Non-QM, Shared Appreciation, Closed Second, AVM, SOC Compliance Tools; Webinars and Training

What would lenders do without telephones and phone calls? In 1947 area codes were created by AT&T. Metropolitan areas were given low numbers so that people would spend less time dialing them. Think New York, Chicago, San Francisco (and all of Central California), Dallas, and all of Southern California including Los Angeles, (212, 312, 415, 214, and 213, respectively). Philadelphia received 215, Detroit 313. Atlanta, originally given 404 with the rest of Georgia, has four area codes. Georgia has nine. Few people want to receive a phone call from the CFPB, but change may be afoot. Today’s Mortgage Pros 411 features the CFPB’s Mark McArdle. We’re nearing the time when LOs seem more open to taking calls from recruiters… How’s your policy regarding how long you pay an LO after they leave, or who owns the borrower’s data? They should be sound. An informal poll indicates that LOs are often paid for 30 days after they leave. Of course, the higher the origination costs are, the worse the pricing for borrowers, and secondary staffs can’t make up for everything. Today’s Capital Markets Wrap at 3PM ET, presented by Polly, will cover last week’s election volatility. (Today’s podcast can be found here. This week’s is sponsored by Floify. Floify is an easy-to-configure point-of-sale platform that allows each branch or loan officer to customize its look and feel to meet the needs of their lending team, homebuyers, and market. Today’s features an interview with Floify’s Jason Mapes on how new POS technology in the mortgage industry is providing both time and cost savings for originators and borrowers.)

Lender and Broker Software, Services, and Products

Loan repurchase requests hit a high in Q3 of 2023…It seems like a dated event, but as home purchases continue to dominate our market, an increased incidence of loan defects coincides. A rise in loan defects invariably leads to more repurchases, a costly outcome for mortgage lenders and servicers. However, the more recent acceleration in defect and repurchase activity has created expanded options for lenders! Read CLARFIRE’s most recent blog, “Mitigating Loan Repurchase Risks with New FHFA Alternatives,” to find out how this change in repurchase activity led to FHFA’s recent announcement that they are expanding repurchase alternatives for certain loans. Implementing these options and preventing loan defects is fast, easy, and cost-effective with CLARIFIRE®, modern process automation designed for the future of our industry.

Ask yourself this question: when evaluating the current market value of a subject property, are you using the best AVM on the market? We understand that when making critical business decisions, accuracy and details matter. That’s why we’re highlighting First American Data & Analytics and its Procision AVM to have your back. Its Procision AVM updates and tests every residential property in the United States and updates the models’ underlying data on a daily basis. And the best part? The AVM is designed for your specific business needs, so you get the best results and highest satisfaction. But don’t just take our word for it: First American’s data speaks for itself. As a nationwide, single-source data provider, First American Data & Analytics will fuel your biggest ideas so you can focus on growing your bottom line. Learn more about the Procision AVM and get a free data sample.

“Attention mortgage service providers! Is your business SOC-compliant? Don’t wait for clients to request proof of your data security: Get ahead of the curve now! SOC reports are becoming crucial in our industry, separating the leaders from the pack. Whether you need SOC 1 or SOC 2, Richey May has you covered. Our latest guide demystifies SOC reports, helping you build trust, meet compliance, and gain a competitive edge. Ready to boost your security posture and win more business? Read the guide now and take the first step toward SOC compliance. Don’t let security concerns hold you back: contact Richey May today and stay ahead of the game!”

“Innovation-Powered Precision, Time-Tested Excellence! With a foundation built on 43 years of experience, PCV Murcor brings a deep understanding of our clients’ goals that complements appraisal modernization. Over our long history, we have honed our processes to provide reliable and unparalleled appraisal management services, setting the standard for excellence in the industry. Our use of state-of-the-art AI technology ensures precision and efficiency in every aspect of our service. AI’s ability to enhance efficiency, accuracy, and flexibility is reshaping the way properties are evaluated with distinct advantages. To learn more about our future-ready solutions for today’s appraisal management, visit here.”

