Hedging, eHELOC, Digital Lending, Buydown Products; Webinars and Training; Rates Head Higher

Here at the Wisconsin MBA conference in The Dells, a portion of the talk is about buydowns and adjustable-rate programs. Certainly, they are legitimate tools that loan officers can offer to potential clients, although with the current yield on the US 2-year near 4.70 percent and the 10-year near 4.20 percent, the attractiveness of ARMs is questionable. A study done last week by Tom LaMalfa during the recent MBA annual conference gives us an idea of how much of each lender’s volume consisted of ARMs production, how important buydowns were this year, and are there enough ARM investors in the market today. “ARM production accounted for a median of 7%, with a mean of 14%, a mode of 6%, and a range of zero to 70%. As for buydowns, the mean was pushing 5%, the median was 4%… Concerning the number of ARM investors, only 5 lenders said there was enough, compared to 24 who thought there were too few.” With the Federal Open Market Committee bringing the overnight rate to a range of 3.75% to 4%, the difference between fixed and adjustable rates is in flux. (Today’s podcast is available here and this week’s Sponsored by Candor Technology. Home of the One Touch Underwrite, supporting lenders from Point of Sale to Post Close QC, to reduce repurchase risk, increase underwriter productivity by 400 percent, and decrease turn-times by 10. Today’s has an Interview with Craig Crabtree, SVP & GM of Equifax Mortgage/Housing, on how Equifax interacts with the mortgage industry on more levels than you think.)

Lender and Broker Services and Products

Planet Home Lending’s buydown products can help your Realtor and Builder clients close sales, even in stagnant real estate markets, without lowering sales prices! Temporary buydowns are available for FHA, VA, and Conventional loan products in both 2/1 and 1/0 terms. With delegated, non-delegated and best effort delivery, lenders, home sellers, homebuyers, Realtors and Builders all win. Get great products. Get great service. Get in touch. Call SVP, Correspondent Sales, Jim Loving today: (414-270-0027), and put Planet to work for you.

Home Equity Lending According to Curinos. As the market leader in actionable financial intelligence, Curinos is pleased to host a webinar on November 9th to share insights into the home equity market. Topics will include how our proprietary set of market data can help lenders make more informed decisions in credit risk management, loan pricing, originations and loan-servicing monitoring and performance. Executives and managers with these responsibilities should join: Credit Risk, Loan Fulfillment, Marketing, Loan Production, Product Management, Operations, and Capital Markets/Pricing. We will feature case studies to demonstrate and how lenders leverage both the Loan Origination Data and Servicing Performance data to optimize HELOC utilization rates, balance Pricing and Risk strategy, and track market opportunities. Register here.

Independent brokers, you know the challenges of running your own business: you have to be as responsive, as engaging, and as “top of mind” as the big-box lenders, all without the big-box staff. You’re the mavericks of the mortgage world and you’ve got a dogfight on your plate – but just because you’re flying solo doesn’t mean you have to go it alone. The LoanCatcher® LOS from Black Knight is a smarter way for independent brokers to catch their next loans. LoanCatcher puts you back in charge of your business while also delivering a great loan officer, processor and borrower experience. This powerful platform helps brokers save time, connect with more borrowers and close more loans while working from anywhere. Learn more about LoanCatcher today, and see how Black Knight can help your broker business soar.

Reboots and sequels have become increasingly popular in the past few years. While some, like Disney’s controversial Mulan remake, have flopped, others have managed to smash box office records and breathe new life into film franchises (Top Gun: Maverick being a prime example). On a related note, Sales Boomerang’s latest Mortgage Market Opportunities Report suggests it’s time to reboot conversations with prospects previously turned down for credit-related reasons, as credit improvement alerts increased in frequency for a third consecutive quarter. For additional analysis on the current state of borrower needs, check out the full Mortgage Market Opportunities Report and contact Sales Boomerang today to breathe new life into your database.

MortgageHippo, the leading low-code/no-code digital lending platform, is thrilled to announce its rebrand to Revvin. The new brand, evocative of the sound an engine makes when operating at peak performance, reflects the company’s continued focus on its next generation Digital Lending Platform and better fits the company’s mission to democratize technology for a world where every financial institution can act like a leading-edge fintech – without writing code. Said CEO Valentin Saportas, “In today’s mortgage lending business, lenders who offer delightful and intuitive borrower experiences will win more business. Revvin is the first customer experience engine to fully empower its customers to launch customizable, frictionless solutions quickly and cost-effectively.” Ready to rev up your mortgage business? Visit https://www.revvin.com.

