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marketanalysis

Vendor Launches Comprehensive Additional Parcel Search Solution

LERETA, a national real estate tax and flood service provider, has launched its Additional Parcel Search Solution, a proprietary new solution that materially improves identification of additional parcels at the initiation of tax service. This solution reduces portfolio risk associated with penalties and interest and potential loss at tax sale.

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One of the biggest challenges in tax service has been identifying additional parcels associated with an address without going through the expense of using a legal description on every loan. Missing parcels when a property is set-up for tax service exposes the servicer to both potential losses from penalties, interest and lost properties as well as borrower dissatisfaction. Despite the importance of identifying additional parcels, the industry has relied on the same tools and methodologies for decades.

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“Over the past 30 years, mortgage servicers have had to rely on virtually the same tax service solutions without significant enhancement or product innovation,” said John Walsh, CEO of LERETA. “LERETA has been aggressively working on methods to reinvent tax service technology and processes. Additional Parcel Search Solution is just one initiative in that agenda, and it’s an important solution that can reduce servicers’ financial risk and increase borrower satisfaction.”

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LERETA recently ran a test for a top five servicer that included a subset of approximately 16,000 loans that had been parceled by another tax service vendor. LERETA’s Additional Parcel Search Solution found 11 properties that had previously been unidentified. Although 11 loans is only 0.1 percent of 16,000, it does represent $2.4 million of potential losses or 10 basis points of MSR value.

“We understand the importance of identifying these parcels and the difficulties created from the inability to discover them,” Walsh explained. “This is an area in the tax service landscape that needed an injection of innovation, and we are proud to provide a solution that can bolster tax service and provide servicers materially better solutions.”

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.
marketanalysis

Better Automation Solves A Lot Of Problems

Technology is not the enemy. Technology should be a lender’s friend. And technology can solve a lot of problems. For example, Longbridge Financial, LLC., a national reverse mortgage lender based in Mahwah, New Jersey, has decided to implement Loan Vision accounting software for mortgage banks. The company cut over from its existing accounting solution on June 1.

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“We are very pleased to have Longbridge Financial join our growing family,” said Martin Kerr, President of Bestborn Business Solutions. “This company is really growing and we’re looking forward to assisting them in that process by giving them more information about how their company is operating than they have ever had access to before.”

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“One of our investors knew the team at Bestborn and recommended its Loan Vision accounting solution,” said Mary Riski, Longbridge Financial’s controller. “Loan Vision offered the mortgage loan accounting functionality we needed built in and the solution was more robust than the other solution we reviewed. We wanted to drill down into the specifics that make our company more profitable.”

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Riski said that the accounting solution the company had been using previously was not meeting the institution’s needs. She said her department was eager to generate financial reports by channel and product line, to have visibility into the company’s lines of business and their specific P&Ls, instead of settling for a roll-up to a generic corporate level that made it difficult to determine actual performance on a granular level.

“Getting that visibility is really the most exciting thing,” Riski said. “And then with all of the automation to import data from all of our various front end systems, that also is going to save us probably close to at least half an FTE if not a whole FTE, once we’re up and running.”

“With competition tightening, organizations must look deeper into their numbers than ever before to maximize their profit on every loan,” said Carl Wooloff, Business Development Manager for Loan Vision. “The folks at Longbridge, by moving to Loan Vision, have absolutely given themselves an edge over their competition. We are all looking forward to a long and successful relationship.”

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.
marketanalysis

Ensuring Total UCD Compliance

DocMagic, Inc. has announced that its technologies are now capable of supporting both phases of the upcoming UCD (Uniform Closing Dataset) requirement. The company’s technology solutions, which have been certified by Fannie Mae and Freddie Mac for both phases of the UCD file delivery mandate, enable lenders to start immediate testing of full UCD delivery—well in advance of the phase one 2017 deadline and the phase two 2018 deadline—as has been recommended by both GSEs.

