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Integration Offers Intelligent Best Execution Capability For Fannie Mae Sellers

Mortgage Capital Trading, Inc. (MCT), a mortgage hedge advisory and secondary marketing software firm, has released a new online functionality that automates the process of product selection and delivery of loan commitments directly to Fannie Mae for MCT’s lender clients. The new solution, which was developed as part of MCT’s ongoing technology collaboration with Fannie Mae, is called Rapid Commit and resides within MCT’s secondary marketing platform, MCTlive!.

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Fannie Mae’s Pricing & Execution – Whole Loan (PE – Whole Loan) application is a whole loan committing platform, providing ease of use, flexibility and certainty for sellers. Rapid Commit functionality retrieves pricing directly into MCTlive!, which in turn speeds up the committing process, ensures data integrity, and optimizes best execution for all commitments.

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“We developed Rapid Commit to make our customers’ entire loan commitment process with Fannie Mae more efficient, providing automated, highly accurate best execution analysis that is instant and robust,” stated Phil Rasori, COO of MCT. “Working within MCTlive!, users leverage Rapid Commit to run initial best execution and determine that the loan meets Fannie Mae selling guidelines, followed by product-specific best execution that intelligently analyzes the optimal subset sizes and products to deliver as individual commitments.”

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Last year MCT announced a new integration with Fannie Mae’s technology that delivered real-time pricing from MCTlive! for the benefit of mutual lender clients. Rapid Commit further strengthens MCT’s collaboration with Fannie Mae and advances the integration of their complementary technologies.

Mr. Rasori added, “Rapid Commit enables a Fannie Mae specific best execution within MCT’s overall robust best execution process via a bi-directional exchange of real-time data that is completely automated between MCTlive! and Fannie’s Pricing & Execution – Whole Loan web-based application. Previously, this analysis was a manual, laborious process but it is now completely automated – all with the simple click of a button. We look forward to working closely with Fannie Mae on business and technology initiatives.”

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Docutech, Veri-Tax Streamline Day 1 Certainty Process

Docutech, a provider of document and compliance technology for the mortgage and consumer lending industries, and Veri-Tax, a national verification provider, have expanded their integrated services to enable lenders to easily obtain the tax transcripts needed to enroll in Fannie Mae’s Desktop Underwriter (DU) validation service. Once enrolled in DU, lenders are able to receive Fannie Mae’s Day 1 Certainty, which frees them from representations and warranties for validated loan components.

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Veri-Tax is authorized to provide 4506-T tax transcripts through the Fannie Mae DU validation service. By expanding the integration between Veri-Tax and Docutech, lenders that use Docutech’s ConformX platform can easily satisfy Fannie Mae’s requirements by placing and retrieving tax transcript orders seamlessly within ConformX, where borrower information is already stored, while shortening the loan process by days.

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Fannie Mae’s DU validation service is designed to provide its customers with enhanced loan origination controls, improved processes and certainty around the borrower’s income, asset and employment information. When a lender opts in to use the DU validation service and obtains an eligible verification report from a vendor such as Veri-Tax, DU will use the data on the report to validate the borrower’s information and provide the lender with Day 1 Certainty for the loan.

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With the partnership between Veri-Tax and Docutech, lenders are able to use ConformX to submit tax transcript requests through Veri-Tax for simple 4506-T fulfillment, saving several days in the loan process.

Docutech President and Chief Operating Officer Amy Brandt said, “We’ve been very pleased with the success of the ongoing partnership between Docutech and Veri-Tax. Our integrated service allows shared customers to easily satisfy IRS requirements by automating the verification process and enabling lenders to place and retrieve tax transcript orders within our flagship software ConformX, where borrower information is already stored.”

Veri-Tax CEO of Customer Happiness Nick Lim added, “We are pleased to enrich our partnership with Docutech, especially as we’ve become a Fannie Mae authorized report supplier. We believe the combination of our ‘customer happiness’ differentiation and the innovative Fannie Mae Day 1 Certainty benefits  the robust Docutech platform and offers compelling value of protection, speed and efficiencies for our shared customers.”

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Paradatec Achieves Fannie Mae UCD Certification

Paradatec, Inc.’s new WriteUCD module was recently certified by Fannie Mae as meeting their requirements for producing valid Uniform Closing Dataset (UCD) files. This new module leverages Paradatec’s Optical Character Recognition (OCR) solution for the mortgage market to extract data from Closing Disclosure (CD) documents and then format that data in the MISMO standard required by Fannie Mae. The certification process required submitting test UCD files for multiple lending scenarios for Fannie Mae’s review, with all tests being passed successfully.

