Sep. 10: VOE, subservicing, DPA, HFA, warehouse products; Polly's capital raise; upcoming events, education, and training

Every once in a while, a new loan program is “invented.” Lenders have to make sure they’re doing it correctly. (Don’t try this at home.) At events around the nation, invention may not be first and foremost but adjusting business models and paying close attention to trends is. Topics like what regulators and examiners are doing, leveraging data to drive profitability and growth, digital marketing compliance, recruitment and retention, the impact of homeowner’s insurance changes on lending, and managing a compliant appraisal process, and promoting advocacy are all topics at The Mortgage Collaborative’s event here in Denver. Along with it all is using technology appropriately. “Rob, have you heard of any worthwhile group texting apps to reach borrowers or clients?” Yes, I have. Try Reach. (No, this is not a paid ad.) (Today’s podcast is found here and Sponsored by Richey May. Richey May’s consulting, cybersecurity, business intelligence, and automation services are designed by mortgage experts to help you continue to drive growth and increase profitability. Hear an interview with Nation One Mortgage’s Phil Crescenzo, Jr. on what the various election outcomes in November could mean for the housing market and mortgage industry.)

Hawaii business opportunity

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There is a “spare” license for a company that’s looking for a bricks and mortar residential lending option in Hawaii. The license belongs to someone who has left the business, and whose license is active in Hawaii, and has already completed CE for next year. There is also an office space, creating a turnkey solution for a company looking for a brick-and-mortar license opportunity in Hawaii. Anyone interested should contact Shawn Kelly.

Lender and broker software, services, and loan programs

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Regulatory requirements constantly evolve, and servicers need comprehensive technology and robust data to help automate processes, enhance decision-making, and reduce risk. ICE is committed to compliance with integrated, scalable solutions that help servicers adapt as new rules and regulations are introduced. ICE continually invests in its solutions and expert-led training sessions so servicers and their teams can prepare for upcoming compliance changes and be ready to meet regulators’ implementation deadlines. Read how ICE’s solutions can help support your compliance needs.

PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), understands the importance of efficiency when it comes to meeting mortgage lenders funding requests. “Express Funding” is how we help our customers reduce the time needed to get loans funded quickly. Express Funding allows our customers to submit multiple loans for funding in one simple data upload, whether it is one loan or 100 loans. We have a growing list of 5,000+ approved closing agents, No Doc funding requirements and funding turn times averaging under 20 minutes! As a well-capitalized financially strong banking partner we give our customers confidence in an uncertain market. If you are interested in learning more about PlainsCapital Bank National Warehouse Lending please contact Deric Barnett, (469)955-6786.

“We're excited to announce the addition of Mark Suderman as our HFA Director at The Money Source. With over a decade of experience at Idaho Housing and Finance Association, Mark brings extensive expertise in mortgage lending, loan acquisition, and business development. His leadership and innovative approach will be instrumental in helping TMS grow as a leading HFA master servicer. TMS will continue to expand eligibility guidelines, provide 24-hour funding package reviews, and offer the exceptional service experience that our HFA partners deeply appreciate. Mark's proven track record and dedication to service makes him a valuable asset to us and our HFA partners. Learn how TMS’s expanded eligibility guidelines and superior servicing can support your HFA in creating sustainable homeownership. Email us.”

Down payment assistance (DPA) is a welcome hero for many first-time homebuyers, helping them buy down their interest rate or keep more cash on hand post-close. If you haven’t operationalized DPA for origination and underwriting, now’s the time. Down Payment Resource has 2,400+ programs in its nationwide database and can make you “DPA conversant” with no expertise (or cape) required so you’re ready to match homebuyers to approved programs. If you’re on the Encompass® LOS platform, even better: your DPA connection is already triggered to save the day! Catch the dynamic duo of DPR’s Sean Moss and Brad Cardwell at TMC’s A Mile Above Sept. 8-10 in Denver, CO. Brad will also be at the New England Mortgage Bankers Conference Sept. 11-13 in Portsmouth, NH. Grab a spot on Brad’s calendar to learn more.

Put leads directly in your loan officers’ hands with the new refinance solution from LoanCare®, a leading national mortgage subservicer. Designed to connect your homeowners to lending products that fit their unique needs, LoanCare’s real-time application and submission notifications enable faster follow-ups and improved customer satisfaction. As the latest addition to LoanCare’s customer experience ecosystem, the refinance solution provides seamless lead transfers through the use of real-time APIs, and further extends your value proposition for a holistic journey across web, Call Center, IVR, and mobile platforms. To learn more about the refinance features and recapture capabilities available from LoanCare, reach out to David Vida, Chief Revenue Officer, today! Meet with the team in person at the MBA Annual Convention & Expo in Denver, CO, October 27-30, 2024.

“Truv is thrilled to announce our enhanced integration with nCino. Inc. Lenders can now access Truv's embedded income, employment, and asset verifications directly within nCino's Mortgage POS product, creating a seamless, faster, and easier mortgage application process for both loan officers and borrowers. The real-time income, employment, and asset verifications are embedded in the 1001 loan application, no external emails & SMS links needed! Request a demo.”

