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National MI To Host Mortgage Leadership Roundtable

Industry experts will gather to discuss the current state of the mortgage industry at the New England Mortgage Leadership Roundtable on June 14, 2017 at the Granite Links Golf Course in Quincy, MA. The free event is being hosted by National MI, a subsidiary of NMI Holdings, Inc. (Nasdaq: NMIH) a California-based private mortgage insurer, along with ISGN Solutions, a leading business process management (BPM) company to the mortgage industry.

Featured Sponsors:

 

 
Sam Luna, the Single Family Affordable Lending director at Freddie Mac, will discuss Freddie Mac’s Home Possible® program.  Julie Jones, credit risk analyst at Fannie Mae, will give an update on Fannie Mae’s efforts to facilitate more efficient programs for lenders, while also improving quality of originations.

Featured Sponsors:

 
Also presenting will be Allan Weiss, CEO of Weiss Residential Research, LLC, a publisher of next-generation home price analytics.  Weiss’ keynote presentation, “New Approaches to Home Price Risk,” will address best practices for managing risk. Weiss is the co-founder and former CEO of Case-Shiller Weiss, which produces the S&P/Case-Schiller Home Price Index, a leading U.S. housing market index used by economists and analysts.

Featured Sponsors:

 
Cultural Outreach Solutions Founder Kristin Messerli will offer advice and tips on how lenders can reach currently untapped markets.  Cultural Outreach Solutions specializes in helping companies in the mortgage industry better reach and serve multicultural and millennial homebuyers.

Other speakers  include Gene O’Bryan, CEO of Solutions Lending Services, who will address market innovation opportunities, and Dana Wasson, vice president of Consulting and Professional Service at ISGN Solutions, who will discuss how to prepare for CFPB and FHA enforcement.

“Our ongoing series of mortgage leadership roundtables has attracted a good deal of interest,” said Jason Kitch, regional managing director of the Northeast Region for National MI. “National MI is pleased to host this event in the Boston area, particularly with such an excellent line-up of speakers.”

Details of the New England Mortgage Leadership Roundtable are as follows:

Location: Granite Links Golf Course, 100 Quarry Hills Dr., Quincy, MA

Date: Wednesday, June 14, 2017

Time: 9:00 a.m. – 3:30 p.m. Eastern

To register for the roundtable, contact Tracy Berry at tracy.berry@nationalmi.com.

Progress In Lending
The Place For Thought Leaders And Visionaries
website-streamlining

Streamlining The MI Process

National MI will make its mortgage insurance products available through the Architect loan origination system, a component of the Mortgage Builder platform. National MI is also integrated with Blueprint technology, the Mortgage Builder platform’s electronic document management (EDM) solution. Blueprint software enables lenders to receive, share, store, retrieve and deliver loan files in a completely paperless environment.

“Lenders are now able to access and order National MI’s insurance products directly through Architect,” said Michael Dirrane, senior managing director and chief sales officer for National MI. “This streamlines the process, allowing our mutual clients to obtain a rate quote or commitment from National MI, all without ever having to leave Architect.”

The integration with Blueprint software gives lenders improved efficiency in working with National MI and Mortgage Builder through a secure, paperless exchange of documents, Dirrane added. “Our lender customers who use Blueprint are now able to transmit their documents seamlessly,” he said. “It’s another option we offer our customers to transmit loan documents electronically and securely.”

National MI is currently the only private mortgage insurer with integration to Blueprint.

“Blueprint’s virtual file cabinet gives lenders real-time access to digital loan files, eliminating the need for physical documents,” said Keven Smith, president and CEO of the Mortgage Builder business. “Ordering mortgage insurance is an important part of the mortgage process. With this integration, our clients have the ability to order National MI’s products efficiently and securely in Architect, and then to access to loan files in a paperless environment through Blueprint.”

“The integration between Mortgage Builder’s Architect and National MI streamlines the process for us,” said Brigitte Kaliszewsky, vice president of risk management with Mortgage Center, who uses both solutions. “It allows us to order National MI directly within Architect, rather than using multiple systems, which simplifies our origination process.”

Progress In Lending
The Place For Thought Leaders And Visionaries
marketanalysis

A New, Creative Alliance Forms

I love to tell you about creative alliances that I think improve the mortgage process. In this case, National Mortgage Insurance Corp. (National MI), a subsidiary of NMI Holdings, Inc., is now directly integrated with the Xerox Mortgage Services’ BlitzDocs intelligent collaborative network. The integration provides lenders with improved efficiency in working with National MI through a secure, enhanced document image exchange.

BlitzDocs is delivered as a cloud-based mortgage technology system and enables lenders to e-Ship or transmit documents in a paperless format, according to Ken Marlin, vice president, general manager with Xerox. Its electronic loan folder (eFolder) mirrors a traditional loan folder and only includes the documents both parties agree are needed, so unnecessary documents are eliminated. “eFolder increases productivity and accelerates the loan process while reducing paper costs and eliminating shipping fees,” Marlin said.