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According to Neil Fraser, Paradatec’s Director of US Operations, “Developing this new module was an easy decision for us. Many clients are already using our solution to extract data from the TRID documents to support certain internal review and audit procedures, so since we have the logic to extract this data it made sense to create a module which formats this data per the UCD specification. Now that we’ve attained certification with Fannie Mae, our clients who work with them are assured of complying with their September 2017 UCD requirement with this new WriteUCD module.”

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Paradatec also announces the release of their new AuditUCD module for auditing UCD file content against the Closing Disclosure contained in the UCD file. Fraser continues, “Again, developing this module was a logical extension to our mortgage solution. Since we’re able to build the UCD file from extracted Closing Disclosure data, it’s just as easy for us to unpack a UCD file’s content to compare the individual data elements against the values extracted from the submitted CD to verify the integrity of both components in the UCD file. Any elements that don’t match will be flagged in our XML output for further review and resolution. Given the volume of content that will be produced and need verification with this UCD initiative, our solution is uniquely positioned to offer a high degree of automation and operator efficiency.”

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Paradatec’s OCR solutions offer significant efficiencies for classifying large quantities of differing document types and extracting key data elements from those documents.  In the mortgage market, these capabilities allow for quick and accurate identification of over 500 unique documents in the typical mortgage file, along with the ability to capture nearly any data element from those documents that an organization requires.

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QC Player Is Ready For Day 1 Certainty

ACES Risk Management (ARMCO), a provider of financial quality control and compliance software, has updated its flagship ACES Audit Technology with new functionality that aligns with Fannie Mae’s Day 1 Certainty (D1C) initiative. With this update, ACES now includes additional fields for assessing asset, income, employment and collateral data according to Fannie Mae’s D1C initiative. The company also updated its rule-based technology to assist auditing these loans according to the D1C initiative.

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ACES users continue to use ACES Intelligent Questionnaire technology to customize questions and scripts according to their own unique needs and objectives. ACES’ direct import of D1C data enables users to preserve the integrity of their QC processes, while also aligning with D1C parameters.

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“Lenders can gain added protection under Fannie Mae’s Day 1 Certainty initiative, but they have to follow certain protocols,” says Phil McCall, COO of ARMCO. “We updated ACES so our clients can automate their auditing process to account for the different checkpoints associated with D1C. Our clients know that ARMCO’s mission is protecting their businesses. They know they can rely on us to stay on top of all guidelines, initiatives, regulations and trends, and they know we will continue providing the tools that help them grow and protect their businesses, not just for now, but also for the long haul.”

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The recent ACES software enhancement went into effect for all clients June 12, 2017.  Clients and interested parties can get further information on this update via the proprietary ACES Knowledge Center, or by visiting the ARMCO website (www.armco.us) for a demonstration of the latest software.

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Former Fannie Mae Exec Joins The StoneHill Group

The StoneHill Group has hired T. Gail Callueng as the company’s new quality control manager. In her new role, Callueng will be responsible for directing quality control services for The StoneHill Group as well as overseeing QC reviews on behalf of clients.

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Callueng has more than 25 years of experience in the mortgage industry and is skilled at servicing and subservicing reviews, managing large loan and servicing portfolios, leading operations and servicing teams, and conducting training and staff development. Prior to joining The StoneHill Group, she worked at Fannie Mae for eight years, most recently as the GSE’s senior relationship performance manager. Before joining Fannie Mae, Callueng served in a variety of executive and consulting roles in the banking industry, including assistant vice president at Fidelity Bank and vice president at Gainesville Bank & Trust. She graduated from Jacksonville University with a degree in Business Administration.

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“Quality has never been more important to the mortgage industry or to our clients, so we are delighted to have someone of Gail’s caliber leading our QC efforts,” said David Green, founder and president of The StoneHill Group. “Gail’s experience at Fannie Mae makes her a particularly valuable resource for our many clients who partner with the GSEs. As demand for loan quality continues to soar, we are confident Gail will deliver the results lenders and servicers need to excel.”

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“I am thrilled to join The StoneHill Group, one of the mortgage industry’s most trusted providers of QC services,” said Callueng. “Having worked on both the seller and purchasing sides of the mortgage industry, I know how challenging it can be for lenders to create and maintain quality throughout the loan cycle. I look forward to leveraging my knowledge and skills to help our clients and make The StoneHill Group the first name in the mortgage industry when it comes to loan quality.”

