Stratmor Group

Apache is functioning normally

Automated AOT, TPO, Appraisal Fee, LOS Products; Labor Data Pushes Rates Higher

<meta name="smartbanner:author" content="We now have a native iPhone
and Android app.
Download the NEW APP”>


This website requires Javascrip to run properly.

Automated AOT, TPO, Appraisal Fee, LOS Products; Labor Data Pushes Rates Higher

By:
Rob Chrisman

Thu, Jul 6 2023, 10:35 AM

Apparently China is not paying interest on its sovereign debt… What is it waiting for? If you’re waiting for lower rates to give your business a “shot in the arm,” the next few months may be difficult, but there is good news. The persistence of stubborn inflation is causing U.S. and European officials to tighten monetary policy. With both the Federal Reserve and the European Central Bank expected to raise interest rates in July, an aggregate measure of borrowing costs indicates a peak of 6.25% in the current quarter, highlighting a shift from the previous projection of 6%. Despite that, new home sales are surging, home prices are rising, and prospective buyers are engaging (as if they ever stopped) in bidding wars again. But U.S. housing prices have led to higher shelter costs and complicate the Federal Reserve’s fight against inflation. Barron’s discusses this in, “How a Housing Rebound Could Impact the Fed’s Path Forward.” Is the huge overhang of housing supply from the 2000-2007 housing bubble not fully absorbed? Yes, higher rates have impacted affordability, but, historically, LOs know that high rates don’t necessarily impact peoples’ desire to own a home. If rates go up a lot, good LOs will help with good programs, and some people will buy smaller homes. But they will still buy homes. (Today’s podcast can be found here and this week’s is sponsored by Gallus, the premier business intelligence tool for the mortgage industry. With hassle-free insights and user-friendly functionality, Gallus empowers you to make faster, data-driven decisions for enhanced profitability. Hear an interview with Jeremy Potter on the shift toward innovative lending practices and new underwriting standards.)

Lender and Broker Software, Services, and Products

Studies show that 78% of salespeople who use mortgage social media marketing outperform their peers. Of course, you’ll want to be up to speed on social media best practices and a few dos and don’ts to get the best results. The Black Knight team behind the Surefire, CRM and Mortgage Marketing Engine, has developed a free toolkit on Social Media Success to help you develop social media campaigns that reach the right audience at the right time and with the right message. Download it now to start connecting with more homebuyers.

Do you love your LOS? Byte clients do. And now they have even more to love with access to the digital closing automation and efficiencies of the Snapdocs eClose platform. The Byte LOS platform and Snapdocs have an integration that seamlessly helps lenders close loans faster, reduce operating costs, and improve the borrower experience. If you’re an LOS control freak, you’re going to love the exceptional level of control and customization you have with Byte. Watch the Byte – Snapdocs integration demo or visit bytesoftware.com to learn more about Byte’s free 30-day LOS test drive.

“Are you leaking revenue from uncollected appraisal fees? Book a complimentary consultation with one of Reggora’s mortgage solutions specialists to calculate how much you’re losing in fees each year. We’ll calculate your annual losses, benchmark them against 2023 mortgage industry averages from STRATMOR Group and show you how to eliminate that leakage.”

Explore Kind Lending’s Non-Delegated offerings! The KIND of service you expect: From seller, underwriting, disclosing, closing, funding, and to purchase, we’re here to help you every step of the way. Experience the Kind difference today: Speed & Price, Options, Support, Communication, Marketing & Training, Products, & so much more!

Planet Home Lending can now purchase conventional loans closed with an eNote for the Best Effort, Delegated Correspondent, Bulk Purchase, and Co-Issue programs, which means doing business with us just got even easier. Clients who close and fund with eNotes realize fast loan delivery and purchase, and shorter warehouse times on loans held for sale, simplifying and streamlining delivery. Commitment to and investment in leading-edge technology is just part of our dedication to growing your business. Contact your Regional Sales Manager for more details or reach out to SVP Correspondent Sales Jim Loving (414-270-0027). Improve your execution. Put Planet to work for you.

Webinars, Events, and Training

A list of upcoming conferences and major events can be found here under the “Conferences” tab. Meanwhile, there’s plenty going on next week… the 11th is crazy!

If you’ve ever wanted to get a book published on Amazon, you’ll want to attend this webinar! Join Ginger Bell’s Live Webinar on July 11th at 11 am PT. Discover the secrets to effortlessly publishing your own book and unlocking the power of having a published book on Amazon. Reserve your spot today and unleash the potential of being a published author!

Learn more about a Rocket Pro TPO partnership, and save the date for the next IGNITE Live on Tuesday, July 11th at 2PM ET. Mike Fawaz, EVP of Rocket Pro TPO, is sharing some lesser-known facts about Rocket Pro TPO that can benefit your business! Sign up with the link here!

Join AGENT U on July 11th at 12:30-1:30pm ET for the next installment of its free monthly webinar. This month, the hosts are speaking with top-producing agent Josh McGrath to learn about his strategies for building a reputation in one’s hometown to improve lead generation. In this fast-paced world of real estate, the game is constantly changing, and you have to adapt. BUT, some things will ALWAYS be the same for your marketing methods. Plus, get your questions answered during the live Q&A session.

National MI July 2023 webinar sessions: Creating Infinite Referrals ​​​​​with Rebecca Lorenz – July 11th at 1pm ET. The 4 Faces of Frustration ​​​​​​with Andrew Oxley – July 12th at 2pm ET. How to Reduce Rate-Shopping Behavior ​​​​​with Dr. Bruce Lund – July 13th at 1pm ET.

October Research, LLC will host the next webinar in the Economic Forecast Series featuring Brandi Snowden, director, member and consumer survey research, National Association of Realtors (NAR) at 2 p.m. July 11th. Register today to learn the latest on home sales, pricing, market conditions, generational trends and more. Hear expert insights on the economy in just 30 minutes. Register today at DoddFrankUpdate.com.

Which direction will the economy go next? What trends are we seeing in the housing market? The National Association of Realtors (NAR) Director of Member and Consumer Survey Research Brandi Snowden will be sharing her insights on those questions and more. Join the next edition of the Economic Forecast Series on July 11th at 2:00 p.m. ET

Register for Appraiser eLearning 3hr Live-Zoom CE Course on Tuesday, July 11, Attorney Peter Christensen will offer 15 takeaways and lessons from legal situations and cases involving appraisers. What can appraisers learn from their colleagues’ legal misfortunes?

Diehl’s FHA Underwriting, Processing and Origination Live Webinar, July 11, 13, & 14, 1-5pm EST, is a comprehensive course designed and presented in a no-nonsense format. We will guide you through over 500 pages of material in the handbook including basic rules, regulations, and changes issued by HUD along with all the topics listed below. This course is divided into three 4-hour interactive webinars. Attendees will be able to download the presentation for notetaking along with calculation worksheets for a variety of scenarios.

Is your organization ready to get into Home Equity lending? If you’re already lending, are you trying to find new ways to save time and reduce costs? Join experts from Stewart Lender Services and Curinos online at 4:00 PM on July 12th, Emerging Solutions in Home Equity – Title, Settlement and Closing. The panel will go over everything you need to know about Home Equity lending and provide detailed insights into what it means for you and your organization.

Join MMLA Southeast Chapter at the Federal Reserve Bank – Detroit Branch on Thursday, July 13th, 11:30AM-1:30PM to hear from speaker, Martin Lavelle, senior business economist. Martin will provide insight into what’s really going on with our economy and what it means for our business. Get an exclusive tour of the building after lunch. All registrations need to be made before July 9th for security purposes.

On July 13th & 14th, Appraiser eLearning is hosting a workshop in Nashville for AeL faculty and aspiring instructors. Learn how to design great presentations, write great marketing copy, keep a classroom engaged, and offer your fellow professionals something they need and want.

On Friday, July 14, learn about PRMG’s non-QM Alternative AUS Solution product which provides options for conforming and jumbo loans amounts for using DU Findings to qualify, along with options like non-warrantable condos and condotels.

Join the California Association of Mortgage Professionals for the 2023 Annual Convention and Gala Extravaganza, July 14th and 15th. Education, engaging speakers, network with the area’s top mortgage professionals, a robust expo hall, & of course a good deal of fun.

Friday the 14th at noon PT is the next edition of The Mortgage Collaborative’s Rundown with Melissa Langdale and me. We’ll will be covering current events in the mortgage market for 30 minutes starting at noon PT in “The Rundown”.

Capital Markets

Mortgage Capital Trading, a leading mortgage hedge advisory and secondary marketing software firm, announced recently that it has automated the process of digital TBA trade assignment during the loan sale process for both mortgage lenders and participating correspondent investors. This automation makes assignment of trade loan sales (AOTs) faster, more convenient, and easier for investors to offer, and is expected to further expand on the $19.5 million in cumulative savings experienced by MCT’s lender clients as a result of AOTs in 2022. AOTs enable mortgage lenders to save the bid-offer spread on the to-be-announced mortgage-backed securities (TBAs) used to hedge their open mortgage pipeline. Due to market volatility these bid-offer spreads have been historically wide, averaging 11.3 basis points in 2022. Participating MCT lenders saved an average of $97,538 each through AOTs in 2022. Read the full press release to learn more or join MCT’s newsletter for timely market content.

In bond news, we had hoped that moderating inflation would have a positive impact on rates by the middle of this year. Nope. While inflation has shrunk, the interest rate environment has not cooperated, as any LO can tell you. With no points, the conforming 30 year fixed is now solidly entrenched above 7%. This, despite news that should have moved rates lower, such as the Federal Reserve’s favorite measure of inflation, Personal Consumption Expenditures hit 3.8 percent year-over-year and 0.1% month-over-month. This was great news to illustrate an improving inflation picture, but the bond market didn’t care, instead focusing on the red-hot labor market.

Did someone say labor? The Federal Reserve views increased joblessness as key to reducing inflation to their target rate of 2 percent but there are 10 million + job openings with only about 6 million people looking for work.

Everyone outside of capital markets thinks we speak a different language. For example, at the end of yesterday “crossing the tape” was this message: “U.S. markets returned after plus-or-minus one day break only for bonds to get crushed as a belly-led Treasury market selloff unnerved investors as yields tagged their highest levels since early March, 4.95 percent and 3.95 percent in the case of 2s and 10s, with damaged technicals leading to further liquidations and a pop in vol ahead of Friday’s payrolls report.” What does that mean? Well, bond prices were pushed down (and yields up to the highest levels since early March) as investors noticed that prices moved below previous “support” levels with signs that the global economy is not slowing and markets pricing in additional rate hikes from the Fed and ECB. The 2s/10s yield curve spread remains inverted by over 100 basis points.

Investors received some additional insight yesterday into the Fed’s thought process at the June Federal Open Market Committee meeting, when there was less consensus than the unanimous decision suggested in leaving rates unchanged. Some officials favored rate increases but went along with the move to leave policy unchanged, despite concerns that core inflation hasn’t moved downward much in the last six months.

Whatever the disagreement among Fed officials, it’s fair to say the key takeaway is that more hikes are coming, as almost all officials said that additional increases would likely be appropriate. We did learn last week that Core PCE inflation is still running hot, but it did edge slightly lower to 4.6 percent year-over-year in May. The annual increase in the PCE Price Index ex-food and energy (the core rate) is the Fed’s most important inflation indicator and has flitted back and forth between 4.6 percent and 4.7 percent this year. Personal spending did stall in the second quarter, which will be welcome news to the Fed. “The smartest guys in the room” think that the Fed is going to hike 25 basis points on July 26.

Mortgage applications from MBA kicked off today’s calendar, decreasing 4.4 percent from one week earlier, with mortgage rates and yields both climbing during the reporting period. We’ve also received some labor market updates ahead of tomorrow’s payrolls report starting with layoffs from Challenger, Gray & Christmas for June: U.S.-based employers announced 40,709 cuts in June, down 49% from the 80,089 cuts announced in May but up 25% from the 32,517 announced in the same month one year prior. We also had the ADP employment for June (+497k, double expectations), and weekly jobless claims (248k, also higher than expected, 1.72 million continuing claims). Later this morning brings the final June S&P Global services PMI, ISM non-manufacturing PMI for June, JOLTS job openings for May, and remarks from Dallas Fed President Logan. We begin the day with Agency MBS prices worse .250, the 10-year yielding 4.03 after closing yesterday at 3.95 percent, and the 2-year up to 5.06 on the strong labor market news.

Jobs

“At AFR Wholesale®, we are still looking for experienced and eager Account Executives for both our Wholesale and Correspondent Divisions! Knowledge of construction and renovation is a plus. If you have an overall desire to bring more families home and to make a difference, we would love to speak with you! We like to offer a close community that feels like home to thrive and make dreams become a reality. We are looking for experienced candidates because at AFR, we recognize that some scenarios can be challenging, and we want to provide a home for all possible circumstances. That is why we do what we do. At the end of the day, it’s about being proud we made it possible to turn a house into a home. AFR is an equal opportunity employer. Apply now! Contact AFR by going to www.afrwholesale.com, email [email protected], or call 1-800-375-6071.”

