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Radian Integrates With Path To Offer MI

PathSoftware’s  Path LOS is now integrated with Radian Guaranty Inc., the mortgage insurance (MI) subsidiary of Radian Group Inc.

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This direct connect integration allows Path users to obtain rate quotes and order MI on both a delegated and non-delegated basis, and submit documents without leaving their LOS. MI premiums are also auto-populated into the appropriate fields in Path to help streamline the MI ordering process, improving efficiency and productivity.

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“We’re proud to partner with a forward-looking loan origination platform like Path to make it even easier for lenders to do business with us,” said Brien McMahon, chief franchise officer at Radian. “This integration enables us to deliver real-time quotes and simplify the MI ordering process for current and prospective customers.”

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Path was designed to simplify and streamline mid- to enterprise-level, multi-channel loan origination. As a portal with a single point of entry, all loan data, lock data, products, pricing, automated underwriting system findings, loan estimate and closing disclosure documents emanate and are reconciled within one system. In addition, the LOS’s configurable workflows, with role-based functionality, provide visibility into every loan at every stage—so financial institutions can ensure their business rules are followed.

“Direct integrations with our partners are essential to streamlining the mortgage origination process for our customers,” said Doug Mitchell, director of sales and support at PathSoftware. “By partnering with Radian, our clients can now easily order MI directly from one of the nation’s top providers.”

Here’s Some Help Reaching New Homebuyers:

Essent Guaranty, Inc., a nationwide provider of mortgage insurance (MI) and subsidiary of Essent Group Ltd., has launched EssentIQ, the ultimate tool for loan officers wanting to reach the next generation of homebuyers.

EssentIQ shows millennials and other first-time homebuyers how Essent MI can help them start building home equity sooner by becoming homeowners now.

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Its data-driven design creates real-life solutions in real time to:

>> show the opportunity cost of waiting to save 20% down vs. buying now with Essent MI

>> calculate the monthly payment for a loan with Essent MI

>> project how quickly homeownership will build equity and accumulate wealth

EssentIQ also creates personalized presentations in an easy-to-read format that can be saved, printed and shared.

“We designed EssentIQ specifically for loan officers as a way to start conversations with millennials who may not be aware of the home buying options that are available to them outside of the conventional 20% down,” said Jeff Cashmer, Essent Guaranty’s chief business officer. “EssentIQ also helps to make the case for homeownership by demonstrating how it accelerates wealth accumulation versus waiting to save up a larger down payment.”

Learn more about EssentIQ at www.essent.us/EssentIQ.

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Good Outlook For MI Ahead

National Mortgage Insurance Corporation (National MI) President and CEO Bradley Shuster delivered a presentation to investors on the outlook for private mortgage insurers at Sanford C. Bernstein Co.’s Inaugural Thematic Financials Conference in New York today. Favorable demographics, an increase in purchase mortgage originations, and a market shift away from FHA all signal potential growth opportunities for private mortgage insurers (MIs), Shuster said.

First-time homebuyers represent a critical segment of the home purchase market, and a considerable opportunity for private MIs, Shuster noted. “Approximately 33% of all GSE-securitized purchase mortgages in the first half of 2013 were first-time homebuyers,” he said. Statistics show that the average age of a first-time homebuyer is 34 years old, Shuster said, and an increasing number of Americans will turn 34 nearly every year over the next decade. In fact, over 40 million Americans will reach that age in the next 10 years. Based on median home prices across the country, research shows that it takes the average first-time homebuyer 14 years to save a 20 percent down payment for a home. By providing the credit enhancement needed for lower down payment mortgages, private MI can reduce the time it takes a borrower to save a down payment to under six years, Shuster said.

While overall originations have decreased recently, the percentage of purchase mortgage volume relative to refinance volume is increasing, which Shuster believes bodes well for private mortgage insurers. “MI penetration is traditionally four times higher in purchase mortgages than in refinances. We expect that the recovery in the housing market and the resulting increase in purchase originations mean that private MIs should see a boost in business,” Shuster said. Total originations are projected to be between $1.1 trillion and $1.3 trillion in 2014.

In addition, the shift towards private MI is expected to continue as the FHA pulls back to historic levels following several price increases, he said.

However, Shuster believes the industry requires additional private capital to meet the growing demand for private mortgage insurance. National MI estimates that the industry requires between $1.5 billion to $2.1 billion of additional capital each year.

The company raised approximately $510 million in private capital in 2012 to launch National MI, which issued its first mortgage insurance commitments just over a year ago. Since that time, the company has consistently gained business, and at the end of April 2014, had signed with nearly 500 lenders.

While the opportunities for private MIs as a whole are positive, Shuster believes that National MI is especially well positioned to grow in the coming years. He cites the following factors:

>> Industry leading underwriting protection and coverage terms

>> National MI is the first mortgage insurer to offer 12-month rescission relief, and is currently the only insurer to grant 12 month rescission relief on all loans. The historical industry standard is 36 months

>> A differentiated business model that enables National MI to be the first and currently the only mortgage insurer to underwrite every policy

>> A clean balance sheet with no legacy liabilities or rescission history

>> A highly favorable underwriting and credit quality environment

>> A simple organizational structure

>> A fully staffed sales force located in key regional territories throughout the country

“We believe National MI’s approach represents a distinct and better way to insure mortgages. We offer a strong capital base, counterparty strength, a differentiated product, and we provide superior ease of use,” Shuster said at the conference.

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A New Player Picks Up More Steam

*A New Player Picks Up More Steam*
**By Tony Garritano**

***I know everyone is going to be talking about QM today. So, I’ve decided to leave that alone for now and tell you about something a little different. I’ve been telling you about the rise of National Mortgage Insurance for some time now. Today there’s more good news on this front. Here’s the story:

****National Mortgage Insurance has received approval to write mortgage insurance in the key state of New York, moving the new private mortgage insurer closer to its targeted launch in the first quarter of this year. The company has applied for licensing in all 50 states and the District of Columbia, and recently received approvals from several other significant states, including North Carolina, Ohio and Virginia. National MI is now licensed in 22 states, as well as the District of Columbia.

****These 23 jurisdictions collectively represent 52 percent of the potential private mortgage insurance market in the country, according to National MI estimates. “We’ve made great strides in our goal to provide mortgage insurance to home buyers throughout the country, as evidenced by our approval in a substantial number of states with significant market share,” said Bradley Shuster, president and CEO of National MI.

****In June, National MI was approved to participate in an accelerated licensing process sponsored by the National Association of Insurance Commissioners (NAIC). The company is also seeking approvals from Fannie Mae and Freddie Mac to commence writing insurance, according to Glen Corso, general counsel of National MI.

****New York represents a sizable percentage of the country’s private mortgage insurance market, making the state’s approval noteworthy, Corso said. North Carolina’s approval also marked a crucial achievement for National MI, he added. “As home to several private mortgage insurance companies, North Carolina is widely regarded as one of the most significant states in terms of mortgage insurance regulation,” he said.

****Earlier this year, NMI Holdings, Inc. raised $550 million in private capital for the new venture.  National MI was founded by Shuster and Jay Sherwood, executive vice president and chief financial officer of the company.

Firm Releases MI Research Report

*Firm Releases MI Research Report*
**Knowledge Is Power**

***zIngenuity, a mortgage consulting firm providing strategic advisory services to mortgage lenders and servicers, has launched the July 2012 edition of zInsights, an analytical report on the mortgage insurance (MI) industry. Through zInsights, zIngenuity provides periodic analysis of the state of the mortgage insurance industry, the health of the existing MI carriers, and the current regulatory environment on those carriers and the industry.

***While lenders, MI carriers, and investors dispute liability on a large inventory of seriously delinquent loans, zIngenuity provides advice and resolution of those disputes through its advisory services and industry knowledge. Prepared by the firm’s Analytics team, zInsights explores the issues of capital depletion, aging inventories, and the continued stresses on the mortgage insurance model.

***“zIngenuity remains the only independent advisory firm focused on mortgage insurance related issues.” said David Reber, President and CEO of zIngenuity, Inc. Reber added, “Our clients continue to ask us to provide an unbiased outlook on the current state of the mortgage insurance industry and its participants, including an assessment of counterparty risk. Since the inaugural edition of zInsights in 2011, we have received an overwhelming response from our customer base and colleagues.”

***zInsights is available from zIngenuity by downloading it from the firm’s website: www.zingenuity.com.

Understanding The News: Stretching Partnerships Even Further

*Stretching Partnerships Even Further*
**Alliances Tighten**

***The mortgage industry is very complex. As a result, more and more companies are looking to other companies to form synergies. For example, PROGRESS in Lending has learned that United Guaranty, a national mortgage insurance company, announced today an expansion of its strategic alliance with Optimal Blue, the award winning comprehensive, Web-based platform that couples pricing and secondary marketing automation with content management for the mortgage industry. Here’s the scoop:

****United Guaranty customers can receive United Guaranty MI rate quotes and pull MI rate history while searching for investor pricing and eligibility in Optimal Blue. Under the agreement, within Optimal Blue, United Guaranty automatically delivers a mortgage insurance quote for up to five products at a time along with locking capability to originators who have a master policy, and an MI premium estimate to lenders who have not established a relationship with United Guaranty.

****“This added functionality gives users mortgage insurance pricing and comparisons to FHA pricing—without leaving Optimal Blue,” said Chris Clement, SVP-Field Production at United Guaranty. “We’re leading the industry in the investments necessary to simplify processes for customers and help loan officers get borrowers in the right loan.”

****In today’s environment, lenders must leverage every advantage to respond to consumers quickly and accurately. Within the Optimal Blue platform, users now have access to United Guaranty’s Performance Premium risk-based MI pricing, enabling them to receive either an instant estimate or a detailed quote. Users can pull a PDF of the MI quote, and because each loan has an MI history, users can also go back at any time if the loan criteria change and a new quote is needed. Users also have the option to lock the detailed quote with UG at any time.

****“Optimal Blue has always prided itself on being able to deliver the most value to mortgage lenders,” explains Lawrence Huff, co-Founder and co-CEO of Optimal Blue. “This partnership exemplifies that philosophy – as it gives customers the ability to not just lock in an MI quote, but to stay within the Optimal Blue platform. We continue to advance our platform to create the most automated workflow, giving our customers accurate data quality, better control and compliance, and improved profitability.”

****“This exclusive partnership with Optimal Blue shows our commitment to provide MI accessibility in all scenarios. This lets originators get a rate quote quickly and easily, cutting the time required to know a loan’s cost,” said Clement. “Providing the MI quote during the eligibility stage lets users know in one location that they’ve met general MI requirements.”