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Altisource Names Justin Vedder COO Of Origination Solutions

Altisource Portfolio Solutions S.A. (“Altisource” or the “Company”) (NASDAQ: ASPS), a provider of services and technologies to the mortgage and real estate industries, announced the appointment of Justin Vedder as Chief Operating Officer, Origination Solutions.

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In his new role, Mr. Vedder will be responsible for the growth of Altisource’s Origination Solutions business which brings together the integrated and consultative products, services and solutions needed by mortgage market participants of all sizes throughout the loan origination and secondary market execution process. Lenders and investors can leverage Altisource’s full suite of data-enabled products and solutions as well as the insights of an experienced team to help maximize efficiency and gain a competitive edge in today’s increasingly competitive loan origination marketplace. Altisource’s integrated end-to-end solutions are built on a scalable platform aimed to help businesses improve controls and drive efficiencies.

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Altisource’s Origination Solutions Platform includes Trelix Mortgage Fulfillment Services, CastleLine Insurance Services, the Lenders One cooperative, Granite Risk Management, Mortgage Builder Loan Origination System, Springhouse Valuations, and Premium Title and Settlement Services.

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Previously, Mr. Vedder served as Vice President of National Sales, Origination Solutions where he was instrumental in growing the Origination Solutions customer base and driving long-term strategic client relationships. Prior to joining Altisource, he was the Executive Vice President of CastleLine where he assisted in the development and launch of the Certified Loan Program. He is a renowned thought leader in the industry and has spoken nationally on various topics including mortgage fraud, loan production and defects, repurchase management, auditing of lenders, insurance and various other mortgage banking-related matters. Mr. Vedder’s appointment follows the departure of Bryan Binder and Jason Garmise, who joined Altisource in 2015 through the acquisition of CastleLine. Mr. Binder and Mr. Garmise will be leaving the company to pursue a new business venture.

“With over 17 years of sales and management experience in the mortgage and insurance industries, Justin has a proven track record of driving business development, innovating new solutions for large and sophisticated clients, and exceeding revenue targets,” said William Shepro, Chief Executive Officer of Altisource. “Justin’s business acumen, combined with his indispensable role in shaping the way customers leverage Altisource’s extensive offerings by utilizing the ‘One Altisource’ model, are great indicators of the potential growth he can help deliver while leading the Origination Solutions initiative.”

Newfi Lending Reaches $1 Billion In Mortgage Originations

Newfi Lending, a technology-enabled residential mortgage lender and portfolio company of Warburg Pincus, has originated over $1 billion in loan volume. The company reached this milestone just 24 months from the time it launched lending operations in April 2015. The $1 billion in mortgage volume is a combined result of Newfi Lending’s direct-to-consumer and wholesale lending operations.

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“These incredible results in such a short period of time validate our dual-channel business model,” said Newfi Lending CEO Steve Abreu. “We achieved this significant milestone despite the challenges of ramping up a new company in a limited geography. This bodes well for Newfi as we accelerate the growth of our sales organization and the expansion of our national footprint.”

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Newfi Lending has experienced significant growth in 2017. The organization has now expanded operations to 9 states: Arizona, California, Colorado, Florida, Oregon, Pennsylvania, New Jersey, Utah, and Washington. The company has received licensing approval for 16 states and plans to operate in over 20 states by the end of 2017.

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Founded in 2014 by industry veterans, Newfi Lending is a national mortgage lender reshaping the borrowing experience through a combination of proprietary technology, product innovation, and personal touch. Newfi delivers a more efficient and transparent process resulting in lower costs and higher levels of customer satisfaction and trust.

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.

Partnership Offers A Streamlined Origination Process

PCLender is now integrated with Roostify, a provider of automated mortgage transaction technology. The new integration enables lenders to offer a streamlined digital mortgage origination process to customers – from application to close.

“Loan applications are a sore spot in our industry and have needed a technological update for quite some time,” says Lionel Urban, CEO of PCLender. “We are pleased to partner with Roostify to lessen the stress for borrowers and lenders with a mortgage application process that simplifies the data and documentation collection requirements.”

