no bank in Maine offered a mortgage that didn’t charge interest, which is haram, or forbidden, by their Islamic faith.

So they had to wait, stuck in a Portland apartment.

Finally, in February, the couple and their four children, ages 2-12, held a housewarming party in the cozy split-level ranch they purchased with a halal, or permitted, mortgage provided by Lewiston-based Androscoggin Bank, the first lending institution in Maine to offer mortgages to Muslim clients that are structured to comply with Sharia law.

“The party was amazing – the dream now came true,” said Mutamuliza, 40, who works from home processing medical records for MaineHealth.

More than that, buying a house has given the family a sense of belonging, said Abeza, 41, who is a social worker with Preble Street, a nonprofit that serves unhoused clients.

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“We were able to complete the transition,” Abeza said. “We are here. We are grounded. Owning a home means a lot.”

Abeza and Mutamuliza are among several Muslim clients who have closed Islamic mortgages with Androscoggin Bank this year, and a dozen more are either under contract and waiting to close or pre-approved and actively searching for homes.

While loans that comply with Sharia law are offered across the country, both online and in states with larger Muslim populations, Androscoggin Bank’s program is seen as a watershed initiative among Maine lending institutions and for the state’s small but growing Muslim community.

Ayra Abeza, 12, in the yard of the New Gloucester home her parents bought in January. Sofia Aldinio/Staff Photographer

Leaders of Maine’s immigrant community have been pushing local banks to offer Islamic mortgages for several years. The loans generally avoid charging interest directly by structuring payments to meet Sharia law and having the bank assume some form of full or part ownership.

Immigrant leaders recognized that many devout Muslim families in Maine were locked out of the U.S. banking system, said Claude Rwaganje, executive director of ProsperityME, a nonprofit that helps immigrants build financial independence.

“Other banks said there wasn’t enough demand for (Islamic) mortgages,” Rwaganje said. “But we said, whatever the demand, there is demand, and Androscoggin Bank stepped up.”

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Androscoggin Bank saw the need for an Islamic mortgage program as an opportunity to continue the bank’s 153-year history of serving immigrants and to fulfill its modern B Corp mission to extend financing opportunities to women and minority populations.

“We felt it was incumbent upon us to ensure this community had an opportunity to participate fully in the economic system,” said Neil Kiely, bank president. “The more we can assist them to participate fully, the more it’s a win for the state of Maine.”

Kiely said it took more than a year to develop the mortgage program, working with ProsperityME, the Greater Portland Immigrant Welcome Center, and an expert in Sharia-compliant loan programs. They held community meetings in Portland and Lewiston. Hundreds of people attended.

“It has been an incredibly rich and rewarding experience,” Kiely said. “The Muslim community in Maine isn’t a monolith. It’s a diverse, talented, and industrious community, and we worked for months to build trust and understanding with them.”

Sophie Mutamuliza, 40, and Adam Abeza, 41, purchased their first home with a Sharia-compliant Islamic mortgage provided by Androscoggin Bank, the first bank in Maine to offer this service to devout Muslims. Sofia Aldinio/Staff Photographer

As part of that effort, Kiely hired Ayesha Baye, an Ethiopian immigrant with nearly 20 years of experience working at Maine banks, to serve as a personal banker to Androscoggin’s Muslim clients. She helps them build credit profiles and take other steps toward buying a home.

BARRIER TO ECONOMIC PARTICIPATION

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“Before this, there was nothing to offer my Muslim clients without compromising their faith,” Baye said. “I have Muslim clients who have been renting for 10 or 20 years, putting money toward rent instead of buying a home. They could have been homeowners by now.”

Many Muslims are not constrained by the ban on charging or paying interest, said Reza Jalali, executive director of the Greater Portland Immigrant Welcome Center. An Iranian-Kurdish immigrant who is Muslim, Jalali has engaged fully in the U.S. banking system, paying interest as a homeowner, landlord and credit card user.

But for devout Muslims, avoiding interest keeps them from accessing a wider economic system where buying a house is a significant step toward financial security. According to the Koran, charging or paying interest is considered exploitative and sinful because it promotes inequality, increasing the gap between rich and poor.

“This is a barrier to a significant number of Muslims in Maine,” Jalali said. “Homeownership is about building individual wealth, generational wealth, and becoming invested in the community.”

Without access to financing through local banks, Muslims in Maine are being excluded from other services provided to customers who receive conventional mortgages, including business loans, retirement programs, and basic financial advice, Jalali said. Many immigrants face a variety of barriers in the economic system, including language differences and cultural prejudices.

“While not intentional, we’re leaving some people behind,” Jalali said. “The banking community and the larger community lose out.”

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Some Muslims choose to borrow from community members, who pool savings and lend without charging interest, a practice Jalali called “underground banking.”

“But that only delays the American Dream, because the community can only buy one house at a time,” Jalali said. “In some cases, they go out of state, purchasing mortgages online, which can be risky and unhealthy because they are not building relationships with banks in Maine.”

