Thursday, May 28, 2020

Mortgage Briefs

By MBA Insights Staff
October 3, 2017

Mortgage Briefs

Ginnie Mae Reports $185M in Hurricane Exposure
Ginnie Mae, Washington, D.C., said it had 1.066 million loans totaling $185 million in unpaid balances as a result of Hurricanes, Harvey, Irma and Maria, representing 9.8 percent of its portfolio.

Ginnie Mae reported 275, 103 loans with unpaid balance in exposure are a result of Harvey, totaling $61.3 million; 675,456 loans in exposure from Irma, totaling $111.3 million; and 115,469 loans in exposure from Maria, totaling $11.9 million.

Fannie Mae: Growth Warms Even as Hurricanes Cloud Economic Outlook
Fannie Mae, Washington, D.C., said an improved second quarter estimate of real gross domestic product growth helped push the full-year growth forecasts higher despite increased economic uncertainty following Hurricanes Harvey and Irma.

The company's September Economic and Housing Outlook forecasts growth of 2.2 percent in 2017, up from the previous estimate of 2.0 percent, due to greater strength in consumer spending and nonresidential investment in the second quarter. Geopolitical and trade uncertainties also continue to pose downside risks, while investment in business equipment offers a potential upside.

"The upgrade reflects economic activity gaining momentum at the end of the second quarter, though we see a great deal of uncertainty surrounding the forecast," said Fannie Mae Chief Economist Doug Duncan. "The list of uncertainties now extends beyond the geopolitical and legislative, as the effects of Hurricanes Harvey and Irma will require time to untangle. Historically, natural disasters that hit heavily populated areas led to substantial near-term declines in economic activity but meaningful rebounds in subsequent quarters due to rebuilding efforts.

Ginnie Mae Outlines Action on VA Refinance Speeds
Ginnie Mae, Washington, D.C., in a letter to Sen. Elizabeth Warren, D-Mass., outlined its actions to curb VA refinance speeds and aggressive marketing by some VA approved lenders.

Ginnie Mae noted rapid refinance and loan churning was recognized as a problem in its VA portfolio last year. This led to Ginnie Mae's initial measures to change its program rules to address the issue. It said these initial measures were successful in stopping these practices with many lenders. However, Ginnie Mae said some lenders have actively worked to evade those new rules by changing their tactics to continue questionable lending practices that create downward pressure on Ginnie Mae securities and ultimately harm veterans by increasing borrowing costs.

As the next step in the process to fully solve this issue, Ginnie Mae and VA have formed the "Lender Abuse Task Force" to continue and intensify its work on this issue.

DIMONT Launches ‘Dana' Claims Consulting Service
DIMONT, Dallas, launched DIMONT Associates Nationwide Adjusters (DANA), designed to provide claims management guidance to lenders and servicers in the aftermath of Hurricanes Harvey and Irma.

DANA is a virtual resource center that will allow lenders and services the ability to email questions or schedule a live chat with a licensed adjuster. The tool is available indefinitely to mortgage and auto lenders and servicers, and is not limited to DIMONT clients. DANA is available now at

DIMONT's adjusters will, at a minimum, help servicers evaluate whether properties are in flood zones, what types of coverages apply and, most critically, how to navigate the exclusions, endorsements and exceptions in the applicable policy.

ARMCO Releases ACES Automated Document Manager
ACES Risk Management, Pompano Beach, Fla., released ACES Automated Document Manager. Available through ARMCO's ACES Audit Technology and as a stand-alone product, ADM uses optical character recognition technology to automatically identify, bookmark and organize loan documents and alert users of any missing documents associated with loan files.

ADM can parse hundreds of PDF files, identify each document in the file, and categorize them by document type or name. Users place the loan document files into a secure folder and ADM automatically organizes, names and identifies the documents.

StreamLoan Integrates Mobile Digital Application with LendingQB LOS
LendingQB, Costa Mesa, Calif., a provider of lean lending loan origination software in collaboration with San Francisco-based StreamLoan, a mobile Point-of-Sale platform, provided a new service to provide lenders with a fully automated digital system.

