Empower Archives - Hanover Mortgages

Apache is functioning normally

September 22, 2023 by Brett Tams

Marketing, CRM, Fair Lending, HELOC, Non-QM Products; Webinars and Training Next Week; Why do People Move?

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Marketing, CRM, Fair Lending, HELOC, Non-QM Products; Webinars and Training Next Week; Why do People Move?

By:
Rob Chrisman

7 Hours, 28 Min ago

Sometimes I send this Commentary out from some pretty nice places, sometimes not. Today comes from the tarmac at the Newark Airport, in Row 22, sitting next to some hairy guy who’s snoring and apparently went with the “Garlic Lover’s Pizza” last night. You can decide which category today fits in. “What do you call a small pepper in the autumn? A little chili.” Tomorrow is the fall equinox. Autumn? Autumnal? Different ways of saying similar things? Do you know the difference between a loan, a mortgage, a lien, a note, and a deed of trust? There are differences, just like there are differences in the reasons why people move. Unlike the convicted felon that I spent some time with yesterday, wanting a newer, better, or larger house or apartment has been the most common specific reason cited for moves over the past two years. That’s followed by establishing one’s own household, evidenced by a change in marital status becoming a more common reason for moving in 2022 than in 2021. The percentage of movers reporting housing unit upgrades declined, suggesting a reversal of a boom in housing demand that happened in 2020, early in the COVID-19 pandemic. A quarter of movers reported family-related reasons for their move, the second most often-cited general reason for moving in 2022 and in several recent years. (Today’s podcast can be found here and this week’s is sponsored by the Trade-In Mortgage powered by Calque. Homeowners can buy before they sell, make non-contingent offers, and tap their home equity to fund the down payment on their next home. Lenders can help their clients negotiate a lower purchase price, reduce their interest payments, and eliminate PMI. Hear an interview with Mayer Brown LLP’s Lauren B. Pryor on M&A activity in the mortgage space and what makes for a successful transaction in the current environment.)

Lender and Broker Software, Programs, and Services

“Cheers to 20 Years! We are proud to announce the 20 Year Anniversary for Carrington Mortgage! It’s been an incredible two decades filled with trust, growth, and a commitment to serving our partners. As we celebrate this remarkable achievement, we want to express our heartfelt gratitude for your continued support. We look forward to many more years of serving our partners. We remain committed to being the industry’s leader in Non-QM solution lending. Our team of experts is ready to help you and your borrowers with a new home purchase or a refinance, all done in a timely and professional manner. Our program and product suite includes Non-QM, FHA, VA, USDA & GSE. Our Non-QM program offers you and your borrowers features and flexibility you may not find anywhere else. We’re here to help. Please contact us for more information about our products and services.”

In challenging down economic times, Loan Vision is your solution to maximizing profitability and reducing costs in your business. With Loan Vision, companies see improvements of 25% to 35% decrease in days to close the books, 20% reduction in accounting headcount, complete LOS to G/L automation, and improved reporting and visibility that allow for better business decisions. Don’t accept a competitive disadvantage or get caught flat footed in a recovering market. To improve your cash position, gain a competitive edge, and prepare your business for sustained growth, contact Carl Wooloff to schedule a call today.

From what people are saying, The Loan Store has consistently been among the “pricing leaders” and “process leaders” with agency loans, and they’ve also really been making a nice name for themselves with their Quick-Pay HELOCs. TLS is funding HELOCs 100% within 3-5 days (and paying 175 bps in comp), and that’s a great tool for LOs looking to expand their business. Plus, word on the street is that TLS will be expanding HELOCs to Texas soon, so that’s something else for Lone Star State LO’s to get excited about. Regardless of where you’ve set up shop, price out a HELOC in the TLS/Figure HELOC portal. Or, if you haven’t signed up with TLS yet, do that here.

Recent Trends in Fair Lending Compliance! When the DOJ announced its Combatting Redlining Initiative in October 2021, it was the department’s “most aggressive and coordinated” enforcement effort against financial institutions. The initiative has cost financial institutions $40 million in the first half of 2023 alone. The DOJ and regulators have not let up on enforcement actions against financial institutions (banks, credit unions, mortgage companies, and other lenders) violating fair lending compliance laws. In fact, regulatory agencies have expanded the scope of fair lending enforcement. A recent article from the experts at Ncontracts highlights the significance of recent fair lending enforcement trends and what it means for your fair lending program. Read the full article.

Earlier this month, Apple announced the 15th version of its amazing, do-everything iPhone. It’s hard to imagine, but what if Steve Jobs never invented the iPhone? What if we all carried one device to make calls, and a completely different device to send a text? This is exactly what many lenders do today with their CRM software. They have one CRM for their retail loan officers, a different CRM for their direct-to-consumer team, and another CRM for their wholesale account executives. Wouldn’t it be nice to manage all of your business channels in just one CRM? That’s what OptifiNow Flex is: a retail, wholesale, correspondent, reverse, home equity and private money CRM that can be personalized to fit your business needs. Reach out to us to learn more and see why OptifiNow is the iPhone of mortgage CRM!

Attention Mortgage Lenders! Discover the secrets to thriving in this competitive market with our FREE white paper, tailored specifically for you. Written by Seroka Brand Development, the mortgage industry’s leading marketing and public relations company, this exclusive guide reveals top marketing and PR strategies for 2023. As the industry faces its current set of challenges, effective yet cost-conscious marketing is more crucial than ever for companies like yours, competing for every opportunity. Learn six impactful ways to reach your target market and secure success through the rest of 2023 and beyond. Don’t miss out on this invaluable resource: download your FREE white paper now.

Training, Webinars, and Events Next Week

A good place to start is here, and click on “events” for conferences in the future. Next week is the last week of September already?! Wasn’t it just Labor Day? Let’s see what’s up.

According to data from Gartner, two in three companies say customer experience is the primary area where they will compete for business. Lenders, how is your business utilizing customer feedback to drive revenue growth in today’s challenging market? Need help? Join STRATMOR Group’s customer experience experts as well as peer lenders for STRATMOR’s Customer Experience Workshop on September 25, 26 and 27. This highly interactive, virtual workshop is designed to give lenders specific, actionable ideas: you’ll learn how to optimize your loan processes to maximize repeat and referral business and achieve your growth goals in challenging market conditions. Register today!

Tuesday the 26th is the next Mortgages with Millennials with Kristin Messerli and Robbie Chrisman, and sponsored by National MI. Tune in every Tuesday at 10AM PT 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.

On September 26, 2-3PM ET, FHA’s free, virtual webinar will assist FHA-approved lenders (and their auditors) with their upcoming Annual Recertification and provide information on how to successfully submit an acceptable recertification package via the Lender Electronic Assessment Portal (LEAP). For detailed information, closely review the LEAP User Manual.

Free, on-site, FHA Underwriting Training in Philadelphia, PA., September 26, 9:00 AM to 11:30 AM (Eastern) will provide an overview of FHA underwriting procedures and addresses several industry-related frequently asked questions (FAQs) as outlined in FHA’s Single Family Housing Policy Handbook 4000.1. This training will also take an in-depth look at a variety of topics including credit, income, and asset (CIA) documentation; automated underwriting systems (AUS); closing; and more.

Free, on-site, FHA Appraisal Training in Philadelphia, PA., September 26, 1:00 PM – 3:30 PM (Eastern) will provide an overview of the appraisal requirements outlined in FHA’s Single Family Housing Policy Handbook 4000.1. The training topics will include property inspection requirements, appraisal validity period, manufactured homes, water and septic, attic and crawl spaces inspection, and the FHA Appraiser Roster.

If you are looking for the housing policy and fintech event of the year to watch from the comfort of your office, Housing Finance Strategies’ #HousingDC23 is it. The agenda is published, and Complimentary Registration is now available. Sign up to view the premium content offered virtually and accessible to you starting September 26th.

If your credit union’s due diligence for quality control relies only on last-minute adjustments during post-closing processes, chances are you’re spending too much time putting out fires rather than adequately serving members’ needs. Market changes demand a more comprehensive and proactive approach to due diligence, and the experts at ACES Quality Management have the wherewithal to help you make that adjustment. Tune into this Inside Track webinar on September 27th at 1 pm CST to learn the why’s and how’s of improving your QC processes.

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.

California MBA upcoming Mortgage Quality and Compliance Committee webinar, Navigating the Future of Work: Adapting Return to Office Policies, on Thursday September 28th at 11 A.M. PST. Expert panelists will provide valuable insight on the ever-changing work dynamics, the challenges of managing remote and in-house teams, and MLO enhanced requirements in CA (and other states).