There are a few basic types of mortgages that are considered riba, or interest, free under Sharia law. In variations of the most common form, the financial institution is co-owner and the home buyer gradually buys out the bank’s stake in the property. In other forms, the bank buys the property and sells it through lease-to-own arrangements or deferred payments with an agreed profit factored in.

In January, the Abeza family, originally from Rwanda, was able to purchase their first home in New Gloucester. Sofia Aldinio/Staff Photographer

Kiely wouldn’t describe Androscoggin’s program exactly. “Through the use of alternative structures, the bank can work with homebuyers to reach a solution that complies with Islamic financing requirements,” he said. “It maintains the same economic costs and benefits to both the bank and client as a conventional mortgage.”

Non-Muslims also may apply for this mortgage program, Kiely said.

FULLY COMPLIANT PROGRAM

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Kiely notified the Maine Bureau of Financial Institutions and the Federal Deposit Insurance Corp. about the Islamic mortgage program, he said, although neither has the authority to approve the program. Like other lending programs, it will be audited for compliance with state and federal laws.

John Barr, deputy superintendent of the bureau, said Kiely notified the state about the new mortgage program.

“It is common to have discussions with institutions as they develop new products,” Barr said in a written statement. “These discussions indicate to the bureau that the bank is conducting due diligence relative to risks and that the bank is talking to counsel about documentation and disclosure requirements.”

State banks are examined by the bureau or the FDIC every 18 months, at which time examiners have an opportunity to review actual loan documents to assess the loan portfolio and compliance with lending laws, Barr said.

Kiely said Androscoggin Bank will consider expanding its Islamic loan program to meet the borrowing needs of businesses, students, and others.

Rwaganje and Jalali hope other banks follow Androscoggin’s example. So do Sophie Mutamuliza and Adam Abeza.

They’re happy in their three-bedroom home on a wooded lot in New Gloucester, which sold for $395,000, according to several online real estate services. Their children play basketball in the driveway and chase frogs that escape a nearby pond. Now, many of their friends want to buy homes, too.

“They are inspired because they see that it’s possible and it won’t contravene the principles of their faith,” Abeza said.

“Now, we belong in Maine,” Mutamuliza said. “We are here to stay.”

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Apache is functioning normally

Today’s guest, commercial real estate broker Miguel Pinto, founded Apex Capital Realty in 2017. Since then, his company has closed over $2.25 billion in volume. Last year, it was included in Inc. 5000’s list of fastest growing companies. On this podcast, we discuss what it takes to achieve massive success in the commercial real estate space. Listen and learn how to win commercial real estate deals and how to scale as a commercial brokerage.

Listen to today’s show and learn:

  • Miguel Pinto’s start in real estate [2:50]
  • How long it can take to land a commercial real estate deal [4:51]
  • Ways to generate commercial real estate leads [7:13]
  • Florida real estate market predictions [12:46]
  • Tactics for getting developers’ deals done [16:03]
  • The biggest crisis in commercial real estate today [19:18]
  • Opportunities for today’s investors [22:30]
  • Advice on running a commercial real estate business [27:09]
  • Miguel’s goals for 2023 and beyond [33:54]
  • Where to find and follow Miguel Pinto [35:59]

Miguel Pinto

Miguel Pinto is a renowned figure in the world of commercial real estate, with an impressive ability to identify market opportunities before they arise. His expertise has earned him a reputation as one of the industry’s leading brokers, with recognition from top investors, banking institutions, equity advisors, and other top brokers.

Miguel’s success is reflected in his outstanding track record of closing a vast number of transactions, totaling over $1.5 billion. In acknowledgment of his in-depth industry knowledge and remarkable ability to secure competitive deals, Miguel was honored with the title of South Florida Business Journal’s Power Broker for both 2022 and 2023.

Driven by his entrepreneurial spirit, Miguel established APEX Capital Realty in 2017 with a desire to create his own path and connect with like-minded deal makers. Thanks to his leadership and passion, APEX Capital Realty has since closed $2.25 billion in transaction volume and has assembled a team of over 35 Commercial Advisors, and growing. The team has also extended into new markets within Florida and will be opening an office in Palm Beach County later this year. In 2022, APEX Capital Realty has also been recognized among Inc’s 5000 fastest-growing companies.

Miguel’s dedication to mentorship and belief in its importance in unlocking the potential of the South Florida community is evident through his active involvement in the Real Estate Council at FIU’s Tibor & Shelia Holo School of Real Estate. As a council member, Miguel provides valuable mentorship to students, helping to shape the future of the Real Estate program.

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It might go without saying, but I’m going to say it anyway: We really value listeners like you. We’re constantly working to improve the show, so why not leave us a review? If you love the content and can’t stand the thought of missing the nuggets our Rockstar guests share every week, please subscribe; it’ll get you instant access to our latest episodes and is the best way to support your favorite real estate podcast. Have questions? Suggestions? Want to say hi? Shoot me a message via Twitter, Instagram, Facebook, or Email.

-Aaron Amuchastegui

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