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Bulk Sales, Best-Ex, Accounting Outsourcing, Verification Tools; FHA and Ginnie News; STRATMOR Tech Survey

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Bulk Sales, Best-Ex, Accounting Outsourcing, Verification Tools; FHA and Ginnie News; STRATMOR Tech Survey

By:
Rob Chrisman

Thu, Dec 7 2023, 10:58 AM

Time flies (see joke at bottom), and here we are at Pearl Harbor Day already. “I’m a multitasker. I can listen, ignore, and forget all at the same time!” Occasionally someone will accuse me of having a sense of humor. If true, it can be traced back to my parents, but a portion of it came from watching Norman Lear’s shows like All in the Family, Sanford and Son, Maude, The Jeffersons, and movies like The Princess Bride (“as you wish”). Mr. Lear died yesterday, but his impact will be long felt. Audiences loved his shows. Does your customer love you, no matter the price? That’s the case with Coke. The average price of a 12-ounce can of Diet Coke in a package of 12 was 34 cents in 2018 but hit 56 cents per can in October 2023, a 65 percent increase. In general, Diet or regular, prices have shot up: The average price of a Diet Coke at a restaurant hopped up from $2.05 to $2.77. Inflation at many levels is impacting rates, including Treasury and mortgage-backed securities: STRATMOR’s current blog is titled, “How Treasury Auctions Influence Mortgage Rates”. (Today’s podcast can be found here, and this week’s is sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics, unite the people, systems, and stages of the mortgage process. Hear an interview with United One’s Sean Higgins on the vendor status of full-service mortgage, credit reporting, fraud solutions, appraisals, title insurance, and loan closing support.)

Lender and Broker Products, and Services

Revolution Mortgage estimates that they can save up to $20,000 in cost on verifications with TRUV over competitors. Femi Ayi, EVP Operations shares how he estimates he is saving 80 percent on his verification costs with Truv in this recorded event. Let’s talk about our documentation costs and those giant monopolies that are out there laughing at customers and increasing prices because they have a particular monopoly. You want to lower your manufacturing costs. Contact TRUV today to discuss how we can help you with your income, employment, insurance, and asset verifications.

“Are you struggling with declining production volumes and increasing costs per loan? Look no further. Outsourcing accounting is the elegant answer to this common challenge faced by independent mortgage banks. Whether you lack accounting expertise in-house or have a new team with no mortgage experience, the Richey May Client Accounting and Advisory Services (CAAS) team is here to provide the support you need. Our team consists of industry experts who can customize a solution to meet your specific needs in this volatile time, without requiring any additional training. Whether you need help transitioning to loan level accounting, a fully outsourced function, or industry training for your controller, we’ve got you covered. Contact Richey May today!”

Missed the chance to meet with Planet at IMN’s SFR Forum West? Connect with Planet’s commercial team to explore how our expertise enhances Single-Family Rental investments. Managing $100B+ in assets, we offer top-tier service, savings-focused strategies, and complimentary access to proprietary tools. Unlock the full potential of your investments: schedule your meeting now or call (585) 512-1030. Discover the Planet difference today!

Chief Sales Officer at Deephaven Tom Davis will join Rob Chrisman on a webinar you won’t want to miss. In today’s market, originators need Non-QM to fully serve borrowers and to stay competitive. Learning how to utilize and market Non-QM isn’t difficult when you partner with the right lender. Please find out how easy it is by attending the webinar on December 12th! Register now.

Nobody wants to be sold, they want to be served. Serve every homeowner in your database and get busy investing in relationships. Eric Spottswood, Regional Market Manager at Prosperity Home Mortgage did. Here’s what he had to say: “Recognizing that staying top of mind is crucial for securing repeat business, Milestones provides an excellent opportunity to consistently engage with our clients and reinforce those valuable connections with a one-stop home management platform. The bonus of having my team and our partners prominently featured in the portals is the icing on the cake. It’s not just a product I endorse – I actively use my own hub, and I’m thoroughly impressed with it! Milestones delivers the client engagement tools you need to retain every client you have. Book a demo today.

STRAMOR Tech Survey

Lenders, there’s still time to participate in the Digital Innovations Survey of STRATMOR Group’s Technology Insight® Study. Whether you are well on your way with your digital plans or are thinking through what to do in 2024, you’ll want the data that is only available from this study. This survey takes less than 10 minutes and participating lenders receive the survey report for free. Don’t miss your chance to have data on the key digital capabilities and the benefits and barriers to the digital technology available in the mortgage market today: take the Digital Innovations Survey now!

FHA and Ginnie Mae News

FHA announced new loan limits for calendar year 2024 its Single Family Title II forward and Home Equity Conversion Mortgage (HECM) insurance programs. FHA published Mortgagee Letter 2023-21, 2024 Nationwide Forward Mortgage Limits, which provides the maximum mortgage limits for FHA-insured Title II forward mortgages. These new loan limits are effective for case numbers assigned on or after January 1, 2024. Mortgagees may view the list of areas at the “ceiling” and areas with limits between the “floor” and “ceiling” along with lists that can be sorted by state, county, or Metropolitan Statistical Area (MSA) or by calendar year on the Maximum Mortgage Limits web page.

Mortgagee Letter 2023-22, 2024 Nationwide Home Equity Conversion Mortgage (HECM) Limits, which provides the Calendar Year (CY) 2024 maximum claim amount for FHA-insured traditional HECM, HECM for purchase, and HECM-to-HECM refinances. The maximum claim amount for FHA-insured HECMs for all areas, including Alaska, Hawaii, Guam, and the U.S. Virgin Islands, in CY 2024 will be $1,149,825; 150 percent of the Federal Home Loan Mortgage Corporation’s (Freddie Mac) national conforming limit of $766,550. This new maximum claim amount applies to case numbers assigned on or after January 1, 2024.

FHA published Mortgage Letter (ML) 2023-23, Updates to the Home Equity Conversion Mortgage Program. This ML updates and streamlines Home Equity Conversion Mortgage (HECM) servicing policy to enhance the program’s financial stability and improve overall performance. These changes reinforce FHA’s commitment to serving seniors choosing to age in place in their own homes through the HECM program. Loan officers and down payment assistance program providers can visit the DPA One website for more information and to request a demo.

In Multiclass Participants Memorandum (MPM) 23-03, Ginnie Mae announced an optional early closing date for multiclass transactions beginning in December 2023. This option will allow sponsors to close transactions either on the Closing Date specified on the Ginnie Mae REMIC monthly calendar available on Ginnie Mae’s website or on the Business Day immediately preceding such specified Closing Date (an “early Closing Date”). Those sponsors choosing an early Closing Date must notify Ginnie Mae no later than the Final Structure Date and be aware that document delivery requirements outlined in the Ginnie Mae Multiclass Securities Guide (the “Guide”) will apply equally to the early Closing Date. All other transaction dates on the REMIC calendar will remain the same, regardless of the type of Closing Date chosen. For information on capitalized terms used herein, but not defined, refer to the Guide currently in effect, found on the Ginnie Mae website.

In All Participants Memorandum (APM) 23-13, Ginnie Mae announced revisions to its definition of High Balance Loans. These revisions align with the increased conforming loan limits recently announced by the Federal Housing Finance Agency (FHFA).

PRMG TPO Resource Center Updates 23-12 includes updates to Training/Instructional Material, VA Forms, Appraisal Forms, Second Mortgage Product Forms and Information, Non-QM Product Forms and Information, Updates on Bond/Housing Authority/DPA Products, Compliance and Quality Control Information.

Capital Markets

In any market scenario, it is crucial for lenders to analyze the best execution options to maximize profitability when selling loans in the secondary market. Determining what execution is most efficient and profitable will have a big impact on the bottom line. In MCT’s latest whitepaper, Optimizing your Best Execution Loan Sale Analysis, they provide insight into determining your company strategy, delivery options, retain release decisions, and more. Download the whitepaper or join MCT’s newsletter to stay up to date on the latest educational content.

MAXEX is now offering daily mandatory bids on bulk pools of Agency-eligible NOO and second home loans. Like our industry leading MAXEX Conforming flow program, get competitive pricing from five leading institutional buyers and avoid costly Agency LLPAs, all through a single contract and a single, standardized clearinghouse. MAXEX buys to agency guidelines via your existing bulk trading process. Visit here to learn more.

Taking a look at rates, which have improved, as the debate rages over when next year the U.S. Federal Reserve will begin cutting rates we learned yesterday that American employers unexpectedly cut back hiring in November, according to data from ADP. It’s yet another sign of the labor market softening, but don’t read too much into it before tomorrow’s payrolls number, history shows it’s a very bad guide. Despite pullbacks in hiring and spending, the service sector expanded at a faster pace last month on improved business activity.

Challenger, Gray & Christmas, Inc. tells us that U.S.-based employers announced 45,510 cuts in November, a 24 percent increase from the 36,836 cuts announced one month prior but 41 percent lower than the 76,835 cuts announced in the same month in 2022 and marks the first time cuts were lower than the corresponding month a year ago since July. So far this year, companies have announced plans to cut 687k jobs, a 115 percent increase from the 320k cuts announced in the same period last year. The job market is loosening, and employers are not as quick to hire. The labor market appears to be stabilizing with a more normal “churn.”

Today’s economic calendar also includes weekly jobless claims (220k; continuing claims 1.86 million), and wholesale inventories and sales for October. The U.S. Treasury will then announce the details of next week’s mini-Refunding package, estimated to be consisting of $50 billion 3-years, $37 billion reopened 10-years, and $21 billion reopened 30-years. And Freddie Mac will release its Primary Mortgage Market Survey. We begin the day with Agency MBS prices worse than Wednesday night by .125-.250 and the 10-year yielding 4.17 after closing yesterday at 4.12 percent; the 2-year is at 4.61.

Employment

Did you know that Houston, TX is the top area for TSAHC down payment assistance loans? Also, did you know that Mortgage Financial Services TPO (MFStpo) is the only wholesaler both TSAHC and TDHCA down payment and closing cost assistance programs to the mortgage broker community. MFStpo pioneered TSAHC for brokers and until recently, TDHCA was only available to retail LO’s. Brokers are growing with MFStpo by serving more families and referral partners and adding LO’s by recruiting with these programs. MFStpo is actively seeking to enhance support for brokers in the Houston market by hiring an experienced Account Executive. By making TSAHC and TDHCA DPA easy for brokers, MFStpo presents a compelling opportunity for AEs today. Notably, MFStpo also excels in non-DPA loans with great rates and a strong support team. Reach out to EVP John Hudson at 817.247.4766 for more info on this exciting opportunity in Houston!

“PrimeLending LOs have an exciting new mortgage solution to offer their customers looking to save money, increase home value and protect the planet: Green Home Loans from PrimeLending. It’s clear that energy efficiency is not just a trend; it’s a priority for the modern homeowner. According to a 2023 study by Thumbtack, 71 percent of homeowners consider sustainability a top priority, yet only one-third can afford the upgrades. Green Home Loans from PrimeLending is here to bridge the gap by helping borrowers finance green improvements immediately. With more than 400 mortgage solutions in our arsenal, including eco-friendly programs, we’re committed to helping our LOs not only beat the competition, but lead the way in offering the latest mortgage alternatives. If you’re looking for a sustainable career, your future may be at PrimeLending. Contact Nic Hartke for more information.”