How is your profitability by loan officer? How is your profitability by branch? By region? If you want the answers to these questions, Richey May’s RM Analyze business intelligence can give you that visibility. Our platform is designed and implemented by mortgage industry experts to quickly set you up with the critical reports you need to run your business. We understand that having visibility into your profitability at all levels enables you to make powerful decisions that help your business succeed. If you don’t have the data at your fingertips that tells you how you’re performing in real time, you may not be able to act quickly enough in this fluid market. It’s time for you to get a deeper look at your business. Contact the RM Analyze experts to learn more.

Evolve Mortgage Services, LLC eMortgage division SigniaDocuments is the first company in the industry to be legally accepted and approved to offer the first SMART® eHELOC loan package where all documents are “SMART” (Secure

Manageable, Archivable, Retrievable, Transferable and now Verifiable]. Evolve’s eHELOC® enables lenders to originate and close within seven days. Through its unique process, eHELOCs are fully digital, eRegistered with MERS®, rep & warranted for compliance to create a fully saleable loan. Because each transaction is fully backed by Evolve’s bespoke Lloyd’s of London policy, investors have additional protection. This solution delivers a true market differentiator and competitive advantage. Evolve’s process empowers lenders and buyers to “eClose With Confidence and Fund Next Day With Certainty®!” Connect with us today to get more on eHELOCs or our other eSuite solutions. Evolve Mortgage Services, LLC is a top provider of outsourced technology platforms and tech-enabled services from origination through securitization.

“JUST ANNOUNCED! Introducing the new Plus HELOC product from Spring EQ! As rates rise and the market pulls back, Spring EQ is adding programs, products and more home equity options. The Plus HELOC product provides your qualified borrowers with better pricing, making it easier for you to win business. Additionally, Spring EQ’s traditional HELOC product has been improved with higher DTIs, lower FICO score requirements, and expanded guidelines, giving you more options for qualifying your borrowers. Don’t forget, with Spring EQ you can earn traditional broker compensation on HELOCs and HELOANs. You can see rates and guidelines here. At Spring EQ our primary focus is second mortgages. So, think of us first for all your seconds. Become a partner now or contact your Account Executive to learn more.”

Training, Events, and Webinars

Registration is open for TMBA’s 5th Annual Mortgage Symposium, November 7-8. The Early Bird registration is currently $195.00 for members and $320.00 for non-members. Take advantage of TMBA’s block of rooms at the Renaissance Dallas at Plano Legacy West Hotel.

Get 1-1 time with lender execs at #NEXTFALL22, Nov 8-10 at Hotel Crescent Court in Dallas. This year, #NEXTFALL22 will introduce NEXT Hives, roundtable think tanks for top senior lender executive attendees. Each hive will focus on a business issue that concerns mortgage executives in today’s market. Request your invitation today.

Join Atlantic Bay 11/7-11/8 for the first-ever Music City Sales Summit in Nashville, Tennessee. This is a one-of-a-kind opportunity that merges the sharpest industry experts, cutting-edge mortgage market analysis, and unforgettable, fast-moving sessions that will send your sales off the charts! If you have questions, please feel free to reach out directly to mcssevent@atlanticbay.com for additional information.

The L1 Executive Roundtable is November 8-9 in San Antonio! Ready to get a savings review and learn what Lenders One membership benefits and networking events can do for you? Click here or email Tricia Migliazzo today.

Manufactured housing has become a popular alternative for first-time homebuyers and others to achieve affordable homeownership. October Research, LLC is working with HUD and FHA on the complimentary webinar, Manufactured Housing Supply and Financing, Tuesday, November 8th at 2:00 p.m. ET featuring HUD and FHA. Learn more about modern building standards required by the HUD Code, how these insurance programs support affordable financing of manufactured homes, the differences in transactions involving manufactured homes versus site-built homes and much more.

Join Carrington’s webinar on Thursday, November 10th at 11 am Pacific / 2 PM Eastern Time to hear how Carrington’s Non-QM loan solutions can help you expand the audiences you serve to originate and fund more loans and hear the latest updates to Carrington’s Non-QM offerings.

