Tax Audit, NAR Information, Appraisal, DPA, Cyber-Attack Products ; Agency News; MBA’s Sasha Hewlett on Capital Markets

Sometimes things are confused with other things. (What do racoons think of Tesla trucks? Those trucks are easy to make fun of.) There isn’t a lot of confusion among the 700+ people attending the Western Secondary here near Los Angeles: stay in business, help consumers, and achieve the best execution in the secondary markets to help LOs and AEs. Part of that is keeping up on regulations, and today at 3PM ET is a free 45 minute webinar: “Regulation Central”, sponsored by Polunsky Beitel Green and featuring attorneys Peter Idziak and Brian Levy, with AHMC President Matt VanFossen. Of course, interest rates factor into things. The consensus among “those in the know” here at the conference is that, although the Federal Reserve’s Open Market Committee will start reducing overnight fed funds next month, most or all of this is already priced into the bond market, and therefore rates. So, if you like mortgage rates where they are, good, as they may be around these levels for a few more months. (Today’s podcast is found here and this week’s is sponsored by Candor. Candor’s authentic Expert System AI has powered more than 2 million flawless, hands off underwrites. Every credit risk decision Candor makes is backed by a Warranty, eliminating repurchase worries. Hear an Interview with MBA’s Sasha Hewlett on capital markets prerogatives and what the MBA is watching in the secondary markets.)

Lender and Broker Software, Services, and Products

Down Payment Resource (DPR) is a company on a roll! Fresh off a strong showing of its Encompass® LOS integration at CMBA Western Secondary, EVP of Product and Operations Sean Moss and VP of Sales and Business Development Brad Cardwell head to Denver next month for TMC’s “A Mile Above.” A fitting next stop for a company going a mile beyond to help loan officers using Encompass dynamically view available down payment assistance (DPA) programs for borrowers based on their location, occupation, income, and other factors. Using a different LOS platform? That’s fine too. DPR’s software solutions can connect lenders of any size or stripe to its massive and national 2,400+ program database. Keep those doggies rolling! Catch up with Sean and Brad at TMC or grab a spot on Brad’s calendar any time to get a demo of DPR’s lender suite.

Is your current subservicer genuine, collaborative, and effective in partnering with you in creating members for life? If not, then join Servbank and Mountain America Credit Union on Tuesday, October 1st, for the insightful speaking session, Creating a Member for Life Servicing Experience. In this session, they will delve into key performance indicators and actionable strategies you can implement with your subservicer to ensure your members receive the exceptional experience necessary for building long-lasting, loyal relationships. Servbank is excited to sponsor the upcoming ACUMA Annual Conference at the Alcove level, taking place from September 29th through October 2nd at the Bellagio in Las Vegas, Nevada. Don’t miss the opportunity to meet Servbank at the largest gathering of credit union mortgage lenders in the United States. Find out how Servbank can create excellence for you and your members. Click here to learn more about the nation’s premier bank subservicer. Click here to register for ACUMA Annual Conference.

On average, cyber attackers spend 285 days living in a network before they are noticed. Do you have both prevention and detection processes? Do you have an incident response plan in place? And if so, have you tested it to make sure it’s effective? If you’ve answered no to any of these questions, it’s time to strengthen your cybersecurity posture and create a culture of security. While prevention is important, turning your focus to detection and resilience will help you limit the impact of a cyber-attack and safeguard your future operations. Contact Richey May’s Cyber Team today to build your resilience today.

“Luxury Mortgage Corp.® is launching a limited-time Flash Pricing Special through August 31st. This exclusive offer allows brokers to provide clients with extraordinary savings on their mortgage rates, here’s how you can take advantage. We’re offering up to 100 basis points off on new mortgage locks meeting specific criteria. For Full / Alt Doc Loans, the offer applies to loan amounts ranging from $750k to $1.5MM, with a minimum FICO score of 720, LTV up to 70%, and DTI up to 45%, applicable for purchases of primary residences. For DSCR Loans, the same loan amount range and FICO score requirements apply, but with an LTV up to 65% and a minimum DSCR of 1.20+, also for purchase transactions. Note: 5–10-unit properties are not eligible for this special. This is your chance to secure exceptional savings and offer clients unparalleled value on their next mortgage. Don’t wait: contact us now to lock in these extraordinary rates before the offer ends!”

“Unlock new opportunities with Click n’ Close’s (CNC) two-track webinar series launching this September! Whether you’re an approved correspondent lender or looking to expand your offerings, these webinars offer customized product training. CNC’s SmartBuyTM DPA options provide lenders with a single, simplified program to offer borrowers nationwide. With forgivable and repayable second lien options, CNC has expanded its DPA program with a proprietary Shared Appreciation mortgage, combining a below-market interest rate AND down payment assistance. One webinar track will be available to interested lenders that are not yet approved as CNC correspondents. This track will provide more information about CNCs innovative lending products such as DPA, shared appreciation and more. For current Click n’ Close correspondents, the second webinar track will provide customized product training to help you maximize our innovative loan products. To be notified of upcoming webinars, contact us.”

