MBA

Apache is functioning normally

Apache is functioning normally

In the week leading up to the Federal Open Market Committee meeting, mortgage applications finally ticked up.

For the week that ended Sept. 15, mortgage applications rose 5.4% from the prior week, according to data from the Mortgage Bankers Association. 

Last week, purchase applications increased for both conventional and FHA loans but remained 26% lower than the same week a year ago. Meanwhile, refinance applications also increased but are still about 30% lower than the same week last year.

“Mortgage applications increased last week, despite the 30-year fixed rate edging back up to 7.31%, its highest level in four weeks,” Joel Kan, MBA’s vice president and deputy chief economist said.

Also noteworthy, the average loan size on a purchase application was $416,800, the highest level in six weeks. 

“Home prices in many markets have been supported by low inventory and resilient housing demand for available homes,” Kan added.

The refinance share of mortgage activity increased to 31.6% of total applications from 29.1% the previous week. Meanwhile, the adjustable-rate mortgage (ARM) share of activity decreased to 7.2% of total applications from 7.5% last week.

The 30-year fixed mortgage rate increased to 7.31% last week, according to Kan. At HousingWire’s Mortgage Rates Center, Optimal Blue had 30-year fixed-rate mortgage at 7.19% on Sunday. At Mortgage News Daily, 30-year fixed-rate mortgage rates were at 7.30% on Tuesday.

The Federal Housing Administration loans’ share remained unchanged at 14.2%. As homebuyers continue to face higher rates and limited for-sale inventory, purchase conditions are becoming more challenging for buyers. The U.S. Department of Veteran Affairs loans’ share decreased to 11% from 11.3% the week prior. Lastly, the U.S. Department of Agriculture loans’ share remained unchanged at 0.4%.

The average contract interest rate for 5/1 ARMs dropped to 6.42% from 6.59% a week prior.

The FOMC is expected to hold rates steady on Wednesday, though analysts believe one more rate hike remains in the cards this year.

Source: housingwire.com

Apache is functioning normally

Apache is functioning normally

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.”

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Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally

Mortgage rates remain anchored north of 7% as investors focus on the impact of rising headline inflation ahead of next week’s Fed rate decision. 

Freddie Mac‘s Primary Mortgage Market Survey, which focuses on conventional and conforming loans with a 20% down payment, shows the 30-year fixed rate averaged 7.18% as of Sept. 14, up from last week’s 7.12%. By contrast, the 30-year fixed-rate mortgage was at 6.02% a year ago at this time.

“The reacceleration of inflation and strength in the economy is keeping mortgage rates elevated,” Sam Khater, Freddie Mac’s chief economist said. “However, potential homebuyers can still benefit during these times of high mortgage rates by shopping around for the best rate quote.”

Indeed, Freddie Mac research suggests homebuyers can potentially save $600-$1,200 annually by applying for mortgages from multiple lenders.

Other indices showed different mortgage rates this week.

HousingWire’s Mortgage Rates Center showed Optimal Blue’s 30-year fixed rate for conventional loans at 7.16% on Tuesday, compared to 7.20% the previous week. At Mortgage News Daily on Wednesday, the 30-year fixed rate for conventional loans was 7.22%, down from 7.33% the previous week.

What to expect from the Federal Open Market Committee meeting next week ?

On Wall Street and in Washington, investors believe that the Federal Reserve is poised to steer the economy toward a soft landing. Even if August’s headline inflation was driven up by energy prices, the core CPI provided more evidence that core inflation is trending down toward pre-pandemic levels, Jiayi Xu, economist at Realtor.com said. Overall, she expects that inflation will continue to move in the right direction as shelter costs have moved down for five consecutive months on a year-over-year basis. Additionally, Realtor.com’s median asking-rents indicate rental prices have been gradually declining. 

“Overall, we expect the Fed will maintain its ‘wait-and-see’ approach in its next FOMC meeting and closely monitor future data,” Xu said.

However, some economists also say that the economy is veering toward a contraction, with 10-year yields holding below 3-month yields, Bloomberg reported. On Thursday, the market surpassed the 1980 record to hold that way for the longest consecutive daily stretch since Bloomberg’s records began in 1962.

How are mortgage rates affecting the housing market ?

As many existing homeowners are staying put in today’s elevated mortgage rates environment, the inventory problem persists and puts first-time homebuyers in a difficult position. Indeed, over one-third (34%) of prospective buyers have yet to purchase a home because there are not enough homes for sale in their budget, HousingWire reported on Thursday. 

On the buyers’ side, high mortgage rates continue to subdue demand, with mortgage applications in the first full week of September falling to lows last seen in 1996.

Even as housing demand cools this fall, inventory will remain low, Bright MLS Chief Economist Lisa Sturtevant said. 

In that context, prospective homebuyers are scrambling to find solutions, she added.

“Some families are buying homes together, with millennials teaming up with their Baby Boomer parents to buy a multigenerational home. Other buyers are looking for opportunities to purchase a home where they rent out part of it to generate additional income.”

Buyers are also pushed to making trade-offs, such as looking for smaller homes and expanding their neighborhood searches.

“MBA expects some of the recent volatility in rates to subside enough that the 30-year fixed rate will fall closer to 6% by the end of the year,” MBA President and CEO Bob Broeksmit said. 

Source: housingwire.com

Apache is functioning normally

Both delinquencies and foreclosure starts increased during the second quarter, largely because of hot spots in California and Florida, coupled with the infamous option arm.

The delinquency rate (30 days or more behind on mortgage payments, excluding foreclosure) for mortgages on one-to-four unit residential properties climbed six basis points to 6.41 percent from the first quarter, up 129 basis points from a year ago, the Mortgage Bankers Association said today.

While the number wasn’t a huge increase from the first quarter, the percentage of loans in the foreclosure process increased 28 basis points from the first quarter to 2.75 percent, nearly doubling the rate seen a year ago.

Foreclosure actions were started on 1.08 percent of loans during the second quarter, up seven basis points from the first quarter and 49 basis points from a year ago.

The rate of foreclosure starts and the percentage of loans in the process of foreclosure set new records during the second quarter, while the seasonally adjusted total delinquency rate continues to be the highest on record.

And though improvements were seen in states like Texas, Maryland, and Massachusetts, California and Florida dragged the nation down, accounting for 39 percent of all foreclosure starts during the quarter and 73 percent of the increase between the first and second quarters.

So-called prime ARMs, which include toxic option arms, accounted for 23 percent of foreclosure starts during the quarter, and should dominate any increase going forward, according to the MBA.

This is evident in the fact that the increase in prime ARM foreclosure starts during the quarter was greater than the combined increase in fixed-rate and ARM subprime loans.

From the first to second quarter, the seasonally adjusted delinquency rate actually decreased for subprime, FHA, and VA loans, but increased 22 basis points to 3.93 percent for prime loans.

The seriously delinquent rate (loans 90 days or more delinquent, or in the process of foreclosure) increased 36 basis points to 2.35 percent for prime loans, 143 basis points to 17.85 percent for subprime loans, 12 bps to 3 percent for VA loans, and fell 16 bps to 5.43 percent for FHA loans.

(photo: hmk)

Source: thetruthaboutmortgage.com

Apache is functioning normally

Everyone predicted a revival in purchase money mortgage lending in 2013, and it looks like they’re right, so far.

During the first quarter of the year, an estimated $119 billion in purchase-mortgage loan originations were recorded, according to new figures from Inside Mortgage Finance.

This represented a 15% improvement over the same quarter in 2012. However, purchase originations were down 13% from the fourth quarter.

Still, things are only expected to get better, if the loan application data from the Mortgage Bankers Association (MBA) is any indication – demand for purchase mortgages was at a three-year high this spring.

And it appears as if the purchase market is just starting to heat up for the big summer buying period.

Late last year, the MBA predicted purchase activity would increase from $503 billion to $585 billion, while refinances were slated to slip from $1.2 trillion to $785 billion.

With mortgage rates on the rise, we’re finally starting to see the refinance share of the market cede to purchases, though the former still has a commanding 71% share.

