Debt Service Coverage Ratio (DSCR), Non-Qualified Mortgage (Non-QM), Down Payment Assistance (DPA), Automation, Payoff Products; Updates on Conventional Conforming Loans

In sunny Southern California, where swimming pools and tennis courts abound, there’s a lucrative opportunity hiding in plain sight. Imagine leveraging the local amenities, whether it’s a sparkling pool, a pickleball court, a tennis court, basketball hoops, or even a party deck, for profit. You could either rent out these facilities or offer your own for rent. It’s a simple yet ingenious idea that could generate passive income around the clock.

At the recent L1 event in Southern California, the prevailing wisdom is that you don’t need to reinvent the wheel to succeed financially; instead, it’s all about discipline. During a presentation by Mike McAuley, he and Joe Garrett highlighted companies that thrived financially in the past year.

Their success stories revolved around key strategies: maintaining a flat organizational structure, having a single CFO or Controller to handle finances, aggressively cutting costs and renegotiating contracts, and maintaining a laser focus on operational efficiencies. Additionally, offering niche or unconventional products such as manufactured housing, hard money loans, adjustable-rate mortgages (ARMs) for local banks, and construction-to-permanent loans proved to be lucrative ventures.

It’s clear that in the dynamic landscape of Southern California, there’s ample opportunity for those who are resourceful and disciplined. So, whether you’re considering renting out local amenities or exploring niche financial products, success lies in strategic thinking and steadfast execution. (This week’s podcast is sponsored by Richey May, a trusted provider of specialized advisory, audit, tax, technology, and other services to the mortgage industry for nearly four decades. Tune in for an insightful interview with ALTA’s Chris Morton on Attorney Opinion Letters and unregulated title insurance.)

Lending and Brokerage Solutions: A Comprehensive Guide to Services, Products, and Software

Exploring Mortgage Industry Trends: Insights from ICE Mortgage Monitor

Delve into the latest ICE Mortgage Monitor to uncover key insights shaping the future of the real estate and housing finance sectors in 2024. This invaluable monthly report and accompanying webinar offer expert analysis based on extensive housing data assets, providing unparalleled market intelligence. Don’t miss out on this opportunity to stay ahead of the curve. Sign up now to receive your complimentary reports and webinar invitations.

Connect with FirstClose at ICE Experience 2024

Join FirstClose at Booth #612 during ICE Experience 2024 and discover how their innovative fintech platform revolutionizes the origination and closing processes for home equity loans (HELs) and home equity lines of credit (HELOCs). Learn how FirstClose’s decades of experience have culminated in a platform that is smarter, faster, and more efficient than ever before. And don’t forget to unwind at the Dog Park with some furry friends from the Nevada SPCA. Schedule your meeting today.

Navigating TCPA and CTIA Regulations with Usherpa

Are you aware of the latest TCPA and CTIA regulations regarding A2P 10DLC requirements? Noncompliance can lead to serious fines, especially if your sales team is engaging in text marketing. Usherpa leads the way in compliance, ensuring that their texting platform adheres to federal laws. Click here to learn more about these regulations and ensure that your texting practices are legal and compliant.

Streamlining Payoff Processes with PerfectDocs®

Discover PerfectDocs®, a user-friendly platform from NTC designed to streamline the payoff process for both MERS® and non-MERS loans. Visit the PerfectDocs/NTC kiosk at ICE Experience to learn how PerfectDocs® can help you create, review, execute, and track all necessary documents efficiently. Plus, explore NTC’s partnership with ICE’s Simplifile® for enhanced eRecord coverage. Schedule a meeting today.

Optimize Your General Ledger with Loan Vision

Transform your business operations with Loan Vision and LV-PAM. Experience significant improvements in efficiency and profitability, including reduced days to close books, decreased accounting headcount, and complete LOS to G/L automation. Contact Carl Wooloff to learn how Loan Vision can help you achieve greater success.

Exciting Partnership Announcement from Tabrasa and LendingPad

Tabrasa and LendingPad have joined forces to offer a powerful new integration between the Tabrasa One Platform and

LendingPad LOS. This bi-directional data integration is fast, easy, and affordable, enabling lenders, loan officers, and brokers to accomplish more with less. Take advantage of the launch special and contact Karen Amecangelo for a demo or discussion.

Product Updates for TPOs, Brokers, and Correspondents

Discover the latest enhancements and improvements at eRESI Mortgage! With over 40 guideline updates and improved LLPAs, we’re empowering our lender partners to stay ahead in the competitive market. Join our webinar today, where Amanda Roccia, our Head of Credit, will detail these enhancements and answer your questions. Interested? Sign up now by reaching out to Client Support or Peter Heintz.

At eRESI Mortgage, we’re dedicated to your success and committed to providing you with the momentum you need through our enhanced Non-QM product offerings. Contact our business development team at or connect with your eRESI representative today for more information.”

“Elevate your brokerage’s performance with The Loan Store as your lending partner of choice. Our focus is on nurturing your Loan Officers’ referral relationships and ensuring utmost client satisfaction. With experienced Account Executives and Underwriters, we streamline the loan approval process, guaranteeing timely closings with efficiency and reliability.

