Non-QM Execution, Fees , Appraisal, DPA Products; STRATMOR on Tech; Comparison on Loan Level Price Adjustments

“Rob, earlier this week you posted some ‘units funded’ information from the MBA showing a dramatic decline from a few years ago… Dollar-wise, certainly we’re nowhere near the $4+ trillion funded in 2021. What are some of the other MBA thoughts about 2023 and beyond?” Wise economists will tell you, “If you’re going to put a number on it, don’t put a date on it, and if you’re going to put a date on it, don’t put a number on it.” That said, for total originations of 1-4 unit mortgages, the MBA expects 2022 to clock in at $2.2 trillion, 2023 at $1.8 trillion, and then move higher in 2024 to $2.3 trillion. The MBA also is predicting that mortgage debt outstanding (1-4 family) will be somewhat steady at $13.4-$13.8 trillion, especially given all those 30-year fixed rate mortgages at less than 3.5 percent, but for 30-year interest rates to drop to near 5.50 percent range by year end as the U.S. economy slows somewhat, and unemployment moves toward 5 percent. (Today’s podcast can be found here and is sponsored by LoanCare, a Fidelity National Financial (NYSE: FNF) division and award-winning developer of the most sophisticated mortgage servicing portfolio management tool, LoanCare Analytics, built to support MSR investors with a focus on customer engagement, liquidity, and credit risk.)

Lender and Broker Products, Services, and Software

“Agility 360 recently announced the addition of David Mulkay as Director of Operations – Advisory Practice to further support our attorney firm clients. His experience coupled with Agility 360’s unique engagement methodology and goal-oriented project management approach will further enhance our ability to deliver analytical, operational, and strategic support for servicing and default clients. Agility 360 provides flexible and versatile consulting services, custom-built to meet client’s operational objectives, and increase market share, optimize quality, reduce cost and/or minimize risk. To learn more about Agility 360’s advisory services, contact Annabeth Kline to set up a meeting today. Or, if you’re headed to the TMBA Annual Conference in San Antonio next week, stop by to meet our team and let’s talk about how we can help grow your business. You’ll quickly learn why Agility has become a trusted resource partner across the industry!”

According to the CFPB, 75 percent of borrowers only apply with one lender. Why let your competition capture that business when you and your loan officers could be the #1 go-to-resource in your market? Momentifi launched its personally branded Spring/Summer 2023 Homebuyer Education Content in English and Spanish to help loan officers and mortgage companies attract clients and educate them about today’s housing market. The content package includes 150 personally branded articles. Loan officers post the articles daily to social media with the click of a button or use as scripts to record short videos that they post up on their social media sites. Each article is simple to understand with a clear call to action, making it super easy for prospects and referral partners to contact you. Momentifi also offers an enterprise-level plan for banks and mortgage companies who want a company-wide content license. Click here to learn more or subscribe.

“Lender Price‘s pricing engine has gained the trust of the largest banks, credit unions and lenders in the industry. Our platform provides enterprise functionality for lenders of all sizes and channels, while providing a security grade that has been widely accepted and trusted. Our Loan Level Price Adjustment feature allows lenders to make micro-adjustments at the product level based on specific product attributes, streamlining the process of introducing and managing loan products. Secondary teams can optimize margins, pricing strategies and streamline operations from one spot with our Multidimensional Rules Management System and our Pipeline Monitoring tool promptly alerts lenders of any pricing changes, minimizing risk associated with sudden price fluctuations or unwarranted modifications to the loan file that can affect any gain on sale. Not to mention, we continue getting new customers up and running fast! Start a conversation today or meet with us at MBA Secondary in New York.”

Happy National Superhero Day from Orion Lending! Captain America said it best: “I’m here with you until the end of the line!” Orion Lending, one of the top funding Down Payment Assistance program lenders in the nation, has improved its Boost DPA product for both FHA and USDA. 100 percent financing! Now featuring a 15 YR fixed second with an optional permanent rate buydown on the 2nd to match the 1st lien rate, FICO scores down to 580, eligibility for 3–4-unit properties, manual underwrites, and previous home ownership allowed! Orion Lending offers industry leading STAR portal technology for quick and easy processing and seasoned Underwriters to get your loan to the finish line FAST! Ready to make Orion Lending your Partner for Purchases? Click here to get approved! Orion is your home for DPA’s… It’s time to hyperspeed your business with Orion!