AzAMP Annual EXPO, Luncheon, and 8-Hour NMLS CE Class, September 27–28, at the We-Ko-Pa Resort and Casino. Begin your experience on Wednesday, Sept. 27 with Part 1 of NMLS CE class. Full day of events begins on Thursday, September 28 including NMLS CE class Part 2, Luncheon with Keynote Speakers Allen Beydoun, UWM Executive Vice President and Robbie and Rob Chrisman, The Chrisman Commentary Daily Mortgage News, followed by the AzAMP Expo.

Watch on demand, at your leisure: Millennials and Gen Z’ers represent the largest group of first-time homebuyers. In less than 10 years, 3.1 million will have entered the market. Of these buyers, roughly 75 percent of them report checking social media daily. Making social media a necessary strategy for loan officers. Join Homebot’s VP of Marketing, Ashley Remstad and Mortgage Advisor Sosi Avila as they discuss key strategies and tactics for using social media to your advantage. Register for the webinar here.

The NCEO 2023 Fall Forum in Houston is September 26-28. Featuring top industry experts and thought leaders, the forum will update you on the latest trends and best practices in employee ownership. Network with other employee owners and industry professionals from across the country, sharing ideas, challenges, and successes.

Friday the 29th is The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT in “The Rundown”.

Capital Markets

Remember when all the “smartest guys in the room” were telling us that an inverted yield curve was a nearly sure sign of a recession? I haven’t heard that one lately. Even with the Fed just signaling lower interest rate volatility going forward, in theory translating into tightening MBS spreads and lower rates, mortgage rates still jumped by over .125 percent yesterday thanks to falling bond prices and “non-trivial stack decompression.” Much of the decrease in bond prices over the past couple of days stems from the markets still trying to fight the Fed. The yield curve remains highly inverted and will only unwind once the hard landing scenario becomes less probable.

On the data front, Existing home sales decreased 0.7 percent month-over-month in August to a seasonally adjusted annual rate of 4.04 million as sales were down 15 percent from the same period a year ago due to a well-known confluence of factors: higher mortgage rates, higher prices, limited supply, a lack of mobility, and homeowners who are reluctant to give up a low-rate mortgage. Keep in mind that an economic recession could also bring about an increase in inventory, as those who lose jobs may be forced to sell their homes and those uncertain about their jobs will not have the confidence to buy a home. While the overall U.S. economy remains resilient, there are growing signs starting to show U.S. households tightening budgets or starting to reduce discretionary spending.

Today’s economic calendar includes flash PMIs for much of Europe where modest increases are expected versus the prior readings. Domestically, S&P Global PMIs will be released later this morning, though the bigger headline is the resumption of Fed speakers following Wednesday’s FOMC events. Markets will receive remarks from Governor Cook, Boston President Collins, Minneapolis President Kashkari, and San Francisco President Daly. We begin the day with Agency MBS prices unchanged, the 10-year unchanged from Thursday at 4.48 percent, and the 2-year at 5.13.

Employment

“What distinguishes a company in the mortgage lending game? For Evergreen Home LoansTM, it’s an unwavering dedication to customer experience. As Evergreen’s CMO, Haavard Sterri, puts it, “At Evergreen Home Loans, customer satisfaction isn’t just a metric; it’s our mission. We go above and beyond to ensure our clients not only receive exceptional financial solutions but also feel valued every step of the way.” Take the Security Plus program, a gem that offers clients pre-approved, underwritten loans before house hunting begins. But why should job seekers pay attention? A firm that champions customer needs typically scores high on employee satisfaction. At Evergreen, you’re not a replaceable part; you’re integral to a collective mission of transforming the homebuying process. In a crowded field, Evergreen shines by marrying excellent customer service with fulfilling career opportunities. If you’re on the job hunt and value innovation, teamwork, and a relentless focus on the customer, Evergreen beckons. To view all open Evergreen careers visit our careers page.”

In the Northwest and California, Banner Bank is searching for Mortgage Loan Officers looking to create lasting Realtor and builder relationships at a bank focused on the market today. Banner has opportunities for lenders looking for local decision making with FHA, VA, USDA, state bond and true Portfolio lending opportunities along with servicing retained Fannie and Freddie loans to assist in client retention. Additional highlighted products cover CRA lending with private label no payment down payment assistance to help assist all borrowers with the right opportunity. Banner is the right fit for an established team, or the individual looking to grow their business and take the next step in their career. Please send resumes to Aaron Miller.

As a mortgage sales professional have you ever thought, “What if I could focus on only the things that actually grow my business, flipping the hourglass and spending 80 percent of my time on what I do best: building relationships?” Or “What if I could surround myself with sales support that is truly team inspired, results driven marketing and customer obsessed headache-free process?” Welcome to radius financial group! They started radius with one main focus: to offer a better value proposition than any other bank or mortgage company in the country for you, your borrowers and your referral partners. radius can help you grow your business, have a better quality of life, and make more money. For confidential inquires please contact Carla Herrera.

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

Source: mortgagenewsdaily.com

Apache is functioning normally

September 22, 2023 by Brett Tams

Guest post by FitMoney.org

Have you ever been online shopping and, right before you confirm your purchase, you see an offer to not pay everything today? These offers are a fairly new type of loan becoming increasingly popular across online retailers known as Buy Now, Pay Later.

Buy Now, Pay Later programs offer an appealing way to shop online without paying in full at the time of purchase. It can be a lot easier to shop when it doesn’t feel like you’re paying as much–but that’s exactly why it’s important to know a bit more of what goes on behind the scenes of these offers.

Before you check out, there are a few things you should know. Who is really making the purchase? What payments are you committing to? You might be surprised to learn you’re not really paying for that item–at least not yet!

What Is Buy Now, Pay Later?

Buy Now, Pay Later programs allow you to purchase items now and pay for them later, usually within a set period of time with no interest or late fees. If you’ve done some online shopping lately, you may have heard of Klarna and Afterpay, two popular Buy Now, Pay Later services.

Similar to a loan, these services are paying for your purchase up front alongside your initial payment to the service. Then, over the course of a predetermined period, you’ll make additional payments until the initial cost is paid to the service. It’s important to remember that by entering into a loan agreement through these services, you’re still responsible for making payments on the agreed-upon date. Failure to do so could result in late fees and other penalties.

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As of now, Buy Now, Pay Later companies aren’t reporting on-time payments to credit bureaus, but missed payments can negatively impact your credit score. It’s important to remember that, although easy to use, Buy Now, Pay Later loans can impact other areas of your financial health. These services are still fairly new, so be sure to do your research on how the loan could impact your financial future.

How do Buy Now, Pay Later programs work?

When using a Buy Now, Pay Later program, you’ll need to provide your payment details such as bank account or credit card information. This is so the lender can set up automatic payments to be deducted from your account on the agreed-upon date.

With these services, it’s not you paying the retailer. Though you receive your purchase immediately, the Buy Now, Pay Later service fronts the bill. Then, you owe that service the remaining cost of the order beyond the initial payment.

It’s important to note that when signing up for these services, you’re entering into an agreement that must be adhered to or there could be consequences. Be sure to check all terms and conditions before signing up for any loan agreement.

Why are retailers using Buy Now, Pay Later?

Buy Now, Pay Later services are a solution to a major problem online retailers have: cart abandonment. Have you ever received an email saying “Don’t forget what you left in your cart!” These programs make it easier for customers to click “place order” before any second thoughts because it can feel like we’re not paying as much as the order costs. This is why retailers are interested in these services despite you not paying them directly.

How can I use Buy Now, Pay Later safely?

1. Make sure you can afford the item in full before agreeing to a loan agreement.

2. Always read all terms and conditions before committing to any loan contract.

3. Keep track of your payments and make sure you know what is owed and when it’s due.

4. Ensure you have an available balance to cover charges as they may be automatically withdrawn.

Like many financial choices and decisions, it’s important to educate yourself on if it’s right for you. Remember, using these services aren’t necessarily a bad choice. However, the best choice is making sure you’re set up to fulfill all promises and expectations upon entering the loan. Even just forgetting how many payments you have left or how much you still owe can make these payment plans risky.

About the Author

For more resources, lessons, and activities, visit FitMoney.org. FitMoney is a philanthropic nonprofit providing unbiased financial literacy programs to help K-12 students develop life skills for a financially fit future. Created by teachers and receiving four stars from CommonSense Education, FitMoney’s accessible financial literacy programs cover critical financial topics to meet students where they are – in the classroom, at home, or on-the-go! FitMoney works with educators and families on instructor-led tools, independent learning platforms, and multimedia resources (The FitMoney Podcast) to empower and pursue a future of financial literacy for all.

