“Every so often, a whole day can slip away without achieving anything substantial. Nevertheless, the environment is constantly changing. In my younger years, I would simply ‘get a drink of water,’ while today’s youth ‘hydrate.’ Surprisingly, not too long ago, a skilled originator could handle 10-20 loans per month. Currently, it is estimated that 80 percent of the volume is managed by just 40 percent of originators, with lenders imposing minimum production quotas: ‘Failure to fund 2 loans per month may necessitate seeking success elsewhere.’ Analyzing the 2023 production data through NMLS and reviewing 234,000 records, Ingenious uncovered that only 24 percent of originators achieved 24 units or more! Furthermore, 30 percent managed 18 or more units, 40 percent oversaw 12 or more units, and 60 percent handled 5 or more units. Has the benchmark shifted? Certainly, a portion of marketing attention has shifted towards individuals under 40, with discussions on Mortgages with Millennials featuring Kristin Messerli and Robbie Chrisman exploring Overlooked Strategies to Win with Millennials scheduled for tomorrow at 1PM ET. Access the latest podcast here, and this week’s episode is sponsored by Calque. Through The Trade-In Mortgage powered by Calque, lenders assist their clients in negotiating lower purchase prices, reducing interest payments, and eliminating PMI. Listen to an interview with Truv’s Richard Grieser on the newest verification solutions and how lenders can combat fraud.
Software, Products, and Services for Lenders and Brokers
Introducing The 2024 Lender Playbook: 4 Strategies to Boost Profitability in a Recovering Market. How will the upcoming election, housing inventory, and Federal Reserve actions impact the mortgage market (and your lending success) this year? The year 2024 presents numerous challenges, and market recovery is expected to be complex. The positive aspect? You can still develop a strong, forward-thinking strategy for resilience and profitability. Esteemed experts from Maxwell’s senior team collaborated to create this guide to educate you on cost reduction, winning borrower business, and capturing intermittent loan volume as it resurfaces in the market. To gain a competitive advantage and infuse agility into your business, download The 2024 Lender Playbook: 4 Tips to Drive Profitability in a Recovering Market.
Seize Opportunities with LoanStream’s upcoming Closed-End Seconds webinar on Tuesday, February 20th, catering to borrowers looking to leverage their equity without refinancing or aiming to save money by bypassing costly mortgage insurance. The webinar will also offer insights on the upcoming CalHFA Dream For All Loan Program. Reserve your spot or your team’s spot now for this enlightening webinar.
Did you know that the human circulatory system spans over 60,000 miles? Managing a system of such complexity would be overwhelmingly demanding if not automated by your brain’s blood-flow control center. Serving as the command center of your mortgage operation, your LOS coordinates hundreds of loan tasks simultaneously, enabling you to focus on nurturing relationships and running your business. Additionally, in the near future, your LOS could become even more robust, adaptive, and proactive, thanks to AI and machine learning. However, is your organization prepared? A recent blog from Dark Matter Technologies provides guidance on formulating an AI/ML adoption strategy to equip you for a more productive tomorrow.
“In a year where companies strive to differentiate themselves, MQMR has cracked the code. While we recognize that culture surpasses strategy in importance, leaders were doubtful about fostering a vibrant culture in a virtual setting. We are delighted to announce that MQMR has cultivated a thriving culture with team members across 14 states and 3 continents, boasting a world-class employee NPS in the high 70s. Over 50% of our clients are multi-product clients, many of whom have been in partnership with us since 2011. For lenders in need of an audit, risk, and compliance partner, there’s only one choice, and that’s the one that not only delivers results but also offers a stimulating work environment! MQMR prioritizes the well-being of its team members because we understand that these team members, in turn, prioritize you. Watch our engaging year-end video for an insider’s view of the beating heart of our culture. If you missed Saturday’s Spotlight, MQMR was the featured company!”