“You’re Stronger with Cenlar Subservicing. The U.S. housing market has been anything but predictable in the last few years. Cenlar is prepared for the volatility of this environment and is committed to helping you succeed. As both a bank and a subservicer, Cenlar is uniquely positioned to assist you as the mortgage landscape shifts. We can offer you the benefit of economies of scale, create customized mortgage servicing solutions, provide an outstanding homeowner experience, and manage regulatory compliance so that you can always focus your efforts on growing your business and staying competitive in the marketplace. Let’s discuss how Cenlar can meet the mortgage servicing needs of your organization. Call 1-888-SUBSERV (782-7378) or visit us here. We want to be your trusted partner, each and every day.”

April 15th was the day that significantly altered the appraisal game for many borrowers, loan officers, and Realtors®. Fannie Mae’s Modernization Initiative is ushering in many changes, including further removing agents and borrowers from the appraisal process and creating a greater risk of undervaluation. How will the modernization initiative impact your business, borrowers, and realtor clients? Watch this video from R3 AMC and discover the changes that have been made to the appraisal process, why you must communicate regularly with your borrowers and agents, important tips for borrowers, and what the future of appraisals looks like. R3 AMC’s Concierge Services are designed to help mitigate risk and prevent agents from asserting, “The appraiser never came to the property.” To learn more about how R3’s Concierge Services can help protect your business, contact Brent Jones, CEO/Chief Appraiser (800-791-6817).

Are you seizing every opportunity in today’s market? Rocket Pro TPO recently hosted its Pro Performance Sales training webinar for their broker partners and discussed when to consider, and how to position, new FHA benefits vs. conventional and a primer on VA. FHA’s MIP reductions have created new opportunities to review scenarios and save in comparison to conventional – what many buyers are looking for in today’s market! Take advantage of powerful trainings backed by nearly 40 years of mortgage experience and partner with Rocket Pro TPO today! Also, open to the entire broker community, on Monday (5/8) at 2pm ET is their next IGNITE Live, hosted by EVP, Mike Fawaz. Get ready to learn about the Rocket Pro TPO’s product enhancements, tools, and pricing advantages you need to win more business! Register for IGNITE Live today!

Imagine buying groceries and being asked to mail a check or write down your credit card number to complete your transaction… Chances are, you’d walk away, right? So, if this is the experience, you’re giving your borrowers today when requesting payment for upfront fees, you may be losing business you could otherwise keep. Match the payment experience your borrowers expect with Fee Chaser by LenderLogix. Your loan officers click a button in Encompass®, borrowers get a text message and complete the payment on their device, and receipts are automatically emailed and uploaded to the eFolder. If the borrower forgets to pay, Fee Chaser will follow up. Regardless of the type of fees you’re collecting, Fee Chaser can handle it. Head over to the LenderLogix website and see what a pay-by-text solution can look like for your team.

STRATMOR on Technology

Lenders, it’s time to take the Systems Survey, the first survey of STRATMOR Group’s 2023 Technology Insight® Study. Don’t miss your chance to have great insight into the CRM, Point of Sale, Origination, Closing and collaboration tools, all the mortgage technology solutions available in the market today. Lenders who participate in the three-part series will receive the reports for the surveys they complete for FREE. Complete all three and you’ll have the entire 2023 Technology Insight® Study for the investment of your time. Take the first survey now and rate the systems you’re using!

FHFA and Loan Level Price Adjustments in the Press

As a reminder, the Federal Housing Finance Agency (FHFA) was established by the Housing and Economic Recovery Act of 2008 (HERA) and is responsible for the effective supervision, regulation, and housing mission oversight of the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac). F&F were formed and doing business for many years prior to that, and existed as quasi-government Agencies giving securities filled with conforming conventional loans an “implied” government guarantee.

If you wish to see a numerical comparison of the changes taking effect on May 1, Todd Phenneger with the Catalyst Lending Team at Luminate Home Loans created a…