Join us for an exclusive event on Wednesday, the 6th, where Broker Owners and esteemed Loan Officers will share invaluable insights into best practices, business generation strategies, and effective client relationship management. Register now to engage in a collaborative exchange of industry expertise and propel your brokerage forward with The Loan Store!”

“Choosing between long-term rentals or vacation rentals? Look no further than Visio Lending, the nation’s leader in Non-QM Investor DSCR loans for buy-and-hold SFR rentals. With nearly a decade of experience and over $2.8 billion in originations, Visio Lending offers No-DTI, 30-year terms, rate buydowns, free 45-day rate locks, and I/O and Sub-1 DSCR options. Join our top-notch Broker Program and earn up to 2 points YSP and 5 points total. With a designated Account Executive and in-house processing, Visio Brokers can count on unparalleled support.”

Updates on Conventional Conforming Programs

Recent updates from Freddie Mac and Fannie Mae are reshaping industry standards in terms of regulations, processes, and interest rates. Here’s a breakdown of the latest developments:

Pennymac has adjusted its policies to align with Fannie Mae SEL-2023-11, introducing eligibility criteria for Restricted Stock Units (RSUs) and restricted stock income effective from March 1, 2024. Detailed information is available in Pennymac Announcement 24-14.

Furthermore, Pennymac has synchronized its practices with the updates to the Uniform Property Dataset (UPD) outlined in Freddie Mac Bulletin 2023-19. The specifics are outlined in Pennymac Announcement 24-15.

Pennymac has also introduced enhancements to its HomeReady/Home Possible programs. Pennymac Announcement 24-18 introduces a new down payment assistance (DPA) enhancement offering a $2,500 assistance amount for very low-income purchase (VLIP) borrowers, applicable to down payment and closing costs.

On the other hand, Freddie Mac has announced the discontinuation of its BorrowSmart program. Dates and timelines regarding this change can be found in Pennymac Announcement 24-17.

Starting from March 1st, PHH will start accepting loans with the $2,500 VLIP credit.

Citi Correspondent Lending has implemented adjustments to the loan level pricing adjuster for its HomeRun Program and specific Community Reinvestment Act (CRA) premiums. These changes apply to Best Effort locks completed on or after Friday, March 1, 2024. Refer to the Citi Correspondent Lending HomeRun LLPA and CRA Premium Increases Bulletin for more details.

AmeriHome Mortgage Announcement 20240209-CL provides a comprehensive summary of changes implemented in February, additional updates announced with this release, and recent developments in Agency and regulatory policies.Financial Markets Overview

Financial Markets Overview

Investor sentiment, which initially led to a rise in bond yields following recent hawkish remarks from the Fed, has gradually subsided. A bond market rally yesterday contributed to pushing the 10-year yield to its lowest point in approximately a month.

In economic news, the ISM Services PMI dipped to 52.6 percent in February from 53.4 percent in January, indicating ongoing expansion in the services sector for the 14th consecutive month. Despite this, there were signs of improvement in business activity and order growth during February.

Conversely, the S&P Global U.S. Services PMI saw a slight increase to 52.3 in the final reading for February from the preliminary reading of 51.3, but it was down from January’s final reading of 52.5 due to a contraction in the Employment Index. Additionally, factory orders fell 3.6 percent month-over-month in January, worse than expected, though business spending remained stable, somewhat mitigating the negative impact of the report.

Today’s economic agenda started with a 9.7 percent increase in mortgage applications from the previous week, according to data from the Mortgage Bankers Association. Other releases include ADP employment figures for February, which came in at 140k against expectations of 150k (compared to 107k previously).

Later, we anticipate JOLTS job openings for February, wholesale inventories, the commencement of Fed Chair Powell’s semiannual testimony before Congress, speeches from San Francisco Fed President Daly and Minneapolis Fed President Kashkari, and the latest monetary policy decision from the Bank of Canada. At the start of the day, Agency MBS prices remained unchanged from Tuesday evening, with the 10-year yield sitting at 4.14 percent and the 2-year at 4.54.

Career Changes and Workforce Movements

Freedom Mortgage is actively recruiting top-tier Account Executives across the nation. We recognize that exceptional individuals are not only experts in their field but also adept at fostering strong relationships. We are in search of industry pioneers who are instrumental in driving our company’s achievements.

With a legacy spanning three decades, Freedom Mortgage has established itself as a cornerstone of reliability in the mortgage industry, boasting resilient processes and a talented workforce. Our extensive experience and unwavering presence in the market instill confidence in our stakeholders for the long haul. At Freedom Mortgage, we are committed to wholesale lending for the long haul.

Our Account Executives boast an average of 15 years of industry experience, with over a decade spent at Freedom Mortgage. If you are a top performer seeking to collaborate with a financially robust organization to shape your future, reach out to Allen Middleman today.

In a significant announcement, The Carrington Companies revealed yesterday that Andrew Taffet, previously serving as Chief Investment Officer, has taken on the additional responsibility of Chief Executive Officer for the organization.

This transition sees him succeed Bruce Rose, the esteemed Founder of The Carrington Companies, who will transition to the role of Chairman of the Executive Committee. Bruce Rose expressed confidence in this handover, highlighting the company’s resilient business strategy and its ability to navigate through various market cycles.

The seamless transition reflects The Carrington Companies’ commitment to sustained success and its readiness to tackle future challenges head-on.

Matthew Graham
Matthew Graham
Articles: 63

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