Polly’s capital raise

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This morning Polly, a “leading provider of innovative mortgage capital markets technology and operator of the industry's first cloud-native, commercially scalable product and pricing engine (PPE),” announced $25M in new growth equity capital. Led by 8VC with participation from other existing investors (including Menlo Ventures, Meritech, Khosla Ventures, and Fifth Wall) “this capital investment will further accelerate Polly's rapid growth and enable an even deeper investment in R&D, product innovation, and expansion. The investment comes on the heels of Polly's continued momentum and market leadership. This calendar year alone, Polly increased lock volume by well over 150% and has more than doubled its customer partner base to include many more of the country's top and most notable banks, credit unions, and mortgage lenders.”

In-person events, training, and webinars

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While you really can’t control home values or your borrower’s income, you can optimize their credit to make sure your borrower has the best and most accurate score before submitting their loan. On Thursday, September 12, join renowned credit guru, Bo Thomas to learn the top two strategies to optimize consumer credit scores without any additional cost to your clients. Bo will share these two strategies as part of the NMP Webinar, Strategic Credit Optimization: Leveraging New Technology for Business Growth. Plus, Bo will share a game-changing secret that credit card companies use to hold down consumer credit scores and learn how to counteract it immediately to benefit your clients. Register for the webinar here.

A good place for longer term conference planning is to start is here for in-person events in the future.

Tuesdays at 11am PT, two veteran LOs discuss all things mortgage with Industry Leaders: Mortgage Pros 411 with Audrey Boissonou and Kevin Casey. Today features Joe Herrero, Regional VP with Cross Country Mortgage.

Join Optimal Blue, Tuesday, September 10, 12 p.m. CT for the next session in its Hedging webinar series, Hedging 301, as they take a deeper dive into more advanced capital market strategies and how to effectively manage your mortgage pipeline.

Looking for more in-depth commentary on weekly mortgage news? Register here for Wednesday’s 11AM PT "Mortgage Matters: The Weekly Roundup” presented by Lenders One. This week’s guest is Devin Norales with FICO!

Advanced Underwriting the Self-Employed Borrower ​​with Marianne Collins: September 10th at 1pm ET.

Register for the New England Mortgage Bankers two-day conference, September 11-13 in Portsmouth NH. Hear from a range of speakers, learn about new technologies and products, join golf and social events.

Special Purpose Credit Programs (SPCPs) are a new tool to provide free down payment grants and other financing help for Black, brown, and other diverse homebuyers. Join the MBA initiative "CONVERGENCE" on Wednesday, September 11 from 9:30-11am via Zoom as we discuss how SPCPs work, how they are different from traditional mortgages, and how they can help your clients access homeownership. Registration is required and it closes on September 10. No last-minute registrations for this event so if you're interested, don't delay.

Are you looking to stay ahead of the curve in the ever-changing insurance landscape? Join CRMLA for a free Lunch and Learn on Thursday, September 12, 11:45 AM featuring industry experts discussing the current state of insurance. Expert speakers will provide valuable insights on market trends, risk management and insurance products.

Kick your reverse knowledge into shape and expand your expertise by joining the exclusive Plaza Home Mortgage® Reverse Mortgage Bootcamp, Courses include Tuesday, September 10, How to Use the Reverse to Purchase a Home, Wednesday, September 11 |Financial Planners Guide to Reverse Mortgages, and Thursday, September 12 |How to Present a Reverse Mortgage: The “Kitchen Table” Approach.

Thursday, September 12th, will be another episode of The Big Picture at 3PM ET. Rich Swerbinsky hosts a variety of guests, and Thursday will be joined by Vice Capital’s Chris Bennett. You can click here to register for Thursday’s 3 PM ET show.

Friday the 13th listen in to opinions (Last Word Fridays at 1pm ET) from Kevin Peranio and Brian Vieaux!

End this week with The Mortgage Collaborative’s Rundown with Melissa Langdale covering current events in the mortgage market for 30 minutes starting at noon PT, 3PM ET. This week’s guest on Friday is a panel of originators discussing current topics.

National MI offers its upcoming September 2024 webinar sessions. As does MGIC, Essent, Arch, Radian, and Enact.

9/12-9/13, the Mississippi MBA’s Fall Conference will be held at the Sheraton Refuge in Flowood, MS. “Our theme, Elevate Your Impact, reflects our commitment to empowering mortgage bankers with the latest insights, strategies, and tools to make a significant impact in our industry.”

There’s the Zelman & Associates 2024 Housing Summit, Thursday, September 12th & Friday, September 13th in Boston, MA. The cost to register is $1,595.

Register now for the 2024 Loan Vision Innovation Conference in Chicago, September 23-25! Tailored for financial leaders in IMBs, banks, and credit unions, this event is your key to staying ahead in the competitive financial landscape. LVIC24 offers a unique opportunity to gain the insights and tools you need to drive growth and efficiency within your organization. Learn from mortgage industry titans like Michael Fratantoni, Rob Chrisman, and others through sessions focused on profitability, sustainability, and industry best practices. Enjoy enhanced networking opportunities, including the Opening Dinner + Awards Ceremony and an Evening on the Chicago River.

