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How Do Underwriters View Mortgage Lending?

CoreLogic surveyed 275 underwriting professionals. What are the top workflow challenges underwriters face today? Some stats on their answers to questions like this are revealed. Highlights include:

>>96% of underwriters said accessing applicants data from one source would save them time


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>>73% said that providing borrowers with a real-time status of their loan would their job easier


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>>56% of underwriters need more than 30 days to complete one loan file


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Here’s what else the survey revealed:

CoreLogic Launches New Valuation Solution To Help Lenders Reach More Consumers

CoreLogic has introduced Total Home Value for Consumers automated valuation model (AVM) solution. This is the latest addition to the CoreLogic Total Home Value AVM suite – AVMs that incorporate new technologies to help deliver more accurate values and are designed to specific business needs.


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Total Home Value for Consumers is an automated valuation model designed for mortgage lenders and online real estate information providers, allowing them to use their own website to provide consumers with the same AVM information used in the lending process. Since consumers often rely on third-party providers to get an idea of their home value, integrating this solution on their own sites will allow lenders to start their relationships with potential clients earlier in the process, potentially gaining new business and helping increase customer satisfaction.


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Total Home Value for Consumers is a part of the CoreLogic Total Home Value suite – a new approach to automated valuation models made to simplify your AVM selection process. Currently, AVMs are designed with broad applications meaning that businesses may be using AVMs that are not ideal for their intended purpose. With Total Home Value, you simply choose the solution that best fits your business case (Portfolio Monitoring, Marketing, Consumer, etc.), and you will get an AVM solution designed specifically for that need – no more guessing which AVM to use.


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“Total Home Value for Consumers is the latest in our ongoing efforts to transform the way AVMs are used and delivered,” said Ann Regan, executive, product management, Collateral Solutions for CoreLogic. “Mortgage professionals, Financial Services providers, and anyone looking to provide extra value for their customers, can now offer a high-quality AVM on their website, helping establish a relationship and building trust with potential prospects or existing users.”

CoreLogic Integrates 4506-T Direct With INTEGRA’s LOS Platforms

CoreLogic has announced that their 4506-T Direct Income Verification Solution is now available on INTEGRA Software Systems’ legacy Destiny Loan Origination System (LOS) and INTEGRA’s web-based EPIC LOS. When combined with the previously existing CoreLogic integrations of the Instant Merge credit report, Flood Determination services, LoanSafe Risk Manager fraud solution and the Mercury Network valuation technology platform, this new integration provides INTEGRA users with a more complete solution offering from a single provider.


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The IRS 4506-T form is used by lenders to retrieve tax return information to verify a potential borrower’s income. Featuring one of the most rigorous quality control processes in the industry, the CoreLogic 4506-T Direct service minimizes submission errors and decreases verification turnaround times with the IRS, helping reduce customer costs associated with income verification. CoreLogic can accept both wet and electronically signed 4506-T forms.


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“The inclusion of 4506-T Direct on INTEGRA’s Destiny and EPIC Loan Origination Systems continues our mission of providing mortgage professionals with the most comprehensive suite of products on the most innovative platforms in the industry,” said Kevin Mullins, principal, business development for CoreLogic. “Additionally, with this new integration, INTEGRA LOS users will now be able to better streamline their workflows with a more complete solution offering from a single provider.”


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INTEGRA Software Systems’ web-based EPIC, loan origination system, spans point-of-sale through post-closing and secondary marketing for lenders interested in efficiencies gained from automating every step of their loan workflow.

“Since 1996, INTEGRA Software Systems is proud of its commitment to bring the very best software tools to our customers,” said Jerry Pratt, president, INTEGRA Software Systems. “In an effort to constantly add value for our clients nationwide, we are pleased to expand our CoreLogic offerings with the availability of the CoreLogic 4506-T Direct solution.”

Early-Stage Mortgage Delinquencies Rise After Hurricanes

According to data from CoreLogic, nationally, 5.1 percent of mortgages were in some stage of delinquency (30 days or more past due including those in foreclosure) in October 2017. This represents a 0.1 percentage point year-over-year decline in the overall delinquency rate compared with October 2016 when it was 5.2 percent.