As a result of this integration, borrowers, loan officers, lender support teams and real estate agents can start and manage a 1003 application and loan file, automate the collection of financial documents, share the financial needs list and underwriting conditions, review, approve and push documents directly into LendingQB and collaborate using chat in real-time across mobile and desktop platforms.

JMAC Lending Selects Insight RDM Mortgage QC Audit Platform from TRK Connection
TRK Connection, Salt Lake City, announced that JMAC Lending, a Southern California-based wholesale and correspondent lender, selected TRK's flagship mortgage quality control audit platform Insight Risk & Defect Management.

Insight RDM is a cloud-based mortgage QC audit platform that delivers lender-driven functionality with an intuitive interface, configurable to any existing QC process and operable on any browser and/or mobile device. It enables QC departments to manage and remediate loan defects using the platform's sophisticated QC auditing and reporting tools.

Notarize, Adeptive Partner to Drive Adoption of Online Mortgage Closings
Notarize, Boston, announced a partnership with Adeptive Software to integrate its title production product, ResWare, with Notarize for Mortgage. The collaboration will make Notarize's online closing platform available to title agents using ResWare across the country.

Notarize for Mortgage allows lenders, title agents, notaries and borrowers to collaborate in an online closing room to execute mortgage transactions. By integrating ResWare services into the Notarize for Mortgage platform, Notarize and Adeptive will make it possible for title agents across the country to offer their borrowers an online closing experience directly from their existing tools and as part of their current workflows in ResWare.

EAST2WEST Valuation Services Integrates With Mercury Network
EAST2WEST Valuation Services Inc., Dana Point, Calif., and Mercury Network, Oklahoma City, Okla., announced completion of a technology integration. The integration is fully functional allowing EAST2WEST and their lenders to stay signed into their software of record without the need to visit multiple websites.

Lenders use Mercury Network as a single dashboard to manage appraisals across all vendors, rather than using individual AMC or appraiser websites. The platform connects lenders to more than 350 AMCs and more than 35,000 independent fee appraisers from a single location or even from an LOS integration. By completing a Mercury integration, EAST2WEST is now exposed to these lenders and has the opportunity to expand their offering.

Survey: Bank Salary Increases on Horizon
Crowe Horwath LLP, Chicago, released findings from its 2017 Bank Compensation and Benefits Survey, noting the labor market is tightening and turnover is increasing, but banks are planning to grow employment.

The survey, which compiled data from 375 banks, also shows salary and bonus benchmarks for 263 job positions. For the first time since the Great Recession, more than half of the banks surveyed said they plan to increase total employment during the coming year, either through normal growth (42 percent) or through expansion (13 percent). Meanwhile, the number of banks that plan to maintain current staffing levels held relatively steady at 35 percent, which is near the lowest levels in years.

"As banks look to increase their staffing levels, they'll be competing against other institutions to secure talent, so we can expect to see upward pressure on salaries," said Timothy Reimink, a managing director in the Crowe financial services performance consulting group.

Matic Insurance Services Integrates with Roostify
Matic Insurance Services, Sherman Oaks, Calif., a digital insurance agency that enables borrowers to purchase homeowner's insurance during the home-buying transaction, forged a partnership with automated lending technology provider Roostify, San Francisco.

"Homeowner's insurance has long been a missing element in mortgage innovation," said Matic co-founder and CEO Aaron Schiff. "By relocating the insurance purchase decision to where it belongs--within the mortgage transaction--we are bridging the gap between mortgage tech and insurtech and meaningfully improving the experience of borrowers and lenders alike."

Roostify's digital mortgage platforms accelerate the mortgage loan process by eliminating unnecessary paperwork and making it easy for borrowers to apply for a loan, submit required documentation and communicate with their loan officer and other loan participants from any web-enabled device.