Source: credit.com

Apache is functioning normally

September 22, 2023 by Brett Tams

Witness the pinnacle of opulence, ingenuity, and artistic brilliance as Kohler, the global frontrunner in kitchen and bath solutions, introduces its highly anticipated third Experience Centre in India on August 11. Nestled in the vibrant heart of Bengaluru, at Trinity Circle on MG Road, the Kohler Experience Centre (KEC) sprawls across an expansive 10,000 sq. ft, promising an unparalleled wellspring of inspiration for elevating bath space decor, where luxury transcends boundaries. Serving as a haven of immersive encounters, the KEC beckons architects, designers, and consumers alike to engage with products, exchange creative ideas, and embark on personalized ventures imbued with their unique aesthetic sensibilities.

David Kohler, Chair and CEO of Kohler Co, expressed, “KEC Bengaluru marks the third installment in India and the thirteenth globally, underscoring our unwavering dedication to providing extraordinary experiences for our esteemed customers in India. As we celebrate our 150th anniversary, we remain committed to serving our customers through targeted investments, robust distribution, and the offering of distinctive products tailored for India. We eagerly anticipate welcoming the creative community to explore and draw inspiration from the boundless possibilities of transforming their spaces into havens of style, functionality, and unparalleled quality.“

Salil Sadanandan, President of K&B South Asia and Asia Pacific at Kohler, further elaborated, “At the Kohler Experience Centre, innovation, design, and craftsmanship converge to craft a unique encounter. We are confident that this new space will become a realm of luxurious indulgence and synonymous with refined living. It will empower our consumers to explore an array of cutting-edge solutions for bath spaces, meticulously customized to resonate with their design preferences.“

The KEC bears exceptional significance as it breathes life into Kohler’s 150th-anniversary celebrations under the theme of “Come All Creators.” Beyond showcasing captivating creations from artistic collaborations with talents spanning India, the USA, Brazil, and China, the center features five inspirational suites envisioned by renowned Indian and international architects: Talati and Partners LLP, DSP Design associates, Miaja Design Group, Fab Designs, and Venkataramanan Associates. These suites are meticulously conceived to display the limitless possibilities in luxury bathrooms, each presenting Kohler’s finest products within a distinctive thematic context.

Vishal Chadha, Managing Director of K&B for India and South Asia at Kohler, enthused, “We are genuinely thrilled to unveil the doors to this distinctive space, where Art, Technology, and premium bath products harmoniously merge. Through the Experience Centre, our vision is to inspire consumers and empower them to transform their dreams into reality.“

The Bengaluru-based KEC proudly showcases a series of artist-edition sinks, reflecting Kohler’s dedication to collaborating with artists and infusing artistry into their products. These handcrafted decorative sinks transcend mere aesthetic appeal; they are meticulously crafted from premium materials and draw inspiration from cultures and heritage across the globe, rendering them as distinct as their homeowners. Notable mentions include “Aranya” and “Quila” by Pushpa Kumari and Padma Shri Jai Prakash, respectively, showcasing Mithila and Miniature painting styles, leaving an indelible mark at the forefront of KEC Bengaluru.

Embodying Kohler’s rich legacy in colors, the KEC radiates a harmonious blend of India-inspired hues, such as Thunder Grey evoking the monsoon’s spirit, Peacock reminiscent of India’s national bird, and Indigo capturing the essence of natural dyes. Global finishes like Rose Gold and Matte Black enhance the allure of the KEC, bearing testament to the brand’s color-centric heritage since 1927. These finishes serve to enrich bath spaces while fostering a sense of unity and delight.

The Experience Centre stands as a treasury of live, fully functional displays showcasing an array of showers and Intelligent toilets, alongside a selection of the most innovative, design-forward products sourced both globally and regionally. Among the highlights is the Statement showering system, which redefines indulgence through its opulent spray functions, creating immersive environments for rinsing, massaging, and rejuvenating. The Anthem digital controls offer preconfigured hydrotherapy journeys that introduce new dimensions of wellness to daily routines. Additionally, the live area boasts an exquisite collection of bathtubs in diverse shapes and sizes, harnessing the power of water to calm the mind, refresh the body, and revitalize the spirit.

Source: indianretailer.com

Apache is functioning normally

September 20, 2023 by Brett Tams

Here’s how this social worker has paid off $28,000 of student loan debt in 15 months.

Today, I have a great debt payoff progress story to share from Taylor. Taylor is a social worker who is working on paying off $277,000 of debt and retiring early. She shares tips on how she is cutting her expenses, the ways they’ve increased their income through various side hustles, house hacking advice, and how she qualified for an $88,000 student loan award. Enjoy!

Now, don’t let the title deceive you into thinking we are debt free; we most certainly are not.

As of this writing, we still have $251,195.39 of debt (all student loans).

This is our story about the debt payoff strategies we used in paying off $28,026.02 of debt and our goals for the future!

Who are we?

My name is Taylor, and I am a 29-year-old medical social worker who finished grad school in 2018. I am also a part-time social media coordinator and with both jobs combined, I make $96,000 (gross).

I live with my husband, Bret, who I have been with for 11 years and married for 3. He is a full-time student and has been in grad school since September 2020 (he has about 2 more years left). We love to travel, try new restaurants, hang out with our friends and family, and just have a good time.

I also have a blog at Social Work to Wealth.

Related articles:

How did we get here?

First, I need to give you some background before we get into the nitty gritty of our debt numbers and payoff strategies.

2012: We met when both of us were in college. I was 18 and Bret was 22. Soon after we met, Bret took a few years off from school while I finished my bachelor’s. I relied entirely on student loans, and don’t remember applying to any scholarships. When Bret returned to school to finish his bachelor’s, he did receive some scholarships and worked a summer job to pay forhousing but still needed to rely on student loans to pay the bulk of his tuition.

I will speak for myself when I say I didn’t take the time to calculate how much loan money I actually needed and blindly accepted the total amount. Looking back, maybe I would have needed it all or maybe not, but I wish I would have at least done the exercise.

We have always been open with talking about our debt and money in general, but I remember us both expressing the thought that we would probably always have our student loans. We would just live our life, pay our minimum payments, and that would be that. There was never any talk about debt payoff strategies, or any money management strategies, really.

We went through many life transitions. Living apart for two years while I went to grad school, him returning to school to finish his bachelor’s, various jobs, and a post-bach program.

2019: Bret was finishing up his post-bach program and got accepted into grad school. We were newly engaged and began planning and saving for our wedding scheduled for July 11^th, 2020. Such exciting stuff!

March 2020: We got the news our wedding venue was closing for the foreseeable future due to the COVID-19 pandemic, and we decide to cancel our wedding. We switched gears and used the money we saved for a down payment on a new home. Then, we had a small intimate wedding featuring a hot-air balloon with 18 of our closest family members! We personally saved a ton and also had tremendous help from our family.

September 2020: I start a new job and Bret starts grad school. We are newlyweds and settling into our new home in a new city.

I wish I could talk more about 2020 because it was a HUGE year for us with buying a home, moving, getting married, Bret starting grad school and me starting a new job, but that’s a conversation for another day!

Our wedding

From frugal to spenders

When we were saving for our wedding, we were very frugal. Any extra money we had, we put toward our wedding savings (which again, ended up being used for the down payment on our house and a smaller wedding ceremony).

We went from frugal to swiping our cards left and right to prepare for our wedding and furnish our house. It was sooo nice to finally be able to spend the money we had been saving for so long! But this continued into 2020… and 2021…

We were mostly spending on eating out and experiences. We do like to buy “things” but we definitely value food and experiences a lot more. We even decided to put a trip to Hawaii on our credit card costing us around $5,000, along with other expenses, because why not? We deserved it!

We didn’t have much of a budget, our bills were getting paid, but the credit card bill kept increasing. Since I was the only one bringing in income, we took out some student loans to help with a portion of our living expenses. And the credit card bill continued to increase.

The “wake-up call”

The “wake-up call” is such a theme throughout many debt payoff stories. So, here’s mine.

I went to breakfast with two friends in December 2021, and one of them brought up high-yield savings accounts (HYSA). I had never heard of this type of account before and was shocked to learn that these savings accounts had a way better interest rate than a regular savings account.

How was I just hearing about this at 28 years old? My mind was blown!

I thought, what else don’t I know? So of course, that led me to deep dive into the world of personal finance. I consumed any book, video, blog, or podcast I could get my hands on. I read stories after stories of people paying off thousands of dollars’ worth of debt, leveraging credit card points for free travel, investing, and so much more!

It was so motivating. I was hooked! (And still am.)

Bret was open and willing for me to share with him what I was learning. We started realizing that for the last year and a half, we hadn’t been telling ourselves “No”. We had just been buying whatever we wanted, and we had the credit card bill and no savings to show for it.