“If you ask 50 people for their outlook on the Mortgage and Housing market in 2024, you’ll get 50 different responses (and we can attest to that!). Regardless of market conditions, our team at Pezian Search Group wants to make sure that YOUR organization is properly prepared for what’s next. Since 2010, we’ve spent much of December consulting and partnering with new and existing clients to discuss their outlook, upcoming needs, and to strategize ways to ensure ongoing success. We also take the time to uncover our candidates career goals and prepare them for growth, and we’d love to do the same for you. Reach out to us directly and let us show you how we can be a value add for your organization and in your career search. You can also connect with us on LinkedIn, and view all of our current openings here.”

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

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LO Technology, Broker PPE Products; Training and Webinars This Week; 3.7% Unemployment

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LO Technology, Broker PPE Products; Training and Webinars This Week; 3.7% Unemployment

By:
Rob Chrisman

7 Hours, 19 Min ago

“What do you call James Bond having a bath? Bubble 07.” In different bond matters, mortgage rates will always be higher than Treasury rates, in part because of the prepayment risk in mortgages that doesn’t exist with Treasury bonds. With the drop in rates, sales management personnel at lenders are busy figuring out how best to remind the staff about EPO (early payoff) penalties levied by investors while at the same time working on ways to save money besides furloughing, cutting staff, outsourcing, and re-doing vendor contracts. The recent decline in rates and increase in applications is welcome: According to Curinos, November 2023 funded mortgage volume decreased 11 percent YoY and 10 percent MoM. In the Retail channel, funded volume was down 22 percent YoY and 10% MoM. The average 30-year conforming retail funded rate in November was 7.45 percent, 25bps higher than October and 85bps higher than the same month last year. (Curinos sources a statistically significant data set directly from lenders to produce these benchmark figures, and drills into this data further here.) Today’s podcast can be found here, and this week’s is sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics, unite the people, systems, and stages of the mortgage process. Hear an Interview with nCino’s Ben Miller on incentive compensation data and origination cost reductions that are separating profitable from unprofitable companies in the mortgage industry.

Lender and Broker Products, Programs, and Services

Loan Vision exclusively serves the mortgage industry by providing software built by the mortgage industry for the mortgage industry. With Loan Vision, customers see improvements of 30%+ decrease in days to close the books, 20%+ reduction in accounting headcount, complete LOS to G/L automation, and improved reporting and visibility. Interested in learning how Loan Vision can help you run a more efficient and profitable company? Contact Carl Wooloff to schedule a call today.

When Encompass Lending Group set out to reimagine its borrower experience, it chose LiteSpeed by LenderLogix. “We understand every borrower is different. Our services are custom-tailored to every borrower, and we thought our technology should reflect that,” said Encompass Lending Group’s Paul Marsh, EVP of National Sales. Read more about their implementation here.

Seems like there is “AI” everything now. Washing machines, clothing, cookie dough? One place you should deploy AI is in helping your customers find their best opportunity. LoanCraft now offers its ViLO technology via an API (patent pending). ViLO is a virtual loan officer technology that asks your customers questions about their goals and needs, and provides offers along with tailored English-language recommendations. The API lets you easily incorporate this into your consumer facing technology, or LoanCraft will build your front end for you. Regents Financial is using ViLO, so you can see how it works here. Contact Jessica West at LoanCraft for more information.

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 Shop, Lock, Deliver, an innovative platform designed to help independent mortgage brokers and their lenders 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, all on a single platform, at no cost to brokers. It’s already helping brokers around the country thrive and compete in the toughest market. Multiple lenders. One platform. Zero b.s. Come check us out today. ReadyPrice gives you the ability to manage your lenders, search loan product pricing across the wholesale channel, and deliver loans to the lender of your choice.

Events, Training, and Webinars

A good place for longer term conference planning is to start is here, and click on “events” for conferences in the future.

Today, December 8, is the next episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. Listen to Rich Kuegler with Stewart Title!

Chief Sales Officer at Deephaven Tom Davis will join Rob Chrisman on a webinar you won’t want to miss. In today’s market, originators need Non-QM to fully serve borrowers and to stay competitive. Learning how to utilize and market Non-QM isn’t difficult when you partner with the right lender. Please find out how easy it is by joining the webinar on December 12th! Register now.

Tuesday, 12/12, is the next Mortgages with Millennials with Kristin Messerli and Robbie Chrisman. Tune in every Tuesday at 1PM ET to the weekly video show designed to empower mortgage professionals to tap into the millennial market. This show demystifies the psychology of first-time homebuyers and offers strategies to win more market share with a key segment of the market. Sign up for a weekly reminder with the link to join and a sneak peek into the next episode. Next week’s guest is Catalina Kaiyoorawongs, Founder and CEO of LoanSense.

Have you registered yet for LIRC23? Discover the newest developments in legal and regulatory compliance for residential lenders. Join California MBA at the Irvine Marriott Hotel on December 11 – 12 for the 2023 Legal Issues and Regulatory Compliance Conference. This is your opportunity to hear from some of the nation’s top industry experts and learn about the hottest topics. You’ll be informed and empowered, don’t miss out.

What are the forces that will shape the 2024 economy and real estate market? Find out at the Real Estate Forecast Summit: The Year Ahead on December 12, 1-2 p.m. ET. NAR’s Dr. Lawrence Yun and Dr. Jessica Lautz are teaming with expert economists and thought leaders to review 2023 and discuss their expectations for 2024. They will cover the residential and commercial markets, plus demographic and market outlook data. There is no cost to attend, but you must register in advance.

“As 2023 comes to a close, empower your financial strategy with insights tailored for lenders. Join CWDL for a webinar on Tuesday, December 12 as we recap the year in accounting and tax and identify what action you need to take before the year ends. Our mortgage banking experts will review tax legislation passed in 2023 and what’s coming for 2024, share tips to get year-end financials closed accurately and efficiently, discuss preparing for your audit, review HUD and GNMA reporting requirements, address going concern analysis, and more. Reach out to Kasey English to register for this free webinar, and emerge with actionable insights to take advantage of these last few weeks of 2023.”

Vince Furey, SVP of Sales for MeridianLink, has some valuable market insights and strategies that can help your credit union not only survive but also thrive in this changing landscape. Don’t miss the upcoming ACUMA Inside Track webinar on December 12th at 1 pm CST, where you can learn how to capture and serve this important market segment and take your mortgage loan program to new heights.

Wednesday the 13th, looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT is a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Listen to a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. Next week’s guest is.

Dec 13, at 12:00 PM PT, will be a webinar to learn about innovative approaches to recruiting loan officers in the mortgage industry. Heidi Iverson and NAMBA’s Tony Thompson will explore data-driven recruitment strategies with Mobility Market Intelligence (MMI), a powerful tool for Mortgage Lenders.

Join Curinos home equity experts Richard Martin, Ken Flaherty and Kinley Hicks on December 13th as they debut their new national home equity market forecast and discuss how home equity could impact growth initiatives and balance sheets in 2024. Register now.

Our very own MBA has some webinars, including California’s Corporate Climate Data Accountability Act, MBA on December 14.

For a deeper dive into Pennymac TPO’s new product and how to position it with your borrowers, contact your Account Executive, and register for their Power Your Business Webinar, “Home Equity Seconds Product Overview,” on December 14 at 10am PT/1 pm ET.

The Knowledge Coop’s new membership platform offers all state and federal Continuing Education courses in an engaging and exciting video format that you’re sure to actually enjoy. Want to give yourself a sharper competitive edge? They also offer in-depth training on specific topics like VA Loans and FHA within their Coop Academy. Get access to industry experts and connect with other mortgage professionals all in one space. Use Code Chrisman10 for 10 percent off your first year of membership here.

Join in for “Hot Topics” with the Single-Family Housing Guaranteed Loan Program. Free, Live, virtual training for all USDA lenders and real estate agents. Don’t pass up the opportunity to say YES to more potential clients. Embrace the GUS recommendation, Thursday, December 14, 2-3 PM ET.

National MI posted its upcoming December 2023 webinar sessions. December options include the following: Income Case Studies ​​​​​with Marianne Collins – December 12th at 1pm ET. 2024 Business Planning for Purchase Business with Bruce Lund – December 13th at 2pm ET. Maximize Your Relationships: The Art of Annual Mortgage Reviews with Rebecca Lorenz – December 14th at 1pm ET.

This month, catch up on the latest underwriting and processing trends at your convenience with Arch MI’s online videos and podcasts. Choose Arch MI’s wide range of course offerings that cover the essentials for mortgage professionals. On the 14th, the co-authors of HaMMR Digest, Arch Chief Economist Parker Ross, and Director of Real Estate Economics Leonidas Mourelatos, present their assessment of the market environment, where rates and home prices are heading, and the implications for mortgage professionals in the new year. Register for Arch MI Housing Update Webinar on December 14 at 1 p.m. ET.

Friday, December 15th, is next week’s episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. Hear from MGIC’s Terry Aikin!

Capital Markets

As job markets loosen and employers are not as quick to hire, investors are betting on when central banks across the globe will begin rate cutting cycles. Yesterday’s private payrolls from ADP printed lower than analyst expectations ahead of today’s release of the November jobs report. Thoughts that the Fed is done tightening helped mortgage rates drop closer to 7 percent, the lowest level since August, according to this week’s Primary Mortgage Market Survey from Freddie Mac. 30-year fixed mortgage rates have fallen 76 basis points since the end of October.

Today brought the November payrolls report where forecasts didn’t see all that much variability from October. November nonfarm payrolls registered 199k versus 186k expectations. The unemployment rate came in at 3.7 percent when it was seen holding steady at 3.9 percent. Average hourly earnings were when the number was seen increasing 0.4 percent month-over-month and 4.1 percent year-over-year versus 0.2 percent and 4.1 percent previously. Later today brings preliminary December Michigan sentiment, which is expected to tick up modestly. We begin the day with Agency MBS prices and the 10-year yielding 4.25 after closing yesterday at 4.13 percent (the 2-year is up to 4.71) after the employment numbers.

Employment

“Freedom Mortgage is seeking the best Account Executives nationwide. We understand the best are not just product experts but, also relationship builders. We seek industry leaders. Freedom Mortgage Wholesale believes Account Executives are vital to our success. Freedom Mortgage has been creating success for 30 years. Our people and processes are time-tested giving us trusted stability, no matter market conditions. Our deep roots throughout the mortgage industry provide confidence for the future. Freedom Mortgage is 4EVER Wholesale. Join our strong group of Account Executives who average 15 years in industry and 10+ years at Freedom Mortgage. If you are the best and want to work with a financially stable company to build your future, contact us.”

Newrez Wholesale is thrilled to announce the appointment of Divisional Vice President John McElhone to the Inaugural Corporate Board of Directors for NAMB (National Association of Mortgage Brokers®). “For 50 years NAMB has been the leading voice for the mortgage industry, and I am proud of the organization for creating its corporate board of governors as it will increase NAMB’s impact on the industry,” said McElhone. “Thank you to NAMB for inviting me to join the board and I am eager to bring my decades of experience I’ve obtained in my professional career to each and every day.” Way to go, John! Learn more about the new corporate board.

