Sep. 12: Sales mgt., AE jobs; MSR, servicing, QC, productivity products; CFPB fines TD Bank $28 million on credit issues

“Honey, what did you do today?” “Well…” People do some cockamamie stuff against all odds. What are the odds of a lender or LO retaining their client after the loan has been brokered out or the servicing’s been sold? UWM released KEEP, “an industry-leading technology that utilizes AI to send pre-validated refinance opportunities as soon as a borrower is able to obtain meaningful savings on their monthly payment.” (More below.) “Rob, I recently interviewed at a broker shop that, as it turns out, is sending over 95 of its loans to one wholesaler. What are the odds? Does that sound right to you?” Many will argue that a broker’s duty is to shop multiple wholesalers for every loan, knowing that one company is not going to have the best product, price, and service every day for every client. Or even near that. Therefore, if indeed 95 percent were sent to one wholesaler, that would defy all the odds. What do you think the odds are that every home builder out there employs immigrants of one size & shape or another? I’d say 100 percent. Hate to be the bearer of bad news, but every construction company uses immigrants to build America. Some will claim that they literally have built America. (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 LodeStar's Alayna Gardner, AMP, on how her podcast (Lending Leaders) and other conversation-based content focused on thought leadership is ushering in a new era of content marketing.)

Employment, companies wanted, and transitions

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“Logan Finance is hiring a Sales Leader in Florida to manage our JV relationship. Ideally this candidate lives in the South Florida area and brings a history of building and growing retail sales teams and managing a joint venture model. This role serves an elite clientele and requires a high level of professionalism and service along with strong leadership, business acumen, and Non-QM product experience. Account Executive positions are also available nationwide. Email recruiting@loganfinance.com to learn more. Welcome to AE, Glen Arellano, who recently joined Logan. Logan is also celebrating our 75th anniversary this year! Dedication, commitment, and loyalty are integral parts of The Logan Experience, and we’ve spent the last 75 years displaying that every day to our clients, employees, and partners. Speaking of loyalty and commitment, Diana Buchanan is celebrating 55 years as a beloved employee of Logan. Diana, we’re honored and grateful for your 55 years of service to Logan!”

Why would the longest-standing IMB in Colorado choose to join Lower, LLC? It’s been almost a full year since Universal Lending joined the Lower family and TJ Kennedy still feels it was the right one. “When we first joined, we saw it as an opportunity to continue to play offense. Since joining, we have seen amazing growth amongst our teams and an unparalleled level of support.” Selene Kellam, Chief Operating Officer, (and no stranger to the benefits of merging with Lower) shared her thoughts stating, “When you join powerful teams with an innovative approach to shaping the modern mortgage experience, you create an environment for winning. That’s what we’re doing when we say we’re building ‘the future of mortgage.’” Unlock the full potential of the legacy you’ve built and gain stability, support, and the resources to thrive in an ever-competitive market. Read the full story here and connect with Julia Brown, SVP of M&A and Integration.

Freddie Mac announced that its Board of Directors has selected real estate and financial services industry veteran Diana Reid to serve as the company’s chief executive officer (CEO), effective immediately. Ms. Reid also will serve as a member of Freddie Mac’s Board of Directors. President and Interim CEO Michael Hutchins will continue as the company’s president.

NotaryCam®, a Stewart-owned company and a pioneering provider of remote online notarization technology for real estate and legal transactions, today announced the appointment of Sam McPherson as the new Head of Customer Success to oversee customer relationships, focusing on delivering an exceptional client experience while driving retention and advocacy.

Lender and broker software, services, and loan programs

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ICYMI: Optimal Blue announced it will host its inaugural Optimal Blue Summit from February 3 – 5, 2025, at the Marriott Marquis San Diego Marina. This three-day event will feature panels and multi-track sessions led by economists, policymakers, lenders, and Optimal Blue’s team of subject matter experts to provide attendees with tools and insights to operate profitably and competitively. “Working with Optimal Blue has always helped clients maximize their profitability, and we look forward to bringing the industry together for uniquely valuable content and connections they cannot access elsewhere,” said Joe Tyrrell, CEO of Optimal Blue, in the company’s news release. Optimal Blue is known for its comprehensive capital markets technology and open-network approach to partner integrations. With expertise built over more than 20 years, the company helps lenders maximize profitability from pricing accuracy to margin protection, and every step in between.