We learned that we could pay off all our debt and it didn’t have to stay with us forever. We learned there was a way to use a credit card responsibly (we thought we were). We learned that we could even retire early. That one sounded real nice! We dreamed of having more time doing our hobbies, traveling and being with our friends and family. And if we ever had kids, we dreamed of being able to work part-time so we could be home more with them and available for school activities.

Knowing this, we started reining in our spending, trying to just be more “mindful”, but no major change was made.

We take on more debt

April 2022: People in our neighborhood were getting new fences. We started thinking, “Hey, we need a new fence, too…” In some areas it was broken, it hadn’t been stained so was rotting, and was 15 years old. We were also going to get an updated appraisal to see if we could get our primary mortgage insurance (PMI) removed after just two years of owning our home and thought a new fence might help.

A coworker told me she was using a home equity loan to buy a fence and to do some other home renovations. We investigated options and ended up opening a $20,000 home equity line of credit (HELOC) instead with about a 4% interest rate. We buy our fence which ends up being about ~10,000 and we were set on it…

The second “wake-up call”

When it was all said and done, we loved our fence. We still love our fence, it’s beautiful! (And it better be at that price!) We stained it and we believe it will last us for many years.

But we start talking again about our debt and how we probably didn’t need this fence right now. We know we didn’t need this fence right now. Our PMI was removed, and it could have maybe happened even without the fence. Who knows.

We began thinking we need to make some serious changes in the way we manage our money. We need to do more than just be “mindful” about our spending. We make a real plan. We plan to make an actual budget, stop taking on unnecessary debt, and take a break from using our credit cards for the foreseeable future.

May 2022: Beginning of our debt payoff journey

Since we were serious about our new money management changes, I documented how much debt we had so we could track our progress.

$277,721.41

Here was the breakdown:

$260,390.25 in student loans, Bret & I’s combined – various interest rates
$10,676.24 HELOC – 4% interest rate
$5,430.76 is from credit card spending – 4% interest rate*
$449 for furniture – 0% interest rate
$775.16 for Peloton bike – 0% interest rate

*We moved our credit card debt to our HELOC since our credit card was around a 25% interest rate.

July 2023: Current debt numbers

Our current debt balance is $251,195.39, * which are all student loans.

We have paid off a total of $28,026.02 of debt!

*Our current balance will increase to ~$255,000 once Bret gets his final student loan disbursement (more on that later).

I want to also mention that we do have our mortgage, but we aren’t trying to pay that down as quickly as possible for a few reasons: we have a 3% interest rate, we don’t plan on this being our forever home, and one day we might rent it out or sell it.

Actions that helped us pay off $28,026.02 of debt in 15 months

We found a budgeting method that worked for us

We realized we could live off my income alone and not take on anymore debt, but we would have to have a somewhat rigid budget.

Finding a budgeting method that worked for us took some time. I don’t know how many times over the years I have tried to track my expenses in a budget app or an excel sheet, only to find out it was too overwhelming and that I was still overspending!

I am a visual person and learned about the envelope budgeting method, so we decided to give that a try, but use a digital variation.

So, for our entire money management system we have 4 checking accounts and 2 savings accounts (short-term and emergency fund). Our checking accounts include bills, food and miscellaneous, and two personal spending accounts.

This may seem like a lot of accounts to some, but it has worked tremendously for us. I love having a separate account for each major category in our budget so I can easily see how much money we have left in a certain category without having to add every expense into an app or Excel spreadsheet. We are joint owners on all of these accounts.

We then use the zero-based budget method to determine how much goes into each account.

We do have multiple cards to manage, but the pros VERY MUCH outweigh the cons here.

And with our own spending accounts, we have a certain amount of money allotted to us each month, so we individually have some spending freedom. We don’t have to feel guilty and know this money is set aside specifically for our personal spending.

Cut expenses and increased our income

I know some people are tired of hearing about this recommendation, but it’s something that really did help us! We reined in our spending a bit but mostly we had to increase our income. At a certain point, there wasn’t much more to cut.

We didn’t have many streaming services, started to limit our eating out, we didn’t have car payments, and we meal planned and prepped. We did (and still do) aaalll the things. We had to increase our income somehow.

Ways we increased our income

My income increase

I continued with my second job as a social media manager and then started dog sitting.

I have been dog sitting for about 5 years and have primarily used the Rover platform to list myself as a dog sitter. I like this app because it’s easy to use and I can specify various services to offer (e.g., house sitting, boarding, drop in visits, day care, or dog walking).

It also allows me to mark which days I am available and then people reach out to me if I seem like a good fit and my availability matches with their needs! Setting up my profile took some time, but now that it’s done, everything else is fairly low maintenance.

I now just have to respond to inquiries in a timely manner and set up a meet and greet if it seems like a good fit.

I currently only offer house sitting and on Rover and I charge $65/night. Rover takes a cut, so I end up pocketing $52. I also have private clients who pay me directly, and I have gotten those by referrals from past Rover clients. I charge my private clients $40/night.

I recently increased my rates on Rover and have been slow to increase my price with my private clients because they’re loyal.

I don’t make a ton of money dog sitting, but I am able to make a couple hundred dollars a month. My schedule is very limited, but there are people with better availability who make significantly more than I do!

I love animals and we don’t have any due to our sporadic work schedules, so it’s a great way for me to spend time with pets and get paid, too!

Bret’s income increase

Last year, Bret decided to take a break from grad school and soon after, he was offered a summer job in Alaska.

When we first started dating, he used to spend almost every summer there working for a family who owned a set-netting fishery. His uncle had spent many summers in Alaska working for this family and one summer brought Bret to work with him. They would catch salmon and sell it to a buying station in their area.

He went up there for about 6 summers in a row, until he got too busy with school and couldn’t go anymore.

He hadn’t been to Alaska in over 5 years, but someone who worked for the buying station remembered Bret, called him, and asked if he’d be interested in working at the buying station! Since he was already on a break from school, he said yes and worked up there for 8 weeks.

We were able to put every paycheck he earned towards our debt because we could manage all our expenses on my income alone. It was also a great way for Bret to spend part of his summer and I was finally able to visit as I never gotten the chance in previous years.

House hacking

We also started house hacking! We had a spare bedroom and bathroom I would use for my office and occasionally, for guests. A friend of mine and her husband are really into the real estate space and gave us the idea to rent it out.

We weren’t comfortable with the idea of having a long-term roommate, and with both of us working in healthcare, we knew there was a need for short-term and furnished housing for travelling healthcare professionals.

For us, short-term meant renting for 1-6 months, but we were open to individuals staying longer if it worked well for everyone involved!

Some questions we had to address before renting:

Did we need a permit?
How much should we charge for the deposit, rent and pets?
What furniture and amenities are important for travelers?
Where should we list the room?
How to create a lease agreement?

In our county, we did not need a permit to rent out the room if we were renting for at least 30+ days at a time.

After researching rental prices in our area, I found rooms that were of similar caliber listed for $1,100 per month or more. We wanted to be competitive and so we initially settled on $900 per month and have steadily increased it. We have now landed on $995 per month which includes all utilities and internet.

We set the deposit at $995, with an additional $300 for a pet deposit, and no ongoing pet rent.

We wanted to upgrade the furniture in the room and IKEA was a great place for us to find affordable, durable, and aesthetically pleasing furniture. We made sure the room had a bed, large dresser, bedside table, and we kept my desk in there too.

I read it’s important for travelers to have their own TV available so they can unwind in their room. We were able to find a decently priced smart TV off Facebook Marketplace.

Furnished Finder is where we decided to list our room, which started out as a platform for traveling nurses to find furnished housing. It is now used heavily by many healthcare professionals, students, and professionals in other fields.

Travelers reach out to us through the Furnished Finder website and if the dates work out, we move forward with scheduling a video interview. It’s important for us to be able to talk to the person, even if it’s just over video, and we want them to see our faces and home in real time as well.

For the lease agreement, we used ez Landlord Forms, because they have leases for each state with specific information on what’s required to include.

We don’t ask for anything major from tenants. The most important things to us are that they are respectful of our space, don’t smoke in the house, and pay their rent on time. We also added a page at the end for tenants to add two emergency contacts in case we need to call someone on their behalf.

We have had 4 renters so far with the room being occupied for 13 out of the last 14 months. It has really helped us with our debt payoff goals and we have also met some awesome people through the process! We plan to continue renting it out for the foreseeable future.

Applied for in-state student loan help

My state offered a program called the Oregon Behavioral Health Loan Repayment Program where they help minorities in the behavioral health field, or those who serve them, pay back their student loans.

This program is funded by The Behavioral Health Workforce Initiative which has the goal of recruiting and retaining behavioral health providers who, “Are people of color, tribal members, or residents of rural areas of Oregon, and can provide culturally responsive care for diverse communities.”