“Are you a Wholesale Account Executive wanting to make a change? FLCBank is looking to expand our mortgage division team in the northeast, southeast, central and northwest. If you are looking for a company with a tenured mortgage culture of collaboration, team-based success, and the security of working for a federal bank, then it’s time to contact FLCBank’s Bob Eisendrath, Strategic National Account Manager (414.350.3986). FLCBank is agency approved, offers a suite of bank and jumbo products with IO options on both conventional and jumbo loan balances. Our AEs work with Brokers, Non-Delegated Correspondents and can even offer warehouse lines to customers. FLCB cultivates a fun team environment where both sales and operations staff are passionate about delivering exceptional customer experiences with every loan. We offer competitive compensation, an energized culture, and an experienced operations & support staff. FLCBank is an Equal Opportunity/Affirmative Action Employer.

“USA Mortgage announces new leadership roles for three executives! Employee-owned national mortgage lender, USA Mortgage, has promoted three senior executives to new leadership roles. Doug Schukar, who formed DAS Acquisition Company, LLC, (marketed as USA Mortgage nationwide) in 2001, is handing off his duties as CEO to current President and COO, Linda Pring. Schukar remains Chairman of the Board. Assuming the role of President is Ron Mueller, currently Executive Vice President. Dani Ploch, Chief Administrative Officer succeeds Pring as the company’s COO. USA Mortgage is a full-service mortgage bank known for its entrepreneurial spirit and commitment to superior customer experiences. Recognized as an industry leader, it has been named to 50 Best Companies to Work For, St. Louis Titan 100, Top Workplaces Excellence Awards, St. Louis Post-Dispatch Top Workplaces, Top Lender, along with several Scotsman Guide awards, and many more. For a confidential conversation about joining us, contact Brooke Anderson at 609-500-1520, or visit us here to learn more.”

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

Source: mortgagenewsdaily.com

Apache is functioning normally

Apache is functioning normally

“Once data is identified, the system can then run a series of automated comparison checks or rules,” Jennifer Fortier, principal at Stratmor, said.

Automated comparison checks can help solve one of the biggest issues in mortgage banking: a lack of trust in data provided by borrowers and lenders.

“We spend a ton of time and money trying to convert proof that’s typically provided in the form of images into data we can use, then hand that all off to the next person, who does not trust the data either,” Garth Graham, senior partner at STRATMOR, said.

Ultimately, the lender packages the loan to sell to an investor, who doesn’t trust any of the data in the file, and the process starts all over again, Graham noted. 

If AI can confirm for all parties – including the lender, borrower and investor – that the data is correct, the cost to originate loans will go down, according to Graham. 

The average cost to originate a loan climbed to a record-high of $13,171 in the first quarter of 2023 due to a further drop in origination volume, according to the Mortgage Bankers Association (MBA).

Other areas where AI can be beneficial for lenders include boosting conversion rates, improving the automated underwriting process, detecting fraud and providing a personalized customer experience, the report notes.

“AI should be powerful in the near-term at handling the most mundane tasks being assigned to lower cost resources inside of lending organizations, especially for the work that follows a very predictable pattern,” Brett McCracken, senior advisor at Stratmor, said.

But when it comes to the question of when more lenders will embrace AI implementation, there are hurdles to overcome. Data quality, regulatory compliance, model bias, a lack of AI literacy and potential job displacement concerns are all barriers to adopting AI tech. 

In addition to the potential legal and ethical challenges, lenders will need to review how the workflow should be changed to fully optimize the benefit of the AI solution. Lenders will also need leadership to understand what AI can and can’t do — and have someone in the lender’s shop who understands the AI being implemented in order to monitor and manage it. 

“I think AI can eventually replace most non-borrower facing tasks on the mortgage loan. When AI can do more to simulate human thinking and intelligently assess questions that are not as easy as ‘pass or fail,’ we will have reached a tipping point into AI,” Jennifer Fortier, principal of Startmor, said.

Source: housingwire.com

Apache is functioning normally

Apache is functioning normally

Automation, ROI Calculation, Homeowner Engagement Tools; STRATMOR on AI Adaption; Rates and Builders

<meta name="smartbanner:author" content="We now have a native iPhone
and Android app.
Download the NEW APP”>


This website requires Javascrip to run properly.

Automation, ROI Calculation, Homeowner Engagement Tools; STRATMOR on AI Adaption; Rates and Builders

By:
Rob Chrisman

Fri, Jun 23 2023, 10:43 AM

Time is an interesting construct. The solstice is officially behind us, and we can officially hum “The Boys of Summer” with impunity. Time… “5,000 years of eating bread. And in less than a decade it seems half the population is allergic to gluten!” Shifting times, and ages, mean a lot to LOs. If 10,000 people a day turn 62, does that mean reverse mortgages might be worth exploring? I don’t know when the terms “elderly” or “middle-aged” became politically incorrect. How about the term “geriatric millennial?” Although there appears to be a bit of a baby boom going on, no one’s getting any younger: The nation’s median age increased by 0.2 years to 38.9 years between 2021 and 2022, according to Vintage 2022 Population Estimates released by the U.S. Census Bureau. (“Median:” half above and half below.) A third (17) of the states in the country had a median age above 40.0 in 2022, led by Maine with the highest at 44.8, and New Hampshire at 43.3. Utah (31.9), the District of Columbia (34.8), and Texas (35.5) had the lowest median ages in the nation. Hawai’i had the largest increase in median age among states, up 0.4 years to 40.7. LOs ignore demographics at their own risk. (Today’s podcast can be found here and this week’s is sponsored by MCT and its Hedge Advisory division. Download their recently released whitepaper, Mortgage Pipeline Hedging 101, for more information on hedging in today’s market. Today’s has an interview with MCT’s Andrew Rhodes on assignment of trade – AOT – and loan sale automation.)

Broker and Lender Services, Products, and Software

Despite the doom and gloom in the headlines these days, there is a market to tap into. Nearly 10 million families will need to buy or sell a house this year, and Percy has helped its clients earn the business of 10,000 of them in the first quarter of 2023 alone. Percy’s private-labeled homeowner engagement solutions hook homeowners with equity and financing insights and have helped housing professionals start conversations representing $7.5 billion worth of business this year. You deserve a partner that will put your brand front and center and deliver. Check out Percy’s Equity Insights to learn how our clients average 400% ROI.

