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Millennial Homebuyers Exercised Their Purchase Power

Millennial homebuyers across the country exercised their purchase power in April as competition for limited housing inventory continued. Eighty-nine percent (89 percent) of mortgage loans made to Millennial borrowers during the month were for new home purchases, up one percentage point from the month prior, and the highest percentage since May 2017, according to the latest Ellie Mae Millennial Tracker.

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Interest rates also continued to rise in April to 4.73 percent, on average, up from 4.63 percent the month prior. This is the highest interest rate recorded since Ellie Mae began tracking Millennial loan data in January 2014.

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As interest rates crept up, average loan amounts to Millennials fell. The average amount was $194,300 in February, $192,055 in March and $188,171 in April.

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“Most Millennials are buying a house because there are major changes happening in their lives such as starting a family, getting a new job, or because they’ve decided that they want to build equity and stop renting,” said Joe Tyrrell, executive vice president of corporate strategy for Ellie Mae. “We believe Millennial home purchases will continue to climb this summer and while interest rates may slightly impact the size of homes borrowers can get for their money, we don’t foresee it impacting their desire to buy.”

Overall, conventional loans represented 67 percent of all closed loans to Millennial borrowers, while FHA loans held steady at 29 percent from the previous month. VA purchase loans for Millennial borrowers represented 79 percent of all VA closed loans in April, steady from the month prior, and up from 66 percent in February.

The time it took for Millennial homebuyers to close a loan remained flat month-over-month. Purchase loans took an average of 39 days to close and refinance loans took an average of 44 days. FHA purchase loans took an average of 40 days to close, compared to 41 days in March. VA purchase loans averaged 49 days-to-close, compared to 45 days the month prior.

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.

Credit Interlink Integrates Income Verify With LendingQB For Faster Verifications

Credit Interlink, a provider of SaaS mortgage origination technology solutions, has integrated its Income Verify, with LendingQB, a provider of SaaS loan origination technology solutions, to facilitate quicker and more efficient 4056-T verifications.

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Thanks to certification through Fannie Mae’s Day One Certainty, Income Verify has direct access to tax transcript verifications through the IRS in order to expedite the time needed to process requests within LendingQB’s LOS. Likewise, the solution better prevents the risk of fraud through its secure interface, creating a more cost-effective way to collect borrower data.

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“In a world growing more dependent on digital technology, borrowers have come to expect the lending process to replicate experiences they experience in other areas,” said Mark Yoder, Vice President of Business Development, Credit Interlink.  “With Income Verify, borrowers are able to provide their information up front and loan officers are able to verify it without adding unnecessary delay to the origination process, all in a secure manner.”

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LendingQB’s web browser platform provides mortgage lenders with core LOS capabilities using modern web-optimized technology, enabling robust integrations to other web platforms such as Credit Interlink. Using LendingQB’s API framework, Credit Interlink is able to extend the capability of lenders, expediting the origination process and allowing more direct interaction with borrowers and other parties to the loan.

“Credit Interlink’s streamlined approach to data verification, credit and fraud is innovative and perfectly fits the ever-changing mortgage industry,” said David Colwell, vice president of strategy at LendingQB. “By utilizing Income Verify, our lenders are able to verify borrower data in a fast and safe manner, enabling them to reduce the time needed and the overall cost to originate loans.”

An LOS To Satisfy All Lenders

Most loan origination or LOS offerings look to target specific size lenders with different offerings for a top 50 lenders vs. a smaller lender, for example. Wipro Gallagher Solutions (WGS), a Wipro Limited company and provider of loan origination software solutions, has launched its NetOxygen SaaS loan origination solution for mortgage lenders of all shapes and sizes.

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NetOxygen SaaS brings the power of NetOxygen, an enterprise class loan origination system that helps lenders reduce origination costs and boost production efficiency through automation.  NetOxygen connects to a front end portal and fintech offerings thus providing seamless interactions to improve borrower experience. NetOxygen SaaS enables quicker deployment and scalability to match business growth with an all-inclusive, per transaction pricing, which is based on business outcomes.

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NetOxygen SaaS provides comprehensive product coverage across mortgage, home equity, HELOC (home equity line of credit) and unsecured credit lines origination. The platform integrates an extensive vendor ecosystem which provides multiple options for standard services like credit, appraisals, fraud checks, etc. NetOxygen SaaS supports retail, correspondent and wholesale markets, and also enables niche offerings like construction lending for one close, multiple close, homestyle renovation and FHA construction.

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Key features of NetOxygen SaaS include:

>>Sophisticated workflow engine, allowing lenders to implement distinct lending policies and procedures;

>>Automated underwriting for improved efficiency;

>>Comprehensive pool of rich APIs, to enable easy integration with other applications;

>>Advanced feature supporting ADR and OCR capabilities;

>>Self-service tools to enable lenders to perform more tasks, with ease and speed.

