Residential Briefs

MBA NewsLink Staff

October 05, 2016


Freddie Mac Launches New Front-End Risk Transfer Offering
Freddie Mac, McLean, Va., announced a new front-end credit risk transfer offering, Freddie Mac Deep MI CRT. Through a forward credit insurance policy by a panel of mortgage insurance company affiliates, this pilot structured transaction provides additional coverage beyond the primary mortgage insurance on 30-year fixed-rate mortgages with 80-95 percent LTVs--which is placed immediately upon their sale to Freddie Mac. Transactions are executed via a competitive, transparent auction process.

"The pricing certainty provided by day one coverage offers us an economically sensible way to transfer mortgage credit risk away from taxpayers," said Kevin Palmer, senior vice president of credit risk transfer with Freddie Mac. "Risk transfer outside of the capital markets is a meaningful part of our single-family credit risk transfer strategy and we continue to explore options to expand our front-end risk transfer offerings."

Additional information about the company's single-family risk sharing offerings is available at

Mortgage Bankers Association President and CEO David Stevens, CMB, said MBA appreciates Freddie Mac's efforts to bring more private capital into the market through the credit-risk transfer offering.

"In this early stage of the credit risk transfer market, it is important to experiment with different transactions and structure types to evaluate their long term economic and competitive impact," Stevens said. "Mortgage insurance offers a well-developed, scalable solution that would benefit consumers and is something that all lenders could use today.

Going forward, Stevens said MBA would like to see the Federal Housing Finance Agency and the GSEs take advantage of the existing lender-mortgage insurance company relationships to share risk through deeper loan level primary mortgage insurance, as opposed to the GSE negotiated version that they just rolled out. "Otherwise, we are wasting the competitive value of mortgage insurance companies both working directly with lenders, as well as being able to pass value directly to consumers," he said.

ACES Risk Management, Pompano Beach, Fla., released ACESXPRESS, an implementation and service package for the ACES Audit Technology platform designed specifically for small to mid-sized lenders.

Through ACESXPRESS, ARMCO enables smaller lenders that may lack internal IT resources to implement ACES in their organization. In addition, the ACESXPRESS package includes dedicated account support from an ARMCO system administrator. Users have access to all major functionality within ACES, including prepared questions, checklists, statistical modeling and reports.

NTC Launches Training as Service Offering
Nationwide Title Clearing, Palm Harbor, Fla., announced a new service designed to provide training on the foundations of residential mortgage finance.

The offering provides a best practices based standard training package for lenders, investors and mortgage servicers. The two-day training program can be delivered at the client's location or in the NTC Training Center at company headquarters in Palm Harbor, Fla. or Dallas.

The program will be led by Dave LaRose, NTC's Vice President of Technical Excellence, who has more than 30 years of experience.

Urban Institute Published GSE Reform Paper
The Urban Institute, Washington, D.C., published a new paper, A More Promising Road to GSE Reform: Why It Leads to a Government Corporation.

The paper, authored by Jim Parrott, Lewis Ranieri, Gene Sperling, Mark Zandi and Barry Zigas, proposes to merge Fannie Mae and Freddie Mac into a government corporation that pushes its credit risk into the private market. The authors discuss the three primary alternatives: the multiple guarantor model; the utility model; and the mutual model.

The paper can be downloaded at

First American Partners with LendingQB
First American Mortgage Solutions LLC, Santa Ana, Calif., announced completion of a series of integrations with LendingQB, Costa Mesa, Calif., that will provide users of the loan origination system with streamlined access to First American's products and services that support lenders' efforts to improve loan quality.

LendingQB users can now order First American title and settlement services for both purchase and refinance transactions, as well as collateral valuation, flood certification, home-equity title insurance and property ownership reports. In addition, LendingQB now offers direct access to FraudGuard, First American's decision-support tool that draws on public, private and proprietary data sources to deliver analytics that help lenders mitigate risk and accelerate the loan application review process.

Calif. Gov. Signs Bill Strengthening PACE Program for Consumers
Calif. Gov. Jerry Brown (D) signed legislation establishing uniform disclosures for consumers of the Property Assessed Clean Energy program. The action completes months of negotiations between Ygrene Energy Fund and other PACE industry providers, the California Association of Realtors, the California Mortgage Bankers Association and other stakeholder groups.

