Residential Briefs

MBA NewsLink Staff

June 07, 2018

Black Knight Acquires HeavyWater, Artificial Intelligence and Machine Learning Platform
Black Knight Inc., Jacksonville, Fla., announced it acquired HeavyWater, a provider of artificial intelligence and machine learning to the financial services industry. Black Knight will be integrate AIVA into its product line, while also making the technology available to clients who seek to deploy AI/ML within other parts of their organizations.

By taking on manual tasks that have diverted resources away from value creation projects, AIVA reads, comprehends and draws conclusions based on context to mimic cognitive thinking and build expertise over time. Located in Philadelphia, HeavyWater has been providing this platform to help lenders verify income, assets and insurance coverage, which are traditionally manual activities that take hours to complete and are prone to error.

FHFA Releases 2017 Report to Congress; Issues New Prepayment Monitoring Report
The Federal Housing Finance Agency released its 2017 Report to Congress. The statutorily required report provides information about FHFA's 2017 examinations of Fannie Mae, Freddie Mac, 11 Federal Home Loan Banks and the FHLBanks' Office of Finance. The report also describes FHFA's actions as conservator of the Enterprises during the year and it describes the Agency's regulatory guidance, research and publications.

A link to the report can be accessed at

FHFA also issued a Prepayment Monitoring Report with data through the first quarter. The report provides transparency and insight to market participants about how FHFA monitors the prepayment rates of Fannie Mae and Freddie Mac To-Be-Announced-eligible securities.

FHFA is seeking general alignment on the prepayments as the Enterprises prepare for issuance of the new Uniform Mortgage-Backed Security in June 2019. Consistency of prepayment rates is important to the success of UMBS and to the efficiency and liquidity of the secondary mortgage market. UMBS to be issued by Fannie Mae and Freddie Mac are designed to be fungible (mutually interchangeable) to broaden and enhance the liquidity of the secondary market on an ongoing basis. FHFA has taken a number of steps to promote consistency of prepayment rates through monthly monitoring and established guidelines for general alignment.

The Prepayment Monitoring Report will be issued quarterly; a link can be found at

Freddie Mac: Homebuyers Showing Resiliency amid Limited Supply and Affordability Constraints
Freddie Mac, McLean, Va., said rapid home-price growth and the ongoing climb in mortgage rates this year have made buying a home more expensive, but home sales are still on track to squeak out a gain in 2018.

The company's monthly Outlook noted through the first five months of 2018, home shoppers have battled the trifecta of climbing home prices, higher mortgage rates and low supply. Despite these obstacles, Freddie Mac expects the healthy economy and strong consumer confidence to lead to a 3.0 percent increase in total home sales (new and existing) this year.

"While this spring's sudden rise in mortgage rates are taking up a good chunk of the conversation, it's the stubbornly low inventory levels in much of the country that are preventing sales from really taking off like they should be," said Freddie Mac Chief Economist Sam Khater. "The underlying demand for buying a home is holding up, and will continue to do so, as long as the economy is generating solid job and income growth. Most markets simply need a lot more new and existing supply to cool price growth and give buyers enough choices."

FHFA: House Prices Rise 1.7 Percent in First Quarter
The Federal Housing Finance Agency House Price Index said U.S. house prices rose 1.7 percent in the first quarter. House prices rose 6.9 percent from a year ago and by 0.1 percent from February.

FHFA said home prices rose in all 50 states and the District of Columbia over the past year. Top state in annual appreciation were Nevada 13.7 percent; Washington 13.1 percent; Idaho 11.1 percent; Colorado 10.6 percent; and Utah 9.9 percent. Home prices rose in each of the 100 largest metropolitan areas in the U.S. over the past four quarters, led by Las Vegas, where prices increased by 17.1 percent. Prices were weakest in Tulsa, OK, where they rose by 0.8 percent.

Of the nine census divisions, the Pacific division experienced the strongest four-quarter appreciation, posting a 9.5 percent gain from a year ago and a 2.6 percent increase in the first quarter. Annual house price appreciation was weakest in the East South Central division, where prices rose 5.3 percent annually.

Teraverde launches 2nd Gen Coheus Profit Improvement Platform
Teraverde Management Advisors, Lancaster, Pa., launched the second generation of its Coheus mortgage banking technology platform. The latest generation offers expanded integrations and improved ability to help lenders correct data quality problems.

Teraverde's flagship Coheus Profit Intelligence converges mortgage banking loan origination system, general ledger, payroll, contact management, warehouse, quality control, secondary marketing and servicing data to provide a complete picture of a business,. Leveraging data from multiple sources allows lenders to make well-informed decisions in real-time.

Mortech Launches Predictive Listing Analytics Platform for Customer Retention
Mortech, Lincoln, Neb., launched Mortech Protection, a customer retention platform that monitors and identifies addresses within a lender's database that are at risk of attrition because the homes are currently listed for sale or are likely to be listed within the next 90 days.