“Are you a go-getter who embraces hustle and strives for growth? Are you passionate about helping others on the path to success? If you answered yes, we want you! Kind Lending is seeking knowledgeable Wholesale Account Executives with experience in the mortgage lending space. As one of the fastest growing mortgage lenders in the country, we’re building an upbeat and collaborative team that strives to put people first in everything we do, infusing happiness around every corner. Our people believe kindness matters and a client’s positive experience is everything. Join the #kindmovemovement and come grow your business with an expanded product offering and best in class operational experience! Contact: Delfino Aguilar, SVP TPO Production, 619.726.0377.”

JMAC Lending, an industry-leading TPO lender for more than 25 years, has hired Eric Yang as Executive Vice-President of TPO Sales. Formerly VP of TPO Sales at Pennymac, Yang will lead JMAC’s team of Account Executives for both wholesale and correspondent. “Eric’s business approach aligns with our company mission and values: trust, teamwork and integrity,” JMAC Lending’s President Christina Pham said. “We are excited to have Eric lead our growing sales team, where we will continue to provide excellent support to our lender partners, especially in this unique market environment.” “Eric can navigate complex market landscapes and deliver results,” Pham says. “He has a deep understanding of the industry, and we are confident that his expertise will elevate our sales operations.” Start lending with JMAC today! Click here join JMAC and sign up for marketing and rates, or contact sales. Let’s grow your business and fund more loans in 2024.

Thank you to Julie Cooper who reminded me that, in the Northwest, “State Departments of Commerce Housing Divisions or Housing Departments are hiring folks versed in mortgage, title, escrow and real estate. County and Municipal Departments of Community Development and non-profit housing developers in Washington State are hiring in record numbers, as well, developing affordable multifamily, single-family housing for ownership and rental. Julie observed, “I think one way forward for our industry is private/public partnership. These developments, acquisition and construction projects need mortgage companies to help with homeownership, especially those who can do community land trusts and every transaction needs a title insurance policy and escrow provider. Ultimately, we are all stakeholders in housing and it’s really cool to be part of these innovative programs.”

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

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Compliance, CRM, LOS, Servicing, Workflow, Internal Audit Products; Non-QM and Jumbo News

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Compliance, CRM, LOS, Servicing, Workflow, Internal Audit Products; Non-QM and Jumbo News

By:
Rob Chrisman

Tue, Dec 5 2023, 11:33 AM

My cat Myrtle doesn’t have a lot of rizz, and there are those that will argue that no cat has any charisma whatsoever. But plenty of marketing people do, or can create it, and even if you’re not in marketing, there are some clever marketing people out there. Creative minds as well, and if you’re looking for a Christmas present, here are the “best inventions of 2023” per Time Magazine. There is also cleverness and creativeness in the modular home manufacturing industry, probably far outpacing the ability of state and local government to issue permits. Meanwhile, lenders are facing a winter trying to figure out if they are in the “Survive until ‘25” camp or the “Grow more in ‘24” mindset? The credit industry is reeling as lenders grapple with soft versus hard pulls, renegotiating pricing, and bundled deals. And for some reason LO comp continues to be unsettled: dual comp, MLOs as real estate agents, transferring pipeline data when changing jobs, different fee structures within the same state, and so on. (Today’s podcast can be found here, and this week’s is sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics, unite the people, systems, and stages of the mortgage process. Hear an interview with Mayer Brown LLP’s Holly Spencer Bunting on RESPA happenings and how the industry can get to better regulation.)

Lender and Broker Products, and Services

Out with the old; in with the new! One of the things we most look forward to in December (besides the holidays, of course!) is the opportunity to envision and plan for a great future. We’ve curated a killer panel of industry execs who will share best practices and their favorite secrets to help you usher in 2024 at the highest possible note. TrustEngine’s Dave Savage hosts Dustin Owen of Waterstone Mortgage and Brian Covey of Revolution Mortgage in “Chaos to Clarity”, a sure-to-be deliciously juicy webinar that will inspire and energize you to end 2023 with a bang and move powerfully into the new year. Register now to save your seat!

What’s an internal audit anyway and do you need one? An internal audit acts as a third line of defense for your mortgage operation. It provides comprehensive assurance based on the highest level of independence and objectivity to evaluate the effectiveness of management’s internal controls. This function should advise your mortgage operation on plans to achieve the company’s strategic, operational, financial and compliance goals. An effective internal audit should go far beyond just checking a compliance box; it should be an integral part of protecting your company. If you want to ensure you’re adhering to regulatory requirements and demonstrating good faith business practices, a Richey May internal audit is a good fit. If you’re looking to be Fannie Mae approved in the future or want to maintain your approved status, it’s required. If you’re unsure whether you need an internal audit, ask one of Richey May’s experts today or learn more here.

“Is it a challenge getting what was promised out of your current subservicer? New regulations are always moving the compliance goal posts and your customers are craving the newest technology and high-quality customer experience to meet their needs. After all, aren’t those the reasons you contracted with them? Perhaps it’s time for a change. Come meet Servbank at the MBA Servicing Solutions 2023 and let us show you how our cutting-edge, fully transparent and award-winning servicing platform (SIME), combined with our family of caring Customer Care reps, will protect your company from regulatory misses and keep your customers loyal by delivering a superior experience every time. If your current subservicer promised to make life easier for you, but continues to miss the mark, now is the time to partner with Servbank, the nation’s only fintech bank subservicer, who can meet your unique needs. Stop by booth #601, or schedule a meeting with Servbank.”

Right in time for the holidays, Floify has launched Floify Broker Edition, a one-stop lending platform that makes it easy for brokers to manage loans in one place. Wrapped in Floify’s famously sleek interface, Floify Broker Edition is packed with magical features that save precious time and money, such as automated mortgage call reporting, dual AUS functionality, and PPE and wholesaler integrations. Just like Santa’s elves, automated workflows advance loans behind the scenes so brokers can spend more time spreading the joy of homeownership and less time pushing paper. Treat yourself (and your borrowers!) this holiday season with a lending platform that’s a joy to use. Experience the magic of Floify Broker Edition firsthand and book a demo today.

Take advantage of more opportunities by adjusting your business to match the market. Recently, lenders who could quickly scale their home equity products were able to capitalize on the increased demand. Are you maximizing home equity lending in your system of record? Encompass® by ICE Mortgage Technology® is the only solution on the market that can be easily configured without any development efforts to support a user’s unique products and workflows for each of their channels, including retail, consumer direct, HELOC, wholesale and correspondent. This means you can quickly react to market changes and manage your business in your own way. Click here to read our recent blog that shares strategies to maximize your home equity lending business and how Encompass makes it easy.

A borrower’s servicing experience is only as good as the back-office environment that supports it, which is only as good as the technology that powers it. That’s why ICE is actively moving servicing forward through digitizing the consumer experience and streamlining back-office operations. The mortgage technology experts at ICE understand that effective servicing solutions are built from the “outside in”, designing with the customer in mind and working until the same level of convenience is brought to those working behind the scenes. Read the new blog from Sandra Madigan, Chief Digital Officer at ICE Mortgage Technology, to see how ICE is engineering with empathy, and helping people achieve and maintain the dream of homeownership.

In Naples, people hurl plates, appliances and even furniture out of their windows on New Year’s Eve to symbolize making room for the new. If your LOS has been causing you strife, take a cue from the Neapolitans and chuck it out the window. Dark Matter Technologies is here to help you usher in a more prosperous 2024 with its Empower LOS. A fully cloud-based system, Empower brings your tech ecosystem together in one place and intelligently orchestrates delightful borrower experiences and efficient loan production. Schedule a demo with the Dark Matter team to learn how Empower can elevate your business in the year ahead.

Two things come to mind when looking for strategies to help LOs today. First, understand home buyers in the context of uncertainty in the market today. Get back to basics of why homeownership still makes sense: pride of ownership, building equity for the future, and a better environment for their family to live and grow. Next, be able to articulate good solid strategies to make home buying more affordable, both down payment strategies and ARMs to lower payments. It’s also important to understand buyer’s bias against ARMs and counter with common sense arguments. Usherpa, the #1 ranked mortgage CRM in customer satisfaction and loyalty, is offering these FREE printable handouts with informational scripts to use when talking with your homebuyers and valuable resources you can easily send them about ARMs.

ActiveComply is thrilled to introduce a brand-new product, WebCompass™, to discover and manage your websites for branding, compliance, and accessibility. The same power as SocialShield™ for Social Media but now for website and brand compliance. With WebCompass™ you can discover and monitor company and employee websites & web pages, protect your brand with website content scans and compliance tracking, uncover rogue or unauthorized websites, and streamline reporting demands during regulatory examinations. Sign up today for a demo and the first 25 customers will receive a discount. ActiveComply cloud-based solutions help highly regulated industries confidently manage their social media and website compliance and virtual inspections.

Non-QM, DSCR, Jumbo Broker and Correspondent Program News

Can we continue our same ad please: Long-term Rental or Vacation Rental? Visio Lending is the nation’s leader in Non-QM Investor DSCR loans for buy and hold SFR rentals with nearly a decade of experience and over $2.5 billion in originations. No-DTI, 30-year terms, rate buy downs, free 45-day rate locks; I/O and Sub-1 DSCR options available. Through our top-notch Broker Program, brokers are able to earn up to 2 points YSP, and 5 points total. Visio Brokers can count on a designated Account Executive and in-house processing.

PRMG offers several Non-QM resources such as product matrices, job aids, trainings, calculators, worksheets, and other information to assist with using Non-QM loan products. Access the TPO Non-QM Resources page for detailed information.

Angel Oak Mortgage Solutions announced the release of its Blended Rate Calculator, providing borrowers with a quick and straightforward tool to estimate potential loan scenarios.

In tandem with its Angel Oak Mortgage Closed End Second Loans program, the Blended rate calculator helps you show borrowers what their 1st and 2nd payments, as well as LTV and blended rates, will be for both mortgages. This tool enables borrowers to easily assess how they can tap into their home’s equity while retaining their first mortgage.

PHH Mortgage announced new products for Non-Agency offering as of November 28th. Go to the company library to view the information.

A Jumbo option designed to empower homebuyers in high-value markets to secure their dream homes. Explore the advantages of Plaza’s new Jumbo Champion loan program, featuring top-notch pricing, loan amounts up to $3 million, and eligibility for FICO scores starting from 720.

LendSure Mortgage Corp., a Non-QM wholesale lender, announced the launch of its new Profit & Loss (P&L) Loan Program offering “a simplified and user-friendly process for business owners seeking capital in a complex financial landscape.” LendSure’s P&L Loan Program is designed to cater to business owners and self-employed investors with fluctuating seasonal income or cash businesses. It eliminates the need for a self-employment questionnaire, simplifying and speeding up the application process and making it more convenient for borrowers to secure financing. “We aim to empower business owners, redefining industry standards and facilitating their path to financial success… The program offers two tiers of loan amounts, giving borrowers the choice to provide only P&L statements for loan amounts up to $1,000,000 or supply two months of bank statements with P&L statements for loan amounts up to $1,500,000. This flexibility enhances the broker-customer relationship by providing a straightforward, efficient solution for business owners. Reach out to LendSure for more information.

First time home buyer/ first time investors now have a chance to buy an investment property with no income. Hometown Equity Mortgage offers a Bridge for First time home buyers; up to 75 percent LTV on a purchase, no ratio DSCR product, NO VOR/VOM, allowed to live rent free. FICO down to 650, Flexible guidelines, 12-24 month I/O with no prepay or EPO.

