6.21.24 MBA Hawaii Conference Chatter; FundingShield’s Adam Chaudhary on Fraud; Housing Inventory Challenges

Today’s podcast is brought to you by Quontic. Quontic serves all 50 states as a federally chartered digital bank, and they're a US Treasury designated CDFI. Their mortgage loan programs are created to be adaptive to customers’ unique circumstances, reducing the hassle of reams and reams of paperwork. Quontic’s mission is to help creditworthy borrowers get home loans and give them the “yes” they’ve been waiting for.

Transcript

Don Henley’s “Boys of Summer” was a hit 40 years ago. (Yes, 40 years.) There are plenty of beaches in Hawai’i, but here in Honolulu at the MBAH conference, it’s all business. MBA Chair Mark Jones reminded the audience that President Biden “declared war” on what he called “junk fees.” Sure enough, soon after the State of the Union Address, the CFPB announced that it would soon target what it called “junk fees” in mortgage closing costs. Unfortunately, what the CFPB calls “junk fees” include items required in the lending process, like flood certs, credit reports, appraisals. These help borrowers, investors, and taxpayers. At a recent hearing, House Financial Service Chair Congressman Patrick McHenry said to CFPB Director Chopra that his “so-called independent agency has become an arm of President Biden’s political operation.” To understand that accusation better, check out attorney Brian Levy’s most recent Mortgage Musing, where he describes how CFPB (Consumer Financial Politics Bureau?) appears to be putting politics over effective consumer protection policies with their junk fee, “name and shame” registry, and other policy initiatives. (Today’s podcast is found here after 8:30AM ET and this week’s is sponsored by Quontic whose mission is to help creditworthy borrowers obtain home loans and give them the “yes” they’ve been waiting for. Hear an interview with FundingShield’s Adam Chaudhary on new schemes and threats in the wire and title fraud space, and how both good players and bad players are attempting to use AI to their advantage.)

Exec available; Transition

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National Mi is pleased to announce that Marla Guillaume has joined the Central Team as an Account Manager. Marla is a 32-year veteran in the mortgage industry based out of Louisville, KY. She has extensive experience holding positions in processing, origination, underwriting, sales and executive leadership. She is the current President for Kentucky MBA and past President of the Louisville MBA. She loves being an advocate for our industry and takes pride in creating a positive experience with the clients she interacts with each day. Marla will be covering Kentucky, Western TN, Southern Indiana and Southwest Ohio. Please help welcome Marla into her new role!

Are you a mortgage lender or vendor (established or new) in need of leadership to navigate the current market and drive future growth? A seasoned Mortgage Executive is seeking a new opportunity to help lead a mortgage lender or vendor toward achieving their growth goals. This executive has extensive sales leadership experience in all production channels (TPO, Retail, and DTC) and is an expert in all product types (Agency, Non-QM, and Private Money Lending). They also have deep knowledge of the vendor and technology space. Please send inquiries to Anjelica Nixt to pass along to the candidate and specify the listing. 

Remember: job seekers can post their resumes for free on www.lendernews.com where employers can view them for several months for a nominal charge.

Software, products, and services for lenders and brokers

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The cubicle walls are beginning to cave in on mortgage loan officers in the direct-to-consumer world. Loan originations are going days without speaking to a “good lead.” Sales Managers are feeling the heat, lead scoring is miscalculated, and originations are at an all-time low. More leads are not the answer. AI Call Assistant can predict the likelihood of a prospect closing a loan with 90 percent accuracy. Stop wasting money on leads and schedule a demo today to learn how AI Call Assistant can improve your conversion with your current leads.

Wednesday June 26th. 10:00 - 11:00 PST: "Mortgage Talk, Unfiltered" I'll be joining Truework in a virtual livestream to chat about all things mortgage lending. Well delve into news headlines, predictions for 2027, and everything in between: VOIE, waterfalls, even a presidential election. Come check it out and ask us any burning questions you might have. It should be a fun time.

Miscellaneous investor & lender news and updates

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Boost your business by unlocking clients' home equity! Rocket Pro TPO recently enhanced its Home Equity Loans with the launch of the Automated Valuation Model (AVM), streamlining the valuation process to save time and money for brokers and clients alike. The AVM provides instant property valuations, reducing the need for traditional appraisals and allowing for faster loan approvals. This new feature saves clients’ money by eliminating the need for costly appraisals. The benefits of partnering with Rocket Pro TPO don’t stop there, you can now sign up for their Pro Performance Sales Training on June 25th, titled "Move Buyers From No To Yes This Summer." This training session is designed to help you convert hesitant buyers into confident homeowners, without waiting for rates to drop. Don’t miss this opportunity to capture key insights that’ll impact your summer business. All of this and more is available by partnering with Rocket Pro TPO today! Take advantage of exclusive tools and training to elevate your mortgage business. Contact Rocket Pro TPO now to learn more!

The numbers are in: Plaza Home Mortgage® ranked #4 in Wholesale Lending according to the Scotsman Guide Top Mortgage Lenders rankings. Rankings are determined by overall volume, retail, wholesale, non-QM, correspondent, FHA, and VA volume in 2023.

On 6/4/2024, with Amendment No. 7 to DR-4781, FEMA declared federal disaster aid with individual assistance to 5 Texas counties affected by severe storms, straight-line winds, tornadoes, and flooding from 4/26/2024, and continuing. See AmeriHome Disaster Announcement 20240602-CL for inspection requirements.

