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Apache is functioning normally

Apache is functioning normally

This article originally appeared on The Financially Independent Millennial and was republished here with permission.

If you’ve been paying attention to the housing market recently, you will have noticed it’s on fire. From Seattle, WA, to St. Petersburg, FL, there isn’t a market that hasn’t been affected by the low mortgage rates and high millennial demand for housing. The market hasn’t seen this much activity ever (even more so than the housing financial crisis of 2008).

Given the recent interest in home buying, we thought it would be prudent to discuss exactly how Americans can afford such large homes. And, why now?  After all these years, why are mortgages and refinances becoming popular all of a sudden? Let’s first discuss the basics of a mortgage and what its advantages are. They’re equally complex and beneficial, so it’s important to ensure we cover all the bases.

What Is a Mortgage Loan?

Simply put, your home secures the mortgage loan. It might be a house, a store, or even a piece of non-agricultural land. Banks and non-banking financial institutions both offer mortgage loans.

The lender gives the borrower cash, and charges them interest on it. Borrowers then pay back the loan in monthly installments that are convenient for them. Your property acts as security against the mortgage. And, your lender retains a charge until the borrower pays the loan in full. As a result, the lender will have a legal claim to the property for the duration of the loan. If the buyer fails to pay the debt, the lender has the power to seize the property and sell it at auction.

What Are the Different Types of Mortgage Loans? 

No matter what anyone tells you, always remember: A mortgage is a debt. Debt is a very polarizing topic to discuss with friends because many of us were raised on the premise that debt is bad. The truth is, some debt is bad, some debt is okay, and some debt is good. Many today would argue that mortgage debt is good since the rate is so low and it affords you a bigger home. 

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Some people believe that debt should be prevented at all costs. Others view it as a means of improving one’s quality of life or as a means of increasing fortune. What’s awful about debt, factually, is reckless credit usage.

Here’s a rundown of the many types of mortgage programs, along with their benefits and drawbacks, to help you determine which is best for you.

A mortgage with a fixed rate

The interest rate is fixed for the duration of the loan. These loans provide a consistent monthly payment and a low-interest rate. Borrowers who wish to pay off their mortgage quicker can typically make extra payments toward the principal, as prepayment penalties are uncommon.

Pro: It’s predictable because the monthly payment is fixed.

Con: Taking out a fixed-rate loan while the interest rates are high means you’re stuck with it for the duration of the loan. The only way out is to refinance at a lower rate.

A mortgage with an adjustable rate (ARM)

After a fixed-rate cycle of months to years, the interest rate on an adjustable-rate mortgage (ARM) varies. Lenders sometimes publish ARMs with a pair of numbers, such as 7/1 or 5/1. Usually, a 5/1 ARM has a fixed rate for five years and then adjusts every year, rounding off if that option exists.

Pro: An ARM’s opening interest rate is often lower than that of a standard fixed-rate loan, so it’s easy to get lured in by the teaser rate. But, it might wind up costing more in interest over the term of your mortgage than a fixed-rate loan. An ARM may be the ideal option for someone who plans to market their home before the rate changes.

Con: Future rate hikes might be significant, leaving many adjustable-rate mortgage borrowers with significantly elevated monthly payments than if they chose a fixed-rate mortgage.

Refinance loan or second mortgage

Sometimes, a homeowner already has a mortgage but wants to change the terms. Maybe they want a lower rate or a longer term. Or maybe, they want to take out more equity from their home. Whatever the case, many options are available! The most common would be refinancing the home mortgage. With mortgage refinance, the homeowner closes out their original mortgage, and obtains another one – ideally with more favorable terms. 

With interest rates so low these past couple of years, refinancing has become much more popular. How often a homeowner refinances is usually a personal decision, but they should consider at least these factors:

  • market interest rate vs their current mortgage interest rate
  • length/term of their loan vs the new one they want to get
  • cost of the loan (“closing costs”) vs keeping still
  • [cash-out refinance only] what to do with the funds

Pros: If you can secure a lower interest rate than your current loan, and the closing costs aren’t significant, then it could definitely be worth refinancing. On the other hand, if you need the money for home renovations, a cash-out refinance may be your best bet.

Cons: Refinancing costs money, so make sure the math works in your favor. 

Conventional loan

The standards for conventional loans are generally more stringent than those for government-backed house loans. When reviewing traditional loan applications, lenders usually look at credit history and debt-to-income ratios.

