Pricing, Refi Specials, DPA, Lead Gen, AI Tools; Broker and Correspondent Products

With almost three more months of political jabbering, here’s a town in Kentucky that keeps politics in perspective with qualified candidates. In a mix of politics and lending, candidate Trump was quoted (again) saying that he wants more control over the Federal Reserve and setting interest rates. Lenders and vendors, of course, are less concerned with political dickering and more concerned with helping our clients in the here and now. According to Curinos’ new proprietary application index, refinances have increased nicely. “Additionally, July 2024 funded mortgage volume increased 8% YoY and increased 7% MoM. The average 30-year conforming retail funded rate in July 2024 was 7.02, 9bps lower than June 2024 and 36bps higher than the same month last year. (Curinos sources a statistically significant data set directly from lenders to produce these benchmark figures. We drill into this data further here.) (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 Mortgage Advisors Steven Cooley on the capabilities of mortgage technology and how lenders are making vendor decisions in the market.)

Lender and Broker Software and Services

“The mortgage industry is evolving, and appraisers are adapting! The future of valuations is here, with new technologies like inspection-based waivers (IBWs) streamlining the process. IBWs can save borrowers time and money, and lenders need to understand how to implement them effectively. The “Leaders in Lending: Inspection-Based Appraisal Waivers” webinar recording offers valuable insights into the benefits and challenges of IBWs, best practices for implementation, and expert opinions on the future of appraisal modernization. Watch the webinar recording today and stay ahead of the curve in this rapidly changing industry!”

What separates AIVA Virtual Assistants from out-of-the-box AI platforms like ChatGPT? Turns out, a lot. Think of it this way: AIVA is a mortgage industry specialist, designed to read loan documents, communicate with your LOS, and flag discrepancies (like missing data fields or documents) so the right person reviews and makes a decision. Developed by Dark Matter Technologies, a company with deep mortgage roots and more than a decade of experience with AI and machine learning, AIVA is designed to reshape mortgage lending with seamless, efficient, and automated experiences. It’s modular, LOS agnostic and intuitive, so even people who aren’t technologically inclined can quickly get to work in your back office. Learn more about AIVA Virtual Assistants today.

The underwriting process is one of the most challenging parts of the mortgage process. While there have been many false starts in the AIUW technology, Lender Toolkit’s AI Underwriter has become the trusted technology that drives efficiency, eliminates surprises, and enhances the borrower experience. The next generation of homebuyers expects technology to be a part of their homebuying process. Learn how you can dominate the competition with AI Underwriter TODAY.

Free eBook: How to Drive Mortgage Leads in the Aftermath of NAR & FCC Rule Changes. The way home buyers interact with lending and real estate professionals is changing. NAR practice changes, effective 8/17/24, dictate new rules mandated by the groundbreaking settlement reached in March. Meanwhile, the new FCC rule, effective 1/27/25, shifts the way lenders can purchase and pursue mortgage leads. Now is the time to get ahead of rule changes with a well-crafted lead generation strategy. Download Maxwell’s new eBook to learn how NAR and FCC rule changes will impact lenders, new challenges and opportunities lenders can expect, and 3 tips for building a strong mortgage lead funnel in today’s market. Click here to get your copy of New Rules, New Strategy: How to Drive Mortgage Leads in the Aftermath of NAR & FCC Rule Changes.

Wholesale and Correspondent Products

“All DPA roads lead to Essex! Essex Mortgage is pleased to announce that we now offer a new 5% Down Payment Assistance program, along with improved pricing on our 3.5% DPA forgivable option. But that’s not all! We’re also proud to be the master servicer for an innovative FHA loan program. This unique product allows a Government Entity to purchase a property and offer a lease option to consumers who may not qualify for traditional financing. Now your clients can secure equitable title after 18 months, opening new doors for homeownership. An added benefit of this program is it allows your realtor partners to close their sale as part of the process. Don’t miss out on these exciting opportunities: reach out to your Account Executive today.”