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The Uniform Closing Dataset (UCD) is a common industry dataset that allows information on the Consumer Financial Protection Bureau’s (CFPB’s) Closing Disclosure to be communicated electronically.

On September 25, 2017, the GSEs will require lenders to deliver borrower data and the Closing Disclosure in the UCD file. Later, in 2018, the second phase of the mandate will require seller data to be included as well. However, according to a joint statement issued by the GSEs, both Fannie Mae and Freddie Mac are recommending that lenders start to “submit files with both Borrower and Seller data, if available, in order to test their processes and become familiar with the messaging from each GSE’s collection system.”

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DocMagic’s technology solutions allow lenders to fulfill the GSEs’ recommendation by generating and compliantly delivering UCD files that include both borrower and seller data to the GSEs. DocMagic can also accept UCD XML data from third parties and deliver it to the GSEs. In addition, the company offers an API for direct, seamless connection to the GSEs’ technologies.

“At DocMagic we went above and beyond attaining the initial GSE UCD certification because we want our customers to have the option to implement the GSE-recommended testing, which allows them to implement phase two requirements now,”  says Tim Anderson, director of eServices at DocMagic.  “Phase one addresses the XML file for the borrower CD and associated data, but the GSEs have definitively recommended that lenders complete everything before the phase one September 25, 2017 deadline. We find that lenders that are serious about sustained profitability and growth tend to follow GSE recommendations and take action ahead of time. Now with DocMagic, all of our lender clients have that option.”

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To assist lender clients in preparing to meet the entire UCD mandate, DocMagic recently launched its ‘UCD Control Center,’ a one-stop, go-to resource for everything lenders need to know about the UCD requirement.  It offers tools, documentation, interactive communication for Q&A, webinars, updates, and most importantly the ability for lenders to test for the entire UCD mandate ahead of the complete 2018 deadline.

The company says its goal is to have the bulk of its clients fully prepared to meet the requirements for both phases this year.

“Our customers and partners rely on us to do everything we can to assure they transact the safest, most compliant loans—and helping them prepare for a major new mandate like the UCD requirement is no different,” said Dominic Iannitti, CEO of DocMagic. “Lenders, settlement providers and other organizations must prepare now or run the precarious risk of being unable to sell their loans.”

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.
marketanalysis

Property Services Firm Looks To Mobile Technology

Purdy Enterprise, a property services firm, has selected FotoNotes, a provider of mobile and cloud field service management platform, as its technology solution for managing property inspections, maintenance work orders and other field service activities.

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Purdy Enterprise, which offers a comprehensive range of field services, maintenance, property management, and investor services, was recently awarded two Field Service Management (FSM) contracts from the US Department of Housing and Urban Development (HUD). Purdy selected FotoNotes as its technology solution because of FotoNotes’ reputation in the industry, best in class Android and iOS mobile apps, comprehensive back office work flow management features, and full integration with Yardi’s HUD P260 system (launching July 2017).

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Purdy COO, Mitch Davidson, commented “We selected FotoNotes because the product is highly configurable and constantly improving, provides a cutting edge mobile experience, has a highly robust and reliable cloud and web based backend, is API friendly, and is significantly helpful to our field subcontractors. We also based our decision on the fact that the FotoNotes people are fantastic to work with regarding both development and an ongoing service relationship.”

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FotoNotes’ mobile app and cloud platform solution provides companies full visibility and control of HUD FSM inspections, work orders, and field service operations. FotoNotes also provides solutions for a wide variety of other use cases, including estimating, construction, renovations, and turns.

“We’re thrilled to be working with Purdy Enterprise” said Kamal Shah, FotoNotes’ CEO and founder. “They are established leaders in property services and true innovators in the use of leading technology tools to operate their business more effectively.”

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.
marketanalysis

The Look And Feel Of Technology Matters

Legacy technology is old and outdated, yet it permitted our industry. Technology has to have a great GUI these days to help our industry progress and good vendors realize this. For example, Exceleras, creator of the DispoSolutions Real Estate Owned (REO), ValueSolutions Collateral Valuation and ClearView Offer Management platforms, has released another regular software update on schedule. This time, software engineers and UX experts at Exceleras made application-wide updates to the look and feel of the company’s software. The company also added some functionality to further increase the power of custom tasks.