With cybercrime an all-pervasive threat to any fintech organization, a SOC 2® compliance report is step-one in good digital hygiene. It’s a bit like a dental check-up without the invasion of personal space. Mortgage Machine voluntarily put itself in the exam chair recently to see if its security, availability, and confidentiality met the standards of the American Institute of Certified Public Accountants (AICPA). The verdict? Independent auditor Sensiba reviewed MMS’ LOS and reported, “MMS’s SOC 2 Type II report did not have any noted exceptions and was therefore issued with a ‘clean’ audit opinion.” SOC 2® compliance is just one more reason to trust MMS. To experience the peace-of-mind of doing business via an LOS that’s earned the SOC 2® seal of approval, contact Dan McGrew.

Wholesale and Correspondent Product Offerings

SG Capital Partners LLC has expanded its Closed End Second product to now offer DSCR loans! With loan amounts up to $350,000 and up to 70% CLTV, SG’s DSCR Closed End Second product empowers investors to tap into their equity without giving up their low interest rate first mortgage. The DSCR option supplements SG’s existing Closed-End Second program, which allows for full- and alternative doc types, industry-leading loan amounts up to $750,000 and a maximum CLTV of 90%. SG Capital Partners LLC is a proven leader in the Non-QM and Expanded Credit space. For more than 10 years, SG has cultivated strong correspondent partnerships, supported by customized product offerings, exceptional customer service levels, robust technology and streamlined operational processes. Questions about the DSCR Closed End Second, or interested in becoming an SG Partner? Contact the SG Capital Residential Sales Team.

Click n’ Close’s Shared Appreciation Mortgage (SAM) program saves borrowers thousands of dollars regardless of market fluctuations. As compared with a Repay 5% DPA on a loan of $300,000, after five years, CNC’s 5% SAM (Shared Appreciation Mortgage) saves borrowers $175 per payment or $10,481 for total payments of $128,645 while increasing equity over the traditional repay product by more than $4,000. That’s a net total advantage of almost $15,000. CNC has also created an exclusive calculator for SAM program participants designed to help them educate potential borrowers on the economic benefits of utilizing the SAM program to purchase a home compared to renting. Industry professionals interested in learning more about the SAM program should contact CNC’s Wholesale or Correspondent divisions.

“Visio Lending is breaking records with a relentless focus on improving our Broker Experience. We are the nation’s leader in Non-QM Investor DSCR loans for buy and hold SFR rentals with nearly a decade of experience and over $3 billion in originations. No-DTI, 30-year terms, rate buy downs, free 45-day rate locks; I/O and Sub-1 DSCR options available. New broker processing fee and now choose your own title company (including on refinances). Through our top-notch Broker Program, brokers are able to earn up to 2 points YSP, and 5 points total. Visio Brokers can count on a designated Account Executive and in-house processing.”

Webinars, Training, and Events This Week

Today, November 12 and all Tuesdays at 11am PT, two veteran LOs discuss all things mortgage with Industry Leaders: Mortgage Pros 411 with Audrey Boissonou and Kevin Casey.

If you’re in Georgia, certainly Atlanta, come to the luncheon today for the Atlanta Mortgage Banker’s event in Dunwoody!

Today’s Capital Markets Wrap at 3PM ET, presented by Polly, will cover last week’s election volatility.

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. Tomorrow has Jess Medema, who runs secondary marketing for Altra CU.

Join UCLA for a thought-provoking event featuring a conversation with L.A. Mayor Karen Bass and UCLA Blueprint Editor Jim Newton. Gain insights into the pressing issue of homelessness in Los Angeles during a meaningful discussion about the many challenges and potential solutions, Wednesday, November 13th, 5 p.m. to 6 p.m.

Are you looking for ways to eliminate data waste and streamline employment and income verifications to reduce costs and create more efficiency? Don’t miss Xactus’ upcoming webinar! When you attend “Efficiency Unlocked: The Power of Automated Verification Workflows” you’ll gain valuable insights into its customizable, automated workflows that will save you time and enhance accuracy in verifications. You’ll also discover how to access millions of records, customize cascades, and ensure accuracy, all in one streamlined solution. This is your chance to unlock faster, smarter verification workflows. So mark your calendar for November 13, Noon EST and register today; Follow Xactus on LinkedIn.