“This Thursday, join Truv webinar on August 22 at 1pm CT to experience our integration with BeSmartee Bright POS firsthand! Discover how Truv and Bright POS empower loan officers to verify income and employment in seconds, speeding up mortgage approvals with greater data transparency and quicker closings. Don’t miss out: register today to see the demo and get your questions answered. Register now.”

“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.”

The new rules related to Realtor compensation took effect this past weekend, but there’s still some confusion and uncertainty among borrowers and homeowners about how they’ll be impacted. This presents an opportunity for you to proactively engage customers, educate them about what the new rules say, and help ensure that they understand how buyers’ and sellers’ agents get paid. Borrowers and homeowners alike will be looking for a trusted partner to provide unbiased advice as the new housing landscape takes shape. But you can’t wait for consumers to come knocking on your door. You have to get in front of every opportunity before your competitors do. To help, Total Expert Chief Lending Officer Dan Catinella wrote an article that lays out five things lenders can do to drive growth and retention as the new NAR rules take effect. Read it here!

“Fall is approaching, which means it’s time to engage your 2024 audit and tax firm. In a year when every dollar counts, you need a cost-effective provider without sacrificing quality. You need CWDL. Our audit and tax teams are comprised of professionals with deep mortgage experience, so we understand your business and go right to work. Not only does that mean an efficient, smooth process from start to finish, but it also means your key stakeholders will have full confidence in the final product. And as a nimble firm without layers of management, our partners are actively involved in all aspects of your engagement, and you’ll be assigned the same management team every year. Don’t wait to make a transformative change for your business. Reach out to Kasey English at 619.302.0010, or learn more here.”

Fannie/Freddie News and Updates

The Federal Housing Finance Agency (FHFA) joined eight other agencies to announce that it is seeking comment on a proposed rule to establish data standards for certain information collected by financial regulatory agencies. FHFA joins the Office of the Comptroller of the Currency, the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Consumer Financial Protection Bureau, the Commodity Futures Trading Commission, the Securities and Exchange Commission, and the Department of the Treasury in proposing this rule.

If traditional credit isn’t enough to get your loans through the door with Loan Product Advisor® (LPASM), it’s time to give borrower cash flow assessment a try. With just an asset verification report, LPA can identify positive cash flow to boost the potential to turn a Caution to an Accept. Plus, no credit score is required – giving you more opportunity to qualify more borrowers.

Check Fannie Mae’s latest Perspectives blog to learn more about recent homebuyers’ experience with digital verification tools, including adoption rates and how their attitude toward the technology has changed over time.

The enhanced Resolution Queue is now available in Loan Quality Connect . An expanded dashboard offers more clarity and transparency to the resolution process with a new layout, new business intelligence cards and a more intuitive interface for an even simpler experience. Visit Loan Quality Connect and check out check out the streamlined process.

Effective with Product Announcement 20240804-CL, AmeriHome announced that Mortgage Loans secured by standard GSE eligible manufactured homes, including Fannie Mae MH Advantage and Freddie Mac CHOICEHome® are now eligible for purchase subject to Seller eligibility.

Citi Correspondent Lending is making changes to a portion of Agency and Non-Agency Best Efforts CRA premiums, effective with locks completed on/after Friday, August 16, 2024. Read the complete announcement for details regarding impacted counties/MSAs in the Agency and Non-Agency CRA premium grids. The 8/16/24 rate sheet also reflects these changes.

Capital Markets

With most capital markets movers-and-shakers here in Los Angeles, the week opened with a wait-and-see mindset preceding tomorrow’s benchmark revisions for nonfarm payrolls for April 2023-March 2024 and the Federal Open Market Committee Minutes for the July 30-31 meeting. Don’t forget, we also have Fed Chair Powell’s speech on the Economic Outlook at the Jackson Hole Economic Symposium on Friday. A weaker job market should clear the way for the Fed to cut rates in September with monetary policymakers still concerned about the momentum that built up in inflation in recent years.

Philadelphia Fed non-manufacturing for August kicked off today’s economic calendar. Later today brings Redbook same store sales, some short-duration Treasury auctions, remarks from Atlanta Fed President Bostic and Fed Vice Chair for Supervision Barr, and today is also 48-hours for Class D MBS. Overnight, not that it’s going to rock the world’s financial markets, Sweden’s Riksbank was out with its latest monetary policy decision when it unexpectedly cut rates 25 basis points to 3.5 percent. We begin the day with Agency MBS prices little changed from Monday’s close, the 10-year unchanged at 3.87 percent, and the 2-year at 4.06.