Silverton Mortgage, a leading direct residential mortgage lender, announced new loan programs aimed at making homeownership more accessible to low-income individuals. Available through February 2025, qualifying borrowers applying for the HomeReady® and Home Possible loan programs will receive a $2,500 credit towards down payments and closing costs. In today's challenging housing market, the dream of owning a home can seem increasingly out of reach for many Americans. Silverton Mortgage is committed to providing innovative solutions that empower individuals to achieve their homeownership goals. The HomeReady® mortgage program, designed to ensure affordable mortgage payments for the long term, and the Home Possible® mortgage program, offering flexibility and options tailored to low-income borrowers, are key components of Silverton's mission to make homeownership a reality for all.

Pennymac Announcement 24-56 covers Fannie Mae & Freddie Mac Condo Project Eligibility.

Pennymac Announcement 24-57 discusses AUS Jumbo program regarding updated Loan Limits, Condominium Project Review and Tax Transcript Clarification.

Pennymac announced the extension of the Freddie Mac BorrowSmart® Low Income Program (LIP). The BorrowSmart® Program provides $1250 in down payment and/or closing cost assistance for eligible homebuyers. The program is to be used in conjunction with the Freddie Mac Home Possible program. Additional details available in Pennymac Announcement 24-59.

Effective with new applications on or after June 14, Pennymac is updating AUS Jumbo reserve requirements for Cash-out Refinances for all occupancy types to require the greater of 6 months PITIA or per the AUS. View Pennymac Announcement 24-61 for details. 

Pennymac will update Conventional LLPAs effective for all Best Efforts Commitments taken on or after Monday, June 17, per Pennymac Announcement 24-62. 

In the stakeholder announcement dated May 9, USDA announced an exemption to exclude real estate commission fees from the 6 percent cap on seller, or other interested party, concessions. Under this exemption, real estate commission fees paid by the seller on behalf of the homebuyer are exempt from the 6 percent cap. The exemption is an effort to ensure rural homebuyers continue to have affordable access to guaranteed home loan financing. Pennymac is aligning with these changes, details are available in Pennymac Announcement 24-58.  

Effective for all Conventional Loans with note dates of July 1, 2024, or later or for loans locked with AmeriHome Mortgage on or after July 1, 2024, AmeriHome is transitioning its sub-servicing provider from Specialized Loan Servicing LLC to Shellpoint. See AmeriHome Mortgage 20240604-CL Servicing Announcement for details.

Recently, Fannie Mae published SEL-2024-03 and Freddie Mac published Bulletins 2024-6 and 2024-B which announced changes to several topics, including First-Generation Homebuyer Loans and reconsideration of value. View AmeriHome Mortgage 20240608-CL Product Announcement for details.

Effective with Product Announcement 20240603-CL, AmeriHome has removed and clarified certain overlays on Government and Non-Delegated.

Land Home Financial Services has Down Payment Assistance Loan Products you need. SETH MyHome Plus is available in Texas. CAFA Platinum is available in Louisiana. Home In Five is available in Maricopa County, AZ, and GSFA Platinum is available in California.

Newrez Correspondent posted underwriting guideline updates containing information regarding clarifications and/or corrections to the Newrez Guide as of June 27, 2024. Also, FHA updates on asset requirements, financial institution accounts, gift funds, gifts that will be verified prior to settlement, gifts that will be verified at settlement, and gifts of land.

Effective with Best Efforts locks completed on/after Thursday, June 13, 2024, Citi Correspondent Lending updated Non-Agency geographic adjuster for Colorado changing from (0.125) to (0.375). Additionally, effective with Best Effort locks completed on/after Monday, June 10, 2024, Citi Correspondent Lending updated state geographic adjusters across all conventional products and several segments of the loan size adjuster grid.

Don't limit your borrower's buying potential if they require financing beyond conventional limits. LoanStream Mortgage Wholesale’s Jumbo ONE loan programs empower you to give your clients more options all while helping you close more loans. Four Jumbo ONE programs are available to help you reach more clients, available for Purchase, Cash-Out, and Rate & Term Refinance.

Effective June 7th, 2024, PHH is making updates to rate sheet grids for Affordable Price Adjustments and Fannie Mae Only UPB adjustments.

Capital Markets: do builders know there is a housing shortage?

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The Juneteenth holiday falling in the middle of the week means that five days of economic releases are truncated into four days this week. After expected monetary policy decisions from central banks overseas, like the SNB (-25 basis points), Norges Bank (unchanged), and Bank of England (unchanged), yesterday’s U.S. economic data disappointed folks, with U.S. housing starts posting the lowest reading in four years, and jobless claims falling (bad news for those hoping for rate cuts).

Housing Starts in May fell 5.5 percent month-over-month to an annual rate of 1.277 million while building permits declined 3.8 percent month-over-month to 1.386 million, suggesting that the housing market will remain subject to inventory constraints that will exacerbate affordability pressures, barring an unlikely pickup in listings of existing homes for sale. Weekly initial claims came in at 238k while continuing jobless claims for the week ending June 8 increased by 15k to 1.828 million. Initial jobless claims received more attention than usual after last week’s release jumped to the highest since August 2023.

This first day of summer has a relatively modest calendar that kicks off later this morning, consisting of June PMI flashes from S&P Global, existing home sales for May (expected to dip) and leading indicators for May. There are no Fed appearances scheduled. We begin the day with Agency MBS prices roughly unchanged from Thursday’s close, the 10-year yielding 4.23 after closing yesterday at 4.25 percent, and the 2-year is yielding 4.70.

Summer vacation was about to start, and the teacher asked Little Johnny about his family trip.

“We are going to visit my grandmother in Minneapolis, Minnesota."

The teacher asked, "Good, can you tell the class how you spell that?"

Little Johnny thought for a few seconds and said, "Actually, we’re going to Ohio."

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(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2024 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)