Citigroup Nears $7 Billion Deal to Resolve Mortgage Probe

first_imgHome / Daily Dose / Citigroup Nears $7 Billion Deal to Resolve Mortgage Probe The Best Markets For Residential Property Investors 2 days ago Previous: DS News Webcast: Wednesday 7/9/2014 Next: Castro Confirmed as HUD Secretary Servicers Navigate the Post-Pandemic World 2 days ago About Author: Derek Templeton Citigroup Nears $7 Billion Deal to Resolve Mortgage Probe Citigroup Department of Justice Mortgage-Backed Securities Settlement 2014-07-09 Derek Templeton Tagged with: Citigroup Department of Justice Mortgage-Backed Securities Settlement The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Share Save Derek Templeton is an attorney based in Dallas, Texas. He practices in the areas of real estate, financial services, and general corporate transactional law. His experience includes time as an Attorney Adviser for the U.S. Small Business Administration and as General Counsel for a nonprofit organization in Dallas. A self-avowed “policy junkie,” he has a keen interest in the effect that evolving federal policy has on the mortgage, default servicing, and greater housing industries. Related Articles Demand Propels Home Prices Upward 2 days agocenter_img Citigroup is close to a deal with the Department of Justice to resolve allegations that the bank sold defective mortgage backed securities in the lead up to the financial crisis, according to a report by the Wall Street Journal late Tuesday night.Citing people familiar with the matter, the report claims that the settlement negotiations are getting close to finalizing a settlement of $7 billion. Officials from Citigroup and the Justice Department both declined comment on the ongoing negotiations.According to people familiar with the matter, the deal will include $4 billion in cash payments to the federal government, with the rest coming in the form of borrower relief. The negotiations had been stalled until Citigroup reportedly upped their cash offer from $1 billion recently.The deal would be the latest in a series of agreements between the government and major banks as the Justice Department seeks to apportion blame and repay the taxpayers for the part that the banks played in the events that caused the large scale economic downturn of the previous decade, a hole that the economy is still trying to dig out of to date.The agreement could also  put more pressure on Bank of America to settle its own ongoing negotiations with the Justice Department. Talks between the two stalled last month. Last November, J.P. Morgan agreed to pay a record $13 billion. The government is said to be seeking more from Bank of America because the company issued more securities whose failure had a larger impact on the economy.According to the report, the government was initially seeking $10 billion from Citigroup, closer to the deal that it got in the J.P. Morgan settlement, because it argued that, even though Citigroup issued fewer securities, the securities that it did offer performed much worse and had a greater detriment to the economy than securities offered by other banks.More settlements are likely to be forthcoming. Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Government, Headlines, News Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago July 9, 2014 820 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Subscribelast_img read more

FHA Introduces Lender Evaluation Metric to Expand Credit Access

first_img August 17, 2015 1,985 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago FHA Introduces Lender Evaluation Metric to Expand Credit Access in Daily Dose, Featured, Government, News Tagged with: Federal Housing Administration FHA FHA-Approved Lenders Supplemental Performance Metric The Week Ahead: Nearing the Forbearance Exit 2 days ago Xhevrije West is a talented writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University. Previous: The TRID Delay: What it Means for the Industry Now and In the Future Next: DS News Webcast: Tuesday 8/18/2015 Share Save Demand Propels Home Prices Upward 2 days ago The Federal Housing Administration (FHA) announced Monday a new method that will be used to evaluate the lending practices of FHA-approved lenders and help them understand the type of borrowers they are serving.“This is one more tool to help FHA, lenders, and the public, know exactly who we’re serving,” said Ed Golding, principal deputy assistant secretary for housing. “By better understanding FHA’s acceptable risk tolerance levels for a variety of credit scores, lenders will have the confidence to lend more broadly and FHA will have more data on how successful those lenders are.”The new method, FHA’s Supplemental Performance Metric will work jointly with the agency’s existing ‘compare ratio’ and offer different insight into a lender’s specific performance while encouraging lenders to serve eligible borrowers that are not necessarily credit worthy.FHA lenders will be able to see the impact of their business at all ends of the credit spectrum with the new supplemental performance metric, the FHA says. This will fall in line with the FHA’s willingness to insure loans to eligible borrowers with lower credit scores.Currently, the FHA calculates a ‘compare ratio’ for all FHA-approved lenders. This ratio compares a lender’s rate of early defaults and claims for insured single family mortgage loans to other approved lenders in a geographic area. Compare ratios identify lenders with a large amount of default and claim rates compared to their counterparts and which lenders FHA may terminate.The FHA noted that lenders placed concerns about the compare ratio being a comparison to one’s peers rather than to FHA’s risk tolerance, which the Supplemental Performance Metric responded to.The metric, along with the compare ratio, provides a more granular, nuanced look at lender performance by measuring default rates and claims in three distinct credit bands. Additionally, lenders will have a better understanding of who they are serving, according to the announcement.In May 2014, FHA proposed the development of a Supplemental Performance Metric—one component of FHA’s Blueprint for Access to Credit initiative, an effort to expand access to mortgage credit to underserved borrowers.This new complementary metric was made available at end of the July 2015 in FHA’s Neighborhood Watch Early Warning System. The new metric is designed to help mitigate adverse selection of borrowers with certain credit profiles and encourage the extension of homeownership opportunities to underserved segments of the market. The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribecenter_img Sign up for DS News Daily Related Articles Demand Propels Home Prices Upward 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Federal Housing Administration FHA FHA-Approved Lenders Supplemental Performance Metric 2015-08-17 Brian Honea The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / FHA Introduces Lender Evaluation Metric to Expand Credit Access About Author: Xhevrije Westlast_img read more