Have you heard about (read: registered for) some of our expanded media offerings? Chrisman Commentary is pleased to bring you a variety of video shows hosted on Zoom throughout the week. Take your pick: We have a show focused on technology and innovation (Now Next Later Mondays at 1pm ET, presented by BILT Rewards), origination (Mortgage Pros Tuesdays at 2pm ET), big-name interviews (Mortgage Matters Wednesdays at 2pm ET, presented by Lenders One), headline news (The Big Picture Thursday’s at 3pm ET), opinion (Last Word Fridays at 1pm ET), advisory services (Advisory Angle first Tuesday of the month at 2pm ET, presented by STRATMOR Group), capital markets (Capital Markets Wrap second Tuesday of the month at 3pm ET, presented by Polly), regulation and compliance (Regulation Central third Tuesday of the month at 3pm ET), and reaching the next generation of homeowners (Mortgages with Millennials last Tuesday of the month at 1pm ET, presented by The Mortgage Collaborative). (If you don’t see a presenting sponsor, please reach out to Chrisman LLC’s Anjelica Nixt to inquire about opportunities.)

Capital markets: will spread narrowing further help mortgage rates?

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While a Fed rate cut this month is virtually assured, bond traders are divided on how fast the reductions will come and the impact. Currently, fed funds futures see roughly a 75 percent chance of a 25-basis point cut and a 25 percent chance of a 50-basis point cut at the meeting next week. Traders are pricing in about 250 basis points of Fed cuts during this tightening cycle, which is expected to take 12 months. If a swift easing doesn’t go far enough in helping the economy, it could leave plenty of room for shorter-dated Treasuries to keep rallying. Mortgage rates have now dropped for four straight weeks and are now about 90 basis points lower than a year ago. 

Yes, rates can go lower, but we’ll likely need more economic weakness, better spreads, and a more dovish Fed. For those of you that don’t work in capital markets, the primary/secondary spread measures the difference between the 30-year mortgage rate (primary rate) and the current 30-year agency RMBS coupon (secondary rate), while MBS are often valued in terms of a yield premium, or spread to Treasury securities of a similar duration, which equalizes the market price and the expected discounted value of cash flows. Looking for more information like this, in plain English? Register for Capital Markets Wrap, which takes place today (and every second Tuesday of the month) at 3p ET/12p PT.

As was mentioned yesterday, the week ahead will be dominated by inflation data (CPI is tomorrow and PPI is on Thursday). Lower gas and diesel prices are expected to translate into cool CPI and PPI reports for August. Core CPI inflation likely held steady in year-over-year terms in August, and core PPI inflation looks to have picked up. With inflation slowing in the month, consumer sentiment likely improved as well: The University of Michigan Consumer Sentiment Indicator is more sensitive to inflation and cost of living pressures than to labor market conditions. We are in the quiet period ahead of the FOMC meeting next week, so there won't be any Fed speakers.

We learned yesterday that Wholesale Inventories increased by 0.2 percent in July after no change in June. Consumer credit increased by $25.5 billion in July, more than double what was expected, after increasing a downwardly revised $5.2 billion in June.

The market will not receive any top-tier data today, but the U.S. Treasury will begin this week's note and bond auction slate with a $58 billion 3-year note offering. NFIB small business optimism for August kicked off today’s calendar before the open. Later today brings Redbook same store sales, and Treasury returns at 2:00pm ET to conduct a buyback in 7- to 10-year coupons for up to $4 billion. We begin the day with Agency MBS prices little changed from Monday’s close, the 10-year yielding 3.72 after closing yesterday at 3.70 percent, and the 2-year at 3.68.

An elderly couple was celebrating their sixtieth anniversary. The couple had married as childhood sweethearts and had moved back to their old neighborhood after they retired. Holding hands, they walked back to their old school. It was not locked, so they entered, and found the old desk they'd shared, where Jerry had carved, I love you, Sally.

On their way back home, a bag of money fell out of an armored car, practically landing at their feet. Sally quickly picked it up and, not sure what to do with it, they took it home. There, she counted the money: fifty thousand dollars!

Jerry said, “We've got to give it back.”

Sally snapped back, “Finders keepers.” She put the money back in the bag and hid it in their attic.

The next day, two police officers were canvassing the neighborhood looking for the money and knocked on their door. “Pardon me, did either of you find a bag that fell out of an armored car yesterday?”

Sally said, “No.”

Jerry countered, “She’s lying. She hid it up in the attic.”

Sally said, “Don't believe him, he’s getting senile.”

The agents turned to Jerry and began to question him.

One requested, “Tell us the story from the beginning.”

Jerry said, “Well, when Sally and I were walking home from school yesterday…”

The first police officer turned to his partner and said, “I think we’re done here.”

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, “Hiring: Do You Remember How to Do That?” 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.)