Polly, a leading provider of state-of-the-art mortgage capital markets technology and operator of the industry’s first cloud-native, commercially scalable product and pricing engine (PPE), recently appointed industry luminary Troy Coggiola as COO. Coggiola’s appointment follows a record-breaking year for Polly in terms of industry adoption and product innovation. As COO, Coggiola will lead Polly’s product, implementation, support, and design teams, ensuring seamless cross-organizational collaboration as the company continues to expand. Coggiola joins a group of notable leadership additions; Parvesh Sahi, former SVP of Business and Client Development for ICE Mortgage Technology, assumed the role of CRO in 2023. Additionally, former Fannie Mae executive and industry veteran Andrew Bon Salle, along with former Ellie Mae CEO and mortgage industry visionary Jonathan Corr, serve on the company’s board of directors. Read the press release for more details.
Legal Updates and Regulations
While the following news may not directly pertain to mortgages, legal proceedings can be perplexing. What is the worth of a human life? Bryn Spejcher, a 33-year-old convicted of fatally stabbing her boyfriend Chad O’Melia 108 times during a ‘cannabis-induced psychosis,’ received a sentence of two years’ probation and was mandated to perform 100 hours of community service, as reported by the Ventura County Star. (Ventura County Superior Court Judge David Worley, appointed by Republican Governor Arnold Schwarzenegger.)
Connecticut Banking Commissioner Jorge L. Perez issued a temporary cease and desist order against LoanSnap, Inc., notifying the company that its state mortgage lender license will be revoked, and a civil monetary penalty will be imposed. The charges against the California-based mortgage lender include alleged violations of the Truth in Lending Act and the Fair Credit Reporting Act, focusing on unlicensed origination activities. Department examiners discovered that from at least August 29, 2022, to December 2, 2022, LoanSnap employed individuals without mortgage loan originator licenses in Connecticut who nonetheless acted as mortgage loan originators by handling residential mortgage loan applications, soliciting Connecticut borrowers for residential mortgage loans, and negotiating terms of residential mortgage loans. These unlicensed mortgage loan originators operated in out-of-state call centers, holding titles such as ‘sales development representatives’ or ‘call center representatives.’
The U.S. District Court for the Southern District of Florida denied Freedom Mortgage’s motion to stay a case brought by the CFPB after Freedom argued that judicial efficiency favored the stay due to the defendant’s pending motion to dismiss, which revolves around the same constitutional issue concerning the CFPB’s funding structure currently under scrutiny by the Supreme Court. Orrick notes that, ‘The District Court sided with the CFPB, stating that as of now, the CFPB ‘is a valid agency that is entitled to enforce the consumer financial laws.’ With the stay denied, the court will now consider the defendant’s motion to dismiss.’
Since mortgage banks do not accept deposits, they are unable to reinvest them in the local community. Nevertheless, some states have imposed CRA requirements on certain institutions. The Illinois Department of Financial and Professional Regulation introduced a proposed rule pursuant to the Illinois Community Reinvestment Act (ILCRA). Modeled after the Community Reinvestment Act, the ILCRA broadens its scope to include credit unions and licensed entities. According to Orrick, ‘The proposed rule outlines a framework and criteria for evaluating a covered mortgage licensee’s track record in assisting Illinois residents, particularly those in low- and moderate-income neighborhoods, with their mortgage credit needs. The evaluation encompasses various tests and performance standards based on the number of loans originated by a covered mortgage licensee. The proposed rule incorporates tests such as a lending test, service test, performance record, data collection and reporting, and information content and recordkeeping received from the public.
‘To mitigate the impact on small businesses, a licensee that originated fewer than 200 home mortgage loans in Illinois in the preceding calendar year will be exempt from the service test. Moreover, licensees that originated less than 100 home mortgage loans in Illinois in the previous calendar year will undergo examinations less frequently than those with a higher loan volume. Depending on the licensee’s performance in the lending and service tests, the proposed rule stipulates that the licensee will receive a rating of ‘outstanding,’ ‘satisfactory,’ ‘needs to improve,’ or ‘substantial noncompliance,’ affecting the frequency of evaluations. Compliance with the proposed rule is mandatory six months from its effective date, with comments due by February 26.’