The proprietary predictive model, periodically provides a lender with rating scores for addresses within the lender's database describing the likelihood that homes will be listed for sale within the next 90 days. Mortech Protection will also periodically notify lenders of addresses within their database associated with homes that are currently listed for sale. Lenders can use the Mortech Protection analytics to better target their marketing and outreach to current customers who intend to move and may need new mortgage financing.

Equifax Launches The Work Number Indicator
Equifax, Atlanta, announced it is offering The Work Number Indicator, an instant alert of whether an employment and income record exists on The Work Number database, a centralized repository of payroll data, managed by Equifax.

The Work Number Indicator, delivered along with the credit report, signals to lenders whether a borrower's income and employment information is already available within Equifax's U.S. database, designed to eliminate the documentation process for borrowers and expediting the mortgage origination process for lenders.

DocMagic Integrates eSign Technology with MortgageHippo's Digital Lending Platform
DocMagic Inc., Torrance, Calif., and MortgageHippo, a fintech-driven digital lending platform, announced an eSign integration between their platforms.

This integration enables MortgageHippo's lender customers to provide borrowers with the ability to electronically sign documents at any stage of the mortgage process, from point-of-sale to closing. eSignatures eliminate the time constraints and accessibility limitations of manual signatures, thus providing lenders with a faster mortgage process and reduced origination costs. The eSignature process that MortgageHippo provides via DocMagic is as legal and valid as a manual process using printed and wet signed documents.

The Closing Exchange Partners with Pavaso to Provide Nationwide Mobile Closing Services
The Closing Exchange, Huntington Beach, Calif., announced a partnership with Pavaso, a provider of a collaborative eClosing platform, to deliver nationwide mobile closing services through The Closing Exchange's network.

The partnership expands Pavaso's signing service coverage and system expertise, leveraging The Closing Exchange's training and performance management capabilities.

Finance of America Mortgage Offers ‘Lock and Live' Product Feature
Finance of America Mortgage, Horsham, Pa., announced its new Lock and Live product feature is now available on agency conforming FHA and VA loans.

The Lock and Live product feature ensures clients can lock their rate for a total of 90 days--60 days to shop and 30 days to close--with a home address to be determined. If rates drop during the lock period, clients can exercise a one-time float down option, giving them the certainty of a competitive rate and the confidence to shop for their dream home. In order to take advantage of the Lock and Live feature, clients must work with a FAM advisor to prequalify for Lock and Live eligible loan products.

BAI Offers Nationwide Mortgage Licensing System Courses
BAI, Chicago, expanded its compliance course offering with Nationwide Mortgage Licensing System continuing education as required by the SAFE Act.

The BAI NMLS Continuing Education course satisfies licensing requirements for mortgage loan originators (NMLS Reporting Course) and Regulation Z Safe Harbor (NMLS Non-Reporting Course) to provide highly focused and efficient training. A key feature of these courses, along with BAI's entire compliance training library, is that in-house compliance experts actively monitor regulation changes and updates to ensure that content is up-to-date even before the change goes into effect, providing the most accurate, relevant and timely content necessary for NMLS license renewal.

LoanLogics Announces MSR Consulting Partnership with Transformational Mortgage Solutions
LoanLogics, Trevose, Pa., announced a partnership with Transformational Mortgage Solutions, a provider of management consulting services for the mortgage industry.

As part of the partnership, TMS will acquire LoanLogics' non-core mortgage servicing rights consulting products and re-brand LoanLogics' MarketLogics newsletter, which informs readers on technical, interest rate, volatility and yield spread outlooks for the mortgage industry. Les Parker, who oversaw MarketLogics and led LoanLogics' industry relations and consulting efforts, will join TMS as its Managing Director. He will continue working closely with LoanLogics.

Ellie Mae's Encompass Data Connect Now Available
Ellie Mae, Pleasanton, Calif., announced Encompass Data Connect is now available for all lenders using Ellie Mae's Encompass true digital mortgage platform.

Encompass Data Connect gives lenders access to their standard and custom loan data fields in near real-time, empowering them to make timely, data-driven decisions to increase velocity, efficiency and effectiveness of their business operations. Lenders can securely access their cloud-based, encrypted data at any time to maximize utility of existing reporting and business intelligence.

Optimal Blue Partners with Capsilon on Pipeline & Lock Management APIs
Optimal Blue, Plano Texas, partnered with Capsilon, San Francisco, as its first partner to complete certification with Pipeline & Lock Management APIs.

By debuting these system-to-system API interfaces in the mortgage industry, Optimal Blue has enabled Capsilon's digital mortgage platform to support creation, management, registration and locking of first-lien mortgages instantaneously. As a result of this advanced integration, a completed application and pre-approval are done in half the time of the traditional back-and-forth processes.

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