Will the Higher Mortgage Rates Hurt or Help?

In case you haven’t heard, mortgage rates shot up over the past month, and the 30-year fixed is now going for somewhere in the low 4% range, as opposed to the low 3% range. Ouch.

Clearly this will make many rethink a refinance, and it could even influence some home buying decisions. Let’s hope most borrowers were locked prior to the onslaught.

Still, it’s easy to freak out over nothing – if you allow me to get historical for a moment, mortgage rates are still on the low, low end, even with this most recent uptick. And anyone purchasing a home today should be happy with a 30-year fixed at 4%.

However, happiness aside, there still is the qualification issue. Even if motivation is unscathed, there’s the more black and white numbers game.

Now that mortgage rates have increased nearly one percent, a lot of would-be home buyers may have been thrown out of the qualification pool as purchasing power has been diminished.

Even if they can afford the monthly mortgage payment, their higher debt-to-income ratio may not fly with banks and lenders.

Let’s face it, mortgage rates aren’t the main problem right now; the issue is finding a property that doesn’t involve a bidding war.

It’s hard to believe that the recent increase in rates would sway someone’s interest in purchasing a property, especially if they are willing to offer $50,000 above the list.

But it could thin out the eligibility pool, which would actually make it easier to land a property for those who do still qualify for a mortgage. So there is a silver lining there for some.

Good News for Mortgage Brokers?

While the higher rates may or may not be good for homeowners, the shift from refinance to purchase money should benefit local mortgage brokers.

When it comes to refinancing, borrowers tend to shop around for the lowest rate, whether that’s with their own bank or credit union, or with an online lender.

With home purchases, buyers are heavily influenced by their real estate agents, and many agents have broker friends they refer business to.

So as purchase mortgages gain traction, brokers may see an uptick in business, while online lenders and other not-present players will probably see volumes decline.

After all, a lot of borrowers will want to meet the individual handling their ever-important purchase loan.

If you’re a buyer, take a moment to think about your agent’s referral. Make sure you’re actually getting the best deal, and using someone reliable. Don’t just believe everything your agent tells you.

Read more: Is the real estate market about to be tested?

Source: thetruthaboutmortgage.com

Apache is functioning normally

Hedging, PPE, Fee Collection, QC Products; Gov’t and Conforming News; Producer Inflation Alive and Well

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Hedging, PPE, Fee Collection, QC Products; Gov’t and Conforming News; Producer Inflation Alive and Well

By:
Rob Chrisman

Thu, Sep 14 2023, 11:15 AM

This morning I head from Chicago to Orlando along with 74 million others (yearly). More fun with numbers: Although the MBA thinks we’ll fund about $1.7 trillion in 2023, weekly applications continue to reflect a declining market so let’s use $1.5 trillion to make the numbers easier. That averages out to $6 billion per business day of production. The Fed is looking to offload $13 billion in MBS from bank seizures. To keep things in perspective, that is only two days’ worth of production, certainly not enough to “swamp the boat.” Perspective is good, and here’s another example. Higher and volatile interest rates, uncertainty about property values, and stresses in some property markets have increased pressure on some loans and properties. Accordingly, MBA reported that commercial and multifamily mortgage delinquencies increased in the second quarter of 2023. Even with the uptick in delinquency rates, they remain at the lower end of historical ranges. Loans backed by properties (and property types) with stable cash flows, are faring better than those that may have seen declines in incomes. (Today’s podcast can be found here and this week’s is sponsored by SimpleNexus, an nCino Company, and award-winning developer of mortgage technology for modern lenders. Hear an interview with C2 Financial and Revest Homes’ Jim Black on how originators can win business in a tough rate environment.)

Lender and Broker Software, Products, and Services

Amidst changing QC requirements and increasing repurchase risk, lenders must invest in automation to drive efficiency and protect profits. The industry needs to shift its focus from crisis management to prevention with proactive QC. Not only does this approach set lenders up for success regardless of the origination environment, but it’s also a regulatory imperative now that Fannie Mae requires lenders to conduct pre-funding QC on a minimum of 10% of their production. ACES Quality Management empowers mortgage lenders and servicers to take control of their operations and embrace proactive QC. ACES seamlessly combines cutting-edge technology with comprehensive data analysis, giving mortgage professionals the tools they need to identify, anticipate and rectify potential issues in near real time. Learn why financial institutions and third-party providers rely on ACES.