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Roostify’s platform allows loan officers to easily collect a full loan application and associated documents, collaborate with consumers and third parties in real time, provide key documentation from any location and collect electronic signatures, allowing for quicker and higher quality closings.

“We are pleased to be an integration partner with PCLender, and extend access to the Roostify platform to more lenders, loan officers and consumers,” said Rajesh Bhat, CEO and Co-Founder, Roostify. “Our platform eliminates most of the headaches for lenders and consumers in the home buying process, allowing lenders to close more loans in a shortened time frame and provide an optimal digital experience to consumers, real estate agents, and third parties.”

Time To Close Remains Steady

Time to close all loans remained steady at 44 days according to the latest Origination Insight Report released by Ellie Mae. The average time to close a purchase also remained steady at 45 days in April, while the time to close a refinance increased to 44 days in April, up from 41 days in March. Similarly, the average time to close FHA loans increased from 44 days in March to 45 days in April. Time to close VA loans remained steady at 48 days.

Closing rates for all loans decreased to 69 percent in April, down from the high of 71 percent in March. Refinance closing rates decreased to 65 percent in April, down from 66 percent in March, while purchase closing rates fell to 73 percent, down from 75 percent in March.

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In terms of loan purpose, purchases increased to 59 percent of all closed loans, up from 55 percent in March.

Ellie Mae’s new FICO distribution charts in the April Origination Insight Report showed that 68 percent of purchases and 69 percent of refinances had FICO scores of 700 or above. Thirty-one percent of purchases had a FICO score between 600–699, while only 26 percent of refinances had FICO scores between 600–699. Conventional loan FICO distribution showed 81 percent of scores above 700, while FHA FICO distribution showed only 39 percent of FICO scores over 700 and 56 percent of FHA loans with FICO scores between 600 and 699.

“Days to close a loan remained steady at 44 days in April,” said Jonathan Corr, president and CEO of Ellie Mae. “Additionally, while our FICO distribution charts show that approximately 68 percent of average FICO scores for both refinances and purchases in April were above 700, we’re seeing purchase credit availability with 31 percent of FICO scores in the 600–699 range.”

The Origination Insight Report mines its application data from a robust sampling of approximately 66 percent of all mortgage applications that were initiated on the Encompass mortgage management solution. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.

Other findings from the April report:

The average 30-year rate for all loans decreased from 4.12 in March to 4.10 in April.

Debt-to-Income (DTI) remained steady at 25/38 and Loan-to-Value (LTV) stayed at 80.

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.

Purchase Share Continues To Increase

Purchase loans as a percentage of lenders’ overall mortgage volume rose for the third straight month in May with a 6 percent jump to 58 percent, according to the latest Origination Insight Report released by Ellie Mae. According to the latest report, the average 30-year rate on all closed loans fell slightly for the first time since February, from 4.062% to 4.013%.

“Our May data reflects a home buying season in full swing,” said Jonathan Corr, president and CEO of Ellie Mae. “While the share of purchase loan volume is lower than it was one year ago, lower mortgage rates has given some help to refinancing volumes and share.”

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The Origination Insight Report mines its application data from a robust sampling of approximately 66 percent of all mortgage applications that were initiated on the Encompass all-in-one mortgage management solution. Ellie Mae believes the Origination Insight Report is a strong proxy of the underwriting standards employed by lenders across the country.

Other findings of the May report include:

>> The overall closing rate for purchase loans climbed to 68.2 percent, the highest since January and almost 5% higher than the 2014 average.

>> The average closing period for all loans rose from 45 to 46 days.

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The Origination Insight Report focuses on loans that closed or were denied in a specific month and compares their characteristics to similar loans that closed or were denied 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 data. The report does not disclose client-specific or proprietary information.

About The Author

[author_bio]

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.

Refinances Inch Up A Bit

Refinancings as a percentage of overall mortgage volume jumped 3 percent from August to account for 36 percent of closed loans in September, according to the latest Origination Report put out by Ellie Mae. The September 2014 report also found the closing rate on mortgage refinancings fell nearly 6 percent to 48.3 percent in September, the lowest since February.

