Appraiser, ECOA, Video Marketing Products; Conventional Conforming News; What Has Driven Rates Higher?

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by Jacob Solomon May 26, 2023 News
Appraiser, ECOA, Video Marketing Products; Conventional Conforming News; What Has Driven Rates Higher?

The person is Rob Chrisman.

The wheat futures price is at a 2-year low. The prices of lumber are dropping. The numbers should help the economy. There was a lot of discussion about price increases on residential lending during the conference. There are a lot of issues within the business. Signing bonuses are continuing at a slower rate. Some of the economic bloom may be off. Signing bonuses are accompanied by handcuffs. It's bad when a competitor takes your production but not your overhead. With the help of technology, a lender's management can determine if a branch is making money for the company or if it is just a source of concessions and extensions. When bad LOs move on to another lender, recruiters think of the "greater fool" theory. The Black Knight is sponsoring this week's show. From point-of-sale through post-closing, the company's trusted loan origination system, Empower, as well as its integrated, end-to-end origination solutions deliver unparalleled capabilities. Polunsky Beitel Green has an interview with a woman in the mortgage industry.

There are products and services for the lender and broker.

Would you press the button if there was an easy way to create great video marketing content on social media? Thanks to Video Catalyst, you can now. It is time to say goodbye to the days of wondering what to say, what equipment to use, and how to edit. Video Catalyst makes it easy to make professional-quality videos in record time. Every month, we write four new, relevant, and compliant scripts for you. You simply record the video from your phone and send it to us for professional editing, which includes the addition of music, dynamic caption, and emojis. It is posted to your account for seamless sharing. It's all done. We do the rest. Do you want to know how Video Catalyst can help your business? Here is the place to check it out.

It's time to call all compliance managers. Imagine if you could complete your ECOA/Reg-B process in the allotted time. If you didn't work on your ECOA process, you could save thousands of dollars. It sounds like a dream. Imagine no more. Velma is here to help you fulfill your compliance dreams. It's possible to automate the whole ECOA process and make sure you don't miss another NOIA notice, which means you don't have to worry about a costly fine again. Velma can show you how to get a 300 percent return on investment in the first year.

Is your appraisal vendor doing a good job? If you want to see how your vendors stack up, book a complimentary appraisal with the Chief Operations Officer. You will be able to see how your vendors perform relative to industry average turn times. If and how your operating costs are higher than you need to be will be shown in the data. Now is the time to book.

Conventional offerings are adjusted by investors and lenders.

The enhancements to the Conventional 1 percent Down product allow borrowers with less than 80 percent of the area median income to be eligible. Those who qualify will put down 1 percent of the loan towards their down payment and UWM will pay a 2 percent grant up to $4000 for a total down payment of 3 percent.

One+ by Rocket Mortgage is a 1 percent down home loan program that is available for qualified buyers whose income is less than 80 percent of the area median income for single- family homes. The grant is for the down payment. One+ pays the mortgage insurance fee for the client. One+ is available to partners with Rocket Pro TPO.

Effective after Monday, May 15th,Pennymac updated Conventional LLPAs. There are details in the announcement.

The Federal Housing Finance Agency discontinued the fee based on the ratio. The Best Effort rate sheet was updated because of this. There were details in the announcement.

A requirement that a non-occupant borrowers may not be an interested party to the transaction has been added by Freddie Mac. On or after 7/3/23, this requirement is in effect. For more information, view the announcement.

Credit policy updates on Agency loans and life insurance net cash value on Non-Agency Jumbo loans are included in the Bulletin.

Multiple products are clarified in the PRMG product update. Conventional Products requirements regarding use of business funds in the transaction a cash flow analysis, underwriting review requirements when obtaining prior approval from VA, Alternative AUS Jumbo clarification for properties in a declining market, program fee requirements on CA CalHFA Products, and mortgage insurance coverage requirements on CO CHFA preferred plus conventional

There are many banks that are not lending. The Flagstar Bank is looking for SBA loans. General purpose properties have a minimum of $750,000 and a 2 year tax return debt service. With more states to come, small construction work is acceptable with no more than 20% of the project including the interim loan and permanent loan. With Prime at 8.25 percent, it's time to consider a long-term fixed 504 purchase. Refinancing a 7(a) loan with an SBA 504 will allow you to get more cash for your business.