“Looking for a full-service depository bank that will help you achieve your long-term growth plans? NexBank has been a dependable lender to our clients through all business cycles. We’ve been in the wholesale, correspondent, and warehouse lending business since 2008 and don’t compete with our clients for retail originations or refinancing business. Our long-tenured account executives, with an average of 24 years of industry experience, know our business well and are dedicated to helping you grow yours. This month, we celebrate the 15th anniversary of three professionals who have contributed to the success of our clients and NexBank. Lance Hackney with $4 billion closed volume; Brandi Horton with $4.5 billion closed volume; and Steve Smith with $5 billion closed volume. We support all channels: Wholesale, Non-Delegated & Delegated Correspondent with Portfolio, Conventional, FHA, and VA products, and offer Delegated & Emerging Banker Warehouse Lending and Escrow Deposit Management. Email Jon Hodge to reach an AE. Member FDIC. Equal Housing Lender. NMLS 672886.”

If you’re using Encompass® by ICE Mortgage Technology™ and you’re not using Fee Chaser to collect your upfront fees you it’s time to get your act together. Fee Chaser enables your borrowers to pay their upfront fees right from a text message. No more missed appraisal fees, no more paper checks, no more credit card numbers floating around on printed forms. Check out Fee Chaser here and they’ll text a demo right to your phone.

“Optimal Blue’s market-leading product, pricing and eligibility (PPE) engine has been the industry’s preferred choice for years because of our ability to serve our clients’ needs. With Optimal Blue’s open-API platform, our clients can access and use all of the functionality that exists in the Optimal Blue PPE via APIs, including creating customized rate quoting tools, fully automating lock events, and ensuring LOs have on-demand access to product and pricing where and when they need it. Reach out to Optimal Blue today to learn more about our open-API platform and how you can use it to unlock hidden efficiencies and improve your business!”

Government and Other Conforming Program News

Plaza Home Mortgage® reminded brokers of the ins and outs of getting government deals done. Here are five really great reasons to look to Plaza first for your government loans:

Manual underwriting may be an option for loans that do not get an approval through AUS-Total Scorecard (manual underwriting requirements apply). FHA and VA FICOs down to 550. USDA FICOs down to 600. Cash-out allowed on FHA and VA. Experienced Underwriting team that is willing to go the extra mile for your borrower.

Effective August 25th, the Attorney Authorization Approval (AAA) Matrix is available within Property 360™ on both the Claims and Excess Fees landing pages. The matrix remains accessible on the Excess Attorney Fee – Cost Guidelines webpage in the Single-Family portal.

Federal Housing Agencies issued a reminder for mortgage assistance for those impacted by the Maui Wildfires. In a joint statement, the Federal Housing pledged their offices’ ongoing support for Hawaiian residents affected by the devastating wildfires on the Hawaiian island of Maui.

Hurricane season has begun, MBAF provided a reminder of MBA’s Disaster Recovery Resource Guide. This guide outlines what to do before and after a natural disaster, along with how to start, and then, work through the recovery process. Additionally, another resource available is Hurricane Help FAQs.

Fifth Third Correspondent Lending Communiqué 2023-6-9.1.23 has the following topics:

Final Document Reminder, as a reminder, Fifth Third expects Final Title Policies and Recorded Mortgages to be delivered within 90 days of the loan purchase date. Excessively aged documents will be assessed a fee per section 1.07 of the Correspondent Seller Guide.

Maximize Cash Out with Loan Stream Mortgage Non-QM Closed End Seconds. Program highlights include clients can Access Equity with our Non-QM CES Cash Out Refi: 90% CLTV Full Doc, 85% CLTV Bank Statements, 80% CLTV Investment Properties and 75% CLTV DSCR. Also available on Purchase, Rate/Term Refinance & Cash Out.

