Savings Account Archives - Homes For Sale In Local AFL

January 23, 2021

REX teams up with Qualia to add home closings to its services suite

Real estate tech company REX is expanding into home closing by tapping digital closing platform Qualia to power its title and escrow operations.

According to its release, the partnership will enable REX users to monitor the closing process through an automated escrow system which sends updates and tasks for both parties to complete – streamlining the escrow and closing process.

“The home closing process has traditionally been one of the most complicated, confusing, paper-laden parts of the home buying experience,” Qualia CEO Nate Baker said. “We’re proud to support high growth real estate technology companies like REX to provide homebuyers and sellers with a transparent, easy-to-understand, and fully digital real estate closing experience.”

REX also said that the electronic delivery of closing packages to clients and notaries, and final title policies and recorded mortgages to lender partners are now also possible.

“At REX, we’re focused on reimagining the entire home buying and selling process, simplifying it so that all services are under one roof, and offering savings as a result. We’re excited to have found a partner in Qualia that shares the same goal of a streamlined transaction,” said Lynley Sides, president and chief operations officer of REX. “The partnership represents another addition to REX’s suite of services for home buyers and sellers.”

Source: mpamag.com

January 23, 2021

SimpleNexus taps digital mortgage marketing expert

SimpleNexus – a homeownership platform for loan officers, borrowers, real estate agents and settlement service providers – has tapped former Simplifile executive Richard Jackman (pictured) as its vice president of marketing.

With more than 20 years of marketing leadership experience, Jackman will be in charge of overseeing the company’s strategic marketing plan as well as directing campaigns that will “expand SimpleNexus’s share of voice in the mortgage market.”

The marketing expert came to SimpleNexus from Simplifile, where he also served as vice president of marketing. During his 12-year tenure at the e-recording company, Jackman helped Simplifile grow its annual revenue from $5 million to $60 million.

“Richard is a keen digital mortgage marketing executive with the demonstrated ability to help innovative firms rapidly expand their market footprint and scale to their full potential,” said SimpleNexus president Cathleen Schreiner Gates. “Richard’s experience leading high-performing marketing divisions will play a key role in helping SimpleNexus expand the customer journey and deliver superior value to our clients.”

“SimpleNexus has a clear vision for improving the mortgage industry through a connected platform that ultimately streamlines the entire homeownership process for all parties involved,” Jackman said. “Simply put, SimpleNexus is a trailblazer in the mortgage technology sphere delivering exceptional value. I’m excited to join a team that shares my core values and mirrors my dedication to making the homeowner journey more efficient, transparent and enjoyable.”

Source: mpamag.com

January 22, 2021

Atlantic Home Mortgage adds new loan officer for Georgia branch

Premier mortgage lender, Atlantic Home Mortgage (AHM) has announced the addition of mortgage loan officer Steven Mueller (pictured) to its Alpharetta, Ga. branch.

Mueller started his mortgage career in the early 2000s, primarily helping his clients refinance their properties, and later took on purchases.

“My experience spans all areas of mortgage lending,” he said. “I’m very excited to have the opportunity to utilize all the skills I’ve developed over the years in different professional arenas to help my clients with the best financial decisions when it comes to their homes.”

In addition to his lending experience, Steven served as the operations director for a food bank in Georgia for more than six years. He also held managerial roles at Atlanta-based Burris Logistics and Whole Foods Market.

“I’ve always had a passion for helping others. It’s something that drives me forward every day. When you help a client in a situation that benefits not just their financial situation but also their entire life, that is truly inspiring. My experience with getting personal and understanding true needs helps me connect with my clients in ways that it might be more difficult for other lenders to do,” Mueller said.

“We are all very excited for Steve to join the team. He is extremely well connected locally, and brings a lot of experience to the table,” said Tony Davis, founder of Atlantic Home Mortgage.