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NotaryCam’s eClose360 Tested And Approved By Fannie Mae

NotaryCam, Inc., a provider of online notary and mortgage eClosing services, is now listed on Fannie Mae’s list of eMortgage technology solution providers. Fannie Mae approved NotaryCam as a provider of both a SMARTDoc and eVault solution. Specifically, NotaryCam’s eClose360 online closing solution is now on the list of software Fannie Mae has certified and approved for use on loans it purchases from mortgage loan originators (Note: certification is for technical compliance with Fannie Mae’s eMortgage platform. Use of remote notarization capability is subject to Fannie Mae guidelines. Lenders should check with their Fannie Mae account team before utilizing remote notarization on Fannie Mae loans).

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“We are very proud to have made this important list of industry solutions for digital mortgage,” said Rick Triola, Founder and CEO of NotaryCam. “We’ve been working with portfolio lenders for some time, but now, any mortgage banker that sells its production to Fannie Mae can feel comfortable employing eClose360 and enjoy the benefits it offers them, their partners and consumers.”

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NotaryCam’s eClose360 is an online notary platform that allows mortgage closings to take place entirely online, removing all associated stress and the friction of having to attend closings physically. The technology won more attendee votes than any other digital mortgage technology in its category after its demonstration at the recent Digital Mortgage Conference in San Francisco. The company was invited to demo it again at the MBA’s Independent Mortgage Bankers conference on January 26, 2017.

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“Our research and experience indicates a growing interest and increasing number of lenders adopting eMortgages,” stated Michael Cafferky, eMortgage Product Manager, Fannie Mae. “Fannie Mae is committed to supporting customers and business partners as we move the market forward. We are very pleased to add NotaryCam to the list of approved solution providers to further expand options available to our customers to originate and deliver eMortgages to Fannie Mae.”

Fannie Mae’s eMortgage Technology Solution Provider List provides the industry with a selection of companies that offer technology solutions that enable the submission of electronic mortgages to Fannie Mae. Fannie Mae’s provisioning of the information does not indicate any endorsement of or affiliation with the listed providers, but rather includes technology providers who have conducted eNote technical compatibility testing with Fannie Mae’s eNote delivery system.

NotaryCam allows businesses and individuals to legally notarize, sign and execute documents and agreements online. The company has legally completed tens of thousands of notarizations in all 50 states and over 65 countries. Parties from anywhere in the world can connect to a live notary public in a secure virtual signing room. Identities and eSignatures are verified in a face-to-face web interaction to eClose real estate and mortgage transactions, notarize deeds, power of attorney, health directives, and more. NotaryCam was developed in lockstep with the changing needs of the GSEs to ensure that eClose360 meets all investor requirements. NotaryCam signing agents are also certified by the National Notary Association.

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Equifax And Fannie Mae Enhance Validation Practices

Equifax’s employment verification services, provided by Equifax Workforce Solutions (a business unit of Equifax Inc.) became available Dec. 10 as part of the Fannie Mae DU validation service. Equifax will now also offer asset verification services, available through its alliance with asset technology service provider AccountChek Company, LLC.

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The employment and asset verification services join the instant and manual income verification services and the IRS tax transcript fulfilment service that were made available through the same program as of Oct. 24.

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Integration of these verification services comes at a time when mortgage lenders are increasingly looking at ways to improve the customer experience, while limiting their risk. The automation of income and employment verification can help to reduce underwriting cycle times by lessening lenders’ reliance on applicant provided W-2s, pay stubs and other documentation.

The IRS tax transcript fulfilment services aids lenders in retrieving tax transcripts directly from the IRS and can provide added data around a consumer’s additional sources of income.

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“The mortgage lending industry has never seen employment and income verification services backed by an unparalleled database and packaged together with asset verification services to support their underwriting needs – there is no doubt this is the new standard,” said Craig Crabtree, general manager of Equifax Mortgage Services. “Inclusion of this data in support of the verifications process within Fannie’s DU validation service will offer the mortgage industry a way to improve its process and help to mitigate risk.”

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.

LOS Launches Major Upgrades

Ellie Mae has made major enhancements to its Encompass LOS. Encompass 16.3 includes new features for Encompass, enhancements to Fannie Mae and Freddie Mac solutions, new Total Quality Loan (TQL) service ordering options, additions to Secondary Marketing and significant enhancements to Encompass Product & Pricing Service.

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“The latest major release of our Encompass all-in-one mortgage management solution offers enhancements to our integrations with Fannie Mae and Freddie Mac and more customer choice when ordering TQL services with leading providers like First American Mortgage Solutions and DataVerify,” said Jonathan Corr, president and CEO of Ellie Mae. “And later this fall we’ll be offering major enhancements to the Encompass Product & Pricing Service expanding our lenders ability to manage their own custom programs and well as a new dashboard to provide visibility into the status of pricing files as well as securely manage investor credentials.”