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“The new look and feel was a significant update for us, since so many pages were affected,” said Amy Bergseth, Chief Operating Officer for Exceleras. “In this first push of a multi-part update to further improve the interface of our software products, all of our system’s pages have been updated with a new look and feel. Changes include new color schemes, alignment changes, heading updates, and improvements to many other elements across the system. As changes have been cosmetic only, all users will find the location of all pages, links and information unchanged. So far, feedback has been good.”

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Bergseth said that eventually nearly every page of its existing software will be updated to meet the new design esthetic, which will improve the user’s experience. In addition, the new page design will be completely mobile ready. Because Exceleras develops, updates and maintains all of the software it offers to the market, it makes frequent updates and releases them to customers on a set schedule.

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Minor enhancements included in the most recent release include the addition of an option to adjust custom task re-occurrence at launch and a new menu to specify a category for  uploaded documents. The custom task functionality has become more important as new DispoSolutions users are coming from new parts of the business and managing more vendors than default servicers have in the past.
 
“Once primarily a tool used by servicers dealing with REO disposition, DispoSolutions has evolved into a powerful asset management system that has been embraced by  investors, community-based organizations, property managers and others who need to manage real estate portfolios,” said Exceleras President and CEO Michael Harris. “Because this evolution has tracked with our customer’s changing requirements, we found the need to update our design across the entire application. The pages look great, they’re easy to use and our customers love them. I’m very proud of our development team and the work they are doing.”

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.
marketanalysis

Calyx Launches New Portfolio Underwriting Capability

Calyx Software has launched Portfolio Underwriter, an automated underwriting system (AUS) from LoanScorecard. This service is now available to Point and PointCentral clients. Portfolio Underwriter allows portfolio lenders to customize credit decisioning and safely originate non-agency loans that they intend to put on their balance sheets.

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It captures a portfolio lender’s program guidelines within its engine and delivers a rules-based underwriting decision in seconds. Results of the decision are documented in a findings report. This report includes program-specific, conditional underwriting criteria utilized in the data analysis.

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Portfolio Underwriter seamlessly integrates with Calyx Point and PointCentral loan origination systems. The connection facilitates bidirectional data flow and provides a single system of record for all loan documentation. Centralization of processes and documents streamlines preparation for audits, board reviews and regulatory submissions.

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The solution helps portfolio lenders by:

>>Providing a mechanism to safely and easily communicate underwriting criteria for new niche products.

>>Conducting extensive loan file data checks and in-depth credit report reviews.

>>Allowing them to manage exceptions based on valid compensating factors on the loan, rather than loan officer “discretion.”

>>Ensuring consistent, transparent credit policy application to demonstrate Fair Lending and improve efficiency.

“Manually underwriting portfolio loans not only exposes lenders to Fair Lending issues, but is also time consuming and costly,” said Ben Wu, Executive Director at LoanScorecard. “By incorporating automated technology like Portfolio Underwriter, portfolio lenders using Point and PointCentral can improve efficiency by streamlining decisioning for their unique programs and focus on more complex transactions.”

“The predominant focus of Fair Lending violations is how and why loans were approved; therefore, it is critical to have an AUS in place to demonstrate the standard practice of quality underwriting,” said Bob Dougherty, Vice President of Business Development at Calyx Software. “While lenders are certainly familiar with agency AUSs, they are also aware of gaps in automated decisioning for their portfolio products. Portfolio Underwriter helps lenders who originate portfolio loans automatically determine the appropriate response for their institution—ensuring compliance with Fair Lending at the point of sale and in the underwriting process.”