Just in from LoanStream: Expanded refi specials for August! New 37.5 BPS on Streamlines (FHA/VA), Standard Balance only, plus 25 BPS Price Improvement on FHA, VA & DPA loans 620+ FICO (excludes CalHFA, Standard Balance Streamlines FHA, VA), NEW 25 BPS Price Improvement on Conventional Rate/Term Refinances, Standard Balance only, 25 BPS Price Improvement on ALL Non-QM loans (excludes Select), 25 BPS Price Improvement on ALL Closed-End Seconds. Valid for loans locked 8/1/2024 through 8/31/2024. Offers subject to change visit www.LoanStreamWholesale.com for more details. Non-QM Specials available through our Correspondent lending channel, Home – LoanStream Mortgage Correspondent (lscorrespondent.com), contact your Regional Sales Executive. Close More with DSCR, join LoanStream’s DSCR Overview Webinar where we delve into DSCR and show you how they can help you boost your Non-QM business! Register now and reserve your spot!

Newrez announced the HUD Section 184 Program. This program offers low down payment mortgage financing for American Indian and Alaska Native families. Delegated Clients must be approved by HUD to offer this product.

Citi Correspondent Lending announced a new addition to its Community Lending platform, the Special Purpose Credit Program (SPCP). Two additional resource documents are now available. The new SPCP – Determining Program Eligibility Job Aid walks through identifying whether a loan meets program eligibility criteria. The new SPCP Best Practice document highlights program features, requirements, and best practices to help mitigate delays with the file review process.

AmeriHome 20240718-CL General Announcement summarizes previously published changes made during July, additional changes made with this announcement, and recent Agency and regulatory news.

Deephaven Mortgage has made changes to its DSCR cash flow loan. Recently announcing a new DSCR 5-9 Unit product that falls under its DSCR program, additionally increasing loan amounts for DSCR product. This mortgage loan is one of Deephaven’s most utilized products for real estate investors due to the flexibility it provides. It is a quick-to-close solution investors appreciate in competitive markets to continue to build their portfolios.

Capital Markets

Light moves at about 299,792 kilometers per second; the only thing that moves faster is the universe as it expands. At times, it feels like mortgage pricing changes just as fast. Fortunately, lenders can use LoanPASS to update their pricing to match changing investor requirements and rates in seconds. Acra Lending uses this capability to easily keep correspondents and brokers looped in on the most up-to-date pricing sheets—even when there’s promotional pricing involved. Connect with your galaxy of partners efficiently and effectively using the LoanPASS rules-based engine. Read the case study to discover the bright future of loan decisioning and pricing.

In rate news, last week’s market movement was driven primarily by growing recession concerns, following both the previous week’s release of July’s weak U.S. non-farm payrolls report, and financial turmoil in Japan caused by the Bank of Japan’s unexpected interest rate hike and the unwinding of a yen carry trade. Sentiment was fueled by positive labor market data, including the largest drop in initial jobless claims since September, which eased recession fears. It was welcomed news in the wake of the recent non-farm payrolls report intensifying fears of a U.S. recession and raising concerns that the Federal Reserve may have delayed cutting interest rates for too long.

As BOK Financial’s Chris Maloney put it, “This outlook is currently par for the course at the Fed. Despite Powell’s stumble at the last presser, the official message from the Fed has continued to be patience on cuts and data dependency for their guidance. This makes the two Consumer Price Index reports and the one payroll release left before the September meeting of greater than usual importance. Does the Fed want to cut? Of course it does; the Fed Presidents wouldn’t be in their seats if they didn’t. Plus, everyone likes to bear gifts and good news. The question is if the data will let them. CPI is moving in the right direction, but we’re not there, yet.”

This outlook is currently par for the course at the Fed. Despite Powell’s stumble at the last presser, the official message from the Fed – see Bowman’s comments this weekend, for example – has continued to be patience on cuts and data dependency for their guidance. This makes the two CPI reports and the one payroll release left before the September meeting of greater than usual importance. Does the Fed want to cut? Of course they do; they wouldn’t be in their seats if they didn’t. Plus, everyone likes to bear gifts and good news. The question is if the data will let them. CPI is moving in the right direction, but we’re not there, yet.

It’s time to shift focus from the labor market back to inflation. This week will bring a full slate of economic reports, headlined by July PPI tomorrow and CPI on Wednesday. What does that mean for originators and capital markets folk? The potential for volatility will remain elevated. Additionally, retail sales data is scheduled for Thursday and Michigan sentiment on Friday. Fedspeak is on the lighter side ahead of next week’s Jackson Hole Economic Policy Symposium. Regarding MBS, Class B and C 48-hours are on Tuesday and Friday, respectively. Today’s lone data point is the July budget statement, due out this afternoon. We begin the week with Agency MBS prices roughly unchanged from Friday’s close, the 10-year yielding 3.96 after closing last week at 3.94 percent, and the 2-year at 4.07.