Ascertaining value can be difficult without the right expertise, as a 2004 visitor to Antiques Roadshow discovered when his great-grandfather’s pocket watch turned out to be a 1914 Patek Philippe worth nearly $250,000 at the time. To help LOs assess the value of their referral partnerships, Mobility Market Intelligence (MMI) has announced the release of its ROI Calculator. Using the ROI Calculator, LOs gain deep insights into their buy-side real estate agent relationships and measure the impact on production volume by increasing their agent wallet share. For example, a lender averaging $1B in annual volume would see that increasing wallet share 0.1% with their current partners results in nearly $10M in additional volume. That same lender could also see that in the last year, they left more than $9B in uncaptured partner volume on the table. Know your partners. Know their worth. Get the ROI Calculator from MMI here.

Are you tired of having to adjust head count every time the market changes? The Mortgage Automation Suite, brought to you by Richey May and Zoral, can help. With scalable automated solutions that improve accuracy while reducing repurchases and costs, your business will be well-equipped for any market cycle. Leveraging this powerful automation will allow your team to close loans more easily, helping to retain your best staff. Plus, it adds the extra layer of stability needed during difficult times; something we could all use a bit more of these days! Find out how the Mortgage Automation Suite from Richey May & Zoral can help you today. Email [email protected].

Need processing support for Non-QM or FHA manual underwrites? Carrington Wholesale has launched ProcessIQ to help expand broker capacity and increase capabilities for time intensive and/or complicated loans such as those with low FICO, high DTI, Non-QM (bank statements, DSCR, high balance) and FHA/VA manual underwriting loans. The Carrington ProcessIQ team handles all the logistics, jumps in and works directly with borrowers to process the loan. For more information contact Amy Marsh at (714) 642-2044.

STRATMOR, AI, and Originators

What will it look like to be an AI-powered loan officer? In the brave new world of AI, an originator’s main value will not be in their ability to gather borrower information, quote a rate or even convey periodic progress updates. Their value will, more than ever before, be centered around soft skills like creating rapport and building trust. How can mortgage professionals benefit from AI while also taking advantage of its limiting factors? In his June CX Tip, STRATMOR Group’s MortgageCX Director Mike Seminari outlines what originators can do to adapt and reinvent themselves by harnessing, not competing with, AI. He shares three steps originators can take now to AI-proof their careers in his article, “Mortgage Originators’ Guide to Success in the Age of AI.”

Capital Markets, Existing Home Sales, and Builders

Like frogs being cooked in cool water that gradually reaches boiling, rates have been edging higher as people realize that the Fed is actually doing what it has been talking about doing. As with anyone involved in real estate or lending, rising mortgage rates have trickled up to builders because many buyers can no longer afford the homes they ordered when rates were lower at current rates. Instead of cutting prices, builders are finding other ways (below market mortgage rates, free upgrades etc.) to give more value to the buyer without impacting the comps.

Historically, housing has been a critical driver of the broader business cycle. Existing-home sales (completed transactions that include single-family homes, townhomes, condominiums, and co-ops) increased 0.2 percent in May to a seasonally adjusted annual rate of 4.30 million, according to the National Association of Realtors. Sales were mixed among the four major U.S. regions, with the South and West posting improvements and the Northeast and Midwest experiencing pullbacks. All four regions experienced year-over-year sales declines, and aggregate sales nationally dropped 20.4 percent annually (down from 5.40 million in May 2022). Separately (and fortunately), the number of U.S. homes beginning construction unexpectedly surged in May by the most since 2016 and applications to build increased, suggesting residential construction is on track to help fuel economic growth. Homebuilders have responded to limited inventory in the resale market, and have grown more upbeat as demand firms up, and materials costs and supply chain pressures fade.

The housing market is likely to pull the economy out of any future slowdown, and mortgage rates heavily influence the direction of home sales. It’s widely known that millions of Americans are locked into their property through low mortgage rates from the QE4 program. It remains to be seen what happens in the coming months, but for June, borrowers have seen a slight stabilization of rates across a range of industries, which should be a tailwind for mortgages. Will steady rates spur those who have been holding off to finally engage in a new purchase or refinance? Consistent rates should lead to consistent home sales.

While volatility has dropped this month, affordability and credit availability issues remain. The shortage of skilled labor and cost of building materials means that new construction will have a limited effect on affordability, and wage growth will have to do the heavy lifting. The supply of homes available for sale sits at 2.9 months, well below the trailing average of 5.4 months seen over this millennium. A $300,000, 30-year 6.8 percent fixed rate mortgage has a monthly payment of about $2,000, up from around $1,300 at rates slightly above 3 percent as seen in January 2022. Lenders have pulled back on loan offerings for higher LTV and lower credit score loans, even as loan applications continue to run well behind last year’s pace. Reflecting higher mortgage rates and concerns about the economy, mortgage credit availability dropped 3.1 percent in May, according to MBA. The index has dropped ten of the past twelve months to now sit nearly 20 percent lower than it did one year ago and at the lowest level since January 2013.

And let’s remember the adage, “Don’t fight the Fed.” Yesterday’s market moves stemmed largely from overnight rate hikes from the Swiss National Bank (+25 basis points), Norges Bank (+50 basis points), Bank of England (+50 basis points), and the Central Bank of Turkey (+650 basis points), which served as reminders that central banks are not quite to the light at the end of the tunnel in the struggle to rein in inflation. On a related note, Fed Chairman Powell appeared before the Senate Banking Committee yesterday and he doubled down on the hawkish view that the Fed isn’t done battling inflation. He repeated the need for more rate hikes during the conclusion of his semiannual testimony on monetary policy and reiterated that the Federal Open Market Committee does not expect to cut rates anytime soon. He noted that policymakers believe that the appropriate fed funds rate range is within a couple hikes of the current level and that the central bank also remains attuned to its employment mandate.

Not much going on today except for preliminary June S&P Global PMIs and several Fed Presidents speaking starting with St. Louis’ Bullard, who will be followed by Atlanta’s Bostic and Cleveland’s Mester. We begin the day with Agency MBS prices better by .125-.250 and the 10-year yielding 3.74 after closing yesterday at 3.80 percent.

Employment

Angel Oak Mortgage Solutions’ is hiring in several markets across the country! Are you a Rockstar Account Executive looking for a new home? Looking to join a firm with a strong culture, new technology and an unparalleled operations focus? Come join the team with the leader in Non-QM at Angel Oak. Hiring locations: Missouri, Wisconsin, Indiana, Southern Ohio, Northern California, Northern Virginia, Charlotte, North Carolina, Philadelphia, Pennsylvania, Rhode Island, and Connecticut. Apply here.