Pro: A conventional mortgage may be used for a range of property kinds, and PMI would help borrowers qualify for a conventional loan even if they have less than 20% for the down payment.

Con: Compared to government loans, conventional loans have tougher qualification standards and may demand a larger down payment.

Interest-only mortgage

The average age of home purchases has decreased, and an increasing number of millennials are now purchasing their first houses. Typically, the loan duration is determined by the debt-to-income (DTI) ratio and the sum of interest negotiated on the mortgage. For homebuyers, a longer contract means a lower payment, but a longer time to pay off that debt.

Some lenders may offer an interest-only mortgage, meaning the borrower’s monthly fees will cover only the interest. As a result, it’s best to have a strategy in place to ensure that you can have enough money to return the entire sum borrowed at the end of the period.

Interest-only loans may be appealing since your monthly payments are low. But, unless you have a strong strategy to reimburse the capital, at some point, a fixed loan could be the better option.

Pro: Interest-only mortgages allow the borrower to place their capital elsewhere, such as in dividend stocks, a rental property, or other investments. 

Con: Borrowers who aren’t careful with their budget may find themselves never being able to pay off the loan.

Read more: 15 Ways to Generate Passive Income from Real Estate

FHA loan

FHA loans and VA loans are mortgage loans insured by the government and available for potential homebuyers. FHA loans are available to lower-income borrowers and typically require a very low down payment. Also, borrowers get competitive interest rates and loan costs. 

The government does not directly grant Federal Housing Administration (FHA) loans. FHA loans can be issued by participating lenders, and the FHA guarantees the loans. FHA mortgages might be a viable option for those who have a high debt-to-income ratio or a bad credit score.

Pro: FHA loans need a smaller down payment and credit score requirements are lower than conventional loans. Moreover, FHA loans may enable applicants to use a non-resident co-signer to assist them to be qualified.

Con: Unless a borrower puts down 10%, the monthly mortgage insurance will remain a part of the payment for the loan’s life. If a borrower ever wants to remove the monthly mortgage insurance, they must qualify and refinance into a conventional loan.

Read more: How to Improve Your Credit Score

FHA 203(k) loan

An FHA 203(k) loan is a government-insured mortgage allowing funding borrowers with one loan for both home renovation and house purchase. Current homeowners may also be eligible for an FHA 203(k) loan to help pay for the repairs of their current house.

Pro: An FHA 203(k) loan can be utilized to purchase and renovate a home that would otherwise be ineligible for a traditional FHA loan. It just takes a 3.5% down payment.

Con: You must be eligible for the full property value, as well as the price of anticipated improvements, with these loans. The rate may be greater than on a normal FHA loan. You’ll also have to pay both a one-time, and monthly mortgage premium insurance payments.

VA (Veterans Affairs) loan

Home loans for veterans, reservists, and military or National Guard members, as well as qualified surviving married partners, are backed by the US Department of Veteran Affairs. 

In fact, nearly 90% of all VA-backed home loans are made without a down payment.

Pro: You won’t have to put any money down, or deal with PMI payments every month.

Con: On purchase loans, a one-time VA “funding charge” varies from 1.4% to 3.6%.

Fannie Mae homestyle loan

The Fannie Mae homestyle mortgage needs just 3%–5% down, but a credit score of 620 is an option for fixer-uppers.

Pro: You don’t have to pay for mortgage insurance beforehand, and you can terminate it after twelve years or when you have 20% equity on your house. The rate is frequently cheaper than an FHA 203(k) loan.

Con: Credit score requirements must be met.

Reverse mortgage loan

Homeowners aged 62 and above can use a reverse mortgage to convert some of their property value into cash. The age of the youngest homeowner, the loan rate and fees, the heir’s wishes, and payout type are all aspects for the lender to consider.

Pro: There are no monthly payments required, and the homeowner can select between a one-time balloon payout, a monthly payout, a line of credit, or a combination of the three.

Con: The interest rate may be greater than that of a typical mortgage. Mortgage insurance, a direct charge, an initiation fee, and third-party expenses are usually paid by the homeowner.

Final Thoughts

Mortgage loans are given to those who have enough income and assets vs. their debt. Mortgages also aid in the development of credit. They enable homeowners to invest in a home, with the advantage of having a forced-savings component. However, like with any loan, borrowers should be responsible when taking out a mortgage. It’s easy to get carried away and buy more than is necessary (and become house-poor).