DS News Webcast: Friday 8/19/2016

first_img Demand Propels Home Prices Upward 2 days ago in Featured, Media, Webcasts DS News Webcast: Friday 8/19/2016 Is Rise in Forbearance Volume Cause for Concern? 2 days ago Related Articles Governmental Measures Target Expanded Access to Affordable Housing 2 days ago 2016-08-18 Brian Honea Home / Featured / DS News Webcast: Friday 8/19/2016 Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Share Savecenter_img The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Unemployment dropped by 4 thousand claims last week, though claims were still up slightly compared to a month prior, according to U.S. Department of Labor. The D O L ’s latest weekly report on unemployment claims found 2 hundred 62 thousand claims for the week ending August 13. This marks the 76th consecutive week of initial claims below 300 thousand, the longest streak since 1970.The advance seasonally adjusted insured unemployment rate was 1 point 6 percent for the week ending August 6, unchanged from the previous week’s unrevised rate. The 4-week moving average was 2 point 155 million, an increase of 10 thousand 750 from the previous week’s revised average. Unadjusted, the advance number of actual initial claims under state programs totaled 219 thousand 544 in the week ending August 13, a decrease of 5 point 2 percent from the previous week. There were 229 thousand 251 initial claims in the comparable week of 2015.U.S. Housing and Urban Development Secretary Julián Castro recently announced that the U.S. Department of Housing and Urban Development will quickly provide federal disaster assistance to the State of Louisiana as well as provide support to homeowners and low-income renters forced from their homes due to severe storms and flooding. Specifically, HUD is granting immediate foreclosure relief to these homeowners. Demand Propels Home Prices Upward 2 days ago About Author: Brian Honea Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Previous: State of Default Servicing Covered in Five Star White Paper Next: Is the Fixing and Flipping Market Cooling? August 18, 2016 1,198 Views Subscribelast_img read more

Credit Unions Support OCC’s FinTech Proposal, Sort Of

first_imgHome / Daily Dose / Credit Unions Support OCC’s FinTech Proposal, Sort Of  Print This Post The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago The National Association of Federally-Insured Credit Unions is coming out in support—at least in part—of the OCC’s recent proposal to afford special purpose national bank charters to FinTech companies.In a letter to the Office of the Comptroller of the Currency (OCC), NAFCU Regulatory Affairs Counsel Andrew Morris said that while the organization is behind the OCC’s recently proposed initiative to allow FinTechs to operate as banks, it also believes these companies need regulation and supervision. And, in particular, they should be held to the same standards of already existing banks and credit unions.“Innovation in financial services and technology contributes to the growth of the entire financial sector,” Morris wrote. “However, NAFCU believes that FinTech companies require a minimum level of regulation and supervision to ensure fair competition and consumer protection … NAFCU also believes that chartered FinTech companies should be held to the same consumer protection laws as chartered banks and credit unions and that the OCC should only deviate from such uniformity in extraordinary circumstances.”Morris also called attention to the issues of cybersecurity with FinTechs.“Fintech companies stand to play a vital role in the financial sector,” Morris wrote, “and their cybersecurity security standards should reflect the increased risk of handling and processing large volumes of financial data online. If FinTech companies are to be entrusted with aggregating millions of consumer records and information—both financial and non-financial in some instances—then they should be held to the same high standards as banks and credit unions of similar size and complexity.”Overall, the move to offer special purpose charters to FinTechs is only the first step of many in expanding the lending market. In the future, other non-bank entities may also be granted charter eligibility, and when this occurs, it will be important to ensure a level playing field for all financial institutions, Morris said.“As the OCC begins to identify requirements for prospective charter applicants,” Morris wrote, “it should ensure that online lenders, aggregators, and other non-bank entities that seek the benefits of a charter are generally held to the same consumer protect and data standards as banks and credit unions.”The OCC proposed allowing special purpose bank charters for FinTech firms in late November 2016. In his announcement, Comptroller of the Currency Thomas Curry said doing so was in the overall public interest.“FinTech companies hold great potential to expand financial inclusion, empower consumers, and help families and businesses take more control of their financial matters,” Curry said. “FinTechs, while not without some risks, also can potentially deliver these products and services in a safer and more efficient manner. Preferences and needs of consumers, communities, and business are changing. And chartering companies that are finding new and better ways of satisfying those needs is another step toward supporting responsible innovation that is good for consumers, good for the federal banking system, and good for the country.”Read more about the OCC’s proposal by clicking here. Tagged with: Credit Unions Fintechs NAFCU OCC About Author: Aly J. Yale Previous: A Mixed Bag of Profitