Oct. 24: LO jobs; teams wanted; hedging innovation, PPE, shared appreciation, customer retention tools; STRATMOR on humans vs. AI

Were solid, rounded airplane windows considered “innovation”? Indiana’s Carol K. has the answer. There’s always innovation, in this case entertaining. As Finigree, which some use for interim servicing ACH payments, is rumored to be winding down operations, companies are searching for solid, innovative companies to handle borrower’s money. Here at the FAMP’s Palm Beach Mortgage Professionals Expo, smart innovation is a topic, with lenders and vendors adding smart technology to their “tech stacks.” There are overtones of politics, and interest rates are also a topic. Though mortgage rates dropped leading up to last month's Federal Reserve meeting, they're up this month. Data has shown that the economy remains surprisingly resilient, the consumer is spending (albeit using credit cards), housing prices continue to motor along, and unemployment is stable and relatively low. Last month, the U.S. economy added way more jobs than expected and the unemployment rate ticked down. Strength means that the Fed is in no rush to lower rates. (Today’s podcast can be found here, and this week’s is sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite's three core products, nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics, unite the people, systems, and stages of the mortgage process. Hear an interview with LodeStar’s Jim Paolino on the advantages of public vendor pricing and how attendees can connect, and maybe even party, at the MBA Annual next week.)

Employment, production teams sought, & transitions

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“Nations Lending continues to attract top talent in the mortgage industry. We are thrilled to announce the addition of Josh Davis, Branch Manager, Orland Park, IL, to the Nations Lending family. Josh joins us with a proven track record of success. "His passion, along with his industry expertise, aligns perfectly with our company’s mission to provide our customers with the best mortgage products and experience,” said Jeremy Sopko, CEO of Nation Lending. For those eager to learn more about our exciting opportunities and the unique advantages of joining our team, we encourage direct contact with our Divisional Managers. In the Western Division, please contact Mike Towery at 541-951-3559 or Sondra Bialkowski at 480-201-8033. If you’re in the Eastern Division, contact Tim Dowling at 815-245-3052 or Andrew Carter at 937-818-3623. Discover how Nations Lending is dedicated to growing your business.”

“With the uncertainty with rates and the regulatory environment, are questioning what to do with your mortgage company or your production team? An aggressive national mortgage bank/ servicer is aggressively growing and seeking large production teams or Retail companies to set up a ‘Capital Partnership’ to help drive your growth. Take advantage of a better margin and operating strategy to collect greater profits and scale. This is truly a 'company within a company' strategy, with the goal of the relationship is to leverage back-office mortgage functions (e.g., secondary, technology, compliance, operations, and licensing) to provide you with long-term production growth opportunities. If you are a strong retail loan origination team feeling limited by management, or an independent mortgage lender looking for new options for your team, we offer a compelling alternative to standard ‘branch” offerings.’” Confidential and serious inquiries should be sent to Chrisman LLC’s Anjelica Nixt for forwarding.

Xactus has appointed Sasha Stair as its new Chief Marketing Officer who will “seamlessly partner” with Xactus’ sales team and across all areas of the business. “Under Sasha’s leadership, Xactus will enhance its focus on customer-centric marketing strategies, leveraging integrated technology solutions to deliver greater ease, speed, and cost efficiency for lenders.”

Canopy Mortgage announced the appointment of Brenda Hedeen as the company’s new Chief Financial Officer (CFO) where she will oversee the financial strategy and operations of the company as it continues its rapid growth and expansion across the mortgage industry. “Her proven track record of steering financial strategy for dynamic companies aligns perfectly with Canopy Mortgage's vision of leveraging technology and streamlined processes to deliver greater value to its clients and partners.” She will be responsible for overseeing financial planning, budgeting, forecasting, and compliance.

Lender and broker software, services, and products

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Loan officers, close your eyes and imagine entering loan data from the 1003 into your Encompass® LOS and, poof, every down payment assistance (DPA) program that your homebuyer would qualify for appears like magic. It’s no sleight of hand; it’s real and possible, thanks to an integration between Down Payment Resource, the OG of DPA, and ICE Mortgage Technology. “On average, DPA lowers a homebuyer’s LTV by 6%. So just think, how many more loans could you have approved using DPA, all while helping to meet CRA and Fair Lending goals?” poses Brad Cardwell, VP, sales and business development at DPR. If you’re an Encompass user, don’t let this magic pass you by. Schedule a meeting with us at MBA Annual24 next week and be sure to register in advance for our pre-concert party happening Monday, Oct. 27, 7 p.m. - 9 p.m. at the Milk Market.

“Brand Omnipresence. It’s what keeps you top of mind when your borrowers are ready for a refi or HELOC. With EarnUp's private label Life of Loan Autopay, your brand stays front & center every day. So, when your borrower is ready for a refi, they’ll think of you. If you're ready to learn more, let’s talk at MBA.”

Mortgage Automation Technologies (MAT), a leading innovator in fintech software and hardware, and the company behind The BIG Point of Sale platform, proudly announces a strategic integration with Gateless, the leader of intelligent automation for mortgage lending. This integration brings the power of Gateless' Smart Underwrite® technology into The BIG Point of Sale ecosystem, enabling mortgage companies to quickly notify loan officers and their clients of required underwriting conditions, the results of any underwriting review, and ultimately loan approvals via mobile devices. This accelerates decision-making and improves accuracy across their lending platform. Within the Smart Underwrite® solution, loan information including credit, income, and asset source data and/or documentation undergoes meticulous analysis, automating key facets of the underwriting process, while ensuring compliance with investor guidelines. The results: a new benchmark for operational efficiency and cost to originate a loan, higher quality loans with reduced risk of repurchase, and an unparalleled borrower experience.

“Headed to MBA’s Annual Convention and Expo Oct. 27-30 in Denver, CO? We’ll be there too. While many of Axos Bank’s competitors are limiting their offerings, we’re proud to be expanding ours including lines of credit from $10MM to $250MM+, extended funding hours to 6:15 p.m. ET, access to over 100 takeout investors, diverse product offerings, and competitive pricing. So, let’s set up a time to talk about fast and flexible lending solutions to maximize your origination opportunities. Contact our Warehouse Lending VP Eric Nelepovitz to secure a time. Won’t be in Denver? Not a problem. We’re always here to answer your questions and inquiries, just contact Eric or visit here.”

When brand collaborations go wrong, you get fried chicken-scented KFC Crocs. But when they go right, they can transform businesses. At MBA Annual24, hear how Floify and Bay Equity built a winning partnership that maximizes Bay Equity’s technology investments and continues to serve them well today. Join Floify President Sofia Rossato and Bay Equity EVP Matt Birdseye as they share their insights on successful collaboration, moderated by Jodi Hall, Founder and CEO of Danda Road, on Tuesday, October 29 at 3:15 PM at THE HUB EXPO stage. Plus, don’t miss the Floify team at Booth 600. Learn more about why Floify is a popular POS by booking a demo at MBA Annual (where you can collect our very cool “Mountain Must Haves Kit”).

Before The Beatles became the iconic band we know and love, did you know they had a different drummer? Pete Best was replaced by Ringo Starr, a better fit both musically and strategically. Cohesiveness is key to achieving success, much like choosing the right loan origination system (LOS) can elevate your business. Dark Matter Technologies offers two LOS options, providing tailored solutions for every lender style to ensure you have the perfect fit. For those seeking to simplify operations with user preferences and compliance monitoring, the NOVA LOS delivers smooth performance without the hassle of a full-time admin. If you're looking for powerful automation and configurability, the Empower LOS unleashes robust multi-channel support and task-based workflows, keeping you ahead in any market. Swing by Dark Matter at booth #609 to discover the ultimate solution that fits your lending style!

On this day in 2003, the pumpkin carving world record was set at an impressive 16.47 seconds. Now, imagine uncovering refinance opportunities just as fast. In seconds, Mobility Market Intelligence's new Refinder tool scans a user's transaction database to serve up past loans ripe for a refi conversation. LOs can even adjust variables like anticipated market rate, minimum estimated balance, and desired rate improvement, along with sorting by best cash-out options. If you'll be at next week's MBA Annual Conference in Denver, schedule time to stop by booth #422, and we'll show you the total amount of refi opportunities sitting in your portfolio! And if you represent a large lending team, we have an extra special offer that, for a limited time, would give your entire roster access to Refinder, which also includes opportunities for loans they did with previous lenders. Book a time slot today!

It’s hard enough to help borrowers clear the hurdle to homeownership without having to watch the rates constantly. Enter Click n’ Close’s Shared Appreciation Mortgage (SAM) program, which allows for a much lower rate, regardless of market fluctuations. Now available through Click n’ Close’s wholesale and correspondent divisions, CNC’s SAM offers a below-market interest rate for first-lien FHA and USDA loans and a repayable 3.5% or 5% DPA second lien in exchange for up to 40% of the home’s appreciation during the first five years. CNC has also created an exclusive calculator for SAM program participants designed to help them educate potential borrowers on the economic benefits of utilizing the SAM program to purchase a home compared to renting. Industry professionals interested in learning more about the SAM program should contact CNC’s Wholesale or Correspondent divisions. You can also schedule a meeting with a correspondent representative at the MBA Annual.

How much ROI could you gain by automating product, pricing, and eligibility without having to leave Encompass®? With ICE PPE, the only Encompass-native product and pricing engine, you can: search, compare and lock programs easily, program rules and custom fields, and enjoy worry-free maintenance of investor programs and guidelines. Click here to learn more about ICE PPE today.