To apply, I had to show I was employed and actively providing behavioral health services and give them detailed documentation about my student loans. I also had to answer two essay questions related to being a part of and/or working with communities who are underserved and how my training has equipped me with supporting these communities.

I applied last year and was a recipient of an award!

As a recipient, there is a two-year service commitment which means I have to continue providing some sort of behavioral health service during that time frame (which I planned to). Over the next two years, I will be getting ~$88,000 in quarterly disbursements to put towards my student loans. So far this year, I have received ~$11,000, and it’s been life changing to say the least!

Alongside this support, I am also pursuing Public Service Loan Forgiveness (PSLF) for additional student loan relief.

Managing our mental health while paying off debt

Since I am a social worker, I often think about how money and debt affect individuals’ mental health. It’s one of the reasons why I started my blog in the first place.

I realized managing money is a universal task and many of us don’t know what we are doing because talking about money is taboo. And when you have financial stress, it can really take a toll on your mental health. So, I wanted to share our journey in hopes of helping others.

Bret and I aren’t those individuals who want to avoid eating out and fun experiences until we are debt free. And, we are also privileged to not have to take those extreme measures either. It has been important for us to make this journey sustainable and not deprive ourselves of experiences while we are going through it.

Here’s how we are making our journey sustainable:

Still going out to eat
Budgeting for personal spending money, aka fun
Setting realistic debt payoff goals
Putting aside money for travel
Not comparing and thinking other people are better than us because they’re able to pay off their debt quicker
Tracking our debt payoff progress (we use Excel). With so much debt left to pay off, being able to see our progress is really motivating
Openly talking about our debt. Avoidance is a coping mechanism for many, for us, acknowledging and addressing it has been so freeing (but it wasn’t always this way).
Talking about our dreams and reminding ourselves why we want to do this in the first place

We know that if we eliminated going out to eat, budgeting for fun, or both, we could be paying off our debt much quicker. However, that sounds miserable to us. It’s worth it to still go out to dinner, travel, or buy plants (in my case) than to deprive ourselves of the joy these things bring.

We are making great progress and we know in time, we will be debt free.

Our debt payoff journey is not linear

A few months ago, we decided to take out $6,000 of student loans. Bret currently has a full tuition scholarship, so we are tremendously lucky in that regard, but he just learned about some conferences that would be really helpful to his professional growth. We have gotten $1,500 of this loan money already which is included in our current debt balance, but we haven’t received all of it yet.

We could have pinched and saved to avoid taking on any of this debt, but that would have caused me to work more than I currently am. Again, not in line with our current goal of making this journey sustainable!

We were very intentional about how much to take out. We estimated how much he would need for a few conferences and declined the rest. We even opened a separate savings account for the money to make sure it didn’t get accidentally spent on anything.

I’m SO proud of us for that!

The goal here is progress not perfection. So cliche, I know. But we are learning how to think critically about our money, spend thoughtfully, use our money as a tool to reach our goals, and enjoy our life along the way. And right now, that meant taking on a little more debt.

We are moving in the right direction, and we know when he starts working, that will really accelerate our debt payoff journey since we have proven to ourselves we can live on my income alone.

Our plan going forward

Bret is still in school which means his loans are on deferment, so we currently have his on the back burner.

With the loan payment assistance I am receiving, it’s allowing us to put any extra money we have each month towards our savings. Our priority right now is building up a good emergency fund of about $16,000 (~4 months’ worth of expenses).

This has been difficult because of inflation and just little emergencies that keep popping up, but we are slowly making progress.

I am also prioritizing investing in my employer retirement plan, but only up to the amount that gets me my employer match which is 6% of my income.

Bret will be graduating in 2025, so at that time, we will pivot to incorporating his loans into our budget. Our goal is to be debt free by 2028.

It will take a lot of discipline and persistence, but I think we can do it. I am manifesting it!

We want to continue to learn, implement, and grow. We want to keep having transparent discussions about money and building our money foundations. And I personally want to continue sharing our journey with hopes of inspiring, encouraging and educating others. Here’s to sharing the wealth.

Do you have debt? What are you doing to pay it off?

Taylor is a social worker and personal finance blogger at Social Work to Wealth where she shares tips, resources, and lessons learned on her family’s journey to paying off $277,000 of debt and retiring early. She hopes to inspire and empower social workers with financial education so they can have a better relationship with their money. When she’s not working or blogging, you can find her traveling, gardening, trying a new restaurant, or buying too many plants.

Source: makingsenseofcents.com

Apache is functioning normally

September 18, 2023 by Brett Tams

HELOC, Manufactured, Technology, Marketing, and Digital Tools; Central Banks and Inflation

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HELOC, Manufactured, Technology, Marketing, and Digital Tools; Central Banks and Inflation

By:
Rob Chrisman

7 Hours, 56 Min ago

If you want something sobering, almost mesmerizing, here’s a short drone video of the flood damage in Libya (at the 15 second mark you can see how it tore through the city). Fortunately not so sobering are some stats out of the United States. The U.S. homeownership rate in 2022 was even higher than before the COVID-19 pandemic at 65.8 percent compared to 64.6 percent in 2019. That rebound was driven largely by those aged 44 and younger. And who says Millennials aren’t buying homes? Homeownership continued to climb from the foreclosure crisis (2004) and Great Recession (2008), when rates dipped as low as 63.4 percent in 2016. Homeownership rates recovered approximately half of the 5.6 percent decrease from 2004 to 2016. In Hawai’i the homeownership rate is 59 percent, I bring up the Aloha State because American Savings Bank, First Hawaiian Bank, and Central Pacific Bank joined Hawaiʻi Community Lending, a Hawaiʻi-based nonprofit community development financial institution, in pledging to provide mortgage forbearances to Maui families impacted by the recent wildfires. (Today’s podcast can be found here and this week’s is sponsored by the Trade-In Mortgage powered by Calque. Homeowners can buy before they sell, make non-contingent offers, and tap their home equity to fund the down payment on their next home. Lenders can help their clients negotiate a lower purchase price, reduce their interest payments, and eliminate PMI. Today’s podcast features Greg Korn and Ben Petit in an interview from the New England Mortgage Bankers Conference.)

Lender and Broker Software, Products, and Services

In an era defined by technological advancements, Dark Matter Technologies LLC emerges as a transformative force in the mortgage origination landscape, marking its evolution from Black Knight Origination Technologies. Under the Perseus Operating Group of Constellation Software Inc., Dark Matter Technologies remains steadfast in its commitment to pioneering innovation. CEO Rich Gagliano aptly sums up the company’s vision: “Dark Matter Technologies is on a mission to revolutionize the mortgage origination business by supporting, growing, and aggressively innovating new and existing products.” With over 1,300 dedicated mortgage technology experts and a portfolio that includes Empower, AIVA, Exchange, and more, Dark Matter Technologies is poised to lead the industry into a new era of unparalleled transformation. Learn more about Dark Matter Technologies and their mission, here.

There is approximately $9T in agency or government MSR outstanding. Billions of dollars are being transacted daily and this volume requires disciplined loan accounting processes to record loans accurately, produce investor reporting, and power business decisions. SBO from SitusAMC is a comprehensive loan accounting and master servicing platform that reconciles daily and monthly servicer cash collections down to the penny, aiding in the discovery of potentially misplaced funds and enhancing the financial integrity of the entire process. Servicers using SBO produce accurate and timely details providing confidence that their investor reporting obligations are being met. Schedule a demo of SBO with SitusAMC’s client-focused experts.

“Did you hear Capacity’s big announcement at TMC Fall? We’ve acquired Denim Social! Together, we’re building a support automation platform that helps you automate support, connect more authentically with your borrowers, and close more loans, faster. Read the press release to learn more! We also gave away a personalized AI Assessment worth $10,000 to help mortgage lenders identify opportunities for improving their business with AI. Plus, our new GSE Search feature pulls accurate, up to date GSE regulations within seconds using generative AI. Want to join the AI in mortgage revolution? Meet the Capacity team today.”

A new era in loan origination has arrived. Mortgage Machine Services, an industry leader in digital origination technology to residential mortgage lenders, announced the launch of its namesake platform Mortgage Machine™, an out-of-the-box, all-in-one LOS designed to accelerate lenders’ operational velocity and support an end-to-end digital origination process. Developed by digital mortgage pioneer and industry veteran Jeff Bode, Mortgage Machine utilizes intelligent automation, configurable business workflows and a cloud-based infrastructure to optimize the entire loan lifecycle and create a seamless lending experience. Key platform features include AI-powered task automation, a scalable cloud-based infrastructure, flexible APIs, pre-configured workflows for retail and TPO channels, integrated document management and POS functionality. Mortgage Machine also offers all-in-one eClosing capabilities, including an eClose room, eNotes, eVault and RON, and utilizes MISMO SMART Doc® data and security standards. Visit here to get started on your digital transformation journey.