A top-rated national retail lender with headquarters in the Southeast is searching for a VP of Sales to join its exec team. This lender has strong backing that provides stability, an elevated level of support and a large residential builder network which offers expansive growth. The VP of Sales will design, develop, and execute thoughtful strategies and tactics to increase business development and strengthen customer and partner relationships. Interested parties can send confidential resumes to Chrisman LLC’s Anjelica Nixt for forwarding to the company.

“Hey, mortgage sales professionals do not join radius financial group for our amazing culture, president club trips, best workplace accolades, 100% 401K match or because of our shared success program which grants phantom stock to ALL employees. Join radius to grow your business, mortgage team and wealth. Over the past 23 years, radius has become the best at what we do by caring intensely about the career growth of our team members and investing in technology that simplifies and automates our process. We are a world-class customer obsessed team focused on our loan officers’ growth and success. So, if you want real opportunities to grow, the ability to make a positive impact starting on day one and the freedom to chart the career you’ve always wanted, at radius, you can! For confidential inquires please contact Carla Herrera and visit us at radius financial group inc., Mortgage Lending Careers.”

Sovereign Lending Group, LLC is expanding its team of consumer direct loan officers at Fashion Island in Newport Beach, CA. This is a great opportunity for those interested in joining a company that provides superior marketing and a diverse suite of products, committed to adding value for Sovereign’s loan officers and creative borrower solutions. If you’re interested in joining the team, be sure to contact Matthew Cataño (949-736-9148).

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

Source: mortgagenewsdaily.com

Apache is functioning normally

Approximately 60% of commissioned mortgage professionals claim to be living paycheck to paycheck because of delays in payment in the midst of lower origination volume, a survey from payroll technology company Everee found.

A 84.4% share of respondents, who held a variety of roles besides loan officers, felt getting paid faster would enable them to manage their personal finances more effectively.

“When you look at wage growth compared to inflation, real earnings have been down for the past 26 straight months, and that has its impact on employees,” said Ron Ross, president of Everee, in an interview.

Ross added the findings that 60% are living paycheck to paycheck was a surprise, but noted that mortgage industry workers are not immune to the pressure others are feeling, where nearly three out of four are dealing with a personal financial crunch between pay periods.

Bill Corbet, partner and managing director lending strategy at BlackFin Group, agreed with this sentiment.

“This is certainly exasperated by the lag between their sale and closing, which triggers the standard (delayed) pay cycles,” Corbet said in a statement. “Faster pay cycles clearly help the loan officer but the customer may also benefit in that the LO is not pushing to close just to meet a cut-off date for getting paid.”

Because home sales transactions are taking longer, mortgage workers on commission are getting paid at a less frequent pace.

“So once that deal closes, they want their commission within a day versus having to wait another two weeks, sometimes even upwards of 45-plus days,” added Dana Gagnon, Everee’s chief marketing officer. “It’s not really acceptable anymore.”

And while the Federal Open Market Committee did not hike rates at its June meeting, it left the door open for future upward movement, creating more uncertainty for the housing market, Ross said.

“So if you’re a mortgage professional, you’re having to start to think, is this going to get worse, should I be thinking about staying in the profession and if I’m going to stay in the profession, what would it take me to stick around?” Ross said. “We’re seeing them appreciate more predictability and quicker payments when they’re owed that money.”

While more than half responded that they were not planning on leaving the mortgage industry in the next 12 months, 32% answered the question in the affirmative and 15% said they didn’t know.

For those considering dropping out of the business, 56% stated the uncertainty of the market affects their decision on whether to stay or go.

The fundamental problem is that the mortgage industry still has too many loan officers chasing fewer opportunities, said Jim Cameron, senior partner at Stratmor Group, in an interview.

“Our data over the years has shown that the bottom quintile of loan officers have a turnover of roughly 100%,” Cameron said. “So basically, the bottom dwellers rotate out every year.”

But with volume dropping by half year-over-year, more of that group is likely to consider a change, and that is shown in the response to the stay or go question, he said.

The declining number of transactions has resulted in a 48% decline in commissions, Stratmor’s data found.

Over eight in 10 of respondents to the Everee survey, 82%, claimed they would remain at their current lender long-term if they were paid commissions within 24 hours. However, more than 60% stated they had to wait at least two weeks to get paid, with 22.3% claiming it took a month and 11.5% reported it was even longer.

However, loan officer compensation in particular has long been a hot button topic in the mortgage industry, with a panel at last October’s Mortgage Bankers Association annual convention warning against having overly creative arrangements for pay.

On the other hand, with all the turmoil, especially with mass layoffs and company closures, employees have been suing to recoup allegedly unpaid wages.

In choosing a place to work, the commission rate was No. 1 among the factors respondents were asked to rate, which was no surprise given their desire for predictability and the size of their earnings, said Gagnon.

The next two were having flexible working hours and offering flexible work locations.

“Like with the rest of the American workforce, there’s that push to return to office and mortgage professionals are in that same boat,” Gagnon said. However, “they still want the flexibility that they were afforded during the pandemic.”

Fourth was company leadership, followed by speed of commission payments, the consistency of business and company culture.

In the bottom two positions on the list were health and retirement benefits.

Everee surveyed 314 mortgage workers compensated on a commission basis during May. Managers made up 35% of the sample, with 27% being LOs, 18% loan processors, 8% underwriters and 12% holding some other role. Just over half of the respondents have been in the mortgage business for five years or longer.

Source: nationalmortgagenews.com

Apache is functioning normally

While there’s a lot of uncertainty and doom and gloom in the world right now due to COVID-19, one bright spot appears to be mortgage rates.

Sure, they’ve been on a rollercoaster ride of late as lenders grapple with secondary market upheaval and capacity issues, but the 30-year fixed remains near record low territory.

It averaged 3.50% last week, per the latest Freddie Mac survey, which given the environment right now should absolutely be taken with a grain of salt.

But once the Fed’s new MBS buying spree pays dividends, we might see some normalcy with interest rates again, and hopefully a more stable mortgage industry.

Wells Fargo Pegs the 30-Year Fixed at 2.90% for Much of 2020

That brings us to a forecast from Wells Fargo, the largest U.S. mortgage lender on total volume, which pens a weekly economic commentary.

In it, they note that the conventional mortgage rate for the second and third quarter of 2020 is expected to average 2.90%. And only rise to 2.95% for the fourth quarter of 2020.

That’s down from 3.30% in the first quarter, and a sign that low mortgage rates should persist despite the recent disruptions partially attributed to COVID-19.

