LOS, Warehouse, Servicing, Borrower Service Tools; Webinars and Events; M&A Update; 1099 vs. W2

“I ordered a book titled, ‘How to scam people online’ two months ago. It still hasn’t arrived yet.” Let’s open today’s Commentary with a couple topics that “bookend” lending. On the secondary marketing end, the current state of buybacks, Freddie Mac’s 2nd mortgage program, mandatory versus best efforts spread, and long-term lock demand by LOs have been hot topics, and these will be covered in “The Capital Markets Wrap” today at 12 PT/3PM ET for 45 minutes featuring Rob Kessel, Marcus Lam, and Ira Selwin. In the primary markets, the “LO 1099?” question continues to be brought up, especially by LOs doing their own research in their own states. “Show me where it says I can’t do that that!” is something no compliance person wants to hear. Lenders should hesitate to jump into claiming mortgage originators are “1099 employees” without other changes to the typical relationship, especially given the kinds of penalties typically found with income tax violations. Oh, and blindly compensating your originators differently for brokered loans? Nothing’s changed since the CFPB Supervisory Highlights seemed to make that a clear violation. (Today’s podcast is found here and this week’s is sponsored by Truv. Truv lets applicants verify income, employment, assets, insurance, and switch direct deposits. Unlock the power of open finance, with Truv. Hear an interview with California MBA’s Susan Milazzo on what to expect at next week’s Western Secondary Conference in Los Angeles.)

Lender and Broker Software, Services, and Products

Having comprehensive and reliable origination data is key to successful decision making, but many solutions today lack the granularity and accuracy lenders need in today’s competitive market. ICE is here to help. ICE rate lock data, closed loans and CRA analytics, paired with RAP®, can provide the actionable insights that are vital to successful decision making. Join the ICE team on August 28 at 2 p.m. ET for a complimentary webinar and learn how mortgage origination data can help drive timely actionable insights.

Understatement of the day: The real estate investing market is competitive. Lending to real estate investors and capturing their title business requires a proactive approach, to attracting and retaining prospects and customers. Good rates and good customer service are ubiquitous across the industry. It’s not enough. With Privy.Pro, you can proactively stay engaged with your real estate investors. Invest in a tool they will use. Invest in a tool that will drive the conversations your sales team needs. Invest in a tool that will offer you the competitive edge needed to stand out in this market. Contact Brad Bieber to learn more about Privy’s Enterprise Solutions.

In an industry that J.D Power scores 730 (on a 1,000-point scale) for customer satisfaction, V.I.P. Mortgage has a staggering 98% approval rating. V.I.P.’s exceptional customer satisfaction comes from providing a seamless, supportive experience that begins with its mortgage application powered by Floify. V.I.P. has customized the Floify borrower portal to guide borrowers through the application and document uploading process, and keep them updated all the way through close. In addition to its intuitive interface, Floify features automated document management workflows, free native eSign functionality, verification of income and employment waterfall functionality, loan progress transparency and more. “[Floify] reflects well on our core values of providing outstanding customer service and a modern mortgage technology experience,” shares Michael Metz, V.I.P. Mortgage’s head of operations. Read the full case study to see what else V.I.P. has to say.

LoanCare® is celebrating over 40 years of servicing successes through award-winning innovation and data-driven insights. Experience for yourself how it feels to lock in a fixed servicing cost, wow your customers with sleek, modern self-serve tools, and recapture their business with tailored ad content at any touchpoint. Reach out to meet the team in person during the California MBA Western Secondary Conference August 19-21, or schedule a servicing demo today!

“PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), focuses on relationship-driven business with long-term success, by-the-way, have you heard about our BTW Services? We are pleased to offer all customers our Broker-Dealer, Treasury Management, and Warehouse Lending (BTW) services. Our Broker-Dealers can help customers hedge their origination pipelines by buying and selling TBAs, specified pools and whole loan trading. Our Treasury Management team helps customers with escrow and cash management. Finally, the Warehouse Lending team provides customers confidence to meet their loan funding needs. If you are attending the Western Secondary Conference in Palos Verdes and interested in learning more about PlainsCapital Bank National Warehouse Lending please contact Deric Barnett or John Weerts.”

Transform your lending operations with Vesta’s innovative LOS. Vesta’s data-driven, task-based approach eliminates manual tasks, enabling your team to focus on what truly matters. With real-time analytics, automated workflows, and unparalleled efficiency, Vesta helps lenders achieve faster closing times, higher loan quality, and lower operational costs. Experience the benefits of a platform designed to evolve with your needs: join the future of lending with Vesta and take your company to the next level. Learn more at www.vesta.com.

Mergers and Acquisitions

Planet Home Lending is entering a dynamic new phase of growth and opportunity. The recent asset acquisition of Axia Home Loans with top-notch originators levels up Planet’s retail volume and expands its branch footprint. Axia CEO Alex Rosenbaum says Planet’s customer refinance retention expertise and innovative purchase products, including the proprietary Buy Before You Sell and Cash Offer solutions, turbocharge originators’ existing strengths. This represents Planet’s second Retail acquisition and follows its successful acquisition of certain HomePoint Correspondent assets in 2022. The transaction is expected to increase Planet’s Retail run rate to more than $240 million per month.  STRATMOR served as Planet’s advisor. To explore how joining Planet can propel your career, contact Planet SVP Talent Acquisition Brian Miller at 214-223-9986.