The Mortgage Collaborative Adds ACS Accounting to Preferred Partner Network
The Mortgage Collaborative, San Diego, announced a new partnership with CPA and advisory firm ACS Accounting.

TMC also announced a new preferred partnership with national correspondent investor and mortgage loan servicer, First Community Mortgage. FCM Correspondent offers both Delegated and Non-Delegated underwriting options for conventional, FHA, VA and USDA products via Best Efforts and mandatory delivery platforms.

The Mortgage Collaborative includes a network of 115 lender members with an aggregate annual origination volume of $190 billion and a preferred partner network of 60 vendors to the mortgage industry.

HouseCanary Unveils Agile Appraisal Valuation Platform
HouseCanary, San Francisco, announced Agile Appraisal, a flexible valuation platform with full USPAP and FIRREA compliance that is the flagship offering in HouseCanary's Valuation Suite.

Agile Appraisal connects users to a network of certified, geographically competent appraisers who are available on demand. The speed and efficiency of the new system allows users to cut the time needed for an appraisal to as little as five. The platform leverages HouseCanary's proprietary nationwide analytics and technology enabled quality control to offer customers standardized appraisals.

IMM, Wacom Deliver eSignature Capture Devices
IMM, Rahway, N.J., and Wacom announced a joint agreement to provide electronic signature-capable displays for financial institutions.

The integrated signature displays high-resolution screens, allowing customers to view entire documents, complete required fields and/or provide missing information and then electronically sign the documents all on one screen. Featuring advanced pen technology; customers can annotate, fill-out and sign documents, with the same ease of pen on paper.

Malauzai Software, Somerset Trust Partner on Digital Software
Malauzai Software, Austin, Texas, a provider of digital banking for community financial institutions, today announced Somerset Trust Co. is extending its digital banking service to business users.

Leveraging MalauzaiOne, a single platform for digital banking, the bank initially launched its digital banking services to its retail customers. This latest roll-out provides customers access to multiple accounts using a single sign-on (including both business and retail accounts), financial management tools and new receivables functions designed to help businesses get paid faster.

LendingQB Adds Down Payment Protection to Loan Origination Platform through Partnership with ValueInsured
LendingQB, Costa Mesa, Calif., a provider of lean lending loan origination technology, announced a partnership with ValueInsured, which embeds +Plus down payment protection directly into its loan origination platform.

By making +Plus down payment protection a turnkey service in the existing LendingQB system, lenders can add down payment protection to their mortgage programs and provide borrowers with a greater choice when selecting a mortgage.

Dwellworks Enhances Appraisal Operations with Mercury Network
Dwellworks, Cleveland, Ohio, a provider of real estate and relocation services for mortgage lenders and relocation management companies announced deployment of Mercury Network, Oklahoma City, Okla., to manage critical appraisal operations.

Collateral valuation services through Dwellworks will be managed using Mercury Network's web-based platform to automate compliance and tailor client service functions, while improving operational efficiency. After migrating from Dwellworks' internal valuation management system, Dwellworks lender clients will have additional services that accelerate the collateral valuation and quality assurance process for all stakeholders.

RES.NET Launches Asset Strategy Tools for REO Portal
RES.NET, Dallas, announced availability of a new suite of asset strategy tools designed to maximize return on investment by performing analysis on each asset.

The tools consist of two modules: a MLS and Images Plugin and Repair Management Plugin. Phase two of the Asset Strategy Tool will provide an integration and single sign on with direct access to repair estimates and a comprehensive MLS report that includes listing and sold comps, all without ever leaving the RES.NET portal.

Fannie Mae: As Market Pressures Mount, Lenders Continue to Ease Mortgage Credit Standards
Facing constrained mortgage demand and a negative profit margin outlook, more lenders say they have eased rather than tightened home mortgage credit standards, according to Fannie Mae's third quarter Mortgage Lender Sentiment Survey.