STRATMOR: humans rule

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We’re living in an exciting time, and the AI revolution will only accelerate us forward. Should we be scared? Probably a little. But, according to STRATMOR Group Customer Experience Director Mike Seminari, we in the mortgage industry need not fear a robot takeover just yet. In his latest Customer Experience Tip, Seminari explains why soft skills will always differentiate us (humans) and provide unique value that no robot, no matter how well they mimic, will ever be able to truly replicate. Check out “How LOs are Using Soft Skills to Stay a Step Ahead of AI” for the five non-replaceable soft skills Seminari says all LOs should be perfecting and tips on how to do so.

Capital markets: the Fed is in no rush

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How are you (or your hedge advisor) accounting for the different durations on specified loan products? Many lenders adjust for the variance by estimating the average pipeline expected to be spec-eligible, leaving them vulnerable to changes in the pipeline's makeup. MCT, announced today an improvement to functionality through customized duration analysis for specified loan products. Mortgage lenders now have the ability to review and refine the granularity of their spec durations, leading to more precise hedging and reduced basis risk. “A rising share of production can be expected to be spec eligible in the future. With this release, our clients are prepared to reap the benefits of that trend while maintaining the strongest possible hedge performance,” said Phil Rasori, COO of MCT. Mortgage lenders interested in learning more about how granular spec durations may increase their hedge performance are encouraged to schedule a consultation with MCT.

Bond prices down = rates up, and bond yields rose again yesterday on more bets that the Federal Reserve will take a measured approach on future rate cuts. The collective rethink of the risks associated with the November election has left the market apprehensive regarding duration, and the renewed strategy seems to be waiting to see how things unfold before too aggressively reentering the Treasury market.

Existing home sales dropped 1.0 percent month-over-month in September to a seasonally adjusted annual rate of 3.84 million. Sales fell 3.5 percent from one year ago, though that was partially offset by the median existing-home sales price climbing 3.0 percent from September 2023 to $404,500, the 15th consecutive month of year-over-year price increases. The inventory of unsold existing homes rose by 1.5 percent from the prior month to 1.39 million at the end of September, or the equivalent of 4.3 months’ supply at the current monthly sales pace. It’s good news that more inventory is becoming available, yet it is still a tight market, evidenced by the ongoing increase in the median home price and a very low mortgage delinquency rate.

The Federal Reserve's Beige Book for October reported little overall change in activity since early September. Fed Chair Powell has said that anecdotal data, like the data collected in the Beige Book, was a factor the Fed took into consideration in its decision to cut rates by a hefty 50-basis points in September. Most Districts saw weakening manufacturing activity while banking sector activity increased slightly. Loan demand was mixed, and consumers shifted their preferences toward less expensive items. Employment increased slightly while inflation continued to moderate.

Today’s economic calendar kicked off with the Chicago Fed National Activity Index for September and weekly jobless claims (227k vs. 242k expected; 1.897 million continuing). The hurricanes and strikes are likely to continue distorting the claims figures, and while we’re not fully into the October data cycle yet, these factors could soon begin to impact other data series. Later today brings preliminary October S&P Global PMIs, September new home sales, October KC Fed manufacturing, Treasury announcing month-end supply consisting of $69 billion 2-year, $70 billion 5-year, and $44 billion 7-year notes along with $30 billion new 2-year FRNs before auctioning $24 billion 5-year TIPS bonds, Freddie Mac's Primary Mortgage Market Survey, and remarks from the newly appointed Cleveland Fed President Beth Hammack. We begin Thursday with Agency MBS prices better by .125-.250, the 10-year yielding 4.20 after closing yesterday at 4.24 percent, and the 2-year yielding 4.05.

(In keeping with the ghost and cemetery theme of the humor this week…)

A lawyer had a wife and 12 children and needed to move as his rental agreement was coming to an end for the home where he lived.

When he said he had 12 children, no one would rent a home to him because they knew that the children would destroy the home.

But lawyers don’t lie.

He could not say that he had no children, he could not lie, after all, lawyers cannot and do not lie.

So, he had an idea. He sent his wife for a walk to the cemetery with 11 children. He took the remaining one with him to see homes with the real estate agent.

He liked one of the homes and the agent asked, “How many children do you have?”

He answered, “12 children.”

The agent asked, “Where are the others?”

The lawyer answered, with a sad look, “They are in the cemetery with their mother.”

And that’s the way he was able to rent a home for his family without lying.

MORAL:

It is not necessary to lie, one only has to choose the right words.

Lawyers can be creative. And don’t forget: Most politicians are lawyers.

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 STRATMOR blog is titled, “Help Borrowers Tap Into $36 trillion Available in Home Equity.” The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

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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. The views and opinions in this newsletter are mine alone unless otherwise specifically stated herein.)