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Encompass 16.3 features several core updates, including:

>>Settings Report: This new reporting feature enables the quick generation of reports that contain an organization’s user access settings, providing visibility for business managers as well as responses to possible auditor questions related to access rights.

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>>Business Rule Export and Import: This new feature enables the export and import of a variety of configurable business rule types to Extensible Markup Language (XML) files. These business rules are those that are changed most often and the export view assists lenders deploying Encompass software updates between test and production environments.

>>Enhanced Support for Uniform Closing Dataset (UCD) Export: Well in advance of the new UCD delivery requirements going into effect September 25, 2017, lenders are able to test this updated export in support of the more detailed data collection expected by Government Sponsored Entities (GSEs), including detailed classification of adjustments and other credits.

Secondary Marketing Enhancements: New tracking features have been added, designed to support multiple types of Loan Collateral and includes calendar driven follow-ups for collateral requests and a history of collateral requests, receipts and shipments with associated comments. Encompass has also expanded its lock desk hours feature to include separate hours by loan channel (Retail, Wholesale, Correspondent) and the ability to have different lock desk hours on Saturdays and Sundays. Secondary Marketing functionality also now supports Fannie Mae’s Pricing and Execution (PE) MBS pricing platform. And finally, updates were made to the 1098 Mortgage Interest for creating a 1098 that will comply with the tax rules for 2016 and beyond.

Fannie Mae Enhancements: Enhancements to Encompass’ unique automated workflow for Fannie Mae’s Desktop Underwriter and EarlyCheck drive more efficiencies and help identify and correct any potential eligibility or data discrepancies prior to loan delivery.

Freddie Mac Enhancements: Encompass now offers pop up screen capabilities that show data elements changed between orders within Automated Underwriting System (AUS) tracking to help easily identify any data discrepencies when using Loan Product Advisor, the cornerstone tool in the Freddie Mac Loan Advisor Suite.

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Lender Gets Approved As A Fannie Mae Seller

Open Mortgage, known in the industry for its process innovation and exceptional service, recently announced they have been approved as a seller with the Federal National Mortgage Association, commonly known as Fannie Mae. “This approval opens up new opportunities that we are very excited about,” said Scott Gordon, Open Mortgage President and CEO.

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Senior Director of Secondary Marketing Nick Whitten agreed. “This is great for our business and our customers. Our status as a Fannie Mae seller is sure to increase our efficiency, which means better overall service to our clients,” he said. Whitten went on to explain that the process for becoming approved as a Fannie Mae seller is rigorous and validates Open’s space in the mortgage market. “Now that we’re ‘Fannie direct,’ meaning we don’t need to go through an intermediary servicer, we can approve more and different types of loans, and do it faster.” Whitten also said that Open plans to offer more products to their customers and ultimately service their own loans.

Open Mortgage is a multi-channel mortgage lender. At Open Mortgage, we believe that better is possible, and we are constantly striving to bring a better mortgage experience for everyone. We are committed to providing our retail and partner loan officers the training and support they need to make their goals possible. Founded in 2003, Open Mortgage is headquartered in Austin, TX and has retail locations nationwide.

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CoreLogic Updates Comply With GSE Demands

CoreLogic announced that its condominium project review solution, CondoSafe, will support the new Fannie Mae and Freddie Mac Condominium Project Questionnaires that the Government Sponsored Enterprises (GSEs) announced on March 29, 2016. CondoSafe helps lenders and mortgage investors determine whether individual condominium projects meet eligibility guidelines and also improves the efficiency of condominium project review by delivering the required association documents.

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Designed as an industry-wide service, CondoSafe solicits, stores and monitors information from more than 140,000 condominium associations (COAs) in the U.S., and conducts a questionnaire-driven structured analysis of that information to assist lenders in determining if a condominium project is eligible for GSE and investor lending. In addition to the standardized CondoSafe questionnaire, the GSE Short and Full Form Condominium Project Questionnaires can be requested within CondoSafe, and will be delivered along with the related COA documents that are needed to complete the project review.

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“In 2015, over five million home sales in the U.S. were in condo projects, representing a 10 percent share of the market. Changes in demographics and housing preferences favor faster growth of multifamily housing, including condos. CoreLogic worked closely with leading lenders, U.S. housing agencies, condominium industry groups and real estate professionals to create an industry-standard condo project review solution that addresses the inherent problems found in condo lending.” said Jacquie Doty, vice president, industry outreach, for CoreLogic. “We are excited to incorporate the new condo project questionnaires introduced by the GSEs to help bring consistency to condo project reviews across the industry and reduce lending risk for both originators and investors.”

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