Fannie Mae said across all loan types--GSE Eligible, Non-GSE Eligible and Government--the net share of lenders who reported easing credit standards over the prior three months reached a new high since the survey's inception in March 2014, after climbing each quarter since Q4 2016.

On net, lenders' profit margin outlook has remained negative for four consecutive quarters. "Competition from other lenders" was again cited as the primary reason, reaching a new survey high for the third consecutive quarter. In addition, the net share of lenders reporting growth in purchase mortgage demand over the prior three months has fallen for all loan types year over year, reaching the lowest third-quarter reading in the past two years. However, the net share of lenders expecting an increase in mortgage demand over the next three months remains relatively stable for the same quarter year over year.

"Lenders' comments suggest that competitive pressure and more favorable guidelines for GSE loans have helped to bring about more easing of underwriting standards for those loans," said Doug Duncan, senior vice president and chief economist with Fannie Mae. "We believe that the GSEs' attempts to relieve repurchase concerns and expand credit for creditworthy borrowers have contributed to the easing trend. Meanwhile, market competitiveness also led to the fourth consecutive quarter in which lenders' net profit margin outlook deteriorated. The share of lenders citing competition from other lenders as the key reason for a negative profit market outlook rose to a new survey high."

TRK Connection Adds Data Subscriptions Feature to Audit Platform
TRK Connection, Salt Lake City, added a data subscriptions feature to its flagship mortgage quality control audit platform Insight Risk & Defect Management.

Through this functionality, lenders and third-party audit firms using Insight RDM can set up one-to-one subscriptions to automate and streamline transfer of loan data and defect findings, eliminating the need for lenders to manually transmit loan files to their third-party firm and then re-enter defect findings into their system of record. In addition, lenders can also subscribe to questions sets developed and maintained by third-party audit firms, ensuring that lenders have the most current set of audit review questions covering state, federal, GSE and other agency requirements.

Built Named Preferred Partner of The Mortgage Collaborative
Built, Nashville, Tenn., was named to The Mortgage Collaborative's Preferred Partner Network, providing services for digital draw management and collaboration software for the network's lenders active in construction lending.

The Mortgage Collaborative represents 115 of the nation's mortgage lenders with aggregate annual origination volume of more than $190 billion. With Built, members of The Mortgage Collaborative can simplify construction loan administration with transparency and faster access to draws. With a completely digital process, lender members can use the data for risk management and portfolio insights.

STRATMOR Insights: Less Than 25 Percent of Lenders Rate LOS Compliance Functionality ‘Highly Effective'
STRATMOR Group, Greenwood Village, Colo., detailed select findings from its 2016 LOS Technology Insight Survey, showing less than 25 percent of lender participants indicated that the compliance tools in their loan origination systems were ‘Highly Effective' and afforded them a competitive advantage. Between 40 and 50 percent of participant lenders rated their LOS' compliance functionality as ‘Adequately Effective.'

Additionally, the findings show ‘Lead Generation/Management' as the lowest rated functionality. Only 4 percent of lender participants stated that their LOS provided ‘Highly Effective' lead generation capabilities. ‘eSignature' and ‘Product/Price/Eligibility Decision Engine' capabilities were also among the lowest rated for effective functionality. A continued lack of functionality satisfaction in these important capability areas will most likely drive lenders to seek alternatives.

The results appeared in the September edition of STRATMOR Insights (

Matic Insurance Services, LendingQB Partner on Homeowner's Insurance
Matic Insurance Services, Sherman Oaks, Calif., a digital insurance agency that enables borrowers to purchase homeowner's insurance during the home-buying transaction, announced a partnership with LendingQB, a provider of "lean lending" loan origination technology.

Matic's integration with LendingQB's flagship loan origination software enables borrowers to upload or secure a homeowner's insurance policy during the mortgage application process. Loan officers, processors and closers can initiate the process by issuing a one-click invitation from within the LendingQB LOS. Alternatively, borrowers can request a quote with the click of a button from within their lender's self-service mortgage portal. The entire process, from requesting a quote to securing a policy, can be completed in minutes.