The caveat here is their forecast probably relies on somewhat normal market conditions, for which these are most definitely not.

This explains why Quicken Loans CEO Jay Farner was quick to dampen the possibility of a 30-year fixed below 3%.

These aren’t normal times, and lenders are under no pressure to lower mortgage rates more than they already are.

If you’ve got more demand than you know what to do with, why would you lower the price? The answer is you wouldn’t.

Spread Between 10-Year Bond Yield and Mortgage Rates Near All-Time High

  • The 10-year bond yield is close to its all-time low
  • The spread between mortgage rates and 10-year yields is near an all-time high
  • If spreads normalize over time it’s possible the 30-year fixed could dip below 2%
  • But busy lenders have little incentive to lower mortgage rates right now

For those who look at the 10-year bond yield to get an idea of the current price or direction of long-term mortgage rates, it’s becoming increasingly flimsy.

Per the latest insight report from mortgage advisory Stratmor Group, the spread between 30-year fixed mortgage rates and the 10-year bond yield recently increased to 250 basis points, which is nearly an all-time high.

In more normal times, the spread is close to 170 basis points, so those watching the 10-year plummet to new all-time lows might be disappointed, at least for now.

At last glance, the 10-year yield was around 0.65%. If we add 250 basis points, we get a 30-year fixed around 3.15%, which sounds about right with some mortgage lenders.

If the spread was more typical, lenders could be offering the 30-year fixed at closer to 2.50%. But don’t hold your breath.

Again, they’ve got no incentive to lower interest rates from where they are at the moment. So no, you aren’t getting a 0% mortgage rate or anything close.

Remember, apply for a mortgage when things are slow if you want the true discount passed along.

Speaking of, there’s certainly a case for waiting to refinance your mortgage.

Some arguments include a lower interest rate, lenders who are less busy and more attentive, and the idea that there might some more favorable forbearance offered to existing homeowners.

The possible downsides to waiting to refinance include the possibility of interest rates rising, and also the grim chance one might lose their job in the meantime, or suffer some break in employment that jeopardizes the entire application.

Those who need a jumbo loan may want to move a little faster, given there have been some dislocations in the non-agency market due to liquidity concerns, along with tighter underwriting standards.

Just take a look at non-QM lending, which has all but been put on hold in the past week or so due to warehouse lenders pulling the plug on anything deemed too high-risk.

Source: thetruthaboutmortgage.com

Apache is functioning normally

IMB Wanted; 1% Down, Compliance Products; Training and Webinars Next Week; STRATMOR on Brokers

<meta name="smartbanner:author" content="We now have a native iPhone
and Android app.
Download the NEW APP”>


This website requires Javascrip to run properly.

IMB Wanted; 1% Down, Compliance Products; Training and Webinars Next Week; STRATMOR on Brokers

By:
Rob Chrisman

2 Hours, 50 Min ago

My notes from the MBA’s conference this week continue, including talk about new home sales being +4.1 percent for the month (+11 percent year over year, bringing a smile to builders everywhere). Although most of the focus of the conference was on the secondary markets (although let’s face it, there isn’t a plethora of new investors or products), the primary markets continue to be a discussion topic. Some lenders have seen LOs move into the broker world, some have seen them come back. The transition to being a broker is not always “rainbows and unicorns.” It appears to have better “top line” revenue but what about the “bottom line” when a shop has to pay for their own benefits, marketing, IT support, etc. (STRATMOR has a fine write up on the subject below.) Lenders continue to examine the branch model, whether it is traditional or P&L (revenue) based. The MBA defines an “expense management” branch. These have a high upside, as long as they’re compliant, and hire whoever they want. But cutting back is tough, and management has to do a good job of setting expectations. (Today’s podcast can be found here and this week’s is sponsored by Black Knight. From point-of-sale through post-closing, the company’s trusted loan origination system, Empower, as well as its integrated, end-to-end origination solutions deliver unmatched capabilities, functionality, and support to increase processing efficiencies and lower operational costs for lenders. Hear an interview with Aidium’s Spencer Dusebout on CRM differentiators and ROI.)

Lender and Broker Products, Software, and Services

“Master speed to lead and boost your lead conversion rates with Black Knight’s new webinar series and resource guide combo! Discover insights, innovative strategies, and practical tips in our latest video, “Mastering Speed to Lead in a Digital Era,” to excel in today’s competitive landscape. Don’t miss the comprehensive resource guide, providing actionable steps and valuable resources for immediate implementation. Responding quickly to leads can set you apart from the competition and earn you more business. Start implementing these speed to lead techniques today and watch your conversion rates soar!”

ACES Quality Management unveils ACES PROTECT® Mortgage Compliance Testing Module. Historically, regulatory compliance checks have been complex and cumbersome, making it challenging to perform them quickly and accurately. With the introduction of the first fully integrated compliance engine within a quality control software solution, ACES PROTECT ensures compliance on more loans in less time. With this fully transparent and configurable tool, you will increase productivity while saving time, only pay for the compliance tests you need, and benefit from trusted independent verification, because transparency and accuracy matter. Learn more.

Rocket Mortgage and Rocket Pro TPO have introduced ONE+ by Rocket Mortgage, an exciting new 1% down home loan program that will dramatically increase access to homeownership for millions of Americans. ONE+ is available for qualifying homebuyers whose income is equal to or less than 80% of their area median income (AMI) for single-family homes, including manufactured homes, potentially saving more than 90 million Americans thousands of dollars. Plus, Rocket Mortgage provides a 2% grant towards the down payment! The best part? ONE+ completely covers the expensive monthly mortgage insurance fee for the client, saving up to an estimated $245 per month. Want to learn more about ONE+? Partner with Rocket Pro TPO to take advantage of ONE+ today!

“Turn fixed costs into variable costs on a dime. When the market zigs, lenders need the flexibility to zag. Richey May Advisory brings the mortgage industry expertise and agility you need to convert fixed costs into variable costs. Our difference maker is your ability to outsource services to highly trained experts in a model that fits your needs. Whether that means loan-level accounting, advisory, business intelligence, compliance support, cyber services, internal audits or underwriting automation, we have the tools, knowledge, and experience to deliver value and improve your financial performance unlike any competitor, anywhere. You’ll feel it almost immediately in your day-to-day operations. Even better, you’ll notice the difference in your bottom line. Reach out or visit our website to learn more about how we can help your operation pivot to a better place, no matter which direction the market goes.”