Source: credit.com

Apache is functioning normally

Apache is functioning normally

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

The Government National Mortgage Association (Ginnie Mae) announced on Thursday an expansion of its Environmental, Social, and Governance (ESG) labeling to single-family mortgage-backed securities (MBS) pools, an expansion of a previous initiative that had only impacted multifamily pools, and which some analysts say an increasingly strong market for investors.

In an interview with HousingWire, Ginnie Mae President Alanna McCargo explained that this represents Ginnie’s first social bond label in the investment space.

“This is really about just furthering the specifics around Ginnie Mae’s social impact story,” McCargo said. “We’re a 55-year-old company and [during that time], we’ve been a social impact company. This team during my tenure has done the yeoman’s work of really amplifying, collecting and gathering all the loan-level data that is in our securities to be able to disclose that data to investors, so they really understand what’s in the pools that they’re buying and what they’re investing in.”

McCargo also stressed that determinations of social impact will be left to the investors, and will not be made by Ginnie Mae itself.

“Something that we’ve always been doing all along in terms of the borrowers that we support through the Ginnie Mae program are now much more clear and transparent so investors understand and know the social impact elements in their bonds,” she said. “And I think it’s important to say that we don’t determine if it’s social impact, investors do. But we’re making all the tools and all the data available to them to be able to do that.”

The expansion will come in the form of a new prospectus language that will identify the social impact elements of the bond, on top of the recent rollout of the company’s ESG composite social and sustainability data.

“It’s a disclosure we’re doing on a monthly basis,” McCargo said. “[It allows you to] see the data around what is in Ginnie Mae securities, how it is affecting or helping low-to-moderate income households, or seniors, all the different categories of social support that we provide through the Ginnie Mae program.”

That record provides pool-level aggregate information about the extent of loans and unpaid principal balance (UPB) dollars that are in low- and moderate-income areas, with a chart illustrating the percentage of loans, percentage of UPB of ESG-flagged pools and/or loans and totals of the total portfolio over the last 12 months.

McCargo said she sees the development as “a big deal,” saying it’s representative of the other ESG work being done more broadly at HUD and at other federal agencies.

“This is a first-of-its-kind social bond label,” she said. “It’s laying down a marker for impact investing. It really has been something that we have noted is driving demand for Ginnie Mae, especially from the international investor community, and we are being responsive to that now that we have the data, the capability and the tools to be able to make that much more clear in our disclosures going forward.”

Part of the reason McCargo sees the development as significant is because ESG is often interpreted very differently by various parties that may be involved in the investment space.

“Social is a new construct, especially in the fixed-income markets and in the mortgage-backed securities space,” she said. “We’re defining it in a way that gives the transparency to investors for them to decide if that’s how they want to think about social, again, serving low-to-moderate incomes, tribal communities, rural communities and serving senior citizens through our [reverse mortgage securities] program. So all the different elements of that, we are trying to really lead the way because we are naturally, and inherently a social impact company.”

Sam Valverde, principal EVP of Ginnie Mae, added that the new label is designed to increase transparency and communicate that Ginnie Mae can provide a social investment opportunity.

“We’re extremely proud of what we launched in February, which is on per-security level, we now can offer investors clear verifiable data on who is represented in the bonds that they’re buying,” Valverde said. “And that is privacy-protected. So, we’re offering it on a pool level, and you can tell now how much of any given bond is being made to a borrower who makes less than 80% of the area median income. We have the address and income information at origination, so we’re offering demonstrable data to investors in a privacy-sensitive way so they can really understand what impact and investment in Ginnie Mae securities has.”

Source: housingwire.com

Apache is functioning normally

Well, it took 79 years, but the FHA’s squeaky-clean track record is over.

FHA Commissioner Carol Galante wrote a letter to Congress formally requesting a bailout from the Treasury, the first time the agency has ever had to go down that road.

And it’s no small number either – the government housing agency needs a staggering $1.7 billion to meet the capital requirements of its depleted Mutual Mortgage Insurance Fund.

However, Galante stressed that the money wasn’t necessary to handle claims activity, and that the agency has “more than sufficient resources.”

In other words, the money is only necessary to keep the capital reserve ratio above two percent, with the money being transferred before the fiscal year ends on Monday September 30th.

Of course, just like any other company that insures mortgages, the last five or so years have been rough.

High-Risk Loans Crushed the FHA

The agency originally lost its shirt on seller-paid down payment assistance loans, which allowed borrowers to purchase homes with absolutely nothing down.

As we all know, those who had nothing to lose eventually walked away from their homes when values went south.

And more recently the FHA registered $5 billion in losses through its troubled reverse mortgage program, in which seniors took huge draws and eventually defaulted on the mortgages tied to homes worth considerably less.

Still, the worst seems to be over, as indicated in testimony before the Senate Committee on Banking in late July of this year.

At that time, Galante said serious delinquencies on FHA loans fell from 9.59% in December 2012 to 8.27% in May 2013, and noted that cures (where bad loans get back on track) began surpassing new serious delinquencies in April of this year.

So it’s more about playing catch-up to meet a Congressionally-mandated rule related to old data, not so much a sign of the times.

FHA Loans Are More Expensive Because of the Mess

The FHA has already made a ton of changes to bolster reserves, namely charging new borrowers a lot more than they used to.

This includes more expensive upfront and annual mortgage insurance premiums, and insurance that stays in force a lot longer.

The UFMIP was increased from 1% to 1.75% in 2012, and annual premiums have increased several times over the past few years.

And the latest change requires many FHA borrowers to pay mortgage insurance premiums for the full term of the loan, even if the LTV ratio drops to 78%.

A couple of years ago the agency also introduced a minimum credit score of 500, and upped the credit score requirement for its signature 3.5% down loan program to 580.

In short, today’s FHA borrower is paying the price for the mistakes made leading up to the housing crisis, which while seemingly unfair, is the only move the agency can make at this point.

Unfortunately, FHA lending has gotten a lot less popular due to these changes, which is a bit of a catch-22 for the agency.

Galante blamed higher mortgage rates for the recent reduction in loan volume, which apparently led to the request for the bailout.  But let’s be honest, conventional loans make a lot more sense for borrowers these days in light of all those premium hikes.

Wait, the FHA Still Doesn’t Get It?

In spite of all this, the FHA is still engaging in highly questionable lending practices today.

Their latest grand idea revolves around those who recently sold short, got foreclosed on, or filed for bankruptcy.

Many of these borrowers will be able to apply for FHA loans just one year after such a massive event, so long as they can jump through a few underwriting hoops.

This has bad idea written all over it, but the FHA is moving forward with the initiative. The question remains whether lenders will play ball, or simply throw overlays on top of it.

It’s clearly irresponsible, but I suppose we don’t know if the FHA is getting pressured to keep the spigot open for less creditworthy borrowers, which after all, is their original mission.

Source: thetruthaboutmortgage.com

Apache is functioning normally

HELOC, TPO, Home Buyer Trends, Agency Approval, CRM Products; Training and Events

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By:
Rob Chrisman

Thu, Aug 31 2023, 9:37 AM

The great thing about inflation is if you spend the same on groceries, the bags are lighter and easier to carry home. Restaurants and food companies react to higher prices either by reducing their portion sizes or passing the cost on to the consumer. In real estate, does the modern definition of an “affordable” house mean 350 square feet for $130,000? Lennar thinks so. Owning a home has long been considered the quintessential American dream, but even with 84 percent of Americans saying they’d like to own a home one day, 51 percent who don’t own today worry they’ll never get there. 94 percent of consumers say owning a home is part of the American dream, but 49 percent say they can’t afford a down payment and 40 percent say home prices are too high in their area. Student loan debt weighs heaviest on millennials, with 19 percent citing it as a roadblock to homeownership. (Today’s podcast can be found here and this week’s is sponsored by Black Knight. Black Knight is an award-winning software, data and analytics company that drives innovation in the mortgage and real-estate industries, and the capital and secondary markets. Listen to an interview with Black Knight’s Andy Walden and John Holbrook on the tappable equity market.)