As of October 2017, the foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.6 percent, down 0.2 percentage points from 0.8 percent in October 2016. The foreclosure inventory rate has held steady at 0.6 percent since August 2017, the lowest level since June 2007 when it was also at 0.6 percent.

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Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To monitor mortgage performance comprehensively, CoreLogic examines all stages of delinquency as well as transition rates, which indicate the percentage of mortgages moving from one stage of delinquency to the next.

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The rate for early-stage delinquencies, defined as 30-59 days past due, was 2.3 percent in October 2017, down 0.1 percentage points from 2.4 percent in September 2017 and up 0.1 percentage points from 2.2 percent in October 2016. The share of mortgages that were 60-89 days past due in October 2017 was 0.9 percent, up 0.2 percentage points from 0.7 percent in both September 2017 and October 2016. The serious delinquency rate, reflecting loans 90 days or more past due, in October 2017 was 1.9 percent, unchanged from September 2017 and down 0.4 percentage points from 2.3 percent in October 2016. The 1.9 percent serious delinquency rate in June, July, August, September and October of this year marks the lowest level for any month since it was also 1.9 percent in October 2007.

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“After rising in September, early-stage delinquencies declined by 0.1 percentage points month over month in October. The temporary rise in September’s early-stage delinquencies reflected the impact of the hurricanes in Texas, Florida and Puerto Rico, but now the impact from the hurricanes is fading from a national perspective,” said Dr. Frank Nothaft, chief economist for CoreLogic. “While the national impact is waning, the local impact remains. Some Florida markets continue to see increases in early-stage delinquency transition rates in October, reaching 5 percent, on average, in Miami, Orlando, Tampa, Naples and Cape Coral. Texas markets such as Houston, Beaumont, Victoria and Corpus Christie peaked at over 7 percent in September, but are on the mend and improving in October.”

Since early-stage delinquencies can be volatile, CoreLogic also analyzes transition rates. The share of mortgages that transitioned from current to 30 days past due was 1.1 percent in October 2017, down from 1.3 percent in September 2017 and up from 1 percent in October 2016. By comparison, in January 2007, just before the start of the financial crisis, the current-to-30-day transition rate was 1.2 percent and it peaked in November 2008 at 2 percent.

“While the national impact of the recent hurricanes will soon fade, the human impact will remain for years. For example, the displacement and rebuilding in New Orleans after Hurricane Katrina extended for several years and altered the character of the city, an impact that still remains today,” said Frank Martell, president and CEO of CoreLogic. “The reconstruction of the housing stock and infrastructure impacted by the storms should provide a small stimulus to local economies. This rebuilding will occur against a backdrop of wage growth, consumer confidence and spending in the national economy which should continue to provide a solid foundation for real estate demand in the storm-impacted areas and beyond.”

Early-Stage Delinquencies Rise After Recent Storms

Data from CoreLogic shows that, nationally, 5.1 percent of mortgages were in some stage of delinquency (30 days or more past due including those in foreclosure) in October 2017. This represents a 0.1 percentage point year-over-year decline in the overall delinquency rate compared with October 2016 when it was 5.2 percent.

As of October 2017, the foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.6 percent, down 0.2 percentage points from 0.8 percent in October 2016. The foreclosure inventory rate has held steady at 0.6 percent since August 2017, the lowest level since June 2007 when it was also at 0.6 percent.

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Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To monitor mortgage performance comprehensively, CoreLogic examines all stages of delinquency as well as transition rates, which indicate the percentage of mortgages moving from one stage of delinquency to the next.

The rate for early-stage delinquencies, defined as 30-59 days past due, was 2.3 percent in October 2017, down 0.1 percentage points from 2.4 percent in September 2017 and up 0.1 percentage points from 2.2 percent in October 2016. The share of mortgages that were 60-89 days past due in October 2017 was 0.9 percent, up 0.2 percentage points from 0.7 percent in both September 2017 and October 2016. The serious delinquency rate, reflecting loans 90 days or more past due, in October 2017 was 1.9 percent, unchanged from September 2017 and down 0.4 percentage points from 2.3 percent in October 2016. The 1.9 percent serious delinquency rate in June, July, August, September and October of this year marks the lowest level for any month since it was also 1.9 percent in October 2007.