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.
marketanalysis

Optimal Blue Partners With New POS To Transform The Mortgage Process

Optimal Blue has partnered with Capsilon Corporation to provide a unique digital mortgage experience with highly accurate, real-time product eligibility and pricing content. Here’s the scoop:

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The Capsilon digital mortgage platform leverages the power of the cloud and intelligent process automation to evolve the existing mortgage production process into a modern digital mortgage factory. By integrating Optimal Blue’s real-time product eligibility and pricing content directly into the upcoming Capsilon mortgage point-of-sale solutions, joint clients will be able to improve overall compliance, create numerous process efficiencies, and deliver an engaging origination experience.

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“Capsilon is transforming the mortgage industry with intelligent process automation that increases the velocity and accuracy of every step in the loan production process,” said Sanjeev Malaney, CEO of Capsilon. “Our partnership with Optimal Blue provides the data connectivity, integrated pricing workflows, and process automation lenders require to accelerate the loan production process and improve customer satisfaction.”

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Optimal Blue’s eCommerce platform consumes product and pricing content from a network of investors, provides intelligent selection and customization of that content as desired by lenders, and distributes the personalized results to technology providers via RESTful APIs – wherever, whenever it matters most.

“Our goal is to further unite the industry with our digital marketplace and break down the traditional vendor silos that have held back industry success,” said Optimal Blue CEO Scott Happ. “Strategic integrations with digital mortgage technology leaders such as Capsilon will move the industry forward.”

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.
marketanalysis

QuestSoft And OpenClose To Hold Webinar On The New CFPB HMDA Rules

OpenClose, a multi-channel loan origination system (LOS) provider, and QuestSoft, a provider of automated mortgage compliance software, announced that they will host a joint webinar covering the new CFPB HMDA regulations, how they will impact organizations, and outline specific plans to make compliance with the new HMDA rules the most efficient and time-saving process in the mortgage industry. The webinar will be held on June 21, 2017 from 1:00 p.m. – 2:15 p.m. EDT.

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Entitled “The New CFPB HMDA Rules, What You Need to Know,” this webinar will provide insight on not just what the new rules are, but what organizations will need to prepare for well in advance of the January 2018 implementation deadline. The companies say that while the deadline may seem a long way off, there are business-critical functions that should considered now or run the risk of being caught off-guard.

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Key topics that will be covered in the webinar: 

  • The inside day to day nuances behind the new regulations.
  • Above and beyond: practical, actionable information will be provided to attendees, not a legal review as is typical with most HMDA webinars.
  • New loan types required with HMDA and how OpenClose and QuestSoft are answering the call.
  • Recommendations for improving data integrity across the enterprise.
  • A timeline of the changes and companies need to prepare for in advance.
  • The new public face of HMDA: implications for Fair Lending and the future of mortgage lending.

OpenClose and QuestSoft will also touch on key updates being made their specific products that will help companies effectively test, train and prepare for, including release dates and 2018 CFPB HMDA data that can already be tested now.

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Speakers:

Kathy Olsen, director of LOS support services at OpenClose

Kathy leads customer support and training at OpenClose for its multi-channel LOS, LenderAssist, as well as its integrated products. She joined OpenClose in 2010 and has over thirty years of experience in the mortgage banking and technology fields.

Leonard Ryan, president of QuestSoft Corporation

Leonard has been associated with the mortgage industry for over 30 years, and is the founder of QuestSoft. He is a member of both MBA HMDA and NMLS Mortgage Call Report working groups, and is nationally recognized as a HMDA expert.

Downloadable materials that will be made available after the webinar: 

  • Presentation Slides [PDF] — available on the day of the webinar
  • Webinar Recording [streaming] — available 2-3 days after the webinar
  • Q&A [PDF] — available on the day of the webinar

The webinar is offered as complimentary to the mortgage industry but availability is limited. To sign up for the webinar, go to https://goo.gl/E8cTzP.

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.
marketanalysis

QuestSoft Urges CFPB To Delay Implementation Of HMDA Specific Data Points

In a letter written to the Consumer Financial Protection Bureau (CFPB) addressing proposed changes by the CFPB to its HMDA regulations, QuestSoft president Leonard Ryan urged the Bureau to delay its changes to geocoding and remove additional demographic data.