The Origination Insight Report mines its application data from a robust sampling of approximately 57 percent of all mortgage applications that were initiated on the Encompass origination platform. The Origination Insight Report is considered a strong proxy of the underwriting standards that are being employed by lenders across the country.

“It appears there may be life left in the refi market, as a number of consumers are still taking advantage of recovering equity in their homes and low interest rates to knock down their mortgage payments,” said Jonathan Corr, president and COO of Ellie Mae.

The percentage increase in refinancing activity was the first monthly increase in 2014, the report found. Among other findings in the report:

>> The average 30-year interest rate for all loans dropped for the fifth straight month to 4.381%, the lowest rate since July 2013

>> The average number of days to close a loan climbed above 40 days for the first time since June

>> The average number of days to close purchase loans rose 3 days from August to September

“While rates continue to fall, loans have been taking slightly longer to close since the peak of the summer buying season,” Corr said. “It will be interesting to see whether these trends continue as we head into the winter, a traditionally slower time for housing sales.”

About The Author

[author_bio]

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.

The State Of Mortgage Closings

This month the Ellie Mae Origination Insight Report shed some light on the state of closings. “The closing rate in August was the highest since we began tracking this data three years ago: 61.1 percent for all loans and 65.1 percent for purchase loans,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “This was further indication that lenders are working every deal and making sure leads don’t slip away.

In 2013, approximately 3.5 million loan applications ran through Ellie Mae’s Encompass mortgage management solution. The Origination Insight Report mines its application data from a sampling of approximately 57 percent of all mortgage applications that were initiated on the Encompass origination platform. Given the size of this sample and Ellie Mae’s market share, the Company believes the Origination Insight Report is a strong proxy of the underwriting standards that are being employed by lenders across the country.

“The time to close rose slightly last month, going up to 39 days from 37 in July, and the percentage of purchase loans remained in the high sixties,” said Corr. “Further, the average 30-year rate declined for the fourth consecutive month, to 4.386 percent for all loans, which was materially lower than where we were a year ago when the average rate was 4.618 percent for all loans.”

The Origination Insight Report focuses on loans that closed or were denied in a specific month and compares their characteristics to similar loans that closed or were denied 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 and does not disclose client-specific or proprietary information.

About The Author

[author_bio]

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.

Time To Close Falls

Ellie Mae’s Origination Report uncovered some new trends. According to Jonathan Corr, president and chief operating officer of Ellie Mae, “The purchase market continued to climb in July with the share of closed purchase loans reaching 67 percent, the highest percentage since we began tracking this data in August 2011. Meanwhile, time to close for all loans dropped to 37 days, the lowest average we’ve seen since we began tracking. This reflects time to close decreasing across the board, with an average of 36 days for conventional loans and 38 days for FHA and VA loans.”

To get a meaningful view of lender pull-through, Ellie Mae reviewed a sampling of loan applications initiated 90 days prior (i.e., the April 2014 applications) to calculate an overall closing rate of 57.7 percent in July 2014, down from 60.7 percent in June 2014. Corr added, “The average 30-year rate for all loans declined once again to its lowest level of 2014: 4.388 percent in July, down from 4.421 percent in June 2014.

“The average FICO score fell one point to 727 in July, reversing a four-month trend. A further sign of easing: 32 percent of closed loans had an average FICO score under 700 last month compared to 25 percent in July 2013,” Corr concluded.

The Origination Insight Report mines its application data from a sampling of approximately 57 percent of all mortgage applications that were initiated on the Encompass origination platform. The Origination Insight Report focuses on loans that closed or were denied in a specific month and compares their characteristics to similar loans that closed or were denied 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.

About The Author

[author_bio]

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.

Feeling The Pinch

You Can Download This Entire Article As A PDF HERE

There’s enough hurt to go around these days. Nobody is exempt. Richey May and Co. has released its first quarter 2014 Trend Report for Independent Mortgage Bankers. According to the report, loan production among independent mortgage bankers continued to decline in the first quarter of 2014, falling 18% since the fourth quarter of 2013. Purchase volume decreased for the third consecutive quarter, dropping 13.7%. Margins increased by 28 basis points – the result of an 11-basis point decrease in origination fees, and a 39-basis point increase in secondary gains.