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“After rising in September, early-stage delinquencies declined by 0.1 percentage points month over month in October. The temporary rise in September’s early-stage delinquencies reflected the impact of the hurricanes in Texas, Florida and Puerto Rico, but now the impact from the hurricanes is fading from a national perspective,” said Dr. Frank Nothaft, chief economist for CoreLogic. “While the national impact is waning, the local impact remains. Some Florida markets continue to see increases in early-stage delinquency transition rates in October, reaching 5 percent, on average, in Miami, Orlando, Tampa, Naples and Cape Coral. Texas markets such as Houston, Beaumont, Victoria and Corpus Christie peaked at over 7 percent in September, but are on the mend and improving in October.”

Since early-stage delinquencies can be volatile, CoreLogic also analyzes transition rates. The share of mortgages that transitioned from current to 30 days past due was 1.1 percent in October 2017, down from 1.3 percent in September 2017 and up from 1 percent in October 2016. By comparison, in January 2007, just before the start of the financial crisis, the current-to-30-day transition rate was 1.2 percent and it peaked in November 2008 at 2 percent.

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“While the national impact of the recent hurricanes will soon fade, the human impact will remain for years. For example, the displacement and rebuilding in New Orleans after Hurricane Katrina extended for several years and altered the character of the city, an impact that still remains today,” said Frank Martell, president and CEO of CoreLogic. “The reconstruction of the housing stock and infrastructure impacted by the storms should provide a small stimulus to local economies. This rebuilding will occur against a backdrop of wage growth, consumer confidence and spending in the national economy which should continue to provide a solid foundation for real estate demand in the storm-impacted areas and beyond.”

Serious Delinquency Rate For Home Loans Holds

Data from CoreLogic shows that nationally, 4.6 percent of mortgages were in some stage of delinquency (30 days or more past due including those in foreclosure) in July 2017. This represents a 0.9 percentage point year-over-year decline in the overall delinquency rate compared with July 2016 when it was 5.5 percent.

As of July 2017, the foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.7 percent, down from 0.9 percent in July 2016 and the lowest since the rate was also 0.7 percent in July 2007.

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Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To monitor mortgage performance comprehensively, CoreLogic examines all stages of delinquency as well as transition rates, which indicate the percentage of mortgages moving from one stage of delinquency to the next.

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The rate for early-stage delinquencies, defined as 30-59 days past due, was 2 percent in July 2017, down slightly from 2.3 percent in July 2016. The share of mortgages that were 60-89 days past due in July 2017 was 0.7 percent, unchanged from July 2016. The serious delinquency rate (90 days or more past due) declined from 2.5 percent in July 2016 to 1.9 percent in July 2017 and remains near the 10-year low of 1.7 percent reached in July 2007. Alaska was the only state to experience a year-over-year increase in its serious delinquency rate.

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“While the U.S. foreclosure rate remains at a 10-year low as of July, the rate across the 100 largest metro areas varies from 0.1 percent in Denver to 2.2 percent in New York,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Likewise, the national serious delinquency rate remains at 1.9 percent, unchanged from June, and when analyzed across the 100 largest metros, rates vary from 0.6 percent in Denver to 4.1 percent in New York.”

Since early-stage delinquencies can be volatile, CoreLogic also analyzes transition rates. The share of mortgages that transitioned from current to 30-days past due was 0.9 percent in July 2017, down from 1.1 percent in July 2016. By comparison, in January 2007 just before the start of the financial crisis, the current-to-30-day transition rate was 1.2 percent and it peaked in November 2008 at 2 percent.

“Even though delinquency rates are lower in most markets compared with a year ago, there are some worrying trends,” said Frank Martell, president and CEO of CoreLogic. “For example, markets affected by the decline in oil production or anemic job creation have seen an increase in defaults. We see this in markets such as Anchorage, Baton Rouge and Lafayette, Louisiana where the serious delinquency rate rose over the last year.”