Source: mpamag.com

January 22, 2021

Trump grants clemency to Atlanta mortgage fraud ringleader

The mastermind of one of the largest mortgage fraud cases in the Atlanta district will be released from prison early after Donald Trump commuted her sentence on Wednesday.

Chalana McFarland, who was sentenced to 30 years in prison for orchestrating a multi-million-dollar mortgage fraud scheme, was among the 70 people granted clemency by Trump in his final hours in office.

McFarland was a former real estate closing attorney based in Atlanta, Georgia. In 2005, she was convicted on 169 counts of conspiracy, bank fraud, wire fraud, mail fraud, identity theft, fraudulent use of social security numbers, money laundering, obstruction of justice and perjury.

According to a report in the Atlanta Business Chronicle during that time, McFarland was the leader and organizer of what then-US Attorney David Nahmias described as “the largest cases of mortgage fraud in this district which devastated a number of local communities.”

The fraud ring, which spanned mid-1999 through late 2002, involved more than 100 properties in the Atlanta area. Together with her co-conspirators, McFarland inflated property values and used fake borrower information to obtain mortgage loans totaling roughly $20 million. McFarland was ordered to pay more than $11 million in restitution for her role in the scheme.

Her case was petitioned by the CAN-DO Foundation, a group that advocates for clemency on behalf of non-violent drug offenders.

In her essay on the foundation’s website, McFarland expressed deep remorse for her actions but argued she’d been singled out to be made an example of.

“I am ashamed of my actions. It’s more than just embarrassment or regret. Countless days I have laid in my bunk reliving my mistakes over and over. If I could go back in time, I would do so many things differently,” she wrote. “The judge chose to make an example of me by handing down what is still considered one of the harshest sentences for mortgage fraud in the country. (Ironically, the same judge a year later, sentenced two attorneys with similar conduct but greater monetary losses to 28 and 37 months respectively). Even in my own case, I was sentenced nearly four times that of any of my co-defendants.”

The White House’s short description on her case noted the shorter sentences given to her co-conspirators.

“Though she went to trial, Ms. McFarland actually cooperated with authorities by informing them of a potential attack on the United States Attorney. Her co-defendants who pled guilty, however, received lesser sentences ranging from five to 87 months. Ms. McFarland was a model inmate and is now under home confinement,” the White House release on Trump’s grants of clemency said.

Source: mpamag.com

January 21, 2021

How can originators do better at handling their mistakes?

Professionally, originators and loan officers have been dealing with some petty ‘good problems’ for the better part of the past year. High volumes have delivered record profits, but have also tested operational capacity and personal limits resulting, on occasions, in human error.

Jesse Stroup (pictured) has been dealing with originator errors a lot more over the past few years. The branch manager and originator at Geneva Financial in the Boise area explained that in his market’s white-hot housing market, simple errors stemming from a high volume can do reputational damage, derail deals, and cost clients serious money.

“In these times, when we’re so busy, we can miss things easily. We can forget to submit something, just because we got a call or a meeting right in the middle of the task,” Stroup said. “On the origination side it’s usually amateur stuff like filing an incomplete application or not tagging mortgages to our property list.”

Read more: Mortgage applications hit record high despite uptick in 30-year FRM

Stroup recently inherited a double-ended deal covering two refis and a purchase from a colleague who had told the client he was good to go on the underwriting front. When Stroup opened it up, he saw something was very wrong. His colleague, as it turns out, had run Desktop Underwriter (DU) on the deal but didn’t take a look at the software’s results. Stroup saw that DU had flagged the deal as “refer ineligible,” which in Stroup’s estimation usually means the deal is dead.

Stroup had to call that client and explain that he was going to have to start the loan process again from scratch, and wasn’t even sure if the client was eligible. Stroup managed to make it happen, but that small error his colleague made overlooking the DU result cost both originators, and the client, time and money. Not to mention the headaches.

To avoid mistakes like this, Stroup leans on a lesson he learned back when he raced motocross: you’ve got to go slow, to go fast. Getting form and technique right is more important than being the fastest person out of the gate in racing dirt bikes and originating mortgages. Simple process checks, annoying as they can sometimes be, are key to a deal getting closed clean and on time, with no repercussions for the originator.