Lender and Broker Software and Services

Get a discount on sponsoring THE event at ICE Experience 2024! Lender Toolkit’s Supercar Experience last year was fantastic and promises to be just as great in 2024! It will be held right before the opening of the ICE show next March. Lender Toolkit is offering early bird pricing on sponsorships, but only until September 29. As a sponsor at the March 18, 2024, event, you’ll be at the center of the most talked-about event of the conference. Just check out these photos from the 2023 Supercar Experience to see how much fun was had! Take advantage of the low rates now! For more info, contact Lender Toolkit or simply download the sponsorship form to apply. And Lender Toolkit and Lodestar are hosting the ultimate MBA Annual kick-off event in Philly. The Independence Block party, complete with ping pong, food, and drinks, takes place from 7:30-9:30 pm on Oct. 15. RSVP here.

“Unlock Success with BlackWolf Advisory Group! Our expert team offers a comprehensive range of services in the mortgage servicing space designed to guide you towards excellence. From regulatory and operational consulting that turns challenges into triumphs, to technological solutions that unlock your organizational potential, we’re here every step of the way. With a proven track record of success and a client-centered approach, we’re dedicated to understanding your unique needs and tailoring solutions that fit. Our industry experts have 20+ years of experience working for some of the largest servicing companies and government institutions. Our technology partners have an established reputation for success in the financial space, with the ability to develop additional tools and take your servicing operations to the next level. Please contact us today or call 904-207-8331. See more information here.”

“Tickets to the Big Game aren’t available until September 7, but ad sales are already well underway, with many big brands having already secured their $7 million game-day advertising slot. While 2023 has been a lender’s thunder dome, the good news is that you don’t have to shell out millions to compete for borrowers’ attention. Surefire℠, Black Knight’s CRM and Mortgage Marketing Engine, comes packed with everything you need to keep pace with the billboard guys, from prebuilt marketing automation blueprints to award-winning multi-media content to dozens of native technology integrations. Download our free eBook for proven mortgage marketing game plans that won’t break the bank.”

Receiving your Freddie Mac, Fannie Mae, or Ginnie Mae approval not only adds value to the net worth of mortgage lenders, but several other doors also become open with these approvals. In this latest whitepaper, Getting Started with Agency Approvals, Jennifer R. Whip, CMB®, Michael Drayne, and MCT offer important tips on how to obtain these approvals. Topics featured in this whitepaper include why originators should seek approval, key components for agency approval, and common challenges and solutions in the approval process. Download the whitepaper today to learn more about getting started with agency approvals.

We’re over halfway done with 2023. For anyone who knows how to stay afloat in the mortgage space, that means keeping yourself abreast of what happened and what trends to expect. In the latest episode of Expert Insights, Joe Welu, CEO of Total Expert, sits down with the founder and CEO of the Basis Point, Julian Hebron, to give us a closer look at the mortgage space in mid-2023. Is the worst over despite the recent challenges and rising interest rates? Will we see a potential improvement in the next 6-12 months? Julian shares his data-driven insights, helping you navigate across issues in the lending and mortgage market­–from lender profitability to affordability challenges for homebuyers. Keep your eyes open to the market realities and the constantly changing landscape of the space. Listen now so you can take on hurdles and opportunities to drive success.

NEW: Maxwell’s Mini-Guide to Surviving Today’s Big Housing Market Reset. Is your lending business prepared for a market reset? To thrive, lenders need a fresh game plan driven by home buyer trends, creative lead generation, and insightful data. Maxwell put this guide together to help you refresh your thinking for the market ahead. In it, you’ll find advice from mortgage experts including Maxwell Co-founder & CEO John Paasonen, Rob Chrisman himself, theLender EVP Chris Ledwidge, and more. Their advice will teach you ways to rebuild your pipeline, the borrower segments that are still rising in the housing market, and how to better leverage data to make confident business decisions. Lenders: The next five years likely won’t be anything like the last five. Now is the time to rethink your business. Click here to download your free copy of Maxwell’s Mini-Guide to Surviving Today’s Big Housing Market Reset.

Correspondent and Broker Loan Products

The number of people who have been taking out home-equity lines of credit has been increasing. In fact, according to a recent survey performed by Mphasis Digital Risk, 40% of U.S. Millennial and Gen Z residents would opt for a HELOC over other borrowing options, including traditional bank loans, peer-to-peer loans, and credit cards. Whether your clients are looking for help with financial flexibility, debt consolidation, liquidity support, or home renovations, Symmetry Lending’s HELOCs can help. With our flexible options, industry-leading service, and competitive rates, our HELOC solutions can give your clients exactly what they want. At Symmetry, we serve Loan Officers with speed and always make sure to keep the process positive and simple. You’ve got enough on your plate; allow Symmetry to save the day and put our HELOC to work for you and your client. Call your Area Manager today or visit here to learn more.

Are you ready to help clients whose student loan repayments are set to resume? Rocket Pro TPO is preparing broker partners to be part of the solution with Rocket’s Student Loan Busters! From cash out options to home equity loans, clients can potentially reduce their monthly payments, streamline their number of separate payments, and take advantage of tax benefits. Are you offering the Fannie Mae Student Loan Refinance which features a waiver of the cash-out price adjustments? Talk to your Rocket Pro TPO Account Executive to learn more. You need the best affordable lending solutions to deliver options to more clients. ONE+ by Rocket Mortgage provides an incredible opportunity for Rocket Pro TPO partners. With this product, eligible clients provide 1 percent towards the down payment and the other 2 percent down payment requirement is covered. Plus, clients are not responsible for paying the mortgage insurance! And learn how you can use their 3-2-1 Temporary Buydown for additional payment relief. Interested in learning more about a Broker or Non-Delegated Correspondent partnership? Contact Rocket Pro TPO to learn more.

Training and Events Next Week

A good place to start is here, and click on “events.”

Tuesday the 5th 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.

Join Plaza Home Mortgage® on Wednesday, September 6th at 11:00 AM PT / 2:00 PM ET for an insightful webinar where we will review Plaza’s Reverse Mortgage file flow process from loan scenario to funding. Plus, with our dedicated Reverse Mortgage Team guiding you through every step of this unique process, feel confident in setting the proper expectations for your senior clients to ensure a smooth closing. Don’t miss out on this important market segment.

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. Robbie and Rob will bring a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining.

Join Arch MI on Thursday, September 7th at 1PM ET for a featured webinar, Fundamentals of Employment Income, Understanding Documentation and Calculations. Presented by Stephanie M. Clark, AMP and Arch MI Senior National Trainer and Instructional Designer.

Please join MCT’s Phil Rasori, Chris Anderson, and Justin Grant on September 7th at 11am PT for an important webinar on MCT Geocoding & Bid Tape Protection Initiatives. In 2018, MCT launched an initiative to replace property address and loan number in the loan trading process. Recent headlines show that data security is more important than ever, which makes now the right time to finish the job and continue to reduce collateral NPI exchanged in the secondary market. Register today for a discussion of NPI, implementation plans to reduce its unnecessary exposure, and a review of internal data security and business continuity practices.

Loan servicers are invited to attend a free webinar on the MERS® Annual Report and third-party review process next Thursday, September 7th, at 3pm ET. Hear from the experts at Falcon Capital Advisors, an experienced and trusted third-party review firm, about the Annual Report process and how your organization can ensure it remains compliant with MERS® System requirements. Click here to register.

The Mississippi Mortgage Bankers Association is holding its fall conference September 7-8 in Jackson. Our theme for this year is “Building a Strong MS” We are focusing on building relationships, strategies, and opportunities for the real estate housing industry in MS. Our fall conference is open to loan originators, realtors, and other industry affiliates. Realtors will receive Continuing ED (CE) credits for attending the Fall Conference. On Friday, September 8th – 10:05 am – 11:00 am, join William Kooper, VP of State Government Affairs and Industry Relations at the Mortgage Bankers Association, for MAA/Legislative update.

Friday the 8th is The Mortgage Collaborative’s Rundown covering current events in the mortgage market for 30-45 minutes starting at noon PT in “The Rundown”.

The NAMB National Conference is just around the corner, and you don’t want to miss the opportunity to join Plaza Home Mortgage® for a thought-provoking session on Reverse Mortgages’ on Saturday, September 9th – 4:00pm at Caesars Palace, Emperor’s Ballroom 1. In this session, Mark Reeve, Plaza Home Mortgage® VP, Reverse Mortgage Division, will share why the aging Baby Boom generation, along with senior home equity – approaching close to 13 trillion dollars – is a market you cannot afford to ignore any longer. So, check out these highlights and learn who these borrowers are and how you can reach them.

Register for free with the code PLAZAFREE.