In other M&A news, we got an update from Garth Graham at STRATMOR related to trends in the mortgage industry. The M&A team at STRATMOR let me know that there have been 15 mortgage company transactions this year, down from last year’s pace of 38 transactions for the full year. So, if you think there are less headlines and announcements, that is correct: deals have gone from roughly three deals per month to two deals per month. “Over 80% of all transactions are large IMBs buying smaller IMBs, the classic consolidation deals, and the key is the cost savings and the better capabilities that the buyers bring to the deal.”

Conferences, Training, and Webinars

A good place for longer term conference planning is to start is here for in-person events in the future.

Tuesdays at 11am PT, two veteran LOs discuss all things mortgage with Industry Leaders: Mortgage Pros 411 with Audrey Boissonou and Kevin Casey.

MBA Education Webinar: Real-World Artificial Intelligence: The TRUE Story, August 13, 2:00 PM – 3:00 PM ET.

Join AFR Wholesale® today at 10 AM PT / 1 PM ET for an insightful ARIVE Partner Spotlight featuring AFR’s COO Rob Pieklo and special guest Matt Graham, Founder and CEO of MBS Live. Titled “Markets, Pricing & the Fed, OH MY! The LO’s Guide to Markets & Pricing,” this session promises an in-depth discussion on navigating the current mortgage market landscape and beyond. Gain strategic insights into pricing structures and explore various strategies to enhance your market approach. Register today! Contact us at sales@afrwholesale.com, call 1-800-375-6071, or visit www.afrwholesale.com. (NMLS 2826)

Looking for more in-depth commentary on weekly mortgage news? Register here for Wednesday’s 11AM PT “Mortgage Matters: The Weekly Roundup” presented by Lenders One. This week’s guest is Katherine Campbell!

Join me and other leaders this week in Michigan for the MMLA Annual Lending Conference, August 14 – 16 at Boyne Mountain Resort. Go to www.mmla.net for all the registration and sponsorship information. I hope to see you there!

FHA is providing a Free, Virtual Training Single Single-Family Neighborhood Watch on August 14th, 2:00 PM – 3:30 PM (Eastern). An overview of the Single Family Neighborhood Watch system, focusing on its use and functionality; specifically, querying and available reporting options. Additionally, this webinar will highlight the FHA Credit Watch Termination Initiative and cover all the system features available to FHA-approved mortgagees.

Join Tabrasa/Mortgage Market Guide’s Bill Bodnar on August 14th at 11:00 AM for a fun, fast-paced 30-minute discussion on the economy, markets and interest rates as we approach the second half of 2024. Hear about rates using sound fundamentals that’s perfect for loan officers and sales managers looking to fine tune their projections for 2024. Bring your questions as there will be time allotted for the Q&A.

Thursday, August 15th, will be another episode of The Big Picture at 3PM ET… Rich Swerbinsky hosts a variety of guests; this week’s is Brendon Weiss, CEO of EscrowTab.

As the landscape of homebuying evolves, understanding the unique preferences and challenges faced by Generation Z is crucial for mortgage professionals. Join the Texas Mortgage Bankers Association upcoming monthly education webinar, Thursday, August 15 at 11:30 am, featuring a panel of industry experts who will share best practices and strategies to effectively engage and support Gen Z homebuyers.

Join an exclusive webinar to discover Plaza’s comprehensive Reverse Mortgage file flow process, from initial loan scenario to final funding. Learn how its dedicated Reverse Mortgage Team supports you every step of the way, ensuring you set clear expectations for your senior clients and achieve smooth, successful closings. Register for Originating a Reverse Mortgage with Plaza: File Flow from Start to Finish, Thursday, August 15, 11:00 AM PT / 2:00 PM ET.

Friday the 16th tune in to The Mortgage Collaborative’s Rundown with Melissa Langdale covering current events in the mortgage market for 30 minutes starting at noon PT, 3PM ET. We hear from Chris Harrington with Usherpa!

Last Word, Fridays at 10 a.m. PT/1 p.m. ET: Fridays with Kevin Peranio and Brian Vieaux offers up incisive analysis and spirited discussions on the hottest topics affecting the mortgage sector each week. Hosted by industry veterans, the show delivers expert opinions, forecasts, and critical insights to keep you informed and ahead of the curve.

Next week, Monday the 19th at 11AM PT, we have SCRIPT-a-PALOOZA 2024: Learn the Best Scripts from Top Producers! Want to learn the best scripts to close more loans and win new Realtors in this market? The annual SCRIPT-a-PALOOZA 2024 discusses the 6 conversations that matter most in this market! It is hosted by Todd Bookspan, Dave Savage, and Phil M. Jones, the best-selling author of EXACTLY WHAT TO SAY. Top industry leaders will share their best scripts that helped close billions collectively in volume last year, including Denise Donoghue, Jeremy Forcier, Gina Myers, Dan Keller, Mosi Gatling, and James Allen. Don’t miss as Phil M. Jones debriefs each of them using his SCRIPTING principles and frameworks.