Loan Performance Remains Strong

Data from CoreLogic shows that, nationally, 5 percent of mortgages were delinquent by 30 days or more (including those in foreclosure) in February 2017. This represents a 0.5 percentage point decline in the overall delinquency rate compared with February 2016 when it was 5.5 percent.

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As of February 2017, the foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.8 percent compared with 1.1 percent in February 2016. The serious delinquency rate, defined as 90 days or more past due including loans in foreclosure, was 2.2 percent in February 2017, down from 2.8 percent in February 2016.

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Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.

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Early-stage delinquencies, defined as 30-59 days past due, were trending slightly higher in February 2017 at 2.14 percent compared with 2.08 percent in February 2016, an increase of 0.06 percent year over year. The share of mortgages that were 60-89 days past due in February 2017 was 0.7 percent, unchanged from a year earlier.

Since early-stage delinquencies can be volatile, CoreLogic also analyzes transition rates. The share of mortgages that transitioned from current to 30-days past due was 1 percent in February 2017, up from 0.8 percent in February 2016. By comparison, in January 2007, just before the start of the financial crisis, the current to 30-day transition rate was 1.2 percent and it peaked in November 2008 at 2 percent.

“Serious delinquency and foreclosure rates continue to drift lower, and are at their lowest levels since the fourth quarter of 2007,” said Dr. Frank Nothaft, chief economist for CoreLogic. “Moreover, the past-due share dropped to 5 percent, the lowest since September 2007. However, current-to-30-day past-due transition rates ticked up in February, and 30-day-to-60 day delinquency rates held mostly steady, recording only a 0.06 percent increase.”

“While national-level delinquency rates declined, the serious delinquency rate remained elevated in many mid-Atlantic and northeast states led by New York and New Jersey,” said Frank Martell, president and CEO of CoreLogic. “February-to-February increases in both 30-day-or-more delinquency rates and in serious delinquency rates were also observed in Alaska, Louisiana and Wyoming relating to the impact of the downturn in the global oil market.”

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.

CoreLogic Automates Portfolio Value Monitoring

CoreLogic has launched the Total Home Value for Portfolio Monitoring, which is a self-service, on-demand, fixed-cost solution that helps mortgage lenders and servicers evaluate and understand the collateral value of their mortgage portfolios on a periodic basis. The solution leverages the CoreLogic suite of Automated Valuation Models (AVMs) that lenders and investors have relied on for over 20 years to help make risk management decisions. These best-in-class AVM analytics are the core of the portfolio monitoring solution, delivering high level of accuracy and excellent geographic coverage. Valuation hit rates of 97 percent have been achieved by early client adopters of the solution.

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With Total Home Value for Portfolio Monitoring, organizations can proactively monitor their entire mortgage portfolio to assist in setting adequate reserves, leverage insight into changes in mortgage portfolio valuations to identify trends and risky markets early, and better align risk with business policy. Total Home Value for Portfolio Monitoring also helps comply with regulations that require regular portfolio monitoring.

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This solution frees mortgage lenders, insurers, servicers and investors from budgetary constraints that may have resulted in foregoing current valuation information. With a fixed annual fee and high-performing valuation analytics, Total Home Value for Portfolio Monitoring is uniquely able to help users make better decisions based on current portfolio valuations that accurately reflect market changes.

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“Our clients needed an origination-quality AVM at a price point that allows them to be more proactive when it comes to monitoring collateral values,” said Ann Regan, vice president, product management, Collateral Solutions for CoreLogic. “We created Total Home Value for Portfolio Monitoring to be a flexible, self-service solution that empowers users to update valuations based on business and regulatory need, not cost. This unique packaging approach enables even smaller organizations to gain access to high-quality CoreLogic AVM solutions with no integration costs. We believe this solution will change how organizations value their portfolios, delivering current, high-quality valuations for a fixed fee.”

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.

