If olive oil originates from olives, then what is the formulation of baby oil? The complex regulatory environment, often described as a “complex network,” that lenders face is influenced by various federal, state, local, and quasi-governmental bodies. The Consumer Finance Protection Bureau (CFPB) stands at the top of this structure, articulating its priorities, particularly focusing on issues like redlining. Despite its significant impact, the CFPB does not have the jurisdiction to tackle the rising expenses linked to credit scores, a misconception prevalent among the public. Mark McArdle from the CFPB will lead an educational session on Wednesday at 2 PM ET, 9 AM HT, sponsored by L1. For those interested in submitting inquiries, please send them to Robbie Chrisman. It is important to note that this session will not be recorded, so make sure to participate. The most recent podcast episode can be found here, with this week’s episode being sponsored by Richey May, a well-established firm providing specialized advisory, audit, tax, technology, and other services to the mortgage industry for nearly four decades. The latest episode features an interview with Jeff Seabold from Change Wholesale, shedding light on how lenders in the non-QM sector plan to navigate challenges such as rising interest rates, an increasing affordability crisis, and other macroeconomic headwinds.
Products, Programs, and Services for Lenders and Brokers
Contrary to the common belief that the U.S. gold rush began with the 1849 California rush, historical records reveal that the first documented gold discovery in America dates back fifty years earlier in North Carolina. In 1799, young Conrad Reed stumbled upon a 17-pound pure gold nugget while fishing in a creek near Charlotte. Mortgage lenders have a golden opportunity awaiting them in Charlotte this spring as nCino is seeking speaking proposals for its nSight 2024 conference scheduled for May 14–16. If you are an nCino Mortgage customer interested in sharing success stories or industry insights, submit your speaking proposal by December 15 for a chance to receive complimentary nSight registration upon selection.
Continuing its growth and innovation, Class Valuation introduces Class Union, a specialized division dedicated to meeting the unique needs of credit union clients. This strategic initiative follows the acquisitions of Incenter Appraisal Management and TrUnion Appraisal Services in 2023. Led by industry veteran Sally Carothers, now EVP of Class Union, this division is tailored to align with the community-centric, member-first ethos of credit unions. Carothers highlights that Class Union is the only AMC with a dedicated team of valuation experts actively advocating for credit unions, their members, and the appraiser community. Leveraging Class Valuation’s advanced valuation technology and extensive coverage, clients can expect modern appraisal solutions that streamline processes, enhance accuracy, and elevate the overall stakeholder experience. Explore the future of credit union valuations with Class Union here.
“Revolution Mortgage estimates potential savings of up to $20,000 on verifications through TRUV compared to competitors. Femi Ayi, EVP Operations, shares insights on how TRUV has enabled an estimated 80 percent reduction in verification costs in a recent event. Reach out to TRUV today to explore opportunities for cost savings on income, employment, insurance, and asset verifications.”
Ignite the holiday spirit within your databases with ICE’s Surefire℠ CRM and Mortgage Marketing Engine to empower your loan originators. With an award-winning content library and automated marketing blueprints, mortgage professionals can attract new borrowers, foster lasting client relationships, and secure repeat business seamlessly. As you embark on your holiday marketing endeavors, let Surefire guide the way with tailored messages designed to enhance consumer and real estate agent interactions. Discover how you can outshine the competition and schedule a demo with the ICE team today.
Loan officers aiming to enhance efficiency and offer real-time 2-1 buydown mortgage options to potential borrowers can now utilize Uplist. With its innovative technology suite, Uplist presents real-time 3-2-1, 2-1, and 1-0 buydown rate and payment options, along with temporary buydown cost calculations at the click of a button. Seamlessly connected to live pricing, Uplist simplifies the cost assessment process, providing agents and buyers with clear rate, payment, and buydown cost details. Say goodbye to manual recalculations with Uplist and elevate your business relationships. Interested loan officers can reach out via email at [email protected] or request a live demonstration.
New Guide: Make More Out of ‘24: How to Win Market Share as Your Competition Lags
Amidst the prevailing notion of “staying afloat until ‘25” within the industry, many lenders are adopting a wait-and-see approach for rates to decline. However, an alternative strategy is proposed: Utilize this period to craft a forward-looking plan that not only enhances your financial standing immediately but also positions you ahead of competitors by capturing market share. Interested in learning more? The new eBook from the Maxwell team offers actionable insights into the anticipated trends in rates and volume for 2024, strategies to bolster your pipeline, the significance of reassessing your cost structure for profitability, and more. Click here to secure your complimentary copy of Make More Out of ‘24: How to Win Market Share as Your Competition Lags.
“Transform 2024 into your most lucrative year yet! With Lender Toolkit’s AI-powered AI Underwriter, you can secure loan approvals in under two minutes. By delivering swift underwriting decisions, you can enhance your reputation in the market with borrowers and Realtors, leading to increased repeat and referral business. Mark Workens, CEO of Mortgage 1 Inc., attests to the transformative impact of Lender Toolkit’s Maas™ Platform solutions on their business profitability and employee satisfaction.” Additionally, Lender Toolkit is introducing a new BizRule Analyzer Power tool this Thursday, designed for Encompass® administrators seeking to streamline system settings searches related to specific fields or text strings. This tool facilitates troubleshooting of system issues linked to particular fields and ensures a smooth transition for planned changes. For a comprehensive overview of Lender Toolkit’s offerings, reach out via email.