Blend Labs continues to be the mortgage industry’s leading technology platform. Core to the platform is Blend’s unique integration with Desktop Underwriter® (DU®) and LPA. These integrations help streamline your approval process for borrowers, with all the conditions lined up for your fulfillment team. Add in intelligent and automated follow-ups and you’ll get to the closing table faster and more efficiently. Putting this information at the loan officer’s fingertips creates a streamlined process and eliminates manual work which equals lower costs, higher pull-through, and increased revenue. See more ways that Blend is committing to innovation and continues to lead the way.

Looking for timely advice on how to capture more loan volume and improve your bottom line in a down market? Now is the time to explore ways to tap into new markets. Expanding your mortgage footprint through new products and channels or by reaching new geographies insulates your business against economic and interest rate volatility by diversifying your sources of volume and revenue. By setting the groundwork to connect with new borrower markets now, you’ll open new revenue possibilities for when the market inevitably recovers, positioning your business to hit the ground running and beat out the competition. Download this informative eBook from mortgage solutions provider Maxwell for actionable advice, including how to create your expansion plan and choose the offerings best suited to the markets you want to pursue. Click here to download Growing Your Mortgage Footprint: How to Launch New Loan Products, Channels & Geographic Expansions.

Broker and Correspondent Products

Build your book with AFR Wholesale® (AFR)! Now, get the chance to listen from and ask questions directly to AFR and Freddie Mac to turn those prospects to active pipeline at the next Why Wait webinar series covering Manufactured Home Financing on Wednesday, September 20th at 1 PM EST. Register here today! Have you and your borrowers looked into Manufactured Housing as an option? With unbeatable affordability, customization options that are very tailored, quick installation and trusted quality, manufactured homes are worth exploring. Especially with a top lending partner in AFR who has been an industry leader for over 25 years. This is a live webinar, and a recording will not be provided so make sure to join and get great insight and have the opportunity to ask questions and listen to scenarios! Visit AFR Wholesale, email [email protected], or dial 1-800-375-6071. AFR Wholesale® – Don’t wait. Register today!

“With Cash-Outs on the decline during this high interest rate environment, it is important to present your borrowers with different cash-out options. That is why Vista Point is announcing a brand new HELOC product coming soon, in addition to our existing Closed-End Second. Our HELOC product is being designed as a complement to our Closed-End Second to provide a full suite of Equity Solutions. Our HELOC will provide a specific solution for borrowers that want the optionality of an interest-only payment, or the ability to draw up and buy down their line during the 5-year draw period with no Appraisals up to $250k. Just like on our Closed-End Second offering, with HELOC loan amounts up to $550K and combined lien amounts up to $2.5M, your borrowers can get the cash they need without sacrificing their advantageous 1st mortgage rate. HELOC will be available for full doc and bank statements on OO and 2nd homes. For more information, reach out to us, or meet us at the Philly MBA to discuss.”

Capital Markets

We learned last week that prices in August rose by the largest monthly percentage in 15 months. However, that month-over-month inflation was widely expected due to a surge in gasoline prices. Underlying oil prices are also pointing towards further increases in September. Meanwhile, core prices were up 0.3 percent and core goods prices declined by 0.1 percent. Over the last three months core prices have increased at an annualized pace of 2.4 percent, the lowest three-month pace since March 2021. Retail sales rose faster than analysts’ expectations in August, also due to higher gas prices. Many analysts expect consumer spending to slow as excess savings built up over the pandemic have materially declined and credit is increasingly costly and difficult to obtain. Additionally, the resumption of student loan payments is expected to cut into discretionary spending. It will take more than expectations of slower spending before the Federal Reserve feels inflation is firmly under control.

What could move mortgage rates this week? The U.S. Federal Reserve, Bank of England, Bank of Japan, and the central banks of Norway, Sweden, and Switzerland are all announcing rate decisions after a spate of recent inflation data shows that price increases are alive and well. The Fed’s Federal Open Market Committee (FOMC), the action arm of “the Fed,” is not expected to raise rates. It’s unlikely that the commentary around the commitment to keep fighting inflation and higher rates for longer will change either, but it could tilt a little more to the hawkish side after a stronger-than-anticipated inflation report for August.

The week could also see some extra drama on the political front as the countdown continues toward a potential government shutdown on October 1 in addition to the battle between the United Auto Workers (UAW) union and Detroit automakers. The auto worker strike could complicate Fed Chair Powell’s bid for a soft landing. Union leaders are asking for a 36 percent wage increase over four years, to match the similar recent pay increase for top executives. The union also wants pay to rise automatically with inflation in the future, as it did before the financial crisis.

This week brings the aforementioned FOMC meeting that begins tomorrow and concludes on Wednesday with the Statement, updated SEP (where fed funds projections will be closely scrutinized), and Chair Powell’s press conference. The treasury will also be in the headlines with more coupon auctions scheduled: $13 billion reopened 20-year bonds tomorrow and $15 billion reopened 10-year TIPS on Thursday. The only scheduled, probably non-market moving, news out today is the NAHB Housing Market Index for September. We begin the week with Agency MBS prices roughly unchanged from Friday, the 10-year yielding 4.34 after closing last week at 4.33 percent, and the 2-year is at 5.00 percent.

Employment

Are you more energized, more encouraged, and more motivated to succeed today than yesterday? Zig Ziglar famously stated, “People often say that motivation doesn’t last. Well, neither does bathing; that’s why we recommend it daily.” “As an industry leader, Thrive knows that motivation, discipline, and belief in your ability to succeed is critical,” stated Randell Gillespie, National Sales Leader for Thrive Mortgage. “There is no better time than now to find ways to continually motivate your team, which is why we put so much focus on daily opportunities like these at Thrive. Through our weekly High-Performance Coaching Calls, our very own nationally-recognized Marketing Master, James Duncan, leads these motivating and educational experiences for results. The biggest names in the mortgage industry and thought-leadership have been part of our Thrive Nation broadcasts. We want everyone to be better today than yesterday. Start a conversation with us and find out how.

“The fall season is here, and now more than ever is the time to build rapport with your referral partners and clients to maintain a steady stream of business. At Guaranteed Rate Affinity, not only do we have the greatest number of products, but we have the tech platform for our loan officers to do business from anywhere. With PowerVP, you can do anything from creating loan applications to sending pre-approval letters all from your mobile phone. Anything you could do from your desk, you can now do on the go with PowerVP. Gone are the days of being chained to your desk and missing out on important moments. Primarily, it gives you a work-life balance you never thought possible. Luckily, we’re hiring the best of the best loan officers to leverage our tech platform to grow their business. Ready to learn more? Contact Tim McGraw to get started.”

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

Source: mortgagenewsdaily.com

Apache is functioning normally

September 18, 2023 by Brett Tams

Dark Matter Technologies, formerly Black Knight Origination Technologies, is focused on mainly two things: the smooth transition to new owners, and lowering the cost to originate loans for lenders.

Executives from Dark Matter Technologies, under the Constellation Software umbrella, said that a down market is the best time to make investments in technology and prepare for the next cycle.

With lenders focused on bringing origination costs down in a tough origination environment, the firm saw up to a 300% year-over-year growth in new user numbers for the past couple of years.

“We actually do well in any kind of market,” Rich Gagliano, CEO of Dark Matter Technologies and former president of Black Knight, said in an interview with HousingWire on Friday.

“Now we’re in a down cycle, they need to do it with fewer people and they need to be more efficient to get the cost down. So it’s really the same story, just different markets,” Gagliano said.

Dark Matter Technologies, which completed the acquisition of Black Knight’s Empower and Optimal Blue last week, will be working towards a smooth transition over to Constellation Software with its 1,300-plus employees for the remainder of the year.

The company doesn’t plan to raise pricing for Empower and is focused on services and products that will drive down the cost of origination and employee borrower retention, executives said.

Gagliano, Sean Dugan, CRO of Dark Matter Technologies and Tom George, co-president of Romulus, part of the Perseus Group of Constellation Software, participated in the interview.

Read on to learn more about Dark Matter Technologies’ plan for mortgage.

This interview has been condensed and lightly edited for clarity.

Connie Kim: Constellation’s Perseus Group has a pretty big real estate portfolio. What were the reasons for buying Black Knight’s Empower and Optimal Blue? What opportunities did the firm see?

Tom George: The way Constellation operates is that we focus on acquiring vertical market software companies and portfolios of vertical market software companies with the intent to stay in these industries forever.

We started almost 20 years ago and Perseus in the homebuilding industry, we built a significant player in homebuilding software, that led us to an adjacency residential real estate where we bought over 20 companies. More recently, we started acquiring businesses in the mortgage tech space.

