As we edge toward Easter, which isn’t until April 17 this year, the Dallas Fed has released a report on housing prices… have they become unhinged from fundamentals? Those crafty food scientists have been at work creating Black Jelly Bean Spiced Maple Syrup for creative pancake breakfasts. Some people will tell you that accounting can be creative, but one likes to think that publicly-held companies, with the advantages and disadvantages of being public, are an open book, accounting-wise. For example, Guild Holdings (Mortgage)’s the most recent filing with the Securities and Exchange Commission shows its diversity & inclusion efforts (page 6), senior officer compensation (page 18), and what board members earn (page 20). Guild and nearly every lender have shifted to going after purchase business while at the same time grappling with “work from home” and “work from the office” decisions. Lenders are having refinance teams shifting to the purchase process through training, and closing on time for a high percentage (95 and up) of deals. The refi lingo has changed to purchase contracts, signatures, gift letters, and grants. Ops and production drive toward a contract close date, not the refi lock expiration date, and lenders train staff on first-time home buyer challenges. Once again, our industry shifts. (Today’s audio version of the commentary is available here. This week’s is sponsored by Verity Global Solutions, an expert labor and automation solution provider that performs all non-customer-facing functions, from origination through servicing. Today’s has an interview with Sam Mehta on how outsourcing and automation can help alleviate margin compression concerns.)
Source: Mortgage News Daily