“Independent mortgage bankers are taking less in origination fees, but are making more from gains on sale into the secondary market,” said Kenneth Richey, managing partner of Richey May.

“This suggests that lenders are responding to the QM fee cap,” he explained, speaking of the Qualified Mortgage rules that impose a three percent limit on the amount a lender can charge in origination fees. “Rather than earning on the front end, they’re increasing margins on the secondary sale.”

Each quarter, Richey May uses Richey May Select, a benchmarking technology specifically for independent mortgage bankers, to analyze data submitted by independent mortgage bankers across the U.S., and compile a report of the quarter’s outstanding trends. The report highlights key performance indicators, such as overall volume and volume by transaction type, margins, operating costs, labor output, and more. The data used in the report includes much of the same information that its confidential lender participants provide to the GSEs each quarter via the Mortgage Bankers’ Financial Reporting Form (MBFRF).

Additional findings in the first quarter 2014 trend report include the following:

>> The principle balance of unfunded locks increased by 40.5%, rebounding to levels last observed in the 3rd quarter of 2013

>> Pre-tax profits improved by 0.25%, primarily due to increased secondary marketing gains and gains related to bulk sales of servicing rights

>> While production continued its decline, the rate of decline slowed in the first quarter of 2014

>> Non-loan originator staffing was reduced by an average of 14 employees, or 6% of all non-loan originator staff, since the third quarter of 2013

>> Per-staff productivity has declined by 1.8 units per non-loan originator staff member, and by 1.6 units per loan originator, since 2012

Servicing revenue contributed 12 basis points to survey participants’ bottom lines during the 1st quarter of 2014, up from six basis points for the 4th quarter of 2013. The majority of servicing revenues resulted from bulk sales of servicing portfolios, which accounted for 83% of all net servicing revenues.

Despite continued rising costs, Richey May Select survey participants achieved nearly break-even pre-tax profits for the 1st quarter of 2014, showing a 25-basis point improvement over the previous quarter. Lenders generally compensated for heightened operating and personnel costs by increasing loan margins.

“Lenders are pin-pointing the most effective ways to compensate for lower production levels,” said Richey.

About The Author

[author_bio]

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.

Purchase Lending Share Increases

In its latest Origination Insight Report Ellie Mae found that the purchase market is dominant. To get a meaningful view of lender “pull-through,” Ellie Mae reviewed a sampling of loan applications initiated 90 days prior (i.e., the December 2013 applications) to calculate an overall closing rate of 58% in March 2014, up from 55.3% in February 2014. “We continue to see the resurgence of a purchase-centric market as numbers inch closer to historical levels,” said Jonathan Corr, president and chief operating officer of Ellie Mae. “Purchases increased another three percentage points in March 2014 to represent 60% of loans, quite the difference from March 2013 when purchases represented only 38% of loans.

In 2013, approximately 3.5 million loan applications ran through Ellie Mae’s Encompass mortgage management solution. The Origination Insight Report mines its application data from a robust sampling of approximately 57% of all mortgage applications that were initiated on the Encompass origination platform. Given the size of this sample and Ellie Mae’s market share, the Company believes the Origination Insight Report is a strong proxy of the underwriting standards that are being employed by lenders across the country.

“Credit requirements tightened ever so slightly last month. The average FICO score on all closed loans increased for the first time in 2014, rising one point to 725. The average debt-to-income ratio also tightened on both the front and backend, falling to 24/37.

“Average time to close in March 2014 fell to 40 days for all loans––five days faster than January 2014. The average purchase loan closed six days faster (41 days) in March than it did in January (47 days).”

The Origination Insight Report focuses on loans that closed or were denied in a specific month and compares their characteristics to similar loans that closed or were denied 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 nonqualification. The Origination Insight Report details aggregated, anonymized data and does not disclose client-specific or proprietary information.