“NetOxygen SaaS offers an extensible and scalable platform that caters to lenders’ ever-changing business needs and provides an all-encompassing solution to improve end-to-end loan origination,” said Scott Dunn, Head Product Management, Strategy and Compliance, Wipro Gallagher Solutions. “Among the platform’s many differentiators, what stands out is the ability to quickly configure business rules, products, fees and deliver industry leading functionality  for compliance, imaging, reporting, and documents generation in combination with best-in-class providers.”

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.

Redefining The Point-Of-Sale

PromonTech, the technology unit of Promontory MortgagePath, has entered into an agreement with ISGN to become the exclusive point-of-sale (POS) solution for ISGN’s MORVision loan origination system (LOS).

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ISGN MORVision users can now leverage PromonTech’s white-label, Borrower Wallet to engage and educate customers and prospects. Borrower Wallet provides a secure, borrower-friendly environment designed to build confidence and make it easy for the borrower to enter information, approve automated data collection, upload/e-send documents and stay informed throughout the entire loan journey. Data and documents captured in the front end of the origination process can be seamlessly exported into MORVision via the PromonTech-ISGN integration.

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“Having a next-gen point of sale experience is increasingly becoming the cost of doing business in a digital mortgage world,” said Michael Kolbrener, chief technology officer of PromonTech. “Borrower Wallet engages with customers using any computer or mobile device, on either a self-serve or loan officer-assisted basis. We look forward to working with ISGN and its LOS users to enhance both their customer experience and their efficiency.”

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“By partnering with PromonTech, our clients will have access to an advanced, customizable front-end solution, at a fraction of the cost of developing one in house,” said Amit Kothiyal, chief executive officer of ISGN. “Borrower Wallet is an elegant digital solution for both consumer direct and loan-officer centric lenders.”

Partnership To Deliver Modern Mortgage BI And Performance Management Tools

Wipro Gallagher Solutions (WGS), a Wipro Limited company and a provider of loan origination software solutions, and Precision Risk Management Systems, Inc. (PRMS), a provider of performance management solutions, have partnered to deliver advanced mortgage business intelligence (BI) and customer experience management solutions to mortgage lenders.

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As a part of this alliance, Wipro will offer its clients a powerful set of dashboard-driven performance management tools, including enterprise reporting, intuitive metrics and Key Performance Indicators (KPI) that focus on identifying potential problems before they progress in efforts to prevent business losses for lenders.

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“As Wipro Gallagher Solutions consistently strives to add value for customers, we have partnered with PRMS to deliver enterprise-wide management information and production analytics tools that help customers achieve greater profitability and efficiency,” said Scott Dunn, Head of Product Management, Strategy and Compliance, Wipro Gallagher Solutions, Wipro Limited.  “PRMS provides innovative solutions that are intuitively easy to use and are capable of integrating and functioning in an extremely short period of time to provide a rapid return to our customers.”

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“PRMS is extremely pleased to be working with the team at Wipro Gallagher Solutions to help lenders perform at a higher level,” said David Demster, Executive Vice President, Precision Risk Management Systems.  “These solutions will provide Wipro customers with focused business reporting, graphical dashboard information and key performance indicators that will enable management and staff to work more efficiently and effectively.”

Partnership Helps Lenders And Ellie Mae Accelerate Adoption

Brimma Tech, Inc., a software development and technology services company, announced that it has joined the Ellie Mae Pro consulting partner program.

By participating in the program, Brimma Tech will have deeper access to tools, training, marketing opportunities, and other critical resources to grow its business. Brimma Tech will help lenders and Ellie Mae accelerate the delivery, deployment, and adoption of Ellie Mae’s Encompass solution.

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Brimma Tech Inc. looks to help accelerate the digital transformation journey through:

UX and UI – Strategy and Execution

Rapid Prototyping – Bringing the vision to reality quickly

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Highest Quality Delivery – Our developers, not testers, own quality!

Truly Agile – Weekly sprints and client milestone demonstrations

Mortgage Technology Implementation: Upgrades, configuration and customization to meet your business model

Custom Development: Systems integrations, reporting solutions, dashboards and analytics, extensions and solutioning based on the Encompass Lending Platform

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Remote Admin (Onshore and offshore): Configuration management (users, personae, milestones, business rules, triggers, web hooks, custom input forms, workflows, custom documents, and production support)

“Brimma Tech is delighted to partner with Ellie Mae,” said Brimma Tech’s President, Supree Periasamy. “Our participation in the Ellie Mae Pro program gives us access to the tools we need to stay up-to-date on the latest Ellie Mae product development and ensures that our customers receive the highest quality services for their Encompass environment. We look forward to a long, successful relationship with Ellie Mae.”