HighTech Lending Wholesale is now offering Jumbo Reverse Mortgages the Platinum Reverse which comes in three variations: Maximum LTV Fixed Rate, Adjustable Rate with a Line of Credit, and Reduced LTV with a lower Fixed Rate. The minimum age for the Platinum is 55 in most states, but some require the borrower to be 60 or 62.

Capital Markets

First Community Mortgage has named Jeff Pancer to the new position of Executive Vice President, Capital Markets. Congratulations!

Markets finally paused recent optimism that has been riding on the assumption that the Fed will lower interest rates in 2024. Until yesterday, that optimism had fueled rallies in both stocks and bonds over the past few weeks, with investors continuing to overlook Fed rhetoric and bet on deep interest rate cuts next year. Fed Chair Powell on Friday reiterated that it is too early to consider cutting rates, and that the Federal Open Market Committee plans to keep policy restrictive for some time. Despite his stance, markets are still at odds with the Fed, pricing in the first rate cut as early as March and 125 basis points of rate cuts in total for 2024. Remember, sticky inflation can prevent the Fed from cutting.

The Fed is widely expected to leave rates unchanged for the third consecutive FOMC meeting next week, in what would be no change for the fourth out of the past five meetings. However, the post-meeting statement will likely continue to indicate that additional tightening is possible. The fear is that the Fed declaring victory too early while the economy is growing, and the labor market is tight is a risk if inflation spikes back up. The Fed has entered its blackout period ahead of the meeting, so we won’t get any more chatter from FOMC members until after the meeting. Additionally, there will be no Treasury note or bond auctions this week. This week will be dominated by the jobs report on Friday where expectations are for an improvement from October’s report: an increase of 180,000 jobs in November and no change in unemployment.

Today’s economic calendar has a lot of non-market moving releases: Redbook same store sales for the week ending December 2, final November S&P Global services PMI, expected to decline slightly, ISM non-manufacturing PMI for November, expected to tick up, and JOLTS job opening for October, supposedly sliding to 9.35 million from 9.55 million in September. We begin the day with Agency MBS prices better by .125-.250, the 10-year yielding 4.23 after closing yesterday at 4.29 percent, and the 2-year yield down to 4.52 as investors continue to believe, perhaps mistakenly, that the Fed is not only done raising rates but will come around to cutting them.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

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TPO, Subservicing, Marketing, CRA Products; Training and Webinars; Podcast Interview with Dr. Elliot Eisenberg

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TPO, Subservicing, Marketing, CRA Products; Training and Webinars; Podcast Interview with Dr. Elliot Eisenberg

By:
Rob Chrisman

Mon, Dec 4 2023, 10:43 AM

“People would learn more from their mistakes if they weren’t so busy denying them.” Here’s a little trivia for the compliance folks in the coffee room: The CFPB handles 20,000 consumer complaints per week, and given that financing a home, and then servicing the loan, is the largest financial transaction most individuals go through, you gotta figure a chunk of the 20,000 involve mortgages. While we’re on the CFPB, Director Chopra addressed issues related to refinancing in a hearing on Capitol Hill last Thursday. But the headlines have been grabbed by interest rate improvements in our free market economy, and the economics calendar this week will be highlighted by the U.S. jobs report on Friday, arriving just five days before the Federal Reserve’s December 13 meeting. (Expect payrolls growth will rise to 200K in November from 150k job additions in October, and the unemployment rate to stay steady at 3.9 percent.) Today’s podcast can be found here, and this week’s is sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s three core products, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics, unite the people, systems, and stages of the mortgage process. Today’s has a wide-ranging interview with economist Elliot Eisenberg on government spending, the Fed’s balance sheet, and “Eisenbergian Economics.”

Lender and Broker Products, and Services

Servicing transfers are complicated, so it is critically important that you nail down the prep work beforehand. If you don’t, and the servicing transfer goes awry, it’s not only servicers who suffer, their customers do, too. The professional services team at ICE Mortgage Technology break down exactly what’s on the line, and what happens when poorly handled servicing transfers leave customers in a lurch. Read its new blog here to learn just how “high stakes” loan transfers can be, and the steps servicers can take to avoid borrower confusion, retention concerns, and even reputational risk, before they become a problem.

Exclusive data: Maxwell Q3 2023 Mortgage Lending Report reveals trends in interest rates, loan volume, and borrower demographics. Q3 brought continued challenges for home buyers and lenders. Despite 11 Fed rate hikes over the past year and a half, interest rates averaged 7.2 percent in Q3, the highest Maxwell data has recorded within the current market cycle. Still, Maxwell’s new report, which derives insights across more than 300 lenders and $290B in loan volume, shows signs of stabilization in Q3. Motivated borrower groups found creative paths to homeownership despite adversity, flocking to remaining pockets of affordability (hint: West Virginia). For insightful market data along with actionable advice from Maxwell experts on how to form a strong 2024 strategy, click here to get your free copy of Maxwell’s Q3 2023 Mortgage Lending Report.

Community Reinvestment Act (CRA) Final Rule: Preparing Your Bank for CRA Modernization! After years of discussions and false starts, the Federal Reserve, FDIC, and OCC issued their final rule modernizing the Community Reinvestment Act (CRA) in October. The almost 1,500-page final rule will take effect on April 1st, 2024. This means banks must comply with all the rule’s provisions by January 1, 2026 (aside from certain requirements taking effect January 1, 2027). How will CRA modernization impact your bank? What do regulators hope to achieve? What are they looking for from banks? What should your bank do to prepare? In this new article, experts from Ncontracts discuss this and more, plus offer insights on how the right resources can ease these regulatory burdens. Read the full article for more information.

Variety is the spice of life, which is why ICE maintains an ever-growing library of multimedia marketing content with its Surefire℠ CRM and Mortgage Marketing Engine. Intelligently automated Blueprints for Success give lenders a leg up with effective marketing workflows without the hassles of A/B testing and complex configuration. Whether a lender launches our Blueprints for Success out-of-the-box or configures them to meet unique goals, these automated campaigns help nurture relationships, improve pull-through and power sales across the entire homeownership lifecycle. Explore how Surefire can power your sales strategy in 2024 and schedule a demo with the ICE team today.

Delinquencies have remained statistically low, but recent market data indicates an uptick in early-stage delinquencies, unemployment, and more Americans relying on credit to make ends meet, so that rate may continue to rise. Computershare Loan Services (CLS) is a highly rated subservicer that can take the heavy lifting of managing high-risk loans off your shoulders. All its services (originations fulfillment, co-issue MSR acquisition, subservicing, and its mortgage cooperative) help keep lenders one step ahead. In this industry, you deserve a partner that has it all. Contact CLS to find out how they can help you reach your goals, in any market.

Broker and Correspondent Programs

Give Your Pipeline a Boost this December with LoanStream’s Winter Specials on Non-QM and Prime! Purchase, Rate/Term & Refi Cash-Out on both. Non-QM, 50bps >65% to <= 75% LTV & 720+ FICO, 75bps >55% to <= 65% LTV & 720+ FICO, 100bps <= 55% LTV & 720+ FICO. These are only here for a limited time so take advantage and Contact your Account Executive for details. For loans locked 12/1/2023 through 12/31/2023. Restrictions apply. Interested in getting approved? Visit our Get Approved page now: Get Approved LoanStream Wholesale – Wholesale Mortgage Lending.

With the holiday season underway, Rocket Pro TPO is kicking off its December to Remember campaign by introducing a series of exciting and valuable wins throughout the month of December to celebrate and support Rocket Pro’s broker partners. On Friday, the first win was introduced: a 25 bps LLPA on 30-year fixed rate conforming VA loans that will be available all month. Check out this video message from EVP Mike Fawaz. And, today, Rocket Pro’s highly popular Fast 15 Loan Guarantee is back now through January 31st! This special offer for brokers guarantees that all eligible loans will be clear to close in 15 business days or they will pay your client $2,500. For correspondent partners, they guarantee that eligible loans will be clear to close in 15 business days, or they will waive the $999 acquisition fee. Requirements and rules apply. Partners are encouraged to watch their inboxes and Rocket Pro TPO’s social media channels for more wins to come. Interested in learning more about a Broker or Non-Delegated Correspondent partnership? Contact Rocket Pro TPO to learn more.

Events, Training, and Webinars in December

TOP CEOs DISCUSS WINNING STRATEGIES FOR THE 2024-25 MORTGAGE CYCLE. Tomorrow, 12/5, at 2 PM ET, tune into HousingWire as Sagent CEO Dan Sogorka digs into this topic with industry leader Mark O’Donovan (Chase), moderated by Julian Hebron of The Basis Point. These 3 mortgage experts will uncover how lenders can thrive through 2025 and beyond, discussing vital topics such as navigating homebuyer affordability, lender priorities, FHFA, CFPB insights, and more. Don’t miss this powerhouse session! Register here to refine your strategies for the upcoming year or catch the recording if you can’t attend live.

A good place for longer term conference planning is to start is here, and click on “events” for conferences in the future.

Tomorrow, 12/5, is the next Mortgages with Millennials with Kristin Messerli and Robbie Chrisman. Tune in every Tuesday at 1PM ET to the weekly video show designed to empower mortgage professionals to tap into the millennial market. This show demystifies the psychology of first-time homebuyers and offers strategies to win more market share with a key segment of the market. Sign up for a weekly reminder with the link to join and a sneak peek into the next episode. This week’s guest is Kayla Gatmaitan, and education-focused LO for first time homebuyers.

If business is slow and you’re looking for new opportunities, register for MBA Eastern Pennsylvania’s upcoming free session with Freddie Mac on Tuesday, December 5 at 11:00 a.m. One of the challenges homebuyers face in today’s market is saving for the down payment. In this session, the benefits and differences between two low down-payment offerings, Home Possible® and HomeOne® will be explored. Additionally, the session will cover Freddie Mac BorrowSmart AccessSM, a program that offers up to $3,000 in down payment and closing cost assistance to help your clients reach homeownership.

The title industry faces many challenges going into 2024 and October Research wants to help you prepare your business. Orrick Partner Sherry-Maria Safchuk and CATIC SVP and National Agency Manager Kyle Rank will share their expertise and address critical issues such as consumer protection, cybersecurity trends, remote online notarizations, updates on the 1033 rule and more on the latest Industry and Regulatory Outlook webinar Dec. 5th. Stay ahead of the competition and start the new year strong. Register today at DoddFrankUpdate.com.

2023 Financial Institutions Professionals Webinar Series, presented by the Bonadio Group, December 5th, 6th, and 7th at 8:00 PST. During this complimentary event, industry experts will discuss emerging issues, impacts, insights, & more. Create your own personal agenda by choosing from several sessions, each designed as a roadmap to help you navigate what’s to come in the ever-changing financial services landscape. Each session offers 1 (one) credit of CPE.

Wednesday the 6th, looking for more in-depth commentary on weekly mortgage news? Register here for “Mortgage Matters: The Weekly Roundup” presented by Lenders One. Every Wednesday at 2:00 PM EST/11:00 AM PT is a dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. Listen to a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining. This week’s guest is Mark Jones, President of Union Home Mortgage and Chairman of the MBA.

Join MBA St. Louis at St. Charles Realtors, Wednesday, December 6th, 8:00 am – 10:30 am, and test your knowledge on Conventional Loans. This engaging and interactive course led by Trainer MaryKay Scully, Enact MI’s Director of Customer Education will review the key areas of Credit, Income, Collateral, Liabilities, Assets, HomeReady and Home Possible. It will inform and engage participants. Assessing knowledge, while reviewing Fannie Mae and Freddie Mac guidelines, as well as Desktop Underwriter and Loan Product Adviser. Cost: $20 (covers light snacks and room rental).

