https://youtu.be/JR4t40_4Smg

Hi Bill Bodnar here from the Mortgage Market Guide.

Thanks for tuning in to our MMG recap, so on the screen I have the Federal Reserve Bank of St. Louis and we're showing the initial claims report, which was out on Thursday and you can see this 196,000.

And this is a really important number to track because what we're seeing in this chart, you could see here, we're making new cycle lows. We had gone sideways a bit and now we're seeing new lows and in these let's call them initial claims, which are fresh people seeking unemployment benefits.

This is a good thing, because if you're not seeking benefits, you're actually working, which is a great thing, and here's another big takeaway for us: The market is now sensing that a recession is off the table.

This is a big deal and this is what as you know is giving the stock market a little bit of a lift as of late and it also has removed the fears of a Fed rate cut, so those are really, I think off the table because of this number right here. The initial claims for the last two weeks is getting real strong.

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There's also another benefit with initial claims: Obviously the labor market continues to remain very tight and will be tighter with this indicator getting stronger again.

This is a leading indicator and the final thing I would say is, you know if you look when we hit these troughs, this gray area is when the recessions hit. The average recession hits 13 months after the trough, so we're still making lows.

We haven't bottomed out yet, so let's call a recession in 2019 off the table. Could it happen next year, and could things change quickly? And then in the foreseeable future? Possibly and so next week is a big one. We have to watch stock earnings or corporate earnings and those can be like the canary in the coal mine.

But obviously the big thing is their guidance. What do these corporate firms say about the

future? So we couple that with some of that initial jobless claims data.

Here is a chart of mortgage-backed securities heading into the weekend, you know we are right near 14-month highs which is a great deal. We're looking a 10-year note, hovering around 250, not getting much better but still a fantastic story, and so go ahead and take this to your clients and your partner's going into this week.

Pulte Mortgage is partnering with Finicity, a leading provider of real-time financial data access and insights, to provide its borrowers with a faster, simpler and more secure way to complete the mortgage process. Pulte Mortgage is a wholly-owned subsidiary of PulteGroup Inc. that finances new home construction for customers of Pulte Homes, Centex, Del Webb, DiVosta, and John Wieland Homes and Neighborhoods brands.

As anyone with a mortgage knows, securing a home loan has been a manual, paper-intensive process—especially when it comes to verifying borrowers’ assets. Through Finicity’s verification platform, up to 24 months of bank, brokerage and 401k data can now be accessed to confirm assets within minutes—eliminating the need for borrowers to find, copy and scan reams of paper verifications.

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This can reduce the mortgage origination time by more than a week, giving borrowers more control of the process, without a lot of the hassle. Although the mortgage process has drastically for borrowers and lenders alike, making the process easier for consumers.

“The mortgage lending industry has changed dramatically over the decades, but never more so than over the past 10 years,” said Debra Still, president and CEO of Pulte Mortgage. “The average loan file used to be about 300 pages, but today’s regulatory and compliance demands have pushed this figure to more than 800 pages. The need for ever-increasing volumes of supporting data puts an incredible burden on the borrower, which is why we strategically invest in integrated technology solutions, such as Finicity, to reduce the time and complexity associated with securing a mortgage.”

The partnership with Finicity is just the latest in Pulte Mortgage’s commitment to advance technology solutions that make it easier and more transparent for borrowers navigating the mortgage process.

In addition to their new instant asset verification feature through Finicity, Pulte Mortgage customers can upload essential documentation from their mobile device with just the snap of a picture; e-sign key regulatory disclosures with the swipe of a finger; and leverage a personalized digital dashboard to stay up-to-date on their loan’s progress when and where they want. These digital enhancements strengthen data security by leveraging advanced authentications, bank-level encryptions and secure borrower connections.

“Today’s consumers have come to expect simple and rapid experiences enabled by digitization,” said Steve Smith, CEO of Finicity. “Pulte is an innovator that is embracing digital solutions to further deliver a superior borrower experience by giving their loan consultants more time to engage with their buyers.”

“Whether it’s your first house or your last, building a new home is an exciting process,” said Still. “It is a time where you get to create a space that is uniquely personalized for your lifestyle and taste. That is why we are continuously working to simplify home financing for our customers, so they can spend more time focusing on building their dream home.”

Residential Capital Partners has acquired 3L Finance, a subsidiary of 2020 REI Group.

In the wake of the acquisition, the lender is now the national hard money and rental finance lending partner to 2020 REI Group. Residential Capital Partners and 3L Finance have been active in the single-family rehab financing space for more than 10 years.

Residential will continue as a hard-money and rental-finance lender in the entire U.S. It understands the demands of one-to-four family residential properties as well as the rehabilitation process. The lender encourages borrowers to enroll in the pre-approval process, so it can move swiftly through the property application when an opportunity presents itself.

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“The impact of both teams coming together with a borrower [oriented] platform will mean reach more customers,” said Richard Morgan, a senior executive for Residential Capital.

3L Finance was a subsidiary of the 2020 REI Group, created to support real-estate investors. “We have always loved facilitating and partnering with investors as they pursue their goals through the real-estate investment process. Residential Capital gives us the ability to expand our reach and impact,” saidTim Herriage, founder of the 2020 REI Group.