“Boost your operational efficiency and reduce costs with Richey May’s RM Analyze. Our business intelligence solution identifies areas for improvement and cost savings, enabling you to outperform competitors by operating leaner and smarter. For the cost equivalent to half a full-time employee, you gain access to a team of industry experts armed with extensive experience in the mortgage sector and a diverse array of reports, including real-time benchmarking data. Armed with this invaluable knowledge, you can make informed decisions that propel your business towards success. Rather than merely surviving, thrive by mastering the art of lean operations with Richey May.”
Updates on Wholesaler Products and Programs
JMAC Lending: Enhance your loan funding potential with JMAC Lending’s expanded product offerings, accelerated service, and transparent communication channels with operations. In today’s dynamic market environment, speed and reliability are paramount, and JMAC Lending delivers a comprehensive suite of mortgage solutions to cater to your clients’ diverse needs. From FHA options with FICOs starting at 500 to jumbo loans up to $4M, JMAC offers a spectrum of solutions to match various borrower scenarios. Partner with JMAC today to fuel your lending business and achieve greater success in 2024. Season’s greetings from Team JMAC. Let’s conquer the market in 2024 together.
For Plaza Home Mortgage clients, whether new or in need of a refresher on originating loans through BREEZE, a wealth of training resources is readily accessible via the Plaza client portal. Dive into a library of training videos and quick-step guides to enhance your proficiency in loan origination.
Kind Lending has broadened access to credit and extended support for affordable rental housing by updating the maximum allowable LTV, CLTV, and HCLTV ratios for 2–4-unit, principal residence, purchase, and limited cash-out transactions to 95 percent. These updates have been implemented across Fannie Mae’s (FNMA) Conforming & HomeReady programs at Kind Lending.
To bolster data security and uphold the highest standards of client data protection, Pennymac will introduce Multi-Factor Authentication (MFA) technology for logging into the P3 portal. Refer to Pennymac Announcement 23-84 for detailed instructions on completing the setup process.
Plaza Home Mortgage has secured the fifth position in wholesale lending rankings. Stay informed with the latest news and updates from Plaza.
Capital Markets Insights
Last week’s spotlight was on the payroll data ahead of the final Federal Open Market Committee (FOMC) meeting of the year. November witnessed a rise of 199k in nonfarm payrolls, surpassing October figures and slightly exceeding market expectations. Additionally, the unemployment rate dipped to 3.7 percent, accompanied by an uptick in earnings and an increase in the labor force participation rate.
The latest job figures depict a gradual transition of the U.S. economy towards a “soft landing,” dispelling concerns of an impending recession that have loomed for nearly two years. While the data wasn’t robust enough to prompt the Fed to reconsider its decision on holding rates steady this week, it did exert pressure on stock and bond prices post the November surge. The report challenges the notion of a continuously softening labor market as the Fed aims for a gentle economic slowdown, dampening hopes of an early rate cut and raising apprehensions about the resilience of price pressures.
Based on last week’s data, the monthly payroll average for 2023 stood at 232K, notably lower than the nearly 400K monthly average in 2022. Insights from the Job Openings and Labor Turnover Survey (JOLTS) indicate a decline in openings to 8.7 million in October, marking the lowest level since March 2021. The labor market is gradually stabilizing, with reduced job availability alleviating wage growth pressures to a more sustainable level. Despite tempered income growth, there remains a strong demand for services, reflected in the rise of the ISM services index to 52.7 in November. The persistent demand has enabled service firms to maintain elevated prices, complicating the Fed’s efforts to rein in inflation to the 2 percent target, despite substantial progress.
The recent rapid decline in rates, particularly mortgage rates (down nearly 80 basis points since late October), coupled with sustained job growth, bodes well for homebuyers. However, if the labor market sustains its strength, the pace of mortgage rate declines may decelerate in the near future or even reverse partially. The FOMC is widely anticipated to maintain rates unchanged this week, although market sentiments suggest a potential rate cut by the Fed in spring 2024, given the anticipated weakening trends in the job market.
Apart from the FOMC decision and the updated Summary of Economic Projections (dot plot) followed by Chair Powell’s press conference, this week features several key economic releases. Tomorrow’s agenda includes CPI data and the November budget statement, Wednesday brings PPI figures ahead of the Fed meeting, Thursday unveils retail sales, import prices, business inventories, NY manufacturing data, industrial production, capacity utilization, and S&P Global services PMI, with the ECB, BoE, and SNB set to announce their monetary policy decisions post-Fed on Thursday.
Today’s focus is on supply dynamics with Treasury auctions of \(68 billion 6-month bills and \)50 billion 3-year notes, followed by \(75 billion 3-month bills and \)37 billion reopened 10-year notes. The Employment Trends Index for November is slated for release later today. Agency MBS prices kick off the week on a stable note compared to Friday’s close, with the 10-year yield at 4.27 percent following last week’s close at 4.25 percent.