Freddie Mac added enhancements to its HFA Advantage® mortgage offering, providing a competitive solution for housing professionals to consider for first-time and repeat homebuyers. In a free webinar, Thursday, December 7th, 2 p.m. – 3:30 p.m. ET, you’ll learn more about HFA Advantage’s features and benefits, eligibility and homebuyer education requirements and new product enhancements.

With a residential real estate market that continues to change and evolve, WMBA has gathered industry professionals that offer different perspectives to give real insight into “Build for Rent” model, an increasing popular approach to residential new construction being built and held as rental properties. Join WMBA for the Income Property Luncheons on Thursday, December 7th, In Person Attendees: 11:30-1:00pm, Virtual Attendees: 12:00pm-1:00pm.

Join Angel Oak Mortgage on Thursday, December 7 at 10:00 PST for a webinar detailing its Investor Cash Flow (DSCR) programs and cover the top 20 broker questions. Learn how easily these loans close and help add to the bottom line.

Success leaves clues. Not surprisingly, many of the traits shared by high achievers are common sense in theory, but not necessarily common practice (otherwise, everyone would be a high achiever, right?). Discover the keys to having your best year ever, the most important (yet often missing) part of the formula for success and disciplines you often don’t think about. Join Hannah J. Barton and Blaine Rada, CSP, to discover these habits and incorporate them into your own life. TMBA Webinar, Habits of High Achievers, Thursday, December 7 at 11:00 am – 12:00 pm.

Join LSEG Academy session Central Bank & Bond market outlook – Insight from IFR Markets,

Thursday, December 7th | 8:00 PST., as industry experts examine recent benchmark interest rate increases and likely changes to the direction of central banks’ monetary policies. They will also look at the commentary and insight provided by IFR Markets and showcase how benchmark rates have been impacting the bond and rates markets utilizing LSEG Workspace tools. The discussion will include expectations for interest rate moves in 2024 and provide an opportunity to ask questions to industry experts.

Friday, December 8, is the next episode of The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. Listen to Rich Kuegler with Stewart Title!

Capital Markets

As mortgage rates dropped for the fifth consecutive week last week, Federal Reserve Chair Powell said that any speculation of potential rate cuts is still “premature.” Yes, inflation is easing, and the U.S. economy is cooling with Fed policy now well into restrictive territory. The full effect of higher rates is still working its way through the economy and the central bank has noted progress against inflation over the past six months. The hiking cycle is likely over, but the Fed is reluctant to admit as much or discuss any sort of rate cuts.

Economic data over the last week continued to show the U.S. economy is still expanding while inflation trends lower. Real GDP was revised up to 5.2 percent in the second update from 4.9 percent in the advance update. Consumer spending on services increased 0.2 percent in October and spending on nondurable goods increased 0.3 percent. The October PCE deflator was unchanged in October and showed prices were 3.0 percent higher than twelve months ago; the lowest annual reading since March 2021. While prices are still rising faster than the Fed’s preferred rate, the pace continues to slow and bodes well for a soft landing for the U.S. economy.

This can also be seen in housing prices which rose 0.7 percent in September and 3.9 percent from one year ago, according to the S&P CoreLogic Case-Shiller Home Price Index. While elevated mortgage rates helped the slowdown, limited available for sale inventory has kept prices from outright declines. As a result of the continued progress on inflation and recent Fed comments around being well into restrictive territory, the markets expect the Fed is done hiking and will begin to cut rates in 2024.

This week’s economic calendar contains several higher tiered releases including the November payrolls report and preliminary December consumer sentiment on Friday. Between now and then, we will receive ISM Services for November, some labor market indicators, wholesale trade, and consumer credit. The week kicks off with just factory orders for October, due out later this morning. We begin Monday with Agency MBS prices roughly unchanged from Friday evening, the 10-year yielding 4.25 after closing last week at 4.23 percent, and the 2-year at 4.61.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

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AI’s impact on the job market and society is a topic of much debate. However, its potential to assist businesses in making informed decisions is undeniable. Artificial intelligence (AI) has permeated various aspects of our lives, sparking discussions about its possibilities and challenges. Will we witness the realization of AI’s capabilities in the upcoming year? SAS, a frontrunner in AI and analytics, has enlisted the insights of executives and experts from across the organization to forecast trends and pivotal developments in AI for 2024. Here are some of the forecasts they have put forward.

SAS AI predictions and trends for 2024

Generative AI will augment (not replace) a comprehensive AI strategy

SAS, with a recent commitment of $1 billion to AI-powered industry solutions, emphasizes the growing significance of generative AI in organizational strategies. In 2024, organizations will shift towards integrating this technology to complement industry-specific AI strategies.

In banking, simulated data for stress testing and scenario analysis will help predict risks and prevent losses. In health care, that means the generation of individualized treatment plans. In manufacturing, generative AI can simulate production to identify improvements in quality, reliability, maintenance, energy efficiency and yield.

Bryan Harris, Chief Technology Officer, SAS

AI will create jobs

Although introducing new AI technologies in 2024 and beyond may lead to temporary disruptions in the job market, it will also ignite the creation of numerous new jobs and roles, thereby contributing to economic expansion.

In 2023, there was a lot of worry about the jobs that AI might eliminate. The conversation in 2024 will focus instead on the jobs AI will create. An obvious example is prompt engineering, which links a model’s potential with its real-world application. AI helps workers at all skill levels and roles to be more effective and efficient.

Udo Sglavo, Vice President of Advanced Analytics SAS

AI will enhance responsible marketing

While AI holds the potential for optimizing marketing and advertising initiatives, it is essential to recognize that biased data and models can yield skewed outcomes.

As marketers, we must consciously practice responsible marketing. Facets of this are awareness of the fallibility of AI and alertness to possible bias creeping in. In SAS Marketing, we are implementing model cards that are like an ingredient list, but for AI. Whether you create or apply AI, you are responsible for its impact. That’s why all marketers, regardless of technical know-how, can review the model cards, validate that their algorithms are effective and fair, and adjust as needed.

Jennifer Chase, Chief Marketing Officer, SAS

Financial firms will embrace AI amid a Dark Age of Fraud

Even as consumers show increased vigilance against fraud, fraudsters use generative AI and deepfake technology to refine their multitrillion-dollar trade. Phishing messages are becoming more sophisticated, and imitation websites appear remarkably authentic. With simple online tools, a criminal can replicate a voice after just a few seconds of audio.

We are entering the Dark Age of Fraud, where banks and credit unions will scramble to make up for lost time in AI adoption – incentivized, no doubt, by regulatory shifts forcing financial firms to assume greater liability for soaring APP [authorized push payment] scams and other frauds.

Stu Bradley, Senior Vice President of Risk, Fraud and Compliance Solutions, SAS

Shadow AI will challenge CIOs

CIOs previously faced challenges with ‘shadow IT’ and will now encounter ‘shadow AI’ – solutions utilized by or developed within an organization without official approval or monitoring by IT.

Well-intentioned employees will continue to use generative AI tools to increase productivity. And CIOs will wrestle daily with how much to embrace these generative AI tools and what guardrails should be put in place to safeguard their organizations from associated risks.

Jay Upchurch, Chief Information Officer, SAS

Multimodal AI and AI simulation will reach new frontiers

The next step in generative AI is the combination of text, images, and audio into one model. This is called multimodal AI, which allows for the simultaneous processing of diverse inputs. 

An example of this will be the generation of 3D objects, environments and spatial data. This will have applications in augmented reality [AR], virtual reality [VR], and the simulation of complex physical systems such as digital twins.

Marinela Profi, AI/Generative AI Strategy Advisor, SAS

Digital-twin adoption will accelerate

Organizations can refine operations, enhance product quality, boost safety measures, improve reliability, and decrease emissions through digital twins.

Technologies like AI and IoT [Internet of Things] analytics drive important sectors of the economy, including manufacturing, energy and government. Workers on the factory floor and in the executive suite use these technologies to transform huge volumes of data into better, faster decisions. In 2024, the adoption of AI and IoT analytics will accelerate through broader use of digital-twin technologies, which analyze real-time sensor and operational data and create duplicates of complex systems like factories, smart cities and energy grids.

Jason Mann, Vice President of IoT, SAS

Insurers will confront climate risk, aided by AI

After years of waiting, climate change has evolved from a potential threat to a real and urgent danger. The global insurance industry faced more than $130 billion in losses from natural disasters in 2022, putting immense pressure on insurers worldwide. In the United States, insurers face scrutiny for increasing premiums and pulling out of heavily affected states like California and Florida, leaving millions of customers in a difficult position. 

To survive this crisis, insurers will increasingly adopt AI to tap the potential of their immense data stores to shore up liquidity and be competitive. Beyond the gains they realize in dynamic premium pricing and risk assessment, AI will help them automate and enhance claims processing, fraud detection, customer service and more.

Troy Haines, Senior Vice President of Risk Research and Quantitative Solutions, SAS

AI importance will grow in government

AI will soon have an impact on government workforces. Governments struggle to attract and keep AI experts because of their high salaries, but they will actively seek out this talent to support regulatory efforts. 

And like enterprises, governments will also increasingly turn to AI and analytics to boost productivity, automate menial tasks and mitigate that talent shortage.

Reggie Townsend, Vice President of the SAS Data Ethics Practice

Generative AI will bolster patient care

In 2024, organizations will continue to advance health and enhance patient and member experiences by developing AI-powered tools for personalized medicine. These tools will include patient-specific avatars for clinical trials and the generation of individualized treatment plans.

Additionally, we will see the emergence of generative AI-based systems for clinical decision support, delivering real-time guidance to payers, providers and pharmaceutical organizations.

Steve Kearney, Global Medical Director, SAS

Deliberate AI deployment will make or break insurers

In 2024, a top 100 global insurer will face closure due to prematurely implementing generative AI. Insurers are rapidly introducing autonomous systems without customizing them to their business models. They aim to use AI for expedited claims processing to counteract recent poor business performance. However, following layoffs in 2023, the remaining workforce will need more support to oversee AI’s ethical and widespread implementation.

The myth of AI as a cure-all will trigger tens of thousands of faulty business decisions that will lead to a corporate collapse, which may irreparably damage consumer and regulator trust.

Franklin Manchester, Global Insurance Strategic Advisor, SAS

Public health will get an AI boost from academia

The COVID-19 pandemic has made it evident that safeguarding our population will necessitate exceptional technology and collaboration. Public health embraces technological advancements like never before.

Whether overdoses or flu surveillance, using data to anticipate public health interventions is essential. Forecasting and modeling are rapidly becoming the cornerstone of public health work, but the government needs help. Enter academia. We will see an increase in academic researchers carrying out AI-driven modeling and forecasting on behalf of the government.

Dr. Meghan Schaeffer, National Public Health Advisor and Epidemiologist, SAS

At SAS Innovate, April 16-19, 2024, in Las Vegas, you have the opportunity to discuss with SAS executives, gain insights into their forecasts, and delve into the newest developments in AI and analytics. Secure your spot to receive updates on the conference and take advantage of early-bird pricing.