5.3% Of Mortgages Were Delinquent By 30 Days Or More In January 2017

CoreLogic released a new monthly Loan Performance Insights Report which shows that 5.3 percent of mortgages were delinquent by at least 30 days or more (including those in foreclosure) in January 2017. This represents a 1.1 percentage point decline in the overall delinquency rate compared with January 2016 when it was 6.4 percent.
As of January 2017, the foreclosure inventory rate, which measures the share of mortgages in some stage of the foreclosure process, was 0.8 percent compared with 1.1 percent in January 2016. The serious delinquency rate, defined as 90 days or more past due including loans in foreclosure, was 2.5 percent, down from 3.2 percent in January 2016.

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Measuring early-stage delinquency rates is important for analyzing the health of the mortgage market. To more comprehensively monitor mortgage performance, CoreLogic examines all stages of delinquency as well as transition rates that indicate the percent of mortgages moving from one stage of delinquency to the next.

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Early-stage delinquencies, defined as 30-59 days past due, were trending lower in January 2017 at 2.1 percent compared with a year ago at 2.4 percent in January 2016. The share of mortgages that were 60-89 days past due in January 2017 was 0.7 percent, down from 0.8 percent in January 2016.

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Since early-stage delinquencies can be volatile, CoreLogic also analyzes transition rates. The share of mortgages that transitioned from current to 30 days past due was 0.9 percent in January 2017 compared with 1.2 percent in January 2016. By comparison, in January 2007, just before the start of the financial crisis, the current to 30-day transition rate was 1.2 percent and peaked in November 2008 at 2 percent.

“Steady job and income growth, combined with full-doc underwriting, has led to low early-stage delinquencies,” said Dr. Frank Nothaft, chief economist for CoreLogic. “January’s 0.9 percent transition rate for current to 30 days late is lower than a year ago and much lower than the 1.5 percent average from 2000 and 2001, during which the foreclosure rate was, conversely, lower than it is today.”

“The 30-plus delinquency rate, the most comprehensive measure of mortgage performance, is at a 10-year low and rapidly declining,” said Frank Martell, president and CEO of CoreLogic. “While late-stage delinquencies remain in the pipeline in selected markets, early-stage delinquency performance is stellar and the lowest it’s been in two decades. The continued improvement in mortgage performance bodes well for the health of the market in 2017.”

Home Prices Up 7% In February

The CoreLogic Home Price Index (HPI) and HPI Forecast for February 2017 shows home prices are up both year over year and month over month. Home prices nationwide, including distressed sales, increased year over year by 7 percent in February 2017 compared with February 2016 and increased month over month by 1 percent in February 2017 compared with January 2017, according to the CoreLogic HPI.

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The CoreLogic HPI Forecast indicates that home prices will increase by 4.7 percent on a year-over-year basis from February 2017 to February 2018, and on a month-over-month basis home prices are expected to increase by 0.4 percent from February 2017 to March 2017. The CoreLogic HPI Forecast is a projection of home prices using the CoreLogic HPI and other economic variables. Values are derived from state-level forecasts by weighting indices according to the number of owner-occupied households for each state.

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“Home prices and rents have risen the most in local markets with high demand and limited supply, such as Seattle, Portland and Denver,” said Dr. Frank Nothaft, chief economist for CoreLogic. “The rise in housing costs has been largest for lower-tier-priced homes. For example, from December to February in Seattle, the CoreLogic Home Price Index rose 12 percent and our single-family rent index rose 6 percent for all price tiers compared with the same period a year earlier. However, when looking at only lower-cost homes in Seattle, the price increase was 13 percent and the rent increase was 7 percent.”

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“Home prices continue to grow at a torrid pace so far in 2017 and these gains are likely to continue well into the future,” said Frank Martell, president and CEO of CoreLogic. “Home prices are at peak levels in many major markets and the appreciation is being driven by a number of dynamics—high demand, stronger employment, lean supplies and affordability—that will continue to play out in the coming years. The CoreLogic Home Price Index is projecting an additional 5 percent rise in home prices nationally over the next 12 months.”

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