STRATMOR on Brokers

Retail originators, do you find yourself wondering if now is the time to become a broker? Mortgage brokers, are you wondering if you are better off working for a retail lender? Originators scrambling to generate new business with refinances all but gone and purchase volumes down may be considering a change. And lenders in search of additional revenue and cash flows may find the idea of entering the wholesale channel appealing. In the just-released May Insights Report from STRATMOR Group, Senior Partner Jim Cameron digs into the specifics for the wholesale channel. Cameron analyzes trends and offers guidance to lenders considering expansion into the channel and to originators looking at which model is best for them: retail loan officer, corporate or P&L branch manager or maybe becoming a broker. Don’t miss Cameron’s article, “Thinking About Wholesale? Considerations for Mortgage Originators and Lenders” in the May Insights Report.

Webinars and Training

On Wednesday, 5/31, at 11AM Pacific, is a treat for loan originators. James Cameron sold the original Terminator script for just one dollar, a costly mistake that he has regretted ever since. Dave Savage and Todd Bookspan understands the value of foolproof scripts for loan officers, and, unlike Cameron, has no regrets about bringing these conversation frameworks to you completely FREE at SCRIPT-A-PALOOZA 2023. Join top mortgage professionals to learn the best scripts from industry leaders who closed billions in volume last year. Hosted by TrustEngine’s Dave Savage and Win by Noon’s Todd Bookspan plus featuring advice from bestselling author Phil M. Jones, this live event will give you the winning words to close more loans, win referrals and overcome market challenges. Register and say “hasta la vista, baby,” to tired, unproductive interactions!

Join MCT on June 1st at 10am PT for its upcoming webinar discussing Strategies to Improve Profitability in the Current Market. In this webinar, MCT’s Phil Rasori and Paul Yarbrough will provide a current market overview and include actionable insights to improve profitability for lenders. Attendees will receive key hedging, trading, best execution, and MSR recommendations, as well as how to leverage technology to improve profitability and efficiency. MCT also recently released a new whitepaper on Mortgage Pipeline Hedging 101. The whitepaper reviews information on moving to mandatory, the strategy of hedging, the benefits of hedging, and how to determine if you are ready. Read the whitepaper to learn how you can use hedging as a tactic to mitigate risk and optimize profitability when selling mortgage loans.

Class is back in session, June 1, noon ET, for lenders who want to understand more about mortgage servicing rights (MSR) assets. Optimal Blue industry experts are hosting a complimentary webinar, MSR 201: The Impact of Interest Rate Moves on Servicing Valuations, on June 1. This session will focus on how interest rates impact the valuation of servicing and how you can measure the sensitivity of servicing to moves in interest rates.

Make sure your business advertising is compliant at the MMLA Thursday, June 1 luncheon 11:30 a.m. – 1:00 pm at the Traverse City Country Club. The cost is $35 per member and $40 per non-member. Melissa Bridges, Attorney at Bodman, will discuss compliance rules for advertising, social media posts, gifts, and other promotional items.

Class is back in session for lenders who want to understand more about mortgage servicing rights (MSR) assets. Optimal Blue industry experts are hosting a complimentary webinar, MSR 201: The Impact of Interest Rate Moves on Servicing Valuations, Thursday, June 1, 9-10AM PT. This session will focus on how interest rates impact the valuation of servicing and how you can measure the sensitivity of servicing to moves in interest rates. Today more than ever, it’s critical to understand the drivers of servicing profitability and how the current state of the rate market impacts that valuation. Understanding the sensitivity of your portfolio can help arm decision makers at your organization with the right intel to make the right decisions.

IMN’s Annual Non-QM & Non-Agency Mortgage Forum is June 1-2 at the Waldorf Astoria Monarch Beach, in Dana Point, CA. This forum will be constructed from both the loan origination and investor perspectives, diving deep into the critical issues facing the industry. At this event, you will meet senior professionals in the market consisting of Correspondents, Wholesale Originators, Investors/Capital Market Leaders, Servicers, Brokers, and many more at this two-day event. Check out a sample of panel topics of past registered companies, view The 4th Annual Non-QM & Non-Agency Mortgage Forum.

Capital Markets

The Fed Funds futures market, like oddsmakers in Las Vegas, are now saying there’s a 38 percent chance of another 25-basis point (.25 percent) hike in June as employment continues to be strong, banking issues quiet down, and inflation continues to be relatively high. Speaking of which, home prices peaked around June of last year, so we should start seeing the decline in prices percolate through to the yearly inflation indices. Investors were also focused on the FOMC Meeting Minutes from May yesterday, which showed that policymakers believe that there is an upside risk to the baseline inflation forecast and there is an expectation among officials that a “mild” recession will begin later this year. Throwing a curveball in the mix were hawkish comments from Fed Governor Waller, who indicated that the Fed could pause at the June meeting only to re-start in July should inflation continue to come down slower than expected.

Even with some intraday volatility yesterday, bond prices dropped by the close as debt ceiling negotiations continued to dominate headlines. We are one day closer to the June 1st deadline Treasury Secretary Yellen identified as the date when the U.S. Treasury would potentially run out of money.

The second look at Q1 GDP (+1.3 percent, up from +1.1 percent; +4.2 percent annually, stronger growth than forecast; core PCE +5.0 percent annually) and weekly initial jobless claims (229k, up 4k from a revised 225k) led off today’s calendar. GDP was expected to increase 1.0 percent versus 1.1 percent previously, with the core PCE deflator unchanged at 4.9 percent year-over-year. Later today brings the Pending Home Sales Index for April, KC Fed manufacturing for May, and a Treasury auction of $35 billion 7-year notes. Two Fed Presidents are also scheduled to speak, Richmond’s Barkin and Boston’s Collins. We begin the day with Agency MBS prices worse a solid .125 and the 10-year yielding 3.75 after closing yesterday at 3.72 percent; the 2-year is up 50 basis points in 10 days to 4.39 percent!

Employment

A well-capitalized bank is searching for a mortgage banking shell with Agency approval that has had no, or minimal, residential production, over the last three years. Confidential inquiries can be sent to me for forwarding.

A Title Insurance Agency located in a prestigious office building in Melville, Long Island, with a staff of 12 has an empty corner office with additional desk space in the main area. Any individual or individuals looking for a satellite office or primary space will have access to all employees as well as all the office equipment. Let’s discuss an arrangement that will benefit all parties. If interested, please reach out to Anjelica Nixt and specify this opportunity.

