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Compliance, Asset Mgt , PPE, DPA Tools; Assorted TPO News; STRATMOR on Profitability

Who doesn’t think swearing parrots are funny? Although you wouldn’t want your parrot talking about the clap when Aunt Beatrice comes over for Sunday dinner. I’m sure that every LO has heard their share of salty words, and they deal with much more for their clients than just a loan. Working with their client’s debts, assets, rental insurance until they buy a home, even servicing after the loan funds, you name it. Everyone across the nation is feeling the brunt of seemingly usurious homeowner insurance rates, and The Mortgage Collaborative’s Rundown tomorrow has Andrew Hellard, SVP of Products with Matic, discussing why homeowner’s insurance costs have skyrocketed. IMBs have not been retaining servicing. They needed the cash. Companies like Freedom, AmeriHome, Pennymac, and Planet Home have been buying up servicing. They will retain that customer if and when refinancing kicks in. Rate and term refis will probably go to the aggregators. They bough

IMB Wanted; 1% Down, Compliance Products; Training and Webinars Next Week; STRATMOR on Brokers

My notes from the MBA’s conference this week continue, including talk about new home sales being +4.1 percent for the month (+11 percent year over year, bringing a smile to builders everywhere). Although most of the focus of the conference was on the secondary markets (although let’s face it, there isn’t a plethora of new investors or products), the primary markets continue to be a discussion topic. Some lenders have seen LOs move into the broker world, some have seen them come back. The transition to being a broker is not always “rainbows and unicorns.” It appears to have better “top line” revenue but what about the “bottom line” when a shop has to pay for their own benefits, marketing, IT support, etc. (STRATMOR has a fine write up on the subject below.) Lenders continue to examine the branch model, whether it is traditional or P&L (revenue) based. The MBA defines an “expense management”

Non-Agency, POS, Warehouse Products; STRATMOR on the Business Cycle; Production Costs

Sometimes it’s tough to find good news out there. For independent mortgage bank (IMB) and mortgage subsidiaries of chartered bank lenders, the MBA reports that production costs exceeded $11,000 per loan in the 3rd quarter leading to a net loss of $624 on each loan they originated. (More below.) And the cost of determining a borrower’s credit will be heading significantly higher, according to word on the street. The increases are not coming from credit resellers, such as credit reporting agencies, but rumored instead to be coming from the bureaus and Fair Isaac, customers are encouraged to speak with their credit source for the exact details on tiers, actual percentage increases, and timing to put speculation to rest. Want some good news? We’re a month away from the day with the least amount of sunlight (solstice). Want a free Denny’s breakfast for a year just by wearing this $5.99 T-shirt? In a fantastic marketing feat, there are only 150 of them and they go

Purchase Advice API, TBA Trading Tools; STRATMOR on Signing Bonuses; Webinars and Training to Finish July

Purchase Advice API, TBA Trading Tools; STRATMOR on Signing Bonuses; Webinars and Training to Finish July
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Subservicing, Webinar, QC, Verification, Underwriting Products; 2022 trends; Ukraine Crisis Unfolds

Greetings from Little Rock, Arkansas (home of cheese dip, 1935)! George Thorogood’s music is alive and well here, and a happy 72nd birthday to he who wrote the lending anthem, “When I Do a Loan, I Prefer to be by Myself.” While George is busy celebrating his birthday week, apps plunged to their lowest level in two years, and the CFPB released a factsheet on the interest rate that is used for calculating prepaid interest under the price-based General QM APR calculation rule for certain ARMs and step-rate loans. Switching gears… Zoomed out? Me too. In person is so much better, although companies seem to be keeping pieces of technology from the work-from-home environment. For the past couple years, many of us have spent a portion of our workdays staring at screens featuring grids of their colleague’s faces. Teamflow offers an alternative. (Nope, this is not a paid endorsement.) The remote-work platform allows companies to create virtual offices with desk

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