Read more: Could vaccines end the suburban purchase boom?

In situations like Stroup’s nearly broken deal, the immediate repercussion is a cost to the client. Error-related stalls in the process cause knock-on issues with other players in this deal, resulting in higher costs and more issues that will cost an originator time. There’s reputational damage, too, in disappointing a client or a referral partner through these mistakes.

While a focus on diligence and detail can minimize mistakes, Stroup accepts that every originator will still make them. When those mistakes happen, however, he believes it’s crucial to address them quickly and honestly. Stroup explained he would much rather hear about a mistake upfront so he can start working on a solution than have to go on some wild goose chase trying to find out why, exactly, a deal isn’t working.

“The quicker that you can attack a problem and find the solution, the better,” Stroup said. “As an originator you need to step up to the plate and say ‘here it is and this is what we’re doing to address it’. You’re going to get more respect from most people than trying to hide.”

Source: mpamag.com

January 21, 2021

Rates are rising, how can you secure the cheapest mortgage for your customer?

Mortgage rates moved higher last week. Freddie Mac reported last Thursday that the 30-year fixed rate mortgage has moved up by 14 basis points to 2.79%. Whether due to the economic recovery, or the likely spending spike we’re going to see from a Democratic president, Congress and Senate, those rates are slowly trickling upwards and making headlines in the process.

Seeing those headlines, customers are calling their loan officers. Driven by a fear of missing out (FOMO) on historically low rates, homeowners who haven’t yet refinanced are trying to get in before the window of opportunity closes. For originators, this could be a serious chance to generate some big volumes early in the year. Originators have an added advantage, too, if they can stay ahead of the information curve.

“The data that that’s actually getting reported, a lot of time, is about a week off,” said Brian Grubbs (pictured), president MLO at the Raleigh Mortgage Group. “It works to our benefit when they’ve heard that rates jumped up when, often by the time they call, rates have leveled back out and we’re able to give a better rate than what the Freddie Mac average is.”

Grubbs explained that news of market-driven rate spikes, as well as moments of political or economic uncertainty, can spark some panic shopping on the part of consumers. While these forces might make rates rise temporarily, he emphasized that dovish policy from the Fed and an explicit commitment to keeping rates low will keep things stable for at least the medium-term. He added that shifts in a few basis points shouldn’t be the sole difference-maker for a customer.

Read more: Guaranteed rate originator takes the extra time to educate

When rising rates hit the headlines, Grubbs doesn’t try to pile on his marketing efforts. Thanks to consistently high volumes, he can let the headlines bring customers to him. His focus, instead, is on delivering a good experience and high-quality service.

Grubbs focuses on educating, explaining, and offering his customers the right deal for their needs. Grubbs said that often his prospects might come to him during rate-anxious times citing a neighbour’s mortgage, secured at a 1.99% rate. It’s up to him to explain that the neighbour secured that rate because they borrowed 50% of their home value on a 10-year fixed, rather than taking cash out on a 30-year term.

“Just let people know what you can do, not what you wish you could do,” Grubbs said when asked how he approaches these FOMO-driven conversations. If he can get a better rate than the Freddie Mac average, it’s a slam dunk. If he can’t, he’s forthright about getting the customer the best deal he can for them.

While customer FOMO is an opportunity for loan officers, Grubbs emphasized that ethics and prudence are needed in these situations. Matching the customer’s anxiety and getting them locked in to something ASAP isn’t the right move to build a sustainable partnership. Rather, it’s up to the loan officer to be the voice of reason, securing that customer exactly what they need, confident they can still get a low rate.

“I think a lot of people want to just lock somebody right up front… they’re so scared that pricing is going to change,” Grubbs said. “But I know that it’s going to be an amazing year, and the Feds are going to do what they need to do to make sure that rates remain low until 2022. Sure, on Wall Street somebody sneezes and the rates go up, but I know that, you know, soon enough, there’ll be some kind of news that pushes them right back down.”