We plan to be in the mortgage tech space forever. And we plan to continue to acquire there.

Kim: What other mortgage tech companies has Constellation Software acquired?

George: We’ve acquired three other businesses in the mortgage space. We bought Mortgage Builder Software from Altisource Portfolio Solutions in 2019. There have been two additional acquisitions – ReverseVision, which is a leader in the reverse mortgage LOS space, and then a document storage product called Back Support.

Kim: Are you expecting any layoffs during the transition? Will the same management from Black Knight’s Empower and Optimal Blue be in place?

Rich Gagliano: We’re not expecting any changes. [About] 1300 [employees] are going to move over with us and it’s business as usual.

Kim: It’s a tough mortgage origination market right now. How does the company expect to manage profit amid industry consolidation, bankruptcies and attrition?

Gagliano: We’ve seen a strong pipeline. Even though the markets are down, what we encourage and talk to clients about is when you’re slow, that’s the best time to make technology changes. Now is the time for that change, and get yourself ready for the next cycle.

We actually do well in any kind of market. But honestly, when the market is crazy, lenders are looking for efficiencies because they can’t find and hire enough staff. Now we’re in a down cycle, they need to do it with fewer people and they need to be more efficient to get the cost down. So it’s really the same story, just different markets.

Kim: I definitely hear a lot of mortgage tech companies saying ‘this is the time to invest, especially when the market is down.’ You mentioned a strong pipeline, are we talking about new clients?

Sean Dugan: We’ve had 200% to 300% growth year-over-year for the last couple of years. And we don’t see that backing up. Those are not financial metrics, that was just on the number of clients acquired. When we took the Empower LOS platform to the down- to mid-market clients and really focused on that, we saw the number of acquisitions per year grow in a really significant fashion.

Kim: Empower has an estimated market share of around 10-15% after ICE’s Encompass which takes up about 40 to 45% of market share. How does Dark Matter plan to compete against Encompass?

Gagliano: We believe strongly in technology. We’re generally in most of the deals when we know about them. We believe that the automation, and the technology and the solution that we bring, and the ecosystem that we have, is best in the industry and really helps these lenders drive cost out of the system.

We compete with multiple product providers out there, including Encompass. But we like where we are positioned and I think our clients like the innovations that we’ve brought over the past over years.

Kim: When I talk to lenders, they say when using a company’s LOS, using the same company’s add-on products makes it more cost-efficient and seamless. What are some of the add-on products the company has already developed or is seeking to develop to win over lenders?

Gagliano: Just over the past couple of years, we’ve added Ava, which is our artificial intelligence capability. Ava has added a couple of additional products over the past two years. We’ve added an underwriting efficiency product, we’ve added a post-close product that’s going into production – so fairly new products.

We’re going to continue to use the products that we have in our bundle today and sell those so no changes there. But we are incrementally adding new technology, new innovations, that are going to help drive that cost down.

Dugan: We’ve also delivered digital portals for each one of our business channels within Empower, which would include retail, wholesale, correspondent, home equity and assumptions. We also have business intelligence as a component, and then a vendor aggregation platform, which was by the name of Exchange. Those are some of the components that make up the Dark Matter-owned bundle of services within Empower.

Kim: I know Ava has some kind of AI aspect to it. Right now, a lot of mortgage tech companies are focusing on AI. How they’re going to utilize AI to be that middleman between the customer and the loan originator. I’m curious how Dark Matter is going to integrate AI and machine learning (ML) to the LOS and other products.

Dugan: Regardless of what the technology solution is, clients are looking for flexibility, configurability – things that they can configure to meet their particular requirements. They’re looking for a really significant return on their investment, and they’re looking to drive the cost of origination as well as employee and borrower retention.

Kim: One of the concerns about the ICE-Black Knight merger was the fear that ICE would raise prices on the LOS products. Will there be any pricing changes for Dark Matter Technologies?

Gagliano: We don’t have anything planned at this point. Our Constellation partners haven’t asked us to come in and raise prices. That’s not part of their strategy, their strategy is to acquire quality companies and run the businesses.

Kim: Who does Dark Matter Technologies consider as competitors right now?

Dugan: It’s any origination technology provider. There are a number of providers that are delivering services specific to underwriting capabilities, so we would compete with them. So I think it’s a host of providers and vendors across the ecosystem of this particular vertical that we compete with on a day-by-day basis.

Kim: What are your prospects for the remainder of the year for mortgage origination? What are some of the larger goals for Dark Matter Technologies?

Gagliano: Through the end of the year, we’re going to be transitioning to Constellation moving off Black Knight Technologies. We’ve added some corporate-level capabilities already. So we feel good about where we are and stay focused on that through the end of the year.

Source: housingwire.com

Apache is functioning normally

September 16, 2023 by Brett Tams

Even though the Empower LOS was the second most-used origination platform in the mortgage business, it was commonly seen as taking a back seat to its former corporate parent’s servicing technology.

A rebranding to the name Dark Matter Technologies under its new ownership could change that.

“We are now abundantly and solely focused on mortgage origination technology, and our clients specifically will see a difference there,” said Sean Dugan, chief revenue officer. “As a lighter organization under Constellation ownership, we’re going to be able to design and deliver in a more nimble way.”

This transaction closed on Sept. 15, 10 days after Intercontinental Exchange completed its acquisition of Black Knight.

Constellation’s purchase was contingent on the Federal Trade Commission dropping its opposition to the ICE deal, which it did in early August.

ICE and Black Knight agreed to their deal in May 2022. The Empower sale was entered into in March in order to drive regulatory approval for the merger between two market giants.

But ICE, Black Knight and the Federal Trade Commission did not officially come together on their agreement until Aug. 25.

All along, “we’re very optimistic, we got assurances from our counsel to indicate that this was going to eventually close,” said Bonnie Wilhelm, chief operating officer of the Perseus Operating Group at Constellation. “We just weren’t sure when that was going to happen.”

Constellation first met with the Dark Matter team in February and is now excited they can officially work together, Wilhelm added.

The branding came about because management was looking for something that was more edgy.

“Dark matter is the ubiquitous piece that helps the universe evolve, the constellations evolve [in a reference to the company’s new ownership], and it’s really the backbone of the universe,” said Rich Gagliano, CEO of Dark Matter. “We view ourselves as the backbone of our originators and our clients” to help them create efficiencies and drive down costs.

Before the transaction, Gagliano was president of Black Knight Origination Technologies.

Empower will remain the name of the LOS, Gagliano said, noting it is in its 25th year in the marketplace.

Management has had preliminary discussions with clients prior to closing but these were limited because of certain regulatory guidelines.

“Next week we’ll be reaching out to our clients and talking in a little more detail,” Gagliano said. “The Constellation team has been great with spending time with our clients and I think they’ve gotten really comfortable with them.”

Dark Matter will be reaching out via phone calls and emails in the coming days, Dugan added.

Most, if not all users will stay on the Empower system now that the deal is done.

“I think our clients really appreciate what we’ve done and all that we brought to the market,” said Gagliano. “We expect our clients to stick with us and all indications are they’re excited about Constellation and they’re excited that this leadership team is staying together.”

Constellation aims to have its businesses keep their customers forever as it is a long-term owner, said Scott Smith, the co-president of the Romulus Portfolio, Perseus Operating Group.

“We’ve worked with Rich and his team, understanding how they’re investing and what they’re doing so their customers stick around forever with Dark Matter,” said Smith. That is a core philosophy across the 800 acquisitions and over 100 verticals that Constellation is in.

Constellation also owns Mortgage Builder (acquired from Altisource Portfolio Solutions in April 2019) and ReverseVision, purchased in February 2022, and those will remain separate businesses run independently from Dark Matter, said Smith.

Among the other businesses included in the sale to Dark Matter is the artificial intelligence initiative, Aiva, that Black Knight acquired in 2018. The Exchange Service Network also is now a part of Dark Matter.

However, the Optimal Blue product and pricing engine, which was also acquired by Constellation as part of the divestitures that enabled the ICE-Black Knight deal to go through, will be a separate business.

Source: nationalmortgagenews.com

Apache is functioning normally

September 12, 2023 by Brett Tams

How can the mortgage industry do more to support women? | Mortgage Professional TV [embedded content] Meet Cristy Ward, executive vice president and chief strategy officer at Mortgage Connect, one of this year’s Elite Women. In this video she explains the formation of a non-profit to empower women in financial services, whether women support each … [Read more…]

Apache is functioning normally

September 10, 2023 by Brett Tams

Black Knight, Inc. on Monday announced that Frontwave Credit Union will now implement Empower, Black Knight’s cloud-based loan origination system, and its integrated solutions, for the expansion of its mortgage lending operations.

