6.25.24 Mortgage Company Profitability; FinLocker's Brian Vieaux on Financial Literacy; Fed Induced Volatility

Today's podcast is sponsored by Candor. Candor’s authentic Expert System AI has powered more than 2 million flawless, hands off underwrites. Every credit risk decision Candor makes is backed by a Warranty, eliminating repurchase worries.

Transcript

Everyone’s above average, right? If you are a lender and making money, you’re in the majority. It’s not that you’re not special, it’s just that with cuts and servicing income, and unprofitable companies going away, most companies are in the black: In the first quarter, 59 percent off all mortgage banking companies were profitable per the MBA Performance Report, buy it for details. Is our government profitable? Of course not, almost regardless of Administration. The federal budget deficit is expected to swell to around $1.9 trillion this year, according to the Congressional Budget Office, which was higher than its previous estimate of $1.5 trillion. This takes into account increased spending for student loans and Medicaid as well as the recently passed $95 billion foreign aid package. National debt is even poised to top $56 trillion over the next 10 years, or 122 percent of GDP, surpassing the 106 percent seen in 1946 after World War II. Meanwhile, the eurozone is facing debt issues of its own, with the ECB warning eight of its members (including Belgium, France, and Italy) over their excessive budget deficits. Today’s podcast is found here and this week’s  is sponsored by Candor. Candor’s authentic Expert System AI has powered more than 2 million flawless, hands off underwrites. Every credit risk decision Candor makes is backed by a warranty, eliminating repurchase worries. Hear an interview with FinLocker’s Brian Vieaux on bringing consumer permission data to property searches and originations.

Jobs & Employment sought

_________________________________________________

Mortgage Equity Partners (“MEP”), a mid-cap IMB headquartered in Massachusetts, is proud to be recognized as the fastest-growing IMB in the state measured in both units closed and volume funded in 2023 and YTD 2024. MEP has added production in many of its 22 states over the last 12-14 months. “As a mid-cap, we inherently have a flatter management structure, are more nimble, and can adapt to change quicker. Consistently, we see LOs migrate from large-cap IMBs because, as architects of their own businesses, LOs want quicker access to decision-makers. Those LOs want to operate at their own cadence and not be bogged down with layers of management. Our environment has a positive impact on  LOs as strong business partners to support their referral sources,” said Sean Riley, CEO and General Counsel. To learn more about MEP, visit meploans.com or contact John Cabral, National Sales Director.

A seasoned Mortgage Executive is seeking a new opportunity to help lead a mortgage lender or vendor toward achieving their growth goals. Are you a mortgage lender or vendor (established or new) in need of leadership to navigate the current market and drive future growth? 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

_________________________________________________

“Truv is the only consumer-permissioned VOIE platform approved with both GSEs, solidifying our commitment to delivering top-notch verification services tailored for mortgage lenders, banks, and credit unions. What does this mean for your business? Faster turn times, lower buyback risks, compliance assurance, and reduced operational costs. Read about why this matters for your business here.”

“Did you know that Polly is the rate engine for HousingWire’s Mortgage Rates Center? We offer the same capability to display live rates on lender websites, helping borrowers better assess your competitive edge against other lenders. This live data ensures that as the market fluctuates, prospects get real-time insights into your rates. Because in the current rate environment, having accurate, up-to-date rate intel on your homepage is crucial. It signals transparency, allowing potential borrowers to make informed decisions faster, without needing to supply personal information. This convenience can significantly increase your site’s engagement and drive more volume your way. On the flip side, NOT displaying live rates may deter potential borrowers, as they could perceive higher costs or simply prefer quick access to this information. Now, let’s take it several steps further; Polly’s Lender Intelligence will help you keep your rates competitive, ensuring you stay at the forefront of your peers. Let’s talk about it.”

“Calling all loan originators: We need your insights! Take the annual Loan Originators Survey from MGIC and Loan Officer Hub to weigh in on how you handled the challenges and opportunities of the past year. Get a head start on comparing your strategies to your peers’: Complete the survey by June 30 and you’ll receive exclusive early access to the full survey report this fall!”

Optimal Blue announced its new Competitive Data License today. In a news release, the company described its new data solution as a collection of key national mortgage pricing data that empowers lenders to price products competitively, operate more profitably, and react swiftly to changing market conditions. This product from Optimal Blue includes loan-level data from the industry’s most widely used product, pricing, and eligibility engine, providing a full price trace from borrower/buy-side to investor/sell-side pricing. Optimal Blue’s new data solution equips lenders with the ability to benchmark every aspect of their pricing strategy, providing extensive insights into markups, loan-level price adjustments (LLPAs), servicing-released premiums (SRP), concessions, loan officer compensation, base price, and PAR rate. Optimal Blue will be hosting a webinar on July 10 for those interested in learning more about Competitive Data License and its other data solutions.