A regional independent mortgage banker, based in the Midwest, is looking for a compliance officer. The lender has Fannie, Freddie, and Ginnie tickets, servicing, and a full suite of products including bridge loans, DPA, and renovation. The perfect candidate will have at least ten years’ experience working at a multi-billion dollar IMB, including Disclosures, QC, Vendor Management, Exams, and State/Federal reporting. If you are interested, please send your confidential resume to Chrisman LLC’s Anjelica Nixt for forwarding.

Are you a loan officer or mortgage banker frustrated with the constraints of retail lending? Tired of competing against lower rates, fees and closing costs? Then now’s the time to take control of your pipeline and career by making the switch to wholesale lending as an independent mortgage broker. Whether you’re looking to open your own brokerage or join a team as a loan officer, you can get up and running without missing a beat with support from the team at BeAMortgageBroker.com. You have nothing to lose and only clients, greater flexibility and compensation to gain.

“Things are heating up and we are adding to our team. At AFR Wholesale®, we are looking to expand our Account Executive teams for both our Wholesale and Correspondent Divisions! We have been streamlining procedures, developing more communication channels, and overall speeding up our loan processes. Now we need more hands-on deck to join our family! We like to offer a close community that feels like home to thrive and make dreams become a reality. We are looking for experienced candidates because at AFR, we recognize that some scenarios can be challenging, and we want to provide a home for all possible circumstances. That is why we do what we do. At the end of the day, it’s about being proud, we made it possible to turn a house into a home. AFR is an equal opportunity employer. APPLY NOW! Contact AFR by going here, email us or call 1-800-375-6071.”

“PrimeLending delivers LOs award-winning support from day one and beyond. Just last week, our national training team struck gold two times at the Association for Talent Development Annual Axis Awards, winning first place for programs designed to help LOs gain the skills needed to excel in today’s marketplace. Our training team won the Technology Application award for revolutionizing remote learning with innovative tech like NovoEd, and the Performance Improvement award for demonstrating the positive impact training programs have on production. What does that mean for LOs? Easier onboarding. Faster productivity. Better efficiency. More confidence. Our training team understands the unique challenges and opportunities in the industry, ensuring loan officers stay ahead of the curve. For your professional growth and achievement, reach out to Nic Hartke today and discover how PrimeLending can pave the way to success.”

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

Source: mortgagenewsdaily.com

This will grow Mr. Cooper’s existing servicing business of 4.1 million customers and $853 billion in unpaid loan balances as of March. The company is one of the largest loan servicers in the country.

D-FW Real Estate News

Get the latest news from Steve Brown and the business staff.

Mr. Cooper previously agreed to acquire Roosevelt Management Company LLC, Rushmore’s New York-based parent company, for its mortgage investment business.

The company hopes to close on the subservicing platform by the end of May and the rest of the Roosevelt transaction by the end of June, depending on regulatory approvals.

“We are delighted to welcome Rushmore’s talented team to our family, and we are committed to providing a seamless experience for their important clients,” Jay Bray, chairman and CEO of Mr. Cooper Group, said in a statement. “Working together, we will bring to market one of the leading special servicers in the industry.”

The deal will add “several hundred people” to the company, Chris Marshall, vice chairman and president of Mr. Cooper, said in a first-quarter earnings call Wednesday.

Rushmore leased 78,000 square feet of office space in the Freeport Business Center in Irving in 2021, a move from a smaller location in Irving. The company also has offices in Irvine, Calif., Fort Lauderdale, Fla., Oklahoma City, Nashville and San Juan, Puerto Rico, according to its LinkedIn page.

Homebuilder D.R. Horton shakes off high interest rates with strong start to spring selling

Rushmore CEO Terry Smith said the company has had several months of discussions with leadership at Mr. Cooper and that he has become increasingly impressed with the strength and breadth of Mr. Cooper’s platform.

“Our combined entity will provide an unparalleled offering to a broader base of clients and customers,” Smith said in a statement.

Marshall said in the earnings call that the deal will position the company for revenue growth as the credit environment changes. He also said the company has been told another company’s servicing platform is coming to market, so the timing was right to bring on a well-recognized brand and combine it with its existing servicing business.

“We think there’s a real opportunity to win business,” Marshall said.

Growth in Dallas-Fort Worth home prices falls to decade low

Mr. Cooper’s net income dropped dramatically to $37 million last quarter from $658 million a year before as higher interest rates crushed demand for home loans.

Through the rapid rise in mortgage rates last year, mortgage originations dropped from $689 billion in the first quarter to $398 billion in the last, with the refinancing market hit the most, according to the Mortgage Bankers Association. The group forecasts a rebound in the industry throughout 2023 but not quite a return to 2022′s figures.

Mergers and acquisitions in the mortgage industry surged in 2022 due to industry challenges and owner retirements, according to an October report from mortgage industry analyst Stratmor Group. Another example of this came earlier this year when Dallas-based Town Square Mortgage merged with Illinois-based American Portfolio Mortgage Corp.

Related Stories
Bright-hued downtown Dallas tower set to become apartments

The blue-toned Ervay Street tower is a midcentury favorite of Dallas preservationists.
Rental community with more than 400 homes under construction in Princeton

Construction started in March on Oxenfree, a rental community with 408 single-family homes and townhomes in Princeton on more than 50 acres at 1525 FM982.

Source: dallasnews.com

Go bust vs. resurgence for IMBs

For independent mortgage bankers who survive the ongoing culling, the new normal unfolding looks much brighter, industry experts say.

DPA, Subservicing, Loss Mit, Fee Collection Tools; Banking… This is Not 2008; STRATMOR on Customer Experience

The Ides of March… And college basketball time. Here in Kentucky (men #6 in the East, Louisville women’s team #5) I overheard someone on the phone. “Yesterday I saw a woman in Walmart with March Madness teeth. She was down to her final four.” March Madness is in full swing, whether it is hoops or bonds. Or bank stocks. Is this really a fundamental structural plunging of the United States’ financial system? Doubtful. Moody’s came out with a warning about downgrading certain banks in the United States. It is not 2008. How much of this is psychology? Tweeting causing a run on deposits? Banks everywhere are looking at their liabilities (deposits, since they owe their depositors money) and assets (the money lent out using their depositor’s money, or securities owned. “Lending long and borrowing short” works when banks can pay very little on their deposits (like checking accounts earning 0 percent) and take that money and earn 4 or 6 percent on securities. But when the deposit base becomes unstable, and a bank has to liquidate those securities at 80 or 90 cents on the dollar, it becomes a problem fast. (Much more below.) Today’s podcast can be found here and this week is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology, and other services in the mortgage industry and in banking. Today’s has an interview with Bank of England Mortgage’s Quinton Harris on the art and science of forecasting the housing, mortgage, and bond markets.