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Mihaela Lica Butler is senior partner at Pamil Visions PR. She is a widely cited authority on public relations issues, with an experience of over 25 years in online PR, marketing, and SEO.She covers startups, online marketing, social media, SEO, and other topics of interest for Realty Biz News.

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Source: realtybiznews.com

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[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: Bluestreak IoT]

BlueStreak IoT optimizes operational processes for commercial business owners and facility managers by adding an intelligence layer to existing products and enabling smart and connected features. It sits at the center of information from sensors, devices, networks, and software that combine to deliver valuable, actionable data and automate functions across retail, hospitality, entertainment, health & fitness, real estate, and other commercial venues. Its services are uniquely positioned to enhance the efficiency and performance of services in commercial real estate, including ScentBridge’s ambient scent delivery, indoor air quality monitoring, clean air as a service, resource utilization, replenishment management and performance compliance.

It works with companies to explore “Smart Products as a Service” opportunities and offers a comprehensive range of services, which includes strategy and IP consulting, hardware and software design, as well as commercialization support.

What we like: Offering differentiated IoT solutions by adding a smart layer to existing operational tools that increases performance and uptime of “Product as a Service” tools while lowering operational costs.

Learn More

*Part of 2023 REACH Commercial Class

Source: geekestateblog.com

Apache is functioning normally

Apache is functioning normally

MSR Sales, Subservicing, Margin Mgt., PPE, HELOC, Pre-Approval Tools, Don’t Ignore HMDA Requirements

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MSR Sales, Subservicing, Margin Mgt., PPE, HELOC, Pre-Approval Tools, Don’t Ignore HMDA Requirements

By:
Rob Chrisman

5 Hours, 0 Min ago

Home schooling is the goodest thing I ever did for my two kids. Hopefully, they both learned that an inverted yield curve doesn’t automatically create, or lead to, a recession. As we approach 2024, short term rates have been higher than long term rates since 2022, and when you think of the last 10 recessions eight of the last 10 were preceded by an inverted yield curve. But now the “experts” are saying that this yield curve inversion is due to artificial reasons, namely the U.S. Federal Reserve’s actions that shifted rates, rather than more natural factors. Time will tell, and no one can eliminate business cycles, so we may have a recession (and with it, lower rates) at some point. But for now, “The U.S. economy is becoming increasingly recession resistant. State, local, and federal government spending as a percentage of GDP has risen from 29 percent in 1962 to 35 percent today. Healthcare spending has risen from 5 percent of GDP in 1962 to 18 percent in 2021. Collectively they have risen from 34 percent of GDP to 53 percent and most critically, both sectors are not particularly interest-rate sensitive.” So spoketh Dr. Elliot Eisenberg. (Today’s podcast can be found here, and this week’s is sponsored by MCT. MCT’s technology and know-how continues to revolutionize how mortgage assets are priced, locked, protected, valued, and exchanged, offering clients the tools to thrive under any market condition. Hear an interview with Lender Price’s Dustin McClelland on how lenders can upgrade or enhance their pricing technology.)

Lender and Broker Products, Programs, and Services

Revolution Mortgage estimates that they can save up to $20,000 in cost on verifications with TRUV over competitors. Femi Ayi, EVP Operations shares how he estimates he is saving 80 percent on his verification costs with Truv in this recorded event. “Let’s talk about our documentation costs and those giant monopolies that are out there and laughing at customers and increasing prices because they have a particular monopoly. You want to lower your manufacturing costs.” Contact TRUV today for your income, employment, insurance, and asset verifications.

When a borrower or Realtor needs an updated pre-approval letter to submit an offer, how quickly can your loan officers turn it around? This quick?

Cutting-edge technology, lower rates, exceptional service… these are many of the claims made by today’s HELOC providers. It’s important to thoroughly research these companies before partnering with them. Check with insiders and peers to learn about their experiences. A company with a solid reputation is worth its weight in gold. Symmetry Lending is a HELOC company you can trust and rely on, offering… SUCCESS: Symmetry’s proprietary technologies and dedicated fulfillment teams deliver industry-leading turn times and streamlined documentation processes. Built on three main principles: service, speed, and simplicity, Symmetry presents a foundation of long-term success for their business and clients. STABILITY: Symmetry began in 2018 with an exclusive focus on HELOCs. Their experienced leadership team has a combined 150 years of industry experience. VALUE: With on-demand staff, service, and resources, Symmetry is committed to creating exceptional, consistent experiences from submission to close. Follow Symmetry on Facebook and LinkedIn to learn more about what differentiates them.

LoanPASS PPE and Uplist have announced a strategic partnership that integrates Uplist’s suite of smart, real-time home shopping tools directly into LoanPASS’s powerful product and pricing engine. This will allow loan officers to provide Uplist’s SmartBuyer™ Tool directly to perspective buyers from their LoanPASS interface. Loan officers will also have remote access to their rates through Uplist Quick Quotes, featuring real-time pricing, which includes detailed calculations for the popular 2-1 buydown. This fusion of technology will enable loan officers to easily deliver real-time, personalized solutions direct to their homebuyers and agents with the click of a button. Lenders and loan officers interested in leveraging this patent-pending technology can learn more by scheduling a no-pressure call with Uplist.

So, you’ve been dying to uncover the mystical wonders of Performance Marketing, right? Look no further! TrustEngine just dropped its Performance Marketing eBook in the digital realm. Hold onto your seats, folks, because TrustEngine is hyping up Performance Marketing like it’s the reigning rockstar of the century. This isn’t your average eBook; oh no, it’s the clandestine weapon of epicness, crafted to illuminate our fabulous community. Learn the differences between traditional and performance marketing; the Mortgage Performance Marketing Platform and crafting a performance marketing strategy in 7 steps. Click here to download the FREE eBook today.

With mortgage volume struggling to recover, now is the perfect time for lenders to focus on their profitability with MCT’s exclusive whitepaper: “Margin Management Best Practices.” Dive deep into the intricate world of margin management, where success in the dynamic mortgage industry is defined. MCT’s Capital Markets Technology Advisor, Cody Echols, unravels the complexities, challenges, and actionable techniques to boost profit margins and navigate lending volumes with agility. Discover the strategic compass for effective margin management: analyze market share dynamics, understand volume trends, and fortify profitability against volatility. Don’t just survive; thrive in the ever-transforming mortgage landscape! Ready to adapt and conquer? Download the MCT Whitepaper and elevate your margin management game.

“As year-end quickly approaches, lenders are hopeful that the recent rate rally continues, which is a great thing if you are originating loans. But what about lenders with servicing portfolios? As we consider a possible change in Fed cycle and liquidity needs, Lenders still have time to execute a trade on their portfolio by year end. Blue Water (“Blue Water Financial Technologies Services, LLC”) can assist lenders to sell bulk MSR, regardless of size. With BlueRATE™, a lender can obtain an instant portfolio valuation and then determine what to sell – whether it be a small geo carve or the entire MSR portfolio. Blue Water can also assist in moving your product quickly with Blue Water’s proprietary SuperTransfer™. With SuperTransfer™, transferring the portfolio to a buyer is easier than ever. Connect with our expert Sales Team to learn more.”

Earlier this year, Zillow Home Loans selected PHH Mortgage to provide subservicing for its residential mortgage portfolio. Following a collaborative onboarding and integration cycle, Zillow Home Loans and PHH completed an initial transfer of loans in August. PHH has worked with Zillow Home Loans to purchase loans on a correspondent and co-issue basis since 2019 and 2021, respectively. As of September 30, 2023, PHH Mortgage’s total servicing portfolio was approximately $296 billion, which included approximately $167 billion of subservicing. Earlier this year, PHH was recognized for servicing excellence for the third consecutive year through Freddie Mac’s Servicer Honors and Rewards Program (SHARP)SM in the top-tier servicing group and for the second consecutive year through Fannie Mae’s Servicer Total Achievement and Rewards (STAR)TM performer recognition. The Company also achieved HUD’s Tier 1 servicer ranking. No other servicer in the U.S. has been more highly decorated with these top awards from all three agencies over the past two years.

Compliance and Supervising LO’s

Our biz is still talking about the November 28 CFPB consent order fining Bank of America $12 million for failing to collect and report race and ethnicity information under HMDA. The CFPB alleges that the bank’s loan officers failed to ask applicants for their race and ethnicity information, and instead recorded that the applicant chose not to provide the information, which the bank reported.

Here is a US Consumer Financial Protection Bureau’s enforcement action. The CFPB ordered Bank of America to pay a $12 million penalty for submitting false mortgage lending information to the federal government under a long-standing federal law. For at least four years, hundreds of Bank of America loan officers failed to ask mortgage applicants certain demographic questions as required under federal law, and then falsely reported that the applicants had chosen not to respond. Under the CFPB’s order, Bank of America must pay $12 million into the CFPB’s victims relief fund.

Hundreds of Bank of America loan officers reported that 100 percent of mortgage applicants chose not to provide their demographic data over at least a three-month period. In fact, these loan officers were not asking applicants for demographic data, but instead were falsely recording that the applicants chose not to provide the information. Why? Because that is easier! It is sloppy, though: If you continually report that 100 percent of your applicants decline to answer, eventually someone will notice.

The issue didn’t spring up overnight. In 2013, BofA made attempts to train and monitor for this issue after noting that its rate of applicants not providing this HMDA information was high. The consent order alleges that in 2016, the bank’s monthly monitoring still showed that several offices and loan officers had information-not-provided rates three to four times the bank’s average, but the bank discontinued its monitoring.

In addition, the consent order alleges that in 2020, the bank found that over 400 loan officers recorded that applicants chose not to provide their race and ethnicity information on 100 percent of applications over a three-month period. The consent order also alleges that the loan officers were not asking applicants for their race, ethnicity, or sex, and instead were “wrongly recording on applications that the applicants chose not to provide the information.”

Capital Markets

Bonds once again climbed yesterday, the third consecutive day of gains, on bets the Fed will be able to start cutting rates in the first half of 2024, though Fed officials have signaled that cuts aren’t coming so soon. The Federal Reserve’s Beige Book for November noted that economic activity slowed since the October report, as four Districts reported modest growth, two reported little change, while six reported declining activity. Discretionary retail sales decreased as consumers showed more sensitivity to prices. Travel remained healthy while demand for transportation services was sluggish. The outlook among manufacturers weakened while demand for business loans dipped. Consumer credit was healthy, but some banks saw rising delinquencies. Demand for labor slowed while price increases moderated but remained at a generally elevated level.

We also learned yesterday that Gross Domestic Product rose at the fastest pace in almost two years (+5.2 percent) while consumer spending advanced at a less-robust rate. The Fed’s preferred inflation metric, PCE, was also revised down to 2.3 percent, signaling rate hikes are working. Put it all together and it paints the picture that the U.S. economy was effectively booming in the third quarter despite higher interest rates, aided by a strong labor market and disinflation that fueled healthy consumer spending activity. The volatility index (VIX) or so-called “fear gauge,” dropped to its lowest since January 2020.

Personal income and spending (both +.2 percent, as expected) and weekly jobless claims (218k, as expected; 1.9 million continuing) led off today’s calendar. PCE was +.2 percent, core flat. After Richmond Fed President Barkin argued yesterday the Fed should keep hikes on the table, which was in contrast with Cleveland President Mester signaling support for standing pat next month and Atlanta President Bostic signaling he is increasingly convinced that prices and the economy will moderate, later today brings remarks from New York Fed President Williams. Markets will also receive Chicago PMI for November, pending home sales for October, and Freddie Mac’s latest Primary Mortgage Market Survey. We begin the last day of November with Agency MBS prices worse a few 32nds, the 10-year yielding 4.29 after closing yesterday at 4.27 percent, and the 2-year at 4.65 percent after a bunch of news that came in as expected.