PACE enables local governments to give property owners, who may be unable to afford the up-front costs of energy improvements such as solar panels and rainwater catchment systems, an alternative to short-term, high interest rate loans. AB 2693, authored by Assembly Member Matt Dababneh, D-Encino, identifies consumer issues with the program and prescribes guidelines that that preserve PACE's structure.

Among its provisions, the new law will prevent homeowners from taking out more financing than they can afford. It will require that PACE administrators provide consumers with important disclosures such as notice of a special tax lien, the total amount of interest charged and notification that some lenders may require the homeowner to pay off the total amount of the assessment if refinancing or selling. Homeowners will also be guaranteed new contract safeguards such as a three-day right to cancel.

Credit Plus Launches New Educational Video Series for Mortgage Professionals
Credit Plus Inc., Salisbury, Md., created a new informational video series, America's Mortgage News. The video series aims at helping mortgage professionals stay current with the news, events and regulations impacting the industry.

Designed to be educational in nature, each short video will address a variety of topics that are important to mortgage companies across the country. America's Mortgage News is hosted by Donald Clement Jr., Southeast Regional Sales Manager with Credit Plus and a mortgage expert with more than 20 years of experience in the industry. The video series can be accessed by subscribing to the Credit Plus YouTube channel:

New AEI/First American National Mortgage Market Index Analyzes Purchase Market
The American Enterprise Institute's International Center on Housing Risk and First American Corp., Santa Ana, Calif., introduced the AEI/First American National Mortgage Market Index, designed to analyze origination volume for the entire home purchase loan market.

The NMMI combines ICHR's data on the federal agency market (Fannie Mae, Freddie Mac, Federal Housing Association, Veterans Affairs and Rural Housing Services) with data provided by First American via for the private side of the market. The combined data set covers nearly 100 percent of the volume at the national, state and metro levels.

The AEI/First American NMMI will be released quarterly.

ClosingCorp Introduces Packages for Mid- to Smaller-Sized Lenders
ClosingCorp, San Diego, said it offers a selection of packages for mid- to smaller-sized lenders. These packages provide reduced rates to lenders that close 200 loans or less each month and are using one of the key loan origination systems integrated with ClosingCorp's closing cost data products or web service.

Lenders can choose among four distinct, preset packages of services to help streamline the loan estimate process: Transfer tax & recording fees (non-guaranteed); title, settlement, transfer tax & recording fees (non-guaranteed), with access to ClosingCorp's network of service providers to fulfill quotes and orders; additional real estate services that borrowers can shop for (not including AMC or inspection) as well as title, settlement, transfer tax & recording fees (non-guaranteed), with access to ClosingCorp's network of service providers to fulfill quotes and orders; and access to all ClosingCorp provider fees (guaranteed), as well as ability to access to ClosingCorp's network of service providers to fulfill quotes and orders.

OpenClose also added a rate sheet generator to its product and pricing engine, DecisionAssist. The new functionality automates rate sheet creation for distribution to branches and originators.

The rate sheet generator provides lenders with straightforward point and click capability to set up programs and map products themselves without OpenClose assistance. Lenders can also add or remove investors as needed; investor programs can be white-labeled or displayed, depending on lender preferences.

Corporate Settlement Solutions Implements DocMagic Total eClose
DocMagic Inc., Torrance, Calif., announced that Corporate Settlement Solutions, a title and settlement services company implemented DocMagic's Total eClose.

CSS combined DocMagic's functionality, services and integrations into a single offering. Total eClose functionality unites eNote, eSignature, eNotary, MERS eRegistration, eDelivery and eVault services to provide a paperless end-to-end eClosing. In addition, documents that need to be notarized can be eSigned and eNotarized.

MetaSource Launches QReview for Mortgage Pre-Funding Quality Control
MetaSource, Salt Lake City, Utah, launched QReview, a web-based platform for pre-funding quality control audits. QReview is designed to streamline and automate pre-funding QC review for lenders who execute this function in-house with existing staff.

QReview users have the ability to customize pre-funding audit checklists to meet their organization's unique requirements, which ensures areas of concern are reviewed by auditors. Because the system is integrated with the MetaSource QLink platform, users can offload portions of their pre-funding QC reviews to MetaSource's QC review team and all results, including any post-closing QC reviews outsourced to MetaSource, are available via QLink.

Share this article