Capital Markets

We’ve now had three straight days of rallies in the bond markets (e.g., prices up, rates down). That’s happened about once in a blue moon as of late (the last time was in May), so good thing that we had a blue moon last night. Or “good” thing that yesterday we received some weaker-than-expected economic data in the form of the private sector adding 177k jobs in August versus 200k expectations, according to the ADP Employment Report. There was also the Dallas Fed Manufacturing Index falling to the lowest since May of 2020 and pending home sales falling in all four U.S. regions compared to one year ago. However, there were no significant changes to rate hike expectations with the implied likelihood of a November hike remaining just below the 50 percent mark.

Today brings the all-important Personal Consumption Expenditure report for July, which saw income and spending (+.2 percent & +.8 percent, respectively, both higher than expected) versus expectations of increases of 0.3 percent and 0.6 percent month-over-month, respectively. The Core PCE Price Index (+.2 for July, +3.3 percent for the year, no acceleration in inflation) versus expectations of it increasing 0.2 percent month-over-month and 4.2 percent year-over-year compared with 0.2 percent and 4.1 percent previously.

In employment news, we’ve also received job cuts from Challenger for August: U.S.-based employers announced 75,151 cuts in August, a 217% increase from the 23,697 cuts announced one month prior, 267 percent higher than the 20,485 cuts announced in the same month in 2022. Weekly jobless claims were 228k, down from 230k, 1.725 million continuing claims. Later this morning brings Chicago PMI for August, Freddie Mac’s Primary Mortgage Markets Survey, and remarks from Atlanta Fed President Bostic and Boston Fed President Collins. We begin the day with Agency MBS prices are better by .125 and the 10-year yielding 4.09 after closing yesterday at 4.12 percent. The 2-year is at 4.86 after the slew of economic news.

Jobs and Transitions

Champions Funding is actively looking for experienced Account Executives in the Non-QM space due to increased loan production and expansions to its product suite. Offering a competitive ITIN solution for both consumers & investors, Champions is increasing opportunities for the American Dream with the upcoming roll-out of Foreign National for investors plus expanded guidelines to include 5-8 units. These programs plus competitive DSCR & No Ratio are meeting the increased need in the market for other Non-QM options while fueling the company’s growth exponentially. CDFI improvements on all programs for eligible borrowers also differentiate the Champs from other Non-QM lenders. For immediate consideration, experienced Non-QM Account Executives are encouraged to reach out to Angela Castillo.

Directors Mortgage has hired one of the former NW Mortgage Group owners, Marty Quandt (NMLS-40554), as VP Builder Division to lead Director’s expanding builder division and help lead the company’s loan officer growth and development initiatives across the western United States. Marty, along with three other owners, started NW Mortgage Group in July 1995, just three years before Mark J. Hanna (NMLS-91462) founded Directors Mortgage in July 1998. And from there on, they watched each other’s companies succeed in the marketplace for many years until NW Mortgage Group sold to another company in 2014. “Marty’s years of expertise and leadership will bring a unique set of skills that our team members and clients will benefit from,” said Directors Mortgage CEO & Founder Mark J. Hanna. “To have such a long-standing professional in our industry join us is a testament to what we’ve built at Directors Mortgage.” (NMLS-3240. AZ Mortgage Banker License BK-0942517. Equal Housing Opportunity Lender.)

The Money Store welcomed John Palmiotto, a seasoned industry leader, to the company’s C-suite as the Chief Production Officer.

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

Source: mortgagenewsdaily.com

Apache is functioning normally

Left to right: Chris Scott, Joey Mitchell, Shane Cranton

Ardan Data Services, the parent of affiliated companies Westcor Land Title Insurance Co., X1 Analytics and Grid151, announced the hiring of sales leaders Joey Mitchell, Shane Cranton and Chris Scott as it seeks to expand its customer base in lender and closing automation. Mitchell joins as senior vice president of enterprise sales for all three businesses, tapping into his knowledge of title, settlement and technology in order to support lenders, agents and underwriters and drive client acquisition. The companies also welcomed Cranton as executive vice president of enterprise sales, a role where he will draw from his experience of helping companies meet goals through both organic growth and targeted acquisitions. Both Mitchell and Cranton previously held senior roles at Flueid and Title365. 

Additionally, Grid151, which provides digital platforms connecting real estate, title and mortgage industries, welcomed Chris Scott as director of national sales. In the role, Scott will work with title agents to implement workshare solutions to help drive growth. Before joining Grid151, Scott held sales roles at National Closing Solutions and Placer Title Co.

Source: nationalmortgagenews.com