Employment

“If you are looking for a lifeline to save your people and your business in this challenging rate environment, you have an opportunity to partner with a well-capitalized independent mortgage company with over 40 years of experience. We offer a portfolio product line that gives our origination team the opportunity to quote unique scenarios for DPA, 2nd liens, ARMs, non-owner, Jumbo, Doctor/Professional, and more. Our proprietary coaching program is free to all Loan Officers. Even in this market, we’ve doubled-down on the support we provide, from a dollar-for-dollar marketing match to in-house creative & design services, video marketing, social media, training, and credit services. With unmatched operations support at the branch and corporate levels, your clients and referral partners will be more than impressed. Our company is Fannie and Freddie seller/servicer, FHA, VA, and USDA approved. For a confidential conversation, please contact Anjelica Nixt and mention this opportunity.”

PrimeLending’s Forward Commitment program opens doors to new opportunities for our LOs, offering homebuilders a quick way to move existing inventory without compromising value. By entering a short-term agreement with PrimeLending, builders can secure a block of funds at a significantly lower interest rate, enabling them to pass these promotional rates to potential homebuyers and convert more sales. The success speaks for itself! A builder in the Carolinas turned a $3 million agreement into the sale of 10 inventory homes within just 14 days. Forward Commitment is just one of many examples of how PrimeLending helps LOs redefine the narrative, stay ahead of the competition, and ultimately find new ways to close loans in the local market. Contact Nic Hartke now and discover how a move to PrimeLending can transform your approach and elevate your business. Your advantage starts here.

Don’t forget that the FHFA, which oversees Freddie & Fannie, is hiring.

 Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

Building your dream home in Oregon is an exciting journey, shaped by the state’s diverse landscapes – from Portland’s urban scenes to the serene Willamette Valley. 

This Redfin article is curated with insights from seasoned Oregon builders, and navigates you through essential steps. From local building codes to sustainable practices, these practical tips empower effective project management, bringing your vision of an Oregon home to life.

7 essential pre-build tips for your Oregon home

1. Set a realistic budget for your Oregon build

Building your dream home in Oregon requires careful budgeting due to the state’s cost variations. Researching current prices for land purchase, design, permits, construction, and interior finishes is crucial. For land, costs range from $10,000 to $150,000+ per acre based on location. Design and permitting fees can be $5,000 to $20,000 and $1,000 to $5,000, respectively. Construction costs vary from $150 to $350+ per square foot. Interior finishes, including basic ($20,000 – $50,000), mid-range ($50,000 – $100,000), and high-end ($100,000+), add to the budget. 

These estimates are general, so consulting local professionals is essential. Be mindful of unforeseen expenses and market fluctuations, ensuring a well-prepared budget for your Oregon home construction.

2. Make sure you account for Oregon’s climate

Building in Oregon requires meticulous consideration of its diverse climate, ranging from coastal to mountainous regions. Collaborate closely with your builder to create a weather-conscious construction schedule, accounting for variations in rainfall and snowfall. Coastal areas like Astoria experience higher precipitation, while desert regions like Bend are drier. Plan construction activities during the drier seasons, typically summer and early fall, to avoid weather-related delays. 

Be proactive in protecting materials from rain and snow, and maintain flexibility in your schedule due to Oregon’s unpredictable climate. Regular communication with your builder is crucial for a successful and adaptable construction process.

3. Be informed about Oregon’s building codes and regulations

Understanding Oregon’s diverse regions involves navigating specific building codes tailored to each area. In coastal regions like Newport, emphasis on structural resilience against storms may require reinforced roofing and foundations. Wildfire-prone areas, such as parts of Southern Oregon like Medford, demand adherence to fire-resistant building standards, influencing material choices and landscaping practices. Cities like Portland, located near fault lines, necessitate compliance with seismic design codes for earthquake resilience. 

Stay informed about local regulations. Tailoring your understanding of building codes ensures compliance with local regulations and addresses the unique environmental challenges of your chosen Oregon location. Regular consultations with local authorities and experienced builders provide valuable insights into region-specific codes for a successful construction process.

4. Conduct thorough contractor research and get local expertise

Building in Oregon’s competitive construction industry requires meticulous contractor research. Verify track records, experience, and reputation to ensure the selected contractors are licensed and bonded, providing a safety net for homeowners. For example, when building in regions like Eugene or Bend, leverage local expertise. Local builders possess insights into environmental challenges, permitting nuances, and regional hazards, contributing to a smoother construction process. 

This regional knowledge ensures contractors are well-prepared to navigate the specific demands of each area, from eco-friendly considerations in Eugene to high desert challenges in Bend. Regular consultations with local builders and authorities enhance your understanding and facilitate informed decisions throughout the construction journey.

5. Look into builder associations and certifications in Oregon

While general contractor licensing isn’t mandatory, affiliations with associations like the Oregon Home Builders Association can signify commitment to quality. Certifications, such as Earth Advantage, highlight a builder’s dedication to sustainable practices.

6. Choose the right location

Oregon’s diverse landscapes demand thoughtful location selection. Whether it’s the urban vibrancy of Portland or the tranquility of Bend, factor in climate, terrain, and local regulations to align your choice with your lifestyle.

“Constructing a home in Central Oregon comes with unique challenges, notably the region’s unpredictable daily weather,” insists website design company Mooney Marketing. “The weather can swiftly transition from sunny skies to snowfall within minutes. To navigate this, we strategically oriented our house to face South, maximizing sunlight in winter, and adjusted our roof pitch to direct snow away from the driveway. This thoughtful planning is essential, especially considering that snow can persist in our yard until May. If you appreciate cold weather and snow, Central Oregon is an ideal location for your home.”

7. Employ sustainable building practices

Embrace Oregon’s commitment to sustainability with eco-friendly options. Explore features like solar panels, rainwater harvesting, and native landscaping to create an environmentally conscious and efficient home.

“Sustainability in Central Oregon goes beyond trend – it’s a commitment to environmental consciousness and energy efficiency,” asserts Oregon tiny house builders Spindrift Homes. “We embrace eco-friendly construction by using materials with minimal ecological impact, including locally sourced and reclaimed options. We integrate energy-efficient technologies, such as solar panels and advanced insulation, to reduce long-term energy consumption. This reflects Central Oregon’s dedication to a resilient and eco-conscious built environment, harmonizing modern development with environmental preservation in this picturesque region of the United States.”

9 construction and design tips to consider

1. Embrace sustainability and resilience

“Oregonians prioritize sustainable construction, drawing inspiration from lush landscapes and a commitment to environmental stewardship,” shares construction company Kimball Construction. “The diverse climate necessitates careful material consideration for resilience against rain and heat. Homes often embody the Pacific Northwest aesthetic, featuring local wood and expansive windows for abundant natural light. Navigating stringent building codes, particularly in earthquake-prone areas, underscores the emphasis on safety and durability. Building in Oregon is a harmonious blend of innovation, nature, and community values.”

2. Blend indoor comfort with outdoor beauty

When integrating indoor and outdoor spaces in Oregon, a key tip is to focus on creating a seamless transition between the two. This can be achieved through the use of large glass doors or retractable walls that open up to an outdoor living area. Incorporating similar flooring materials both inside and outside can also enhance this sense of continuity. Additionally, consider the use of covered patios or decks that provide protection from Oregon’s rainy weather, while still allowing for an outdoor experience.

“Our focus on timeless design, natural light, and smart technology ensures seamless integration of indoor and outdoor spaces,” states Woodland Construction Group. 

3. Invest in energy-efficient features

To address Oregon’s diverse weather, prioritize energy-efficient features tailored to specific regions. In rainy cities like Portland, focus on well-insulated walls to combat moisture. Optimize natural light and insulation with energy-efficient windows. In colder areas like Bend, invest in a high-efficiency HVAC system for effective heating. Enhance sustainability by incorporating solar panels, particularly in eco-conscious regions like Eugene. 

Consulting with local energy experts ensures a region-specific approach, contributing to both your home’s resilience and Oregon’s environmental goals.

4. Use durable construction materials for Oregon’s varied climate

Given Oregon’s weather conditions, characterized by frequent rain and occasional storms, prioritize durable building materials that can withstand these elements. In coastal areas like Cannon Beach, where exposure to salt air is a factor, consider materials like cedar siding known for its resilience against moisture and pests. Additionally, in Bend, where snowfall is common, metal roofs provide durability and effective snow shedding. 

These materials not only ensure longevity but also demand minimal maintenance, making them ideal choices for Oregon’s varied climates.

5. Prepare for rainy seasons

During Oregon’s rainy seasons, proactive measures are essential to mitigate water-related risks and fortify your home against potential issues. Implement strategic landscaping solutions, such as graded slopes away from the foundation, to facilitate proper water drainage. Consider integrating rain gardens, especially in regions like Salem, to absorb excess water and prevent soil erosion. Well-placed drains, particularly in cities like Astoria with higher rainfall, further contribute to effective water management around your property. 

By incorporating these measures, you enhance your home’s resilience, ensuring it remains safeguarded during Oregon’s periods of increased rainfall.

6. Employ fire resilient building strategies 

Bend’s new west-side neighborhood Discovery West shares “we employ cutting-edge building practices to fortify the resilience of homes located near the wildland-urban interface, particularly in response to the escalating threat of wildfires driven by climate change. Striking a balance between aesthetics and safety, our community employs key fire mitigation techniques, including meticulous material choices in landscaping and construction, incorporation of fire-resistant plants, strategic tree spacing, and the implementation of small vent screen openings to reduce the risk of embers infiltrating homes.”

7. Add native plants to your landscaping

Elevate your property’s aesthetics while contributing to conservation efforts by integrating native Oregon plants into your landscaping. In regions like Medford, consider drought-tolerant choices such as manzanita and yarrow. These plants not only enhance visual appeal but also adapt well to Oregon’s varying climates, ensuring a sustainable and low-maintenance landscape. Consulting with local horticulturists provides insights into additional native species that thrive in your specific Oregon location.

8. Design a home that is in tune with Oregon’s environment 

“Harmonize your home with its natural surroundings by incorporating native landscaping, embracing natural color palettes, and aligning with the neighborhood’s aesthetic,” shares custom home builders Rogue Brothers Construction. “The key lies in choosing an architect and builder with the expertise to bring your dream to life. Collaborating as a team with your architect and builder ensures your home not only withstands the elements but also enhances the beauty of its environment.”

9. Ensure your home is properly insured

Safeguard your Oregon home by considering insurance beyond the standard coverage. Additional protection against natural disasters like landslides or heavy rains is crucial in this region.

Ready to build your Oregon dream home?

Building a home in Oregon is a rewarding journey, requiring strategic planning and collaboration with local experts. These insights from Oregon builders equip you to navigate the unique challenges of the state, ensuring a successful home construction journey in the heart of the Pacific Northwest.