On November 10th, 5:30 PM – 8:00 PM at the Oakbrook Golf Club, the PSMLA will be hosting a panel of 4 top Mortgage Managers listed below and will be also celebrating PSMLA’s Past Presidents. Local Leadership Panel (Augie Bae – Procura Mortgage Company, Amber Page – Evergreen Home Loans and Cliff Ross – Banner Bank) will be engaging with the audience with 2023 and sharing their tips, tricks and ideas on how they are leading, motivating and building their teams in today’s market and their outlook for 2023.

The MBA of Eastern PA, is having its annual President’s Banquet on Thursday November 10 with guest speaker Ron Insana from CNBC, MSNBC.

If there ever was a time to learn a new product, that time is NOW! Moneyhouse HECM Bootcamps are LIVE and FREE. 2-day,12-hour total exposure sessions, including homework, of detailed product and program training and education for those MLO’s who are desiring to quickly enter the reverse mortgage market. The instructors, with over 50 combined years of HECM product and program knowledge and skills will lead participants through a rigorous and complete curriculum of topics. Seating for the Arizona HECM Bootcamp, November 10 & 11, 8:30 am to 3:00 pm at the DoubleTree-Phoenix Mesa, is filling up quickly. Don’t miss your opportunity to capitalize on the fastest growing origination opportunity.

Homeownership for non-white Americans lags about 30% behind, and a large majority of these potential homeowners don’t realize there are ready or almost ready to start that journey to homeownership and building personal wealth. Register for OMBA’s 2022 Affordable Housing Virtual Summit – “Building the Framework”, Thursday, November 10, 8:30AM – 12:30PM. The summit will provide the opportunity to hear how to find these potential homebuyers, how to build the trust needed to help them become ready to buy a home and what products and services are available to assist them – and YOU in making this dream a reality.

Your time is valuable, don’t waste it on boring Continuing Education! The Knowledge Coop offers exciting and entertaining CE by providing live in-person training and webinar events. November 8 Vancouver, Washington: register. November 10 Eugene, Oregon: register. November 11 Salem Oregon: register. November 15, Webinar Continuing Education Event: register.

Capital Markets: The Fed Follows Course

“MCT supports more lenders with hedging and pipeline management solutions than any other single provider. This privileged position allows aggregation and analysis of a meaningful population of data for translation into macro trends and insights such as the latest MCTlive! Rate Lock Indices. Separately, MCT’s award-winning Investor Services technology opens the door for residential mortgage investors to help scale their seller base, automate the bid process, source whole loan and flow co-issue production, automate AOTs, and analyze performance all in a cost-effective manner. Watch this short video to learn how MCT’s Investor Services division pairs industry leading expertise with products such as BAM Marketplace, allowing buyers to bid regardless of approval status and sellers to receive automated live pricing from every buyer on the platform. The video also highlights Investor Analytics, which provides a historical database of best execution analysis and loan sales, and CRA Marketplace, a tool to let investors filter through the MCT seller’s pipeline of loans to gain transparency into what type of CRA loans are available. To ensure you receive new content with meaningful macro trends and insights when published, please join our newsletter.”

By the time the dust settled Wednesday, the FOMC, in a unanimous decision, had delivered its widely expected fourth straight 75-basis point hike taking the fed funds rate range further into restrictive territory at 3.75 percent to 4.00 percent, the highest range since before the 2008 financial crisis. The dovish Statement added the possibility of smaller hikes going forward as the FOMC considers the cumulative degree of tightening and the lags inherent in monetary policy changes. Chair Powell indicated in his press conference, however, that the FOMC is probably not done hiking rates, and the committee is not even thinking about pausing hikes just yet. The question now becomes when will the Fed pivot and indicate a pause, or at least significantly reduce its pace of increases. Expectations are favoring a 50-basis point hike at the December meeting.

Following yesterday’s FOMC events, today sees the latest decisions from Norges Bank (the Central Bank of Norway) and the Bank of England (+.75 percent). Here in the States the domestic calendar is under way with labor market indicators in the form of Challenger layoffs for October (highest job cuts since February 2021) and weekly jobless claims (217k, -1k,1.485 million continuing claims). We’ve also received international trade (-$73.3 billion) and Q3 productivity and unit labor costs (+.3 percent, +3.5 percent). Later this morning brings the final October S&P Global services PMI, ISM non-manufacturing PMI, September factory orders, and Freddie Mac’s Primary Mortgage Market Survey. We begin the day with Agency MBS prices worse .250 and the 10-year yielding 4.18 after closing yesterday at 4.06 percent on the perception that higher rates are definitely ahead.