Information on the Condo Project Manager Update is included in the National Bulletin.

Changes to the Selling Guide include requirements for property appraisals and condominiums. There are impacts on Ameri Home guidelines.

Freddie Mac announced a number of changes to the Selling Guide, including new requirements for IRS installments and real estate tax exemptions. Ameri Home has a product announcement for impacts on guidelines.

The capital markets.

Don't forget two things. Uncertainty doesn't like the markets or people. The future is never certain. Lower rates are caused by the economic downturn. As the clock wound down on the window for debt ceiling negotiations, rates rose again. Mortgage rates could go up if the U.S. defaults on its debt.

We have moved on from the banking crisis, but loan officers need to keep a close eye on credit. The majority of banks own 30-year fixed rate mortgage backed securities. With the Fed's run-up in rates, it's likely that banks will reduce their purchases of mortgage-backed securities, which in turn will cause mortgage rates to go up. Rates have been on the rise as of late, and while some of the movement can be attributed to "hawkish" comments from the Fed, the shift higher appears to be global.

The Fed is expected to cut rates this year despite the fact that Powell and his colleagues are trying to convince Wall Street that they are serious about inflation. Recent Fed messaging says we may not be done with rate hikes. It is true that the Fed is close to the end of its hiking cycle, at least for the short term. If investors capitulate to the Fed in this "tug of war" over the central bank's monetary policy moves in the second half of this year, we could see a big sell-off in bonds and stocks.

delinquencies picking up for various credit types, volatility driving spreads wider, and the impact of buyer burnout were some of the topics discussed at the conference. The collapse of three mid-size US banks and the forced marriage of Credit Suisse to UBS pushed lending standards to tighten.

Jumbo and non-QM loans were more tightened than government loans. Standards on multi-family have been tightened due to banks becoming more cautious on risk. The lending standards are getting tighter as an economy that is poised to enter a recession.

There aren't many homes for sale at this time of year. Half of all mortgaged homes have first-lien interest rates at or below 3.5 percent, and the reason for the scarcity of existing home sales is well known. The elements are likely to stay the same. With millions of Americans content to keep their rate and not sell anytime soon, and with today's homebuyers being extremely sensitive to interest rates, it's not a good recipe for the housing market.

Even with rising wages, we still have an affordability problem. Homebuilding will eventually rebound and help this issue, but the rate of decreases in the backlog reported by the builders doesn't bode well for an immediate change.

Despite today's early close, several key economic releases will be out and could sway the Fed's thinking regarding further rate increases. We received personal income and spending for the month of April, as well as durable goods orders, which were both positive. Expectations were for both income and spending to increase in the month and year-over-year. Michigan sentiment will be brought before fixed income futures are settled at 1pm and cash markets close at 2pm. The 10-year is yielding 3.82 after closing yesterday at 3.81 percent, and the two-year is at 4.56 after the strong anti-recessionary data this morning.

There is employment.

A Louisiana based full-service, independent mortgage bank averages $1 billion in production annually and is looking for a retail sales leader to run all their business development initiatives. The sales, recruiting, and marketing departments will report to the head of business development role. A proven track record of hiring and managing production offices is what the ideal candidate will have. The IMB is well capitalized, has agency direct approvals, offers niche products, and has a world class operations team. Please email the resume to Anjelica.

It's a blessing to see such incredible growth recently. As we keep count of all the units that drive our business, it's easy to forget about all the military units and people who served throughout history to help us afford all the possibilities we have today. Memorial Day should be celebrated as a day that honors all the great opportunities and those who have made the ultimate sacrifice to protect the freedom we should never lose. Happy Memorial Day from all of you.

If I could focus on only the things that actually grow my business, flipping the hourglass and spending 80% of my time on what I do best, what would I do? If I could surround myself with sales support that was team inspired, results driven marketing and customer obsessed, what would that look like? The financial group is welcome. To offer a better value proposition than any other bank or mortgage company in the country is the main focus of radius. If you have a confidential inquiry, please contact the person.