Source: mpamag.com

January 20, 2021

Mortgage rates rose and applications decreased last week â MBA

Mortgage applications decreased 1.9% last week, according to the Mortgage Bankers Association (MBA).

While the MBA’s composite index decreased by 1.9% on a seasonally adjusted basis, the refinance index decreased by 5% during the week ending January 15. The purchase index, conversely, increased 3% in the same period.

“Mortgage rates increased across the board last week, with the 30-year fixed rate rising to 2.92% – its highest level since November 2020 – and the 15-year fixed rate increasing for the first time in seven weeks to 2.48%. Market expectations of a larger than anticipated fiscal relief package, which is expected to further boost economic growth and lower unemployment, have driven Treasury yields higher the last two weeks,” said Joel Kan, MBA’s AVP of economic and industry forecasting. “After a post-holiday surge of refinances, higher rates chipped away at demand. There was a 5% drop in refinance activity, driven by a 13.5% pullback in government refinances.”

The average contract interest rate for 30-year fixed mortgages with conforming loan balances increased to 2.92% from 2.88%. Thirty-year fixed mortgages with jumbo loan balances increased to 3.19% from 3.17%.

Refis decreased as a share of mortgage activity to 72.3% of total applications, while adjustable-rate mortgage applications increased to 2.1% of totals.

“Purchase applications remained strong based on current housing demand, rising over the week and up a noteworthy 15% from last year,” Kan said. “Homebuyers in early 2021 continue to seek newer, larger homes. The average loan size for purchase loans jumped to $384,000, the second highest level in the survey.”

Source: mpamag.com

January 20, 2021

Merchants Capital launches new equity syndication platform

Merchants Capital has announced the establishment of a tax credit syndication platform that infuses private equity from investors into low-income housing, tax credit eligible, multifamily projects.

The platform, according to a Press release, reflects Merchants Capital’s efforts to become a “full-service financing provider for affordable housing.”

“We are doubling down our commitment to affordable housing,” said Michael R. Dury, Merchants Capital president and CEO. “Leveraging the bank’s balance sheet, along with Merchants Capital’s agency permanent debt financing through HUD, Fannie Mae and Freddie Mac, the equity platform is a true synergy for the business. Merchants Bank has grown to nearly $10 billion in assets, which allows us to buy and hold equity investments and provide upper tier bridge financing to our funds.”

The platform has already closed its first fund, which provided $22 million in equity support for affordable housing in Indiana. Merchants Capital conducted the debt financing for all seven properties invested in by this fund.

The platform will be led by Julie Sharp, now SVP of tax credit equity syndications at Merchants Capital.

“This is an exciting time at Merchants Capital. The future of the tax credit equity syndication industry requires a fully integrated platform, and no-one can execute that better than Merchants Capital,” Sharp said.

Source: mpamag.com

January 19, 2021

United Wholesale Mortgage’s CEO is already looking past upcoming IPO

Mat Ishbia is about to have a very big day. The CEO of United Wholesale Mortgage (pictured) is taking his company public on January 22 under the biggest SPAC of all time. He’s taken the company from a staff of 12 to a team of 8,000 in 17 years, building the nation’s second-largest lender in the process. Now it’s going public and he’ll probably become a billionaire in the process. Ishbia, though, doesn’t sound like he’s about to reach a personal or professional summit. On the eve of a huge accomplishment, he’s far more likely to talk about future goals and concrete objectives for the broker channel than give himself any kind of pat on the back.

“A big goal [post-IPO] for us is accelerating the growth of the mortgage broker channel,” Ishbia said. “We want to educate consumers throughout America and show them that the fastest, easiest, cheapest way to get a mortgage is by going to findamortgagebroker.com and finding a local broker.”