Whether you’re an appraiser, educator, or you work for an AMC, lender, tech company, or E&O insurance firm, the Valuation Expo 2024 is your premier opportunity to stay up to date with industry advancements and meet the people at the forefront. Don’t miss the chance to learn, network, and prosper. Register for Valuation Expo at Caesars Palace in Las Vegas, August 19th – 21st.

August 19-21 will see the California MBA’s Western Secondary at the Terranea Resort in Southern California. Come say hi!

Attract Top Agents with the LenderHomePage New AI Tool, NewDoor, a game-changing software designed to help mortgage lenders effortlessly create hyper-local, co-branded social media content for their real estate agents to capture attention and drive leads. NewDoor creates SEO-friendly content and social post-worthy co-branded unique content using AI models built to gain the attention of buyers, sellers, search engines, and social network algorithms. Attendees of OriginatorTech Deep Dive, a collaborative demo where mortgage professionals will get a 20-minute deep dive into a product or service that helps create a better origination experience on Tuesday, August 20, 2:00 PM ET / 11 AM PT.

Have you heard about (read: registered for) some of our expanded media offerings? Chrisman Commentary is pleased to bring you a variety of video shows hosted on Zoom throughout the week. Take your pick: We have a show focused on technology and innovation (Now Next Later Mondays at 1pm ET, presented by BILT Rewards), origination (Mortgage Pros Tuesdays at 2pm ET), big-name interviews (Mortgage Matters Wednesdays at 2pm ET, presented by Lenders One), headline news (The Big Picture Thursday’s at 3pm ET), opinion (Last Word Fridays at 1pm ET), advisory services (Advisory Angle first Tuesday of the month at 2pm ET, presented by STRATMOR Group), capital markets (Capital Markets Wrap second Tuesday of the month at 3pm ET, presented by Polly), regulation and compliance (Regulation Central third Tuesday of the month at 3pm ET), and reaching the next generation of homeowners (Mortgages with Millennials last Tuesday of the month at 1pm ET, presented by The Mortgage Collaborative). (If you don’t see a presenting sponsor, please reach out to Chrisman LLC’s Anjelica Nixt to inquire about opportunities.)

Capital Markets

As I mentioned yesterday, focus this week shifts from the labor market to inflation. The PCE deflator has risen only 2.6 percent over the last twelve months, bringing both sides of the Fed’s dual mandate into focus. There is growing debate over how much the FOMC might cut at its September meeting with even odds between a 25 basis point versus 50 basis point cut. The Fed’s latest remarks have suggested that more evidence of cooling inflation will be required prior to rate cuts. There is plenty of upcoming data between now and then, including PPI and CPI this week, that has potential to move rate cut predictions.

The latest Survey of Consumer Expectations from the New York Fed showed that three-year inflation expectations plunged by 60 basis points to 2.3 percent, reaching their lowest level since the survey began in 2013. Meanwhile, year-ahead expectations remained at 3.0 percent while the five-year outlook stayed at 2.8 percent. Speaking of expectations, investors are also keeping an eye on the developing situation in the Middle East, as the U.S. deployed armed forces to the region ahead of an expected retaliatory attack on Israel from Iran.

The U.S. Treasury yesterday reported a $243.7 billion deficit for July as the U.S. government continues to run large budget deficits, driven in part by net interest costs that are outweighing defense spending. The Treasury Budget data is not seasonally adjusted so the July deficit cannot be compared to the revised $70.9 bln deficit for June.

The NFIB Small Business Optimism Index for July kicked off today’s calendar. We’ve also received July PPI (+.1 percent for the month, +2.4 percent year over year) versus 0.2 percent month-over-month expectations. Later today brings Redbook same store sales, a couple of short-duration Treasury auctions, and remarks from Atlanta Fed President Bostic. We begin Tuesday with Agency MBS prices better by nearly .125 from Monday’s close, the 10-year yielding 3.88 after closing yesterday at 3.91 percent, and the 2-year at 3.98.

Employment

A well-funded non-agency investor seeks a CEO to launch and lead a new wholesale originator. The ideal candidate will have prior C-suite experience at a non-agency originator and the entrepreneurial drive to be a “day-1” employee, building and growing a team. The investor will provide equity capital, act as a loan takeout, and offer other corporate support. If interested, please send your resume to Chrisman LLC’s Anjelica Nixt for confidential forwarding.

Planet Home Lending is entering a dynamic new phase of growth and opportunity. The recent asset acquisition of Axia Home Loans with top-notch originators levels up Planet’s retail volume and expands its branch footprint. (More below!) To explore how joining Planet can propel your career, contact Planet SVP Talent Acquisition Brian Miller at 214-223-9986.

(As a reminder, anyone searching for employment can post their resume at no charge at www.lendernews.com, and potential employers can view all resumes for several months for only $75.)