The wheels keep turning at AmeriHome Correspondent! Click Here to catch up on the latest happenings at AmeriHome. If you missed the crew at the California MBA Western Secondary Market Conference, don't miss your opportunity to meet with its non-delegated team at the NAMB National Conference in Las Vegas next month! Planning to be in Denver for the MBA Annual Conference at the end of October? Schedule a meeting with the AmeriHome Sales team to find out how a partnership with AmeriHome, backed by the strength of Western Alliance Bank, can benefit your business. Yesterday, AmeriHome was proud to participate in the 9/11 National Day of Service by joining Western Alliance Bank and over 25,000 volunteers across the country to pack over 9 million healthy, non-perishable meals for families and individuals experiencing food insecurity! If you want to catch AmeriHome later this year, check Upcoming Events for details, find your sales rep here, or send an email to learn about partnering with AmeriHome!

To support fair lending practices and non-discrimination in property valuations, federal regulators recently announced new automated valuation model (AVM) quality control standards that will go into effect in October 2025. While this seems like a long time away, now is the time to prepare. ICE’s suite of AVMs, AVM Waterfalls and digital valuation solutions already support the new quality control standards. Attend a complimentary webinar, New developments in AVMs, on September 24 at 2 p.m. ET to learn how we can help you plan ahead to address and adhere to the new standards by the implementation deadline.

“Production Managers, we’re talking to YOU! With this upcoming market shift, you’re probably wondering, ‘How can I get all my originators working more like my top producers?’ You’ve been looking for the holy grail: habit replication. Usherpa has been researching habits of highly successful Loan Officers for 30 years, helping literally thousands of LOs increase production using habit replication through every conceivable market condition! How? Using data analytics and AI-powered alerts (and lengthy history in the industry), Usherpa identified the most powerful habits of successful producers. Leveraging those trends coupled with Usherpa’s Pipeline technology and commitment to customized training, you can ensure your team is primed to operate like the big hitters. Make your life a little bit easier and give your LOs the tools to duplicate top producers’ habits, learn how here. While you’re at it download the Usherpa eGuide ‘3 Habits of Top Producing Loan Officers (You Can Duplicate).’”

ACES Quality Management® executives selected to speak at the 2024 Mortgage Bankers Association Risk Management Conference and Expo! ACES’ EVP of Compliance Amanda Phillips and EVP of Operations, Sharon Reichhardt will speak at the September conference in Washington, DC. As a corporate Platinum Sponsor, ACES CEO Trevor Gauthier will also take the stage on Monday, Sept. 23 at 8:30 am ET to introduce panelists for the Opening General Session. “Improving loan quality and compliance should be a top initiative for every lender. We’re honored to be the mortgage industry’s resource for staying current on best practices and changes in quality control and compliance requirements,” Gauthier said. “Sharon and Mandy possess immense knowledge in their respective arenas, and I am confident they will provide this year’s attendees with tactical strategies for safeguarding the integrity of their originations through robust quality control practices.”

Servicing & MSR products

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Interested in learning more about MSR strategies and how they may affect your bottom line? Join MCT and Lender Price in this webinar as industry experts, David Burruss and Azad Rafat of MCT and Lender Price’s David Colwell and Paul Orlando take you through the current state of the MSR market and how to capitalize on it with skilled MSR strategies. Now is the time to strategize on MSR to take advantage of the current mortgage market and prepare for Q4. Register for this webinar to gain insight into the current MSR market and topics such as benefits of leveraging weekly fair value grids, how to minimize risk exposure with balance sheet management, benefits of retaining MSR, and how to develop more granular base pricing. Join this team of veterans as they lead you through exactly how to capitalize on this MSR market by registering for the webinar.

Enhance the value of your non-agency investments with Planet’s Guide to Non-Agency Servicing. Uncover strategies to optimize portfolio performance and elevate ROI through our deep expertise and industry insights. Learn how we help clients nimbly adapt portfolio strategies and explore new asset classes, ensuring investors stay ahead in a dynamic market. Unlock these valuable insights today from the fastest-growing non-prime servicer in IMF’s Top 20. Download the guide.