Ishbia cites this desire to grow the broker channel as his primary reason for taking the company public. He estimates that the IPO will bring $1.4 billion in cash to UWM, capital which he believes will both allow his company to weather any future storms while continuing to invest in the broker channel.

Beyond raising the profile of the broker channel, Ishbia wants to reinvest some of the capital raised in his company’s technology and servicing operations. He points to UWM’s “superior” technology as key to their success in closing loans more than twice as fast as the industry average. Retaining and servicing their reference base, too, will strengthen UWM’s position when rates do eventually rise.

Read next: How to capture the foreign buyer market when borders reopen

Headline maker
Ishbia made headlines last Christmas for giving away leases on Cadillacs, vacations, and home renovations to UWM staff at their holiday party. He also committed to a distribution of between $35 million and $50 million in shares to be given to employees. Every employee will receive $1,000 in UWM stock minimum, including the roughly 500 people the company added this week. He wants his employees invested in the company’s success both so they can enjoy the IPO with him, and so they have a stake in UWM’s next big push.

“We’re going to win together and really grind,” Ishbia said. “We are going to continue to stay in the weeds of the business, continue to grind and take it to another level because being number two is not on my goal list…That’s not where our story ends, so we’re going to continue to grow by educating consumers, helping brokers win and having our all-time best year in 2021.”

Read more: UWM unveils “game-changing” inventive for borrowers

When asked if he’s feeling any nerves ahead of the IPO, Ishbia emphasized that focusing on the business has kept him grounded. His schedule remains packed with meetings, calls and webinars up to and through the IPO. He’s excited to go public, and is proud of what his team did to get UWM to this point, but he emphasized that focusing on the company’s goals and staying “in the weeds” of the business were crucial to their success up until now. Ishbia has no plans to deviate from that focus, just because he’s hit a milestone.

Just over 20 years ago, Ishbia enjoyed a different landmark achievement: winning the NCAA national basketball championship as a point guard for Michigan State. In his view, that success as a role-player on a team of 14 informed this new success leading a team of 8,000. In a personal sense, he sees the IPO as a bigger accomplishment than his national title. At the same time, he believes that without that success and that exposure to a top tier coach in Tom Izzo, and a team leader in Mateen Cleaves, he would not be where he is today.

Ishbia is a competitor through and through, but he’s also a team player – and he sees this move as a win for the broker channel, and the beginning of a big push for brokers.

“It’s not UWM going public, it’s the whole broker channel going public,” Ishbia said. “UWM, the leader in the broker channel, is going public and now we’re all on a bigger stage. This is going to enable brokers to grow their businesses, but everyone’s got to do their part. John Smith mortgage in Minnesota has got to go from doing 10 loans a month to 12. Jenny Smith mortgage in New Mexico has got to go from doing 20 loans to 30. We’re going to help everyone in this channel. The IPO is all tied to UWM being a great partner.”

Source: mpamag.com

January 19, 2021

Biden’s stimulus plan is already putting pressure on mortgage rates

Expectations for president-elect Joe Biden’s fiscal stimulus have driven a week-over-week increase in US mortgage rates, with the 30-year fixed-rate mortgage (FRM) inching up to 2.79% this week.

The 30-year FRM climbed 14 basis points to 2.79% for the week ending January 14, according to the Freddie Mac Primary Mortgage Market Survey. Last year at this time, the rate for the 30-year mortgage was 3.65%.

The 15-year fixed-rate mortgage also rose this week, up slightly from 2.16% to 2.23%. Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) posted a 37- basis- point gain, up to 3.13% from the previous week.

Freddie Mac Chief Economist Sam Khater said that the promise of additional stimulus from the incoming administration has caused Treasury yields and rates to increase.

“As Treasury yields have risen, it is putting pressure on mortgage rates to move up,” he said. “While mortgage rates are expected to increase modestly in 2021, they will remain inarguably low, supporting homebuyer demand and leading to continued refinance activity. Borrowers are smart to take advantage of these low rates now and will certainly benefit as a result.”

Source: mpamag.com