BlitzDocs’ advanced security settings enable all industry participants to work together on the same set of documents throughout the entire loan process to streamline process efficiencies and promote accuracy of loan data.

“Joining forces with Xerox allows our lender customers who use BlitzDocs to transmit their documents easily,” said Pete Pannes, executive vice president and chief sales officer with National MI. “It’s another option we offer our customers to transmit loan documents electronically and securely.”

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.
EditorsNote

Not Everyone Is Cutting Back

You Can Download This Full Article As A PDF HERE

We’ve heard a lot recently about layoffs and industry consolidation, but it is important to note that not every mortgage-related company is contracting. For example, NMI Holdings, the parent company of National Mortgage Insurance Corp. (National MI), has said that National MI’s application for an insurance license in Wyoming has been approved by the Wyoming Department of Insurance. With Wyoming’s approval, National MI is now licensed to write mortgage guaranty insurance in all 50 U.S. states and the District of Columbia.

“We are pleased that National MI is able to provide mortgage insurance to lenders offering loans to borrowers in Wyoming,” said Bradley Shuster, president and chief executive officer of NMI Holdings, Inc. “The approval by the Wyoming Department of Insurance marks a significant milestone for National MI as we are now able to provide mortgage insurance in every state in the U.S., as well as the District of Columbia. We believe this is especially important to our customers who do business nationwide.”

By approving National MI as a licensed insurer in the state of Wyoming, National MI believes the Wyoming Department of Insurance is helping to expand the availability of mortgage financing, particularly for first-time homeowners who might not have a 20 percent down payment, Shuster noted. Private mortgage insurance is typically required on mortgages with a loan-to-value (LTV) ratio greater than 80 percent.

“National MI commends the Wyoming Department of Insurance for acknowledging the importance of private mortgage insurance and the role it plays in broadening home ownership opportunities for Americans,” Shuster said.

National MI received approval from Fannie Mae and Freddie Mac in January 2013.National MI, a subsidiary of NMI Holdings, Inc., is a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower’s default.

Why do I bring this expansion up? To keep your spirits up. It’s important to for all of us active in the mortgage space to note that if we provide a valuable service, there is a healthy market out there ready to buy. It’s not all doom and gloom for industry visionaries that are actively paving a new path forward.

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.
marketanalysis

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.

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.
marketanalysis

Not Every Mortgage-Related Firm Is Cutting Back

We’ve heard a lot recently about layoffs and industry consolidation, but it is important to note that not every mortgage-related company is contracting. For example, NMI Holdings, the parent company of National Mortgage Insurance Corp. (National MI), has said that National MI’s application for an insurance license in Wyoming has been approved by the Wyoming Department of Insurance. With Wyoming’s approval, National MI is now licensed to write mortgage guaranty insurance in all 50 U.S. states and the District of Columbia.

“We are pleased that National MI is able to provide mortgage insurance to lenders offering loans to borrowers in Wyoming,” said Bradley Shuster, president and chief executive officer of NMI Holdings, Inc. “The approval by the Wyoming Department of Insurance marks a significant milestone for National MI as we are now able to provide mortgage insurance in every state in the U.S., as well as the District of Columbia. We believe this is especially important to our customers who do business nationwide.”

By approving National MI as a licensed insurer in the state of Wyoming, National MI believes the Wyoming Department of Insurance is helping to expand the availability of mortgage financing, particularly for first-time homeowners who might not have a 20 percent down payment, Shuster noted. Private mortgage insurance is typically required on mortgages with a loan-to-value (LTV) ratio greater than 80 percent.

“National MI commends the Wyoming Department of Insurance for acknowledging the importance of private mortgage insurance and the role it plays in broadening home ownership opportunities for Americans,” Shuster said.

National MI received approval from Fannie Mae and Freddie Mac in January 2013.National MI, a subsidiary of NMI Holdings, Inc., is a U.S.-based, private mortgage insurance company enabling low down payment borrowers to realize home ownership while protecting lenders and investors against losses related to a borrower’s default.

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.
marketanalysis

Stretching Out

*Stretching Out*
**By Tony Garritano**

TonyG***We hear so much about people contracting these days. After all, not everyone can keep up with the new regulation and not everyone can transition to a purchase market with rates on the rise. So, when I hear of a company expanding or gaining traction, I think it’s worthy of sharing. In this case, National MI, a new mortgage insurance company with access to over $500 million of private capital, has successfully completed systems integration with LoanServ from Fiserv, a technology platform that performs mortgage servicing functions, including insurance coverage activation, billing transactions and certificate administration for lenders, banks, aggregators and credit unions. Here’s the story:

****The integration with LoanServ streamlines data transfers and is expected to increase efficiencies for National MI’s lender customers that use the Fiserv solution. “Our integration with LoanServ from Fiserv will enable National MI to support many of our customers’ servicing needs by making the process more convenient and straight-forward,” said Pete Pannes, chief sales officer at National MI.