HELOC borrowers can pay off debt to qualify and still close in as little as 1 day! With trillions of dollars in accessible home equity nationwide, there’s never been a better time to become a REMN Partner. REMN Wholesale, leading the way in Wholesale Digital HELOCs nationally, now provides the DEBT ELIMINATOR feature to its EQUITY ACCESS Digital HELOC. DEBT ELIMINATOR gives borrowers the ability to pay off debt to qualify. With loan amounts from $25k to $400k and recent rate reductions, REMN's Digital HELOC is designed for fast closings. Additional features:  Instant Income Verification for the vast majority of W-2 borrowers; automated analysis of bank statements to determine Income for both W-2 and Self-employed borrowers; single AVM up to $400k (appraisal options available); Broker Portal with robust functionality and real-time detailed status on all pipeline loans. Minimum FICO 640 and max 80% CLTV (see rates/guides). Flexible: Hybrid platform is digitally fast with humans to solve real-life complexities! And they provide fast payout (utilizing ACH). White Label: Brand your company/MLO. REMN is only wholesale! Contact Carl Markman.

Webinars & shows

_________________________________________________

“Unlock the key to closing more loans in a competitive market. Join us on Thursday, June 27 at 2 pm ET / 11 am PT for the NMP Webinar "Build Your Personal Brand (and Close More Loans) by Optimizing Borrower Credit Scores." Hosted by Mike Darne, a seasoned marketing executive who has led branding efforts at Capital One and Marriott, this webinar will share proprietary research from CreditXpert on what borrowers seek in a lender and how credit optimization meets those needs. Discover how you can help borrowers qualify, access better loan programs, lower their cost of homeownership, and reduce LLPA premiums. Learn to leverage credit optimization to build your personal brand, stand out in the marketplace, and ultimately close more loans. Don't miss this chance to enhance your skills and grow your business: Register for the webinar here.”

Podcast: How the NAR Ruling Will Impact Lenders (& the Entire Home-Buying Process). The groundbreaking NAR settlement has real estate agents, lending professionals, and home buyers scrambling to understand its ramifications. Here to weigh in is Maxwell’s Clear to Close crew: In this conversation, Alan, Bryan, and Anthony channel their experience in the industry to walk through possible outcomes of the ruling. Specifically, this episode explores how new policy changes are likely to impact lead generation, methods to earn borrower business, and more—and how lenders can get ahead of the major ways the home-buying process is about to change. Click here to listen to How the NAR Ruling Will Impact Lenders (& the Entire Home-Buying Process).

A good place for longer term conference planning is to start is here, and click on “Conference List” for in-person events in the future.

Join Kristin Messerli and Robbie Chrisman today at 10am PT/1pm ET for the latest episode of Mortgages with Millennials as they share some new research on NextGen money trends, this time based on a personality quiz she developed to better understand the mindset, planning style, and behaviors of millennials when it comes to money and homebuying. sharing some new research on NextGen money trends, this time based on a personality quiz she developed to better understand the mindset, planning style, and behaviors of millennials when it comes to money and homebuying.

Every Tuesday at 11am PT, two veteran LOs discuss all things mortgage with Industry Leaders. Mortgage Pros 411 with Audrey Boissonou and Kevin Casey.

Register for Silicon Valley CAMP’s Free Marketing Presentation: “AI for Dummies via Zoom,” today at 9:30 AM (PDT).

In support of the Credit Score Models and Credit Reports Initiative, FHFA has announced a new stakeholder forum, an “Overview of Historical Credit Scores,” that will take place today from 3-4 p.m. (ET). FHFA, Freddie Mac and Fannie Mae will provide details regarding the Enterprises’ forthcoming publication of historical credit scores to support the implementation of the VantageScore® 4.0 credit score model.

MBA's Single Family Research Showcase 2024 Virtual Meeting, June 25 & 26, 1:00 – 5:00 pm. MBA's Research & Economics team will take you on a deep dive behind the data during our one-of-a-kind Single-Family Research & Economics Showcase. Led by MBA's Chief Economist, Mike Fratantoni, Ph.D., this two-day online event highlights the most current results and insights from our popular residential surveys, forecasts, and reports. For those unable to attend, meetings will be recorded on both days. Register to receive the recordings.

Capital Markets: the lack of volatility is good for hedging

_________________________________________________

As optimism about a US Treasury rally grows among investors, a key bond market indicator suggests high interest rates could persist, potentially hampering the Federal Reserve's ability to cut rates. Market forecasts indicate that the economy's neutral rate, crucial for balancing growth, is significantly higher than the Fed's current projection, hinting at long-term elevated borrowing costs.

While we do have some significant data later this week (GDP, inflation, consumer sentiment, home prices, etc.), this final week of June began yesterday on a quiet note without much market movement. This week also brings the quarterly refunding, which sees an increased flood of Treasury issuance that investors will be asked to absorb: $211 billion in new debt this week alone, with all of it coming on the front end of the curve. Today, markets will receive $69 billion 2-year Treasury notes.