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The eight page letter focused on five key areas of the new regulation:

  1. Bona Fide Errors and Proposed Geocoding Safe Harbor
  2. Demographic Data Collection – Specifically as it related to Ethnicity and Race Subcategories
  3. Reporting Threshold Adjustments
  4. NMLSR ID Reporting
  5. Industry Readiness

Ryan expressed concern for the future of LMI lending as a result of the CFPB plans to introduce a less accurate geocoding system but bolster it with a safe harbor. The new geocoder is expected to be 30% less accurate on results close to census tract boundaries and not be able to accommodate new addresses as quickly as products used in the industry today (including the FFIEC geocoder).

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Ryan also expressed concern that a guarantee on the geocoder will eliminate the higher quality products from the market and cause accuracy concerns for the Community Reinvestment Act and the trading of Low Moderate income loans in the open market.

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In the letter, Ryan continued with a detailed analysis of problems facing the industry over the new Ethnicity and Race Subcategories, urging the Bureau to provide at least one extra year due to implementation delays of both the CFPB and the GSE’s in releasing the new Uniform Residential Loan Application (URLA).

“In many ways, the demographic data additions are turning out to be the biggest train wreck of the new regulation,” Ryan said. “The lack of clarity and confusion over properly classifying borrowers has the potential to be a regulatory and fair lending compliance nightmare.”

A complete version of the letter is available at https://www.questsoft.com/hmda-hq

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.
marketanalysis

Embrace Home Loans Hosts Embracing Our Veterans Event

Embrace Home Loans is sponsoring the Delaware Aviation Museum Foundation’s B-25 World War II medium bomber plane appearance at the Aircraft Owners and Pilots Association (AOPA) Wings ‘n Wheels show on June 10, alongside other partners including Revere Bank, Lowe/Tillsen Insurance and Fitzgerald Auto Malls. Visit Embrace’s table or see an Embrace employee to sign up for rides on a B-25 World War II medium bomber plane, the Panchito. In order to have the Panchito flown in for the event, Embrace Home Loans made a donation to the Delaware Aviation Museum Foundation.

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The B-25 was one of the most widely used medium bomber aircrafts during World War II, and this plane, the Panchito, will be taking flight during the Wings ‘n Wheels show. During the Embracing Our Veterans event, Panchito crew members and Embrace employees will be helping the Delaware Aviation Museum Foundation with the event. In addition, for every six or more members who fly together, ten percent of the proceeds will go back to the Veterans’ nonprofit association. The plane rides will begin at 10:30 a.m., lasting approximately 30 minutes each, and the team anticipates around four plane loads of passengers taking flight at this event.

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Bill Rozek, a senior loan officer at Embrace’s Rockville, Md. branch, organized the Embracing Our Veterans event. With over 25 years of experience in the mortgage industry, Rozek has been with the Embrace team since 2009, and works closely with the Greater Capital Area Association of Realtors. Rozek is a volunteer for the Delaware Aviation Museum and he is a member of the crew.

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“In the past, we have offered rides to Veteran passengers who actually flew in B-25s during World War II. Their experiences have often been very exciting and emotional ones, full of nostalgia,” said Rozek. “My hope for this event is that we will provide a similar experience for Veterans who are visiting the Wings ‘n Wheels show. We want them to feel celebrated because we are deeply grateful for their service. At Embrace we love to give back, and we’re very excited about proceeds from the plane rides being gifted to the Veterans’ nonprofit association.”

Embrace and its employees have helped support not only military members and Veterans, but also local families in need, school supply drives, the families of active military members, and friends or families of Embrace employees who have had sudden emergencies such as a medical crisis, to name just a few. The national lender has raised thousands of dollars through its simple tradition of giving, and Providence Business News has recognized Embrace as the Most Community Involved Company in Rhode Island.

About The Author

Tony Garritano
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.