Source: redfin.com

Apache is functioning normally

Efficiency, AVM, POS Products; MI, Wholesaler, Correspondent News; STRATMOR M&A Interview

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Efficiency, AVM, POS Products; MI, Wholesaler, Correspondent News; STRATMOR M&A Interview

By:
Rob Chrisman

Wed, Nov 22 2023, 9:42 AM

“I threw my phone from the roof, and it broke. I guess airplane mode wasn’t working.” Plenty of folks will be traveling soon. Here’s some trivia for tomorrow at the dinner table! (One wonders if residential lending is heading in this direction) … But there are only 12 passenger airlines in the United States. That’s up from 10 just a few years ago but down from about 80 airlines at the peak industry in the 1980s due to a series of bankruptcies and mergers. Four of those companies (Delta, United, American, and Southwest) control 80 percent of the market, with the remaining 20 percent being low-budget airlines that are increasingly struggling. The average airline fare has declined 13 percent over the past year, and that’s been causing issues for the companies that specialize in lower fares, as many of their customers are now seeing the big guys as more accessible than before. (Today’s podcast can be found here, 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. Hear an interview with the STRATMOR Group’s Garth Graham on M&A activity in 2023 and trends in the space heading into 2024.)

Lender and Broker Software, Products, and Services

With increased regulatory focus on property-valuation bias, lenders need robust risk-management processes in place. The recently released interagency proposals on AVM quality control and ROV-process guidance are designed to prevent valuation bias and help ensure industry stakeholders follow fair-lending practices. Watch our complimentary on-demand webinar to learn how you can prepare, and implement the tools needed to support the proposed AVM standards and ROV guidance.* Our experts discuss how to identify potential bias in valuations, ways to mitigate bias risk, how to monitor AVM and appraisal compliance with fair-lending requirements, and more. Watch this timely and important webinar here. *Check with your compliance or legal department for information on complying with applicable law.

Pipeline as dry as your mother-in-law’s turkey this time of year? Moisten it up with LiteSpeed by LenderLogix.

From zero to correspondent in 60 seconds… Building a correspondent channel requires exceptional customer service, precise execution, & immediate responses. Regular way, it’s costly & inefficient. Blue Water has solved this. Our comprehensive Correspondent-as-a-Service (CAAS) solution allows firms of ANY size to quickly streamline their operations and get up and running. Automated bidding provides instant pricing via email, branded portal & bid desk for sellers facilitated by our tape crack features and customizable seller settings. Ingest multi-seller tapes, price different product types, access agency pricing and LLPAs. (“Blue Water”) will integrate with your LOS for point and click onboarding, help you transfer loans, and manufacture clean product. Choose an optimal Servicing execution, best-ex in-bound loans and drive volume. Make $, grow your business and pay as you go with no upfront cost. From pricing, valuations, transactions, transfer, QC, to boarding, Blue Water makes it easy to scale up your business. Connect with our expert Sales Team.

Orion Lending slashed its annual expenses by $300,000 and boosted its conversion rate by 32 percent using Truv’s income and employment verification solution. “Truv transformed our verification process, expanding our reach and cutting costs,” asserts Richard Plummer, EVP of Operations at Orion Lending. Stop Overpaying. Highlights include impacting $300,000 annually in savings as a result of increased conversion rates, 32 percent end-to-end conversion rate, an increase of $100 in savings per application, implementing Truv in a couple of weeks, and reduced the loan manufacturing time and approval process by several days. Contact TRUV today for your income, employment, insurance, and asset verifications.

Miscellaneous Wholesaler, Correspondent, and MI News

Angel Oak Mortgage Solutions announced the release of its new DSRC Loan Calculator, providing borrowers with a quick and straightforward tool to estimate whether or not a property’s expected cash flows are sufficient to repay the mortgage loan. In tandem with Angel Oak’s DSCR Loan program, the DSCR Loan Calculator helps you show borrowers what their monthly fixed payment or monthly interest only payment would be depending on the option they seek.

Fifth Third Correspondent Lending News 2023-7-11.13.23 discusses Final Document Reminders, and Fannie Mae Products 2-4 Unit LTV.

PRMG Product Update 23-52 clarifies information on Expanded Access including multiple Financed Properties requirements for Pime and Plus connect, prepay is no longer allowed in KY and LA. Also, due to prepay not being allowed in KY, Investor Premier is no longer eligible in KY. Updates to Choice Products Profile and/or Expanded Guidelines which includes revisions to investment properties standard prepay penalty amount and increased maximum interested party contributions. Revised guidelines for Short Term Rental income. Updates to Product Profile and/or Expanded Guidelines on Choice Stretched Prime and Choice Non-Prime, Choice DSCR, and Closed End Second Products.

Reach more clients with loan programs that allow Manufactured Homes. LoanStream Mortgage knows the complexity of financing these types of homes and can help your borrowers attain a mortgage by offering a variety of loan solutions to fit their needs. Loan Programs allowing Purchase & Refinance Manufactured Homes include Conventional – Fannie Mae FNMA, RefiNow, FHA, VA, MaxONE. The following are not allowed on these programs: Non-QM / NanQ, Conventional – Freddie Mac – FHLMC, USDA, and Jumbo ONE.

Did you know that borrowers can turn cash-only properties into their dream homes with a renovation loan? When homes don’t meet the minimum property requirements (MPR), Plaza Home Mortgage® has the solution. Renovation loans can help elevate homes to meet MPR standards, and the improvements can even take place after the closing process. What’s more, qualified borrowers can be approved based on the future value of the improved property, making this option accessible to even first-time homebuyers. Renovation is becoming an increasingly popular strategy in today’s high-cost, tight inventory housing environment. Plaza Home Mortgage® makes it easy to capture more business in this growing lending segment. We offer multiple renovation loan options and have a department of dedicated renovation specialists to walk you through every step.

An ADU, or Accessory Dwelling Unit, is defined as an additional unit on a residential lot in addition to the main house (or main multi-family building). Recently in Los Angeles County, Orange County and California as a whole, new laws SB9 & SB10 and guidelines regarding ADU’s have been modified to allow for more ADU construction as a way to help solve the CA Housing shortage. The newer laws allow for much higher density in transit rich areas or urban infill areas. Visit 17th Street Capital for Lending Criteria & Guidelines.

The availability of 2-1 Seller Paid Buydown options with CalHFA programs from Kind Lending. This new option will be offered on both CalHFA Conforming & CalHFA FHA 1st loans: the Seller or Agent may provide buydown funds, subject to the standard IPC limits, Lender paid buydowns are not offered. Buydowns are allowed for conforming and high balance loan amounts. The borrower is qualified at the note rate fully amortized (not the buydown rate).

National MI announced updates and clarifications regarding underwriting changes to support affordable housing initiatives, effective November 18, 2023. View National MI Announcement Bulletin: UW 2023-04, and Servicing Guide for details. Additionally, National MI posted a Rescission Relief Guide in alignment with Fannie Mae and Freddie Mac retirement of Covid-19 forbearance requirements for all forbearance evaluations with an evaluation date on or after November 1, 2023, including evaluations for new forbearance plans and evaluations for extensions to existing Covid-19 forbearance plans.

Arch MI noted, “In response to Fannie Mae’s recent Desktop Underwriter Release Notes expanding LTV ratios for 2- to 4-unit properties and to further support affordable housing, Arch MI reminds our customers that our EZ DecisioningSM Program allows 2 to 4 units at a maximum 95% LTV ratio as follows…” (See the bulletin for full details.)

Radian MI revised its Eligibility Matrices to include One Underwrite (AUS) to reduce the minimum FICO from 700 to 620 for 3-4 unit properties.

MGIC reminded clients of the tools that can help turn renters into first time home buyers.

Capital Markets

Markets largely shrugged off the release of Fed minutes from the November meeting yesterday as old news with no surprises. Minutes showed that policymakers see room for additional tightening if incoming data shows insufficient progress toward slowing inflation, but they would also like to see more evidence to suggest that inflation is slowing toward the central bank’s target. Yes, the markets are pricing in rate cuts as early as March of 2024, but the markets and the Fed have been on different pages for most of the post-pandemic economy. Higher-for-longer rates have created a frozen U.S. housing market as homeowners are reluctant to sell and buyers are squeezed. The U.S. 30-year fixed mortgage rate has risen 460 basis points over the past three years.

Existing home sales fell 4.1 percent in October to a seasonally adjusted annual rate of 3.79 million, according to the National Association of Realtors. That is the slowest pace of sales since August 2010. Sales were down 14.6 percent from one year ago, though the median home price rose 3.4 percent to $391,800, the fourth consecutive month of year-over-year price increases. Sales continue to be hurt by persistent lack of housing inventory, high prices, and the highest mortgage rates in a generation. The inventory of unsold existing homes grew 1.8 percent from the previous month to the equivalent of 3.6 months’ supply at the current monthly sales pace. Multiple offers are still occurring, especially on starter and mid-priced homes, even as price concessions are happening in the upper end of the market.

As U.S. bond yields continue to fall, mortgage applications increased 3.0 percent from one week earlier, the third straight increase according to MBA. That kicked off today’s economic calendar, and was followed by October durable goods orders (soggy), and weekly jobless claims (209k, down from 231k, better than expected). Later today brings final November Michigan sentiment, Treasury announcing the auction sizes for next week’s 2-, 5-, and 7-year notes, and Freddie Mac’s Primary Mortgage Market Survey. Unlike Friday, today is not an early close, but it is likely to trade like one. We begin the last full session of the week with Thanksgiving looming tomorrow and an early close on Friday with Agency MBS prices better .125-.250 and the 10-year yielding 4.38 after closing yesterday at 4.42 percent.

Employment and Transitions

“It is with great pleasure that GHMC TPO announces the latest addition to our esteemed sales team: Mr. Tom Carroll. Tom assumes the role of National Account Executive, overseeing our Midwest region. We are excited about Tom joining our team and eagerly anticipate the opportunity for you to benefit firsthand from his experience and exemplary customer service. Furthermore, GHMC TPO has successfully completed the transition into the First Colony Mortgage family. We are on a mission to be the first choice of loan officers nationwide by offering consistent competitive pricing, superior service, and best in class technology. Check us out here or email Rex Hagood.”

“SWBC Mortgage fosters an environment where our Loan Officers can thrive and continue to provide exceptional service to their clients and partners, even during tough times. One of the most successful ways our team has stayed connected and engaged this year is by hosting educational workshops across the country. One in particular features Blake Hastings, SVP Corporate Strategy & Chief Economist at SWBC. As keynote speaker of 12 workshops, he has covered local and national economic analysis and provided dynamic forecasts for the coming months. Support is more important now than ever before. Because SWBC Mortgage has the right resources available to our teams, we are able to navigate challenges with resilience, while continuing to grow in a down market. To learn more about career opportunities at SWBC Mortgage contact Scott Brown, EVP of Retail Sales or visit us here.”

Movement Mortgage is helping builders and buyers navigate the high-rate environment with its new Lock It & List It program. Designed for new home builders, the program allows builders to lock in and buy down an interest rate today, PLUS pay up to the maximum amount of seller contributions toward closing costs. With Lock It & List It, builders can attract new buyers with competitive interest rates and closing cost savings, give buyers rate confidence with one free float down, and meet many buyers’ needs as the program is available for 30-year conventional, VA and FHA loans. By empowering builders to enhance home affordability and attract a broader pool of buyers, Movement is revolutionizing how builders navigate the complexities of today’s real estate landscape. Learn more here and contact Movement today to get locked in!

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Source: mortgagenewsdaily.com