Chaos has a way of bringing on unexpected opportunities. Plaza Home Mortgage®. Co-President and COO, Michael Fontaine, shares with National Mortgage News how Plaza navigates in the evolving wholesale landscape. From diverse strategies to tapping into improved technology plus Plaza’s training offerings to help amplify broker clients’ strengths, take a look.

Plaza Home Mortgage® Jumbo opportunities keep getting better, now offering 2-1 and 1-0 Temporary Buydowns on its new Jumbo Elite loan program. Get in touch with your Account Executive for the qualifying details. Explore the complete range of Jumbo solutions Plaza offers for your borrowers.

Capital Markets

Why do those in the mortgage space watch the 10-year U.S. Treasury note? Historically, the 10-year U.S. Treasury yield has been considered a key benchmark for mortgage rates. Mortgage rates, however, are not actually based on the 10-year U.S. Treasury note (as is commonly believed). MCT released a blog, “How the 10-Year U.S. Treasury Note Impacts Mortgage Rates” that serves as an excellent primer for how mortgage interest rates respond to moves of the benchmark U.S. Treasury note. The piece discusses why mortgage rates and Treasury yields move together and how bonds are influenced by Treasury yields. With a trusted capital markets partner like MCT, you can rest assured that you will be notified of how economic trends could have the potential to impact your business. Sign up for MCT’s newsletter to receive educational articles like this one and learn more about variables that impact mortgage rates.

In rate news, even though inflation in August showed a larger than expected increase in core CPI (actual 0.3 percent when it was expected at 0.2 percent), it showed ongoing improvement on a year-over-year basis, enough to prevent any significant change in Fed rate hike expectations. The implied likelihood of a rate hike in December sits around 46 percent.

Digging into the numbers, gasoline prices contributed to nearly half of the increase to the headline number, rising nearly 11 percent over the month, and that inevitably had some trickle-through impact on the core reading, as transportation services were driven higher by energy prices. The 3.7 percent year-over-year rate of CPI is still well above the Fed’s 2 percent target, reflecting stickiness that, while probably not compelling enough to the Fed to raise rates further at this point as the trend in inflation has downshifted since the spring, will certainly keep the Fed in a “higher for longer” mindset. Looking forward to the FOMC meeting next week, another pause in rate hikes is already baked in, so the importance is actually much more about rate decisions in November, December, and January.

Today’s economic calendar is under way with several releases. Events kicked off with the ECB releasing its latest monetary policy decision (+.25 percent, as expected, in an effort to continue to tame inflation) followed by ECB head Lagarde’s press conference. The U.S. calendar is also under way with retail sales (+.6 percent for August, much higher than expected), the Producer Price Index (+.7 percent, much stronger than expected, core +.3 percent), and weekly jobless claims (220k, 1.688 continuing). Later today brings July business inventories, Treasury announcing the sizes for next week’s reopened 20-year bonds and 10-year TIPS auctions, and Freddie Mac’s latest Primary Mortgage Markets Survey. We begin Thursday with Agency MBS prices worse a few 32nds from Wednesday evening, the 10-year yielding 4.27 after closing yesterday at 4.25 percent, and the 2-year at 5.02 after this slew of economic news.

Employment

“Foundation Mortgage is rapidly expanding after several record months and is looking for top tier experienced Non-QM account executives to join our team. We have a vast array of non-QM products to choose from and common-sense underwriting. We make exceptions that other lenders won’t. If you are looking to join an experienced team that knows how to get loans done contact Dean Ayres.”

On the heels of the successful acquisition of Platinum Home Mortgage Corp, Planet continues its appetite for retail acquisition by looking to consolidate several independent bankers into its organization. If your firm is seeking better economies of scale or a strategic exit, let’s talk. With our strong multichannel support, speedy turnarounds, dedicated recruitment, and customer retention, Planet will give you a remarkable edge. Please contact Lee Gross to find out what Planet could do for you. All inquiries will be held in strict confidence. Confidentiality will also be honored for single MLOs or smaller sales teams who contact VP of Talent Peter Briggs or 435-709-6287.

