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Credit Reporting s Massive Cost Increase; Non-Agency/Non-QM News; Current Management Concerns

Putting out this daily commentary is like being in the army: I usually do more by 6AM than many people do during much of the day. The commentary is a little early this morning since I received an email on Thanksgiving from IsabelleDuvall@opale-voyages.fr that my U.S. Government social security account password had expired and for me to send her my social security number and a new password. I wanted to take care of sending Isabelle the information first thing this morning, and am sure that everything will be just fine. It’s not fine in the credit world any more than the tale above is. The industry was given an early Christmas “present” by Fair Isaac and the three credit bureaus, although this is not “official”: the vast majority of the mortgage lending industry will most likely incur a massive mortgage credit report price increase for 2023. With per-loan costs over $11,000 already, this sure won’t help. For better news, today’s podcast is

Fed Balance Sheet, Employment Opportunities, Vendor Tidbits, Investor News

The mortgage industry has come a long way from March of 2020, when the Federal Reserve pledged to buy “unlimited” amounts of Treasuries and MBS to stabilize the credit markets. The Fed started to shrink its balance sheet earlier this summer, and at the start of this month ramped up to a reduction rate of $95 billion per month ($60 billion of Treasuries and $35 billion of MBS) with plans to end its purchases of MBS from early payoff proceeds next week. The Fed’s actions in March of 2020 helped stave off margin calls for many lenders, though several European countries are now providing billions of euros in margin call support to European energy companies that need at least $1.5 trillion to cover the cost of their exposure to soaring gas prices. Margin calls eat into companies’ capital, and mortgage companies need all the cash they can get in this higher interest rate environment that has shocked borrower demand and subdued sales. Time on the market for homes i

Borrower, Disaster Alert, Verification, Processing Tools; Non-QM and Non-Agency Product News

This morning I am heading to Knoxville to visit with the local chapter of the Tennessee Mortgage Bankers Association. On my way I received an email asking, “I’m trying to place a high bal loan on a manufactured house on acreage. Any suggestions?” Nope, no suggestions. This is not an ad, but you should start with Mortgage Elements: enter the state, and then the program, and see who’s doing what. And what about information on warehouse lending, and what it is telling us about the current lending environment? The Mortgage Bankers Association has its survey. The MBA’s Chart of the Week from mid-February showed that the average usage level of first-mortgage warehouse lines (the percentage of outstanding borrowings to warehouse facility limits) fell for the sixth consecutive quarter to 38% as of the end of the fourth quarter of 2021. It was the lowest usage level since the inception of the survey in the second quarter of 2018. Meanwhile, at the other end of

Borrower, Disaster Alert, Verification, Processing Tools; Non-QM and Non-Agency Product News

This morning I am heading to Knoxville to visit with the local chapter of the Tennessee Mortgage Bankers Association. On my way I received an email asking, “I’m trying to place a high bal loan on a manufactured house on acreage. Any suggestions?” Nope, no suggestions. This is not an ad, but you should start with Mortgage Elements: enter the state, and then the program, and see who’s doing what. And what about information on warehouse lending, and what it is telling us about the current lending environment? The Mortgage Bankers Association has its survey. The MBA’s Chart of the Week from mid-February showed that the average usage level of first-mortgage warehouse lines (the percentage of outstanding borrowings to warehouse facility limits) fell for the sixth consecutive quarter to 38% as of the end of the fourth quarter of 2021. It was the lowest usage level since the inception of the survey in the second quarter of 2018. Meanwhile, at the other end of

MLO Jobs; Pricing, Servicing, Processing, VOE Tools; Non-Agency and Jumbo Updates; LO Comp

MLO Jobs; Pricing, Servicing, Processing, VOE Tools; Non-Agency and Jumbo Updates; LO Comp
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