The integration with Black Knight’s digital ecosystem will give Frontwave access to technology, data and analytics solutions.

These include its Optimal Blue PPE; its dashboard for LOs to help borrowers with the approval process; machine-learning tech for document classification and indexing; a eDelivery and eSigning solutions; a fee service; property tax data; compliance validation testing; a flood zone information tool; and an intelligence solution to collect information from multiple data sources to forecast and monitor pipeline, productivity, cycle time and pull-through.

“By leveraging our Empower LOS and advanced origination solutions, Frontwave will be able to deliver an unparalleled experience to its members and employees, while increasing member retention,” Black Knight Origination Technologies president Rich Gagliano said.

The not-for-profit credit union, which serves military and civilian communities in Southern California, will also leverage Black Knight’s CRM solution and mortgage marketing engine tool, Surefire, for Frontwave’s communications and outreach channels.

Through the new integration, Empower can support Frontwave’s workflows, and the LOS reduces the cost and time involved in deploying custom integrations. It will also cut down on recurring hosting costs by reducing technology-based work.

“The advanced functionality of Empower, along with its robust, automated communications capabilities, will enhance the member experience and increase the satisfaction of our loan officers,” said Frontwave Credit Union chief lending officer Paul Leonhardt in a prepared statement.

The Empower LOS’ “lights-out processing” can increase efficiency by streamlining operations, according to the statement. The LOS accounts for about 10-15% market share.

Meanwhile, the Surefire CRM will allow Frontwave to access business building tools to its mortgage professionals, along with tools to drive repeat and referral businesses.

Surefire also offers marketing and content creation tools, including text message, centralized and LO-led marketing, lead generation forms, videos, interactive calculators and flyers.

Its “set-it-and-forget-it” workflows and automated communications include content for mortgage professionals that can help with connecting to borrowers, recruits, members, brokers and real estate agents.

Source: housingwire.com

Apache is functioning normally

September 8, 2023 by Brett Tams

Nestled in the heart of New England, Massachusetts boasts a rich tapestry of history, evident in its diverse architectural styles, from colonial relics to modern masterpieces. In such an environment, the home inspection process is not merely transactional; it’s an exploration into the layers of time and innovation that define a property. For buyers, it offers a lens into the integrity and character of a potential new home, revealing both its charms and challenges. Sellers, in contrast, can use this process to transparently showcase their property’s value and address any concerns head-on.

So whether you’re buying a home in Concord or selling a house in Boston, this Redfin article has everything you need to know about getting a home inspection in Massachusetts – along with expert insights from local home inspectors themselves. Armed with this knowledge, you’ll be better prepared to navigate the Massachusetts real estate market with confidence.

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Why should you get a home inspection in Massachusetts?

A home inspection in Massachusetts is vital given the state’s vast architectural history and diverse weather conditions. Many homes here, steeped in history, might conceal structural or system-related issues. The state’s varying climate, from snowy winters to humid summers, can also impact homes in subtle ways.

“Massachusetts has the country’s second-oldest home inventory, averaging 54 years, with many homes exceeding 100 years,” says Twin Lights Home Inspection. “Older homes often require essential updates, such as outdated plumbing or electrical systems, damaged structural supports, or inadequate water management. These issues can significantly affect the home’s future needs, going beyond the buyer’s initial plans. A home inspection provides vital information to empower buyers in planning their future with confidence.”

Are there any specialized inspections that Massachusetts buyers should consider?

“In today’s real estate market, where buyers are making offers 10, 20, even 30% above the asking price, it is more important than ever to have a home inspection to protect your investment. In addition to a standard home inspection, there are several optional services buyers should consider. Buyers should consider a sewer scope inspection, radon gas testing, a mold screening, a wood destroying insect inspection, water quality testing for wells, and a pool inspection (in season), if applicable,” recommends Metro Boston Property Inspections.

Are home inspections required in Massachusetts?

“Getting a home inspection in Massachusetts, as in any other state, is a crucial step in the home-buying process,” suggests Blue Owl Home Inspection. “While an inspection is not legally required to purchase a home, here are five compelling reasons why someone should get a home inspection in Massachusetts:

Identify hidden issues: Home inspectors have the expertise to uncover concealed problems like structural issues, electrical faults, plumbing leaks, and mold infestations, providing early detection to prevent costly future repairs.
Negotiation ddvantage: The inspection report serves as a powerful bargaining tool during negotiations with the seller. If significant issues are revealed, you can request repairs or price adjustments, potentially saving you money or ensuring necessary fixes before closing the deal.
Peace of mind: A home inspection offers assurance by revealing the property’s true condition, aiding you in making an informed decision about the purchase. It minimizes the risk of unexpected problems cropping up after you’ve moved in.
Safety assurance: Home inspections focus on safety hazards like faulty wiring, poor ventilation, and fire risks, ensuring your family’s well-being and highlighting areas that need attention.
Future planning: The inspection report becomes a roadmap for future maintenance and enhancements, aiding in prioritizing repairs and upgrades. This information is invaluable for budgeting and long-term planning.”

How much does a home inspection cost in Massachusetts?

The cost of a home inspection in Massachusetts can vary based on factors such as the property’s size, age, and location, as well as the specific services included in the inspection. On average, home inspections in Massachusetts typically range from approximately $400 to $800 or more.

To obtain an accurate estimate, it’s advisable to request quotes from qualified home inspectors in your area, taking into consideration the unique characteristics of the property you intend to inspect. While the upfront cost may vary, a thorough home inspection is a valuable investment in ensuring the condition and safety of your prospective home, providing peace of mind during the homebuying process.

Can you sell a house in Massachusetts without an inspection?

“One solution is to have a “post sale inspection.” These are sometimes done at a lower cost than Pre-Purchase Inspections as they have a slightly different focus. These inspections should still take over two hours and, if you are the buyer. you should attend the inspection. A Homeowner Inspection can provide the same benefits for homeowners who have not had their home inspected in a number of years.”

Expert advice for Massachusetts buyers before they get a home inspection

“A Home Inspection is your opportunity to ‘check under the hood’ and get to know the property in detail. We examine the house inside and out, and educate you on the building envelope and interiors, structure and systems, operation and maintenance. Waiving the inspection may result in unpleasant and costly surprises later on, suggests Accent Home Inspection, LLC.

“Here’s an important tip,” continues Accent Home Inspection, “Ask the sellers to disclose any problems in writing; they are required to answer truthfully. Browse inspectors’ websites, check qualifications and credentials, read reviews online. A professional and ethical inspector is not there to sell you anything, just to help you understand what you’re buying.”

“A home inspection helps the buyer determine the state of the property before finalizing the purchase. Depending on the age of the property and the materials with which the home was built, your inspector may find some of the following issues.” Five Stars Home Inspection, LLC lists the following:

Improper electrical wiring
Worn roofing
Plumbing deficiencies
Inoperable windows
Radon gas
Mold infestation
Insufficient ventilation

“There has been a recent tendency among homebuyers to submit offers that exclude the option of a home inspection,” advises John Rodkey, from JMR Inspections. “The idea behind this is to make an offer more competitive. However, this approach leaves homebuyers unaware of potentially costly issues. The associated risks are so significant that the Massachusetts legislature is currently deliberating on two bills, Senate 197 and House 245, with the title “An Act Protecting Consumer Rights in Purchasing Safe and Habitable Homes.”

“Essentially, these bills aim to preserve the right to have the structure inspected by a home inspector, ensuring that no seller or agent can insist, advise, or require an offer to exclude a home inspection to be considered valid.”

“The number of “pre-purchase home inspections” in Massachusetts have fallen off a cliff. Obviously, this puts recent home buyers ‘at risk’ of finding out their home isn’t what they thought it is. Most of the time, their newly purchased homes aren’t disasters, but the buyers simply don’t have a good sense of priorities – or they simply don’t understand what they need to do to maintain the home,” says Evergreen Home Inspection.

Massachusetts home inspection: the bottom line

In the realm of Massachusetts real estate, where history meets modernity and the climate adds its own challenges, home inspections are invaluable. Whether examining centuries-old structures or recent builds, the key lies in understanding a property’s depth beyond its facade. For buyers and sellers in the Bay State, a comprehensive home inspection isn’t just advisable—it’s essential. It ensures informed decisions, transparency, and a successful property transaction.

Source: redfin.com

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Why should you get a home inspection in Massachusetts?

Are there any specialized inspections that Massachusetts buyers should consider?

Are home inspections required in Massachusetts?

How much does a home inspection cost in Massachusetts?

Can you sell a house in Massachusetts without an inspection?

Expert advice for Massachusetts buyers before they get a home inspection

Massachusetts home inspection: the bottom line