Brimma has more than two decades of proven track record of building and implementing multiple Mortgage Origination and Management Solutions for many of the Top 10 US mortgage lenders.

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.

Taking LOS Integrations A Step Further

By now, most lenders can agree that there are countless benefits to integrating their Loan Origination System (LOS) with a technology provider’s software. For one, it eliminates the front-end data entry of having to visit multiple vendor websites and rekeying data they have already entered into the LOS. With a true “lights out” integration, the lender doesn’t have to ever leave the LOS; they can order everything they need within one system, saving valuable time.

In addition, LOS integrations eliminate copying and pasting on the back-end of the process once the order is complete. When the report is delivered back to the lender, not only is the PDF imported to the “manage files” section of the LOS, but key data elements populate important data fields. When done correctly, the LOS automatically populates the legal description and vesting information from the title work, the value of the property from the Automated Valuation Model (AVM), desktop valuation or appraisal, and valuable flood zone and HMDA data from the flood certification. Populating these key data fields saves the lender from copying, pasting or rekeying the information into the LOS. It also mitigates the risk of potential human errors associated with manual data entry; for example, the “w” and “e” keys, located right next to each other on the processors keyboard, could be accidentally keyed incorrectly which would present a problem for legal documents and recordation if “E. MAIN ST.” inadvertently becomes “W. MAIN ST.”

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Lenders partnering with a provider that enables a true “lights out” LOS integration surely experience benefits. However, if their provider is not a middleware aggregator, they are still missing out on ways to improve their loan processing. By partnering with an aggregator, lenders can take their LOS integration a step further and distinguish themselves among competition.

In most LOS integrations, a technology provider integrates into a lender’s LOS in order to enable access to their own brand of products and services. An aggregator, on the other hand, provides lenders access to all brands within one platform. Even if a lender wanted to integrate with multiple providers, the process to include all of their vendors could take months to complete. With an aggregator, lenders can go live with hundreds of vendor choices available to them on day one.

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Some aggregators even give lenders the ability to add their own vendors that may not be integrated with the aggregator; such as small, local title companies or appraisers. With User Defined Vendor (UDV) technology, the lender selects which vendor they would like to utilize and the aggregator delivers the order to the preferred vendor. Local vendors looking to access an aggregator’s system on the back-end can easily upload their documents to the system with data elements and the PDF so that the aggregator can convert the forms to XML and deliver them back into the LOS. UDV technology enables lenders to add their preferred companies into their LOS in days as opposed to months.

Another important tool that lenders should look for when choosing an aggregator is escalation intelligence. This type of technology programs the systems to automatically know what the lender wants to do next if orders receive a “no hit” or if the underwriting guidelines dictate that a more robust type of product needs to be ordered. For example, if a lender orders an instant property valuation and there is not enough information on the property for the system to return an AVM, the system will automatically order a desktop valuation, drive-by appraisal or full appraisal, depending on the underwriting guidelines, risk tolerance and cost savings objectives of the lender. The same technology can be applied to instant title searches, full property reports and title insurance products.

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Finally, an aggregator has the ability to mimic the lender’s underwriting guidelines to provide additional efficiency and “automated decisioning” technology. They provide configurations that intelligently know what products to order based on credit scores, loan amounts, LTV and other underwriting criteria, then auto-order the appropriate products and services that are required for that specific loan. This type of technology eliminates the need for the processors to determine what to order and when to order it, thereby reducing the risk of human error.

LOS integrations with middleware aggregators result in reduced processing and closing times for lenders. The aggregator delivers faster integrations with more vendors, manages vendor turnaround time on behalf of the lender and even calculates Loan to Value (LTV) and Combined Loan to Value (CLTV) to automatically populate on the lender’s system. While general LOS integrations are beneficial, it is clear that the most competitive lenders use middleware aggregators to take their integrations to the next level.

About The Author

Tedd Smith

Tedd Smith is chief executive officer of Austin, Texas-based FirstClose, provider of end-to-end technology solutions to mortgage lenders nationwide. The FirstClose reporting suite is the first, comprehensive solution with capabilities to deliver title, flood, valuation and other important data elements in one report. For more information, visit www.firstclose.com.

Time To Close A Loan Decreased

According to data from Ellie Mae, time to close all loans decreased from 44 days in January to 42 days in February.