Today’s economic calendar kicked off with the non-market moving Chicago Fed National Activity Index for May (better than expected) and Philadelphia Fed non-manufacturing for June. Later today brings Redbook same store sales for the week ending June 22, April house price indices from FHFA and Case-Shiller, the Consumer Confidence report for June, Richmond Fed manufacturing and services/revenues in June, and Dallas Fed Texas services for June, followed by the aforementioned Treasury note auction. Two Fed Governors are scheduled to make appearances: Governor Bowman and Governor Cook. We begin the day with Agency MBS prices little changed from Monday’s close, the 10-year yielding 4.22 after closing yesterday at 4.25 percent, and the 2-year at 4.72.

A sad note: my cat Myrtle Turtle

_________________________________________________

Whether it is one’s personal life or professional life, things aren’t always cheery. Nor is there always a joke at the bottom of my commentary. This is one of those days, as Myrtle recently went missing in Reno. She did not return after being let out in the yard ten days ago. And so now there is the sorrow that comes with the presumed death of a treasured pet.

I realize that there are dog people and cat people, bird people and horse people, and so on. At every conference, folks would ask me if she was real, and how she was doing. Myrtle the cat was indeed real.

Myrtle, did you remember when we first saw you thirteen years ago at the Marin County Human Society? Do you remember being a kitten, scared, hiding behind the cage? The car ride to the house? Being cooped up in the bathroom, acclimating to a new home? Myrtle, do you remember thirteen years ago getting to know the other pets, the rhythms of the household, the sights and smells? How you enjoyed chasing the laser pointer beam around the rug and bed? Kicking at the ferocious ping pong ball? Enjoyed watching the birds outside the window, aka “cat porn?” “Why won’t they play with me?” you seemed to ask. And you fancied yourself a fine mouser, with good reason.

Physically, for the most part, Myrtle was a lean cat. She was a mottled tortoise shell, with scraggly gray whiskers and an eye that was a little off and an ear that bent down, both due to a surgery many years ago. She was an ideal pound cat. But she did have one obvious peculiarity, and that was, for lack of a better term, an udder. Yes, like a cow. And the udder had the distinction of moving west to east while Myrtle trotted north to south. This has been captured on film, fortunately. We would like to say that the udder had a mind of its own.

In the morning, she would always join me in doing the Commentary. When the television was turned on in the evening, Myrtle’s head could always be counted upon to peek around the corner of the TV room to see what was going on. Satisfied, her routine never varied: she would come into the room, scratch the scratching post, lap around the room, eye the couch, jump up and sit in my lap, waiting for me to roll her onto her side and rub her belly. Oh, there was never enough time for all the belly rubs that she wanted. And her gravelly purr could be heard across the room. I miss it.

She had nothing in the way of material things, not even a collar. She never wasted her days hoarding property. There is nothing of value she had except her love and her faith, which she left to those who have loved her and which she learned from our dog Sweetie who left us nine years ago. Myrtle and Sweetie got along very well. Like Sweetie, I imagine Myrtle would have asked her family to remember her always, but not to grieve for her too long. She would want us to believe that no cat has ever had a happier life. Myrtle and my son Robbie got along well, rare for her as she let few people even see her.

We will probably never know what happened to her. She was an indoor/outdoor cat, with all of the risks that come with that. Roaming and hunting and sitting in the sun were things that she treasured: the sun warmed her mottled pelt. There was the time she went out into the yard in the mountains, and I found her, bathing her paws, about 20 feet from a bobcat crouched over a squirrel. She certainly used up a few of her nine lives that afternoon. The mice and chipmunks and who knows what all that met their match with her. She truly enjoyed her stretches, sitting on her hind haunches and reaching skyward with her two front paws. She would trill when you woke her up, and mew slightly if she needed something. Polite indeed.

She was “chipped,” but nothing has been reported. Her family has gone through the denial, anger, bargaining, depression/sadness, and acceptance phases. I am back in the sadness stage and expect to be here for a long time. Last week was her birthday.

So, I wanted to dedicate this Commentary to her, since she was indeed a part of it. Over the years she sat in my lap, or next to the computer, hundreds, if not thousands, of times while I was working on the Commentary or answering emails. She certainly seemed to have her opinions on things impacting our business.

Myrtle was a “matter of fact” cat, so please, no emails about the “rainbow bridge” and if you’re thinking about sending a note of condolence, I’d feel better if you told me in person some time, and spent the time it would take to write an email somehow helping pound animals find a home. (Is “pound” now politically incorrect?) Those animals don’t ask for much and give so much in return. And yes, I know that sometimes cats can return after weeks or months, so I will always have a modicum of hope in my heart.

Here’s to you, Apex Predator, Supreme Mouser, Top of the Food Chain, Triller Cat. I hope that you are in a Paradise where you are always young and spry, having my father scratch your belly as much as you’d like, where near-sighted mice don’t run too fast and are plentiful, where there is always kibble and bits of line-caught salmon or well-aged cheddar that fall off the cutting board every day; where there are days with warm sun followed by long cool evenings, and there is a large fireplace with logs burning, and you can curl yourself up and blink into the flames and nod and dream, remembering the good times you had in my lap, and the love of your family.

This commentary’s done, Myrtle Turtle. It’s time for some mousing. I will miss you dearly.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is titled, “Catastrophe and Climate Risk Is Only Increasing”. The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

qoɹ