Capital Markets
The previous week concluded with fourth-quarter economic growth surpassing expectations as gross domestic product expanded by 2.5 percent for the year. Notably, the PCE Price Index, a crucial inflation metric for the Fed, rose by 0.2 percent month-over-month, mirroring the core rate excluding food and energy. Annual inflation figures continue to trend downward, reaching nearly a three-year low, despite robust holiday spending. This report marked a year that began with economic pundits warning of an impending American recession, yet inflation receded at a faster pace than anticipated by the Fed, all while a strong job market continued to drive consumer spending. The latest data has instilled increased optimism in the economy’s ability to navigate the Fed’s efforts to curb inflation.
The upcoming week is filled with events that could influence the market, including the Federal Open Market Committee’s latest decision followed by Chair Powell’s press conference on Wednesday afternoon alongside the Quarterly Refunding announcement Wednesday morning. The December jobs report is set for release on Friday, with early estimates projecting an increase of 178k in headline payrolls (versus 216k in December). Along with payrolls, the U.S. calendar includes updates on home prices, ADP employment, productivity/unit labor costs, manufacturing PMIs, factory orders, and Michigan sentiment. Sweden’s Riksbank and the BoE will reveal their latest decisions on Wednesday and Thursday morning.
Today’s calendar features a single data point, the non-market moving Dallas Fed Texas manufacturing for January, expected during the day. Short-duration Treasury auctions are scheduled, with the Quarterly Refunding estimate set to be announced. The week begins with Agency MBS prices showing improvement by .125-.250, the 10-year yield at 4.10 after concluding Friday at 4.16 percent, and the 2-year yield at 4.33.
Employment and Transitions
“We are seeking ‘The Best Account Executive Ever.’ If you embody this title, reach out to me at [email protected]. Exceptional Account Executives understand the value of their relationships, and so do we. While product expertise is essential, superior relationship management sets you apart from the competition. Explore opportunities with Freedom Mortgage Wholesale. We have been Historically, Currently, and 4EVER Wholesale. Let’s connect today. Everyone desires rates to structure winning loans for their borrowers. Have you explored what Freedom is offering? Freedom Mortgage Wholesale is ensuring broker and borrower satisfaction. Check out our FHA and VA rates for best execution…for free on LenderPrice. Contact Freedom for further details at 855.915.4800. Freedom Mortgage Wholesale is Historically, Currently, and 4EVER Wholesale.
A&D Mortgage welcomed Tommy Williams, Betsy Marvin, and Lori Welton as Account Executives. These three industry veterans bring a wealth of experience and expertise to A&D Mortgage, particularly in the Conventional mortgage realm, joining recent additions Andrew Taylor and Bobby Frank. Andrew Taylor now serves as A&D’s Senior Vice President of Wholesale Lending Sales, while Bobby Frank assumes the role of Senior Vice President of Wholesale Lending Strategy. Congratulations all around!
FHA Program Analyst (Computerized Home Underwriting Management System (CHUMS) Coordinator) position available in Santa Ana, CA. Responsibilities include coordinating activities related to the CHUMS
Lender Access System (CLAS), updating software to the CKAS system for enhancements, monitoring and assigning program code identifiers for CHUMS users, analyzing CHUMS data, and developing new methods of correlating and disseminating. FHA Job Announcement 24-HUD-589-P.
FHA Senior Single Family Housing Specialist (Quality Assurance Division) role entails acting as an HUD expert and advisor for compliance on lender origination and servicing practices, preparing correspondence, technical back-up documentation, status reports, schedules, and other information, and identifying actions necessary for correcting lender deficiencies. FHA Job Announcement 24-HUD-587-P.”