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Time to close all purchase loans decreased from 47 days in January to 45 in February and time to close all refinances dropped from 40 days in January to 37 days in February. This is a significant drop from 2017 data that shows time to close all refinances was 47 days. Time to close FHA loans also decreased from 47 days in January to 43 days in February and time to close a conventional loan shrank from 43 days in January to 41 days in February. Time to close VA loans shrank from 50 days in January to 47 days in February. This comes as 30-year interest rates continue to rise from 4.330 in January to 4.480 in February, the highest rate since May of 2014. The percentage of closed ARMs held at 5.5 percent for the second month.

Closing rates decreased slightly with closing rates on all loans decreasing from 70.9 percent to 70.6 percent and closing rates on refinances decreasing from 65.5 percent to 65.0 percent. Closing rates on purchases held at 75.7 percent for the second month.

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“As expected, we are seeing the percentage of refinances taper back off to the projected industry levels,” said Jonathan Corr, president and CEO of Ellie Mae. “And with interest rates on the rise, we’re seeing the purchase market begin to gain some momentum. We know that the shift to a purchase market will drive the shortened time to close and we will watch to see if the trend continues into the spring and summer months.”

Other statistics of note in February included:

>>The percentage of refinances dropped from 45 percent of all closed loans in January to 43 percent of all closed loans in February.

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>>The percentage of purchases increased to 57 percent of total closed loans.

>>The breakdown of type of loans remained the same for the second month with FHA loans representing 19 percent of closed loans, conventional loans representing 67 percent and VA loans representing 10 percent.

>>Overall FICO scores held steady at 721 for the second month. LTV increased from 77 to 78 and DTI held at 26/40.

The Origination Insight Report focuses on loans that closed in a specific month and compares their characteristics to similar loans that closed three and six months earlier. The closing rate is calculated on a 90-day cycle rather than on a monthly basis because most loan applications typically take one-and-a-half to two months from application to closing. Loans that do not close could still be active applications or applications withdrawn by consumers or denied for incompleteness or non-qualification. The Origination Insight Report details aggregated anonymized data pulled from Ellie Mae’s Encompass

Teledata Communications And EnableSoft Partner To Streamline LOS-To-Core Integration

For a financial institution wanting to integrate its loan origination system (LOS) with its core platform, the endeavor can be both expensive and time-consuming. The core-provided connectors and APIs typically needed to push data from the LOS to the core can devour both programming hours and dollars.

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Users of TCI’s LOS products have another option: EnableSoft’s Foxtrot robotic process automation (RPA) software. A Foxtrot-powered data push can be set up in a matter of hours rather than the weeks or months it can take working with a core-provided solution. Foxtrot can also be used in both real-time and batch environments. Finally, Foxtrot costs substantially less than virtually all core connectors.

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“We offer a number of automation solutions to our clients and encourage them to evaluate each one,” said Barry Kirby, TCI’s vice president of sales, “but we fully expect Foxtrot to be the solution of choice for this important application.”

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“We like working with companies that don’t play favorites,” said EnableSoft president Richard Milam. “because we know when Foxtrot goes head to head with competing solutions, Foxtrot will likely win.”

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.

LoyaltyExpress Becomes Authorized Fannie Mae LOS Integration Vendor

LoyaltyExpress, a provider of marketing automation and cloud-based CRM solutions for mortgage companies and banks, announced that its LendingManager Digital Mortgage platform now seamlessly integrates with Fannie Mae Desktop Underwriter for greater efficiency with upfront data validation & eligibility.  Borrowers can apply for a loan or prequalify via loan officer, branch, and/or corporate websites, which LendingManager also designs, and gain immediate time savings with this integration.

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As part of the LendingManager solution, banks and mortgage companies can access the following with significant cost savings versus the majority of POS competitors:

>>Custom & Responsive Corporate, Branch & Loan Officer Websites

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>>Prequalify & 1003 Applications

>>Client Portal (Loan Status, Document Uploads, Lender-Borrower Messaging)

>>Mobile Websites and Applications

>>Over 60 LOS, CRM, Pricing, & Credit Integrations

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“We are excited to add the Fannie Mae DU integration for our clients,” said Wayne Stegall, President LendingManager.  “Integrations and efficiency are the name of the game for digital mortgage solutions and, as a result of the acquisition by LoyaltyExpress, we look forward to adding new capabilities even more frequently. This new functionality, in particular, keeps us at the leading edge of the market requirements and our competitors. Simply put, there is no provider that can deliver the breadth of functionality, automation and value we do.”

LoyaltyExpress simplifies CRM and marketing automation for banks and mortgage companies, including one of the top three retail lenders in the nation. Its flagship solution, CustomerManager, is an enterprise-wide, Software-as-a-Service platform that combines lead management, email and direct mail campaigns with a 360-degree view of each loan officer’s customers, partners and prospects. The MarketingCentral service delivers a web-based, sales collateral store powered by custom content creation and integrated print fulfillment.

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.