In recent months, the VA, CFPB, and USDA have introduced or updated loss mitigation programs. These new initiatives have created a complex landscape of compliance rules that servicers must navigate swiftly, and the most effective way to manage these demands is by leveraging smart technology and real-time data. Servicing fintech Sagent has delivered a bold response to this challenge with its next-gen platform Dara and its loss-mitigation capabilities. In a demo presented at National Mortgage News’ Digital Mortgage Conference, they showed an end-to-end digital experience for homeowners where AI plugs in to make the application and document-gathering process easier. For servicers, automations based on investor-specific rules and real-time data enable delivery of modification terms for e-signature and online notary in hours, not days. Sagent takes a consultative approach to determine how their solutions can best serve a servicers’ strategy. Click to learn more, then set up a conversation here.

The CFPB, credit reports, TD Bank, and $28 million

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The Consumer Financial Protection Bureau (CFPB) ordered TD Bank to pay $7.76 million to tens of thousands of victims of the bank’s illegal actions. For years, the bank repeatedly shared inaccurate, negative information about its customers to consumer reporting companies. The information included systemic errors about credit card delinquencies and bankruptcies. In addition to the redress, the CFPB is ordering TD Bank to pay a $20 million civil money penalty.

UWM’s retention product

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United Wholesale Mortgage (UWM) released KEEP, utilizing AI to send pre-validated refinance opportunities as soon as a borrower is able to obtain meaningful savings on their monthly payment, streamlining the speed and efficiency of the mortgage process for both borrowers and UWM’s broker partners. “When a refi market hits, one of the biggest challenges loan originators face is staying in front of their past clients and competing with the substantial budgets and aggressive marketing tactics of large banks and retail lenders. KEEP alleviates that pressure and helps brokers KEEP their past clients.

The KEEP system continuously checks and validates multiple borrower data points on previously closed loans to identify which borrowers across the country are eligible for impactful savings on their monthly mortgage payment. Once the system identifies that a borrower can save on their monthly mortgage payment, UWM’s KEEP technology will automatically communicate these savings to them through an email that provides a link to an easy-to-complete application. If borrowers have specific questions regarding rates or loan terms, they will be connected with their mortgage broker who can walk them through additional options. (Additional information on KEEP can be found here.)

Capital markets: Producer Price Index’s turn

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After yesterday’s Consumer Price Index (CPI) report, traders have adjusted their expectations and are no longer betting on a half-point interest rate cut by the Federal Reserve at its meeting next week. As expected, the CPI for August showed inflation rising 0.2 percent month-over-month and 2.5 percent year-over-year, with core inflation (excluding food and energy) up 3.2 percent year-over-year. The headline was in line with forecasts, but the core reading surprised slightly higher.

Yes, inflation continues to trend downward overall, but that stronger-than-expected core data has reduced the chances of a larger rate reduction. Most economists now expect the Fed to cut rates by 25 basis points at the September 18 meeting, with Federal Reserve Chair Jerome Powell likely signaling further easing later in the year. Projections indicate additional rate cuts could bring the federal funds rate down to 4.625 percent by the end of 2024, with further reductions expected in 2025.

Following yesterday’s consumer price report, today brings the August Producer Price Index (PPI) report. PPI was +2 percent, core (ex-food & energy) was +.3. Headline PPI was +1.7 percent year over year versus expectations of increasing 0.2 percent month-over-month and 1.8 percent year-over-year. We’ve also received initial jobless claims (230k, about as expected). Later today brings a heap of Treasury activity, Freddie Mac’s latest Primary Mortgage Market Survey, and the August budget statement from the Congressional Budget Office. This morning also brought the latest monetary policy decision from the ECB. After the PPI inflation news, we have Agency MBS prices roughly unchanged from Wednesday’s close, the 10-year yielding 3.66 after closing yesterday at 3.65 percent, and the 2-year at 3.65.

(Thank you to April S. who sent this tale from the New York Times.)

My friend Tom runs a popular whale watch cruise out of Sheepshead Bay. Recently, an avid whale watcher and good friend, Buddy, died. One of Buddy’s wishes was that Tom spread his ashes on the ocean he loved so much.

So, on a beautiful summer evening, Tom canceled his usual nightly cruise and organized a private memorial service. More than 80 of Buddy’s friends and family members came to say a last goodbye. A serious-looking young woman who sat quietly by herself was among the passengers. None of the other people, including the crew members, knew who she was.

The boat set out and the service went off very well, with lots of laughter, a few tears and people telling their favorite stories about Buddy.

When the boat returned to the dock in Brooklyn, Captain Tom spoke with everyone as they departed. When the young woman approached him, Tom thanked her for attending and said how happy he was that they had shared such a beautiful evening.

“Honestly,” she said, “this was the worst whale watch cruise I have ever been on.”

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.)