Renters Report Future Home Buying Optimism
According to data from Fannie Mae's National Housing Survey, most renters expect to buy a home someday, but nearly half see the down payment as one of the biggest obstacles to getting a mortgage.

Key findings:
--The majority of renters are optimistic about owning a home someday.
--The two most frequently cited obstacles to obtaining a mortgage were upfront costs and credit concerns.
--One-fifth of all current and previous owners report having received financial assistance from family when they bought their first home.
--Twenty-five percent of those who reported receiving family financial assistance would not have been able to purchase a home otherwise, while 40 percent were able to buy a home earlier because of it.
--Those who most often report having received financial assistance when purchasing a home tend to belong to groups with higher homeownership rates.

The report can be accessed at

Docutech eClosing Capabilities Integrate with Simplifile
Docutech, Scottsdale, Ariz., a provider of document and compliance technology for mortgage, home equity and consumer lending, announced an agreement with Simplifile, Provo, Utah, a network for connecting lenders, settlement agents and county recording offices. The combination of Docutech's Solex eClosing product and Simplifile's services create an eClosing service for agents, lenders and borrowers that allows each transaction to be as digital as possible, down to a document and jurisdiction level, while maintaining a standardized process on every loan.

Through the partnership, borrowers can preview their closing packages and (optionally) eSign any documents that don't require notarization prior to closing. From there, the closing agent and borrower can complete the closing electronically, with full eNotarization capabilities. Once the closing is complete, closing agents can electronically submit documents to counties for recording. The recorded documents and data along with other trailing documents will then be electronically returned to the lender.

FormFree Expands Alliance with LexisNexis Risk Solutions
FormFree, Athens, Fla., announced the impending launch of AccountChek Plus, a new tool for lenders that combines the features of AccountChek, an asset verification app, with liens and civil judgments data from LexisNexis Risk Solutions.

LexisNexis RiskView Liens & Judgments Report, available to FormFree customers as part of the new AccountChek Plus service, fills the liens and judgments data gap. The report, which is Fair Credit Reporting Act compliant, employs technology and current data points available to ensure more than 99% precision in linking debts with the correct consumer.

Collateral Analytics Launches New Market Timing Indicator
Collateral Analytics, Honolulu, launched a new market timing indicator that identifies important turning points in the real estate market through ‘Buy-Sell Signals' that demonstrate a significant change from a positive appreciation rate in nominal terms to a negative one and vice versa.

Using data from a variety of sources assembled by Collateral Analytics, the new research article includes descriptive results for a number of leading housing markets. This timing indicator is designed to substantially higher returns than most other approaches based on traditional economic data, because it is more current but also because it allows buyers and sellers sufficient time to act.

1st Tribal Lending Implements Portfolio Producer from LoanScorecard
LoanScorecard, Irvine, Calif., a provider of automated underwriting and compliance services, announced that 1st Tribal Lending implemented Portfolio Producer as its automated underwriting system, product and pricing engine and distribution platform.

1st Tribal Lending is a division of Mid America Mortgage, a multi-state, full-service mortgage lender. 1st Tribal Lending, which is licensed in 40 states, offers Section 184 home loans to Native Americans who are enrolled members of federally recognized tribes. Properties can be financed both on and off reservations, within approved areas.

Portfolio Producer is a sales distribution system that integrates with LoanScorecard's AUS, Portfolio Underwriter, and PPE, Pricer1, to provide third-party originators access to a wholesaler's product and pricing offers within their loan origination system.

HouseCanary's Value Report Now Part of OptiVal AVM Cascade
Mercury Network, Oklahoma City, Okla., said its OptiVal Automated Valuation Model Cascade has expanded to include HouseCanary's AVM.

The OptiVal Cascade now contains 12 AVMs. OptiVal is updated every 90 days with the highest quality data representing the most recent sales, months ahead of county recordings and other data offerings.

Share this article