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Source: mortgagenewsdaily.com

Apache is functioning normally

MILWAUKEE, Sept. 14, 2023 /PRNewswire/ — Northwestern Mutual, a leading financial security company, announced today that Anne F. Ackerley and Andrew J. Harmening have been appointed to serve on its Board of Trustees. As a mutual company with a responsibility to policyowners, Northwestern Mutual has a Board of Trustees elected by its policyowners with responsibility … [Read more…]

Apache is functioning normally

How fast is fast enough? Ask Guaranteed Rate, which just launched “5 Minute Approval” for mortgage applications.

This new “innovation” from the Chicago-based mortgage lender allows borrowers to get approved for a home loan in just five minutes.

Interestingly, it comes not long after their Same Day Mortgage, which apparently wasn’t quick enough for some.

It might also be a sign of the times, with mortgage application volume at its lowest levels since the 1990s.

As the name suggests, customers can get approved for a home loan in as little as five minutes and possibly close in just 10 days.

How Does This New 5 Minute Mortgage Approval Work?

Those who are in a really big rush to get a mortgage can now take advantage of Guaranteed Rate’s so-called 5 Minute Approval.

As noted, the company only just launched Same Day Mortgage back in March, but apparently they had their sights set on faster.

And faster is exactly what this is. How it works appears relatively simple.

You visit their website, access the secure portal, sign the initial application package, then upload any requested documents.

This can apparently be done without any human interaction as well, and is about three minutes faster than Rocket Mortgage’s 8-minute full approval launched back in 2015.

To date, Guaranteed Rate has “successfully approved” more than 100 loans within 5 minutes via their pilot program.

It’s unclear how much is needed from the borrower as they didn’t provide the details, but that obviously seems lightning fast.

Also not totally clear if this is a full loan approval or a more basic mortgage pre-approval.

Simply visiting a website and filling out a form can easily take five minutes, so my assumption is they aren’t asking for much here. It’s unclear if credit is pulled, but I’d guess at least a soft pull is required.

If document upload is needed, that would likely take several minutes to track down from other websites.

Perhaps they allow applicants to link bank accounts, pay stubs, and other key information to speed up this process.

Either way, only a cookie-cutter vanilla loan scenario is going to get a mortgage approval in as little as five minutes.

This means a W-2 borrower with good credit and nothing out of the ordinary. And perhaps really fast fingers and a fiber internet connection to make it through the application in record time.

Jokes aside, it’s available for both home purchases and mortgage refinances, assuming you’re the impatient type. Okay, I guess one more joke.

Guaranteed Rate President and CEO Victor Ciardelli notes that you can even be touring a house and generate the insanely fast approval while you’re walking around.

Is Speed Still Necessary in Today’s Cooler Housing Market?

While it feels like a distant memory, there used to be a waiting list to refinance a mortgage at certain banks.

And many loans took two months or longer to close, due to unprecedented demand related to record low mortgage rates.

Several years ago, just getting an underwriting decision could take a couple weeks.

Not so today, with mortgage application volume down to 1996 levels, per the latest report from the Mortgage Bankers Association (MBA).

But despite depressed levels of demand, there are still bidding wars and multiple offers on many home sales because inventory is also rock-bottom.

At last glance, months’ supply was hovering around three months, which is well below a healthy market at 4-5 months of supply or more.

So it’s not just low demand, it’s also a story of very limited supply.

Guaranteed Rate cited Zillow data that found 48% of homes for sale still receive three or more offers.

This means it can still pay to have a mortgage approval in-hand if and when you tour a property.

Of course, a same day approval vs. five minute approval might just be splitting hairs.

Perhaps more importantly, Guaranteed Rate says applicants can close on their home loan in as little as 10 days.

Getting to the finish line that quickly seems a lot more valuable than rushing through an approval at the start.

Read more: Guaranteed Rate’s OneDown Offers a 1% Mortgage and $1,000 Toward Lender Fees

(photo: Steve Austin)

Source: thetruthaboutmortgage.com