****LoanServ automates all loan servicing processes, including integrated default management and collections, cashiering, escrow and investor accounting for both closed-end and revolving loans. With LoanServ, data transactions are available online in real-time to ease compliance risk and eliminate the limitations associated with an end-of-day batch processing cycle.

****National MI began writing mortgage insurance in April of this year. Both Fannie Mae and Freddie Mac approved National MI as a qualified mortgage insurer in January of 2013.

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.
checklist

MI Gets The GSE’s Approval

*Getting The GSE’s Seal Of Approval*
**New MI Development**

***National Mortgage Insurance Corporation (“National MI”), a new private mortgage insurer, has been approved as an eligible mortgage insurer by Fannie Mae and Freddie Mac, subject to maintaining certain conditions.National MI intends to offer mortgage insurance on a nationwide basis and provide an innovative approach to risk protection.

****Along with their approval, Fannie Mae and Freddie Mac have indicated that they will be ready to accept loans insured by National MI in the second quarter of 2013. Both Government Sponsored Enterprises (GSEs) will be communicating directly to lenders regarding the timing and process.

****“These approvals by Fannie Mae and Freddie Mac mark a huge milestone for National MI,” said Bradley Shuster, president and CEO of National MI. “I thank both Enterprises for their prompt actions and for recognizing the importance of a new mortgage insurance entrant at this critical time for the housing industry. National MI now officially embarks on the important business of providing mortgage insurance on mortgages to qualified borrowers.”

****National MI’s entry injects over $500 million of private capital into the market, and provides essential borrowing capacity to homebuyers who qualify for a mortgage, but may not possess a large down payment for a home, Shuster added.

****National MI was founded by Shuster and Jay Sherwood, executive vice president and CFO of the company. In 2012, NMI Holdings, Inc. raised $550 million in private capital for the new venture. The company has applied for licensing in all 50 states and the District of Columbia, and recently received approvals from several states, including California, New York, and Texas. National MI is now licensed in 24 states as well as the District of Columbia. National MI anticipates it will receive the remaining states’ approvals over the next several months.

****“National MI’s approval to provide mortgage insurance on loans delivered to Fannie Mae will provide greater capacity in the market”, said Rob Schaefer, Fannie Mae vice president of Credit Enhancement Strategy and Management. “We appreciate National MI’s ongoing work to meet our eligibility requirements and look forward to working with them as they serve Fannie Mae and our lender partners.”

****“Freddie Mac is pleased that National MI is able to provide Freddie Mac’s Sellers with additional mortgage insurance capacity by bringing the industry new capital at a level that is consistent with our safety and soundness principles,” said Gina Healy, vice president of Mortgage Insurance and Special Assets Workout, Freddie Mac. “Today’s announcement is a fresh sign that private capital is returning to our country’s recovering mortgage market.”

****The charters of the GSEs require additional credit support for conventional loans with loan to value ratios in excess of 80 percent. This credit support most often takes the form of private mortgage insurance which pays an insurance benefit to the lender, or investor in a mortgage loan, under certain circumstances when a loan defaults. The mortgage insurance provider is usually chosen by the mortgage lender.

Progress In Lending
The Place For Thought Leaders And Visionaries
marketanalysis

A New MI Player Emerges

*A New MI Player Emerges*
**By Tony Garritano**

***Anytime I hear of a new entrant I like to tell you about it. I find it refreshing. In this case, National Mortgage Insurance has launched and it has received approval from the California Insurance Department to write mortgage insurance in the state. Here’s the scoop:

****“Approval by the California Insurance Department is a critical step toward our operational launch, and in achieving our goal to provide mortgage insurance to homeowners in California and throughout the country,” 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 new mortgage insurance company has applied for state licensing in all 50 states and the District of Columbia, and is also seeking approvals from Fannie Mae and Freddie Mac to commence writing insurance, according to Glen Corso, general counsel of National MI.

****“We are making good progress in working with both Fannie Mae and Freddie Mac to receive their approvals, and are on track to do business in early 2013,” Corso 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.

****National MI estimates that its available capital will support mortgage insurance coverage on over $30 billion of mortgage loans, which will help make homeownership available for roughly 150,000 households throughout the country, most of whom are expected to be first-time homebuyers.

****“We thank the California Insurance Department for issuing its conclusive assessment in a timely manner, and recognizing the benefit that increased mortgage insurance capacity provides in supporting American homeownership,” Shuster said. Private mortgage insurance is typically required on mortgages with a loan-to-value (LTV) ratio greater than 80 percent.

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.