Stay informed and don’t let homebuyers miss out. Register for USDA’s free, live, virtual training on Thursday, November 14, 2:00 p.m. – 3:00 p.m. ET. Get the scoop on USDA’s latest handbook and policy updates.

Thursday will be another episode of The Big Picture at 3PM ET. Rich Swerbinsky hosts a variety of guests. You can click here to register for Thursday’s 3 PM ET show. This week’s show has Mark Calabria of FHFA fame discussing the possible future of Freddie & Fannie.

Friday the 15th, listen in to opinions (Last Word Fridays at 1pm ET) from Kevin Peranio and Brian Vieaux! Register here.

End this week with The Mortgage Collaborative’s The Fix with Melissa Langdale covering current events in the mortgage market for 30 minutes starting at noon PT.

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

While last week’s economic data was sparse, it continued to affirm that the U.S. economy is ___ (pick your word: strong, resilient, robust, etc.). The service sector continues to expand per the ISM services index and providers reported trouble finding workers. Initial unemployment claims were once again low and there is no sign of a significant change in that trend. The U.S. election provided some clarity on future fiscal policy, but not total clarity. While the 2017 tax cuts, which expire in 2025, are expected to be renewed, there is the possibility that they could be expanded. While tax cuts alone could lead to stronger GDP growth, the addition of significant tariffs could offset that boost.

The Federal Open Market Committee voted unanimously to reduce the overnight Fed Funds Rate (the rate at which banks loan each other money) last week by a widely expected 25-basis points and is expected to do so again following their December meeting. Many analysts expected a gradual wind down of the fed funds rate over the course of 2025, however the effects of the Trump administration’s tax and tariff policies have the potential to reduce the previously expected pace of Fed rate cuts.

Today’s economic calendar kicked off with NFIB small business optimism for October. The NFIB Small Business Optimism Index rose by 2.2 points in October to 93.7, the 34th consecutive month below the 50-year average of 98. Later today brings a flurry of Treasury activity in short-duration instruments, and remarks from four Fed speakers: Governor Waller, Richmond President Barkin, Minneapolis President Kashkari, and Philadelphia President Harker. Today is also Class A 48-hours for MBS. We begin the trading week with Agency MBS prices worse about .125 versus Friday’s close, the 2-year yielding 4.32, and the 10-year yielding 4.36 after closing Friday at 4.31 percent.

Employment

Optimal Blue, the leader in mortgage capital markets technology, is seeking a Product Marketing Manager to play a crucial role in executing on product marketing strategies to enhance awareness, increase adoption, and support revenue growth. Key responsibilities include implementing effective go-to-market strategies, overseeing the development of impactful marketing content, staying informed on market trends and competitive landscapes, and helping to refine product positioning. Collaboration is essential, as the product marketing manager works cross-functionally to develop marketing materials, define target segments, create sales enablement resources, and contribute to product launches. This role is pivotal in driving continuous improvement and innovation across all product marketing initiatives. If you’re interested in joining our dynamic team and making an impact in the industry, please view OB’s job posting on LinkedIn.

A national title Insurance agency in New York State is looking for a partner to increase its sales. The title & escrow agency has been around for over 18 years. The ideal partner is someone with many banking and real estate connections looking to either merge, joint venture, or become partners with the sole principal of the title agency. This individual or company understands the profitability within the title industry and is looking to get involved on the title side. It’s a dream scenario for someone(s) to walk in here and use this national platform to get involved in the title industry. Interested principals should send a confidential note of interest to Chrisman LLC’s Anjelica Nixt to pass it along to the president of the company; specify opportunity.

Optimal Blue has promoted Erin Wester to chief product officer and Mike Vough to head of corporate strategy. Ms. Wester, formerly focused on the company’s product and pricing solutions, will now oversee product strategy for the entire Optimal Blue capital markets platform, which includes product and pricing, broker pricing solutions, hedging and trading platforms, investor services solutions, Comergence compliance solutions, user experience and design departments, and the integrations department. Mr. Vough, previously leading the strategy for Optimal Blue’s hedging and trading solutions, will now focus on corporate strategy which includes business development to support the company’s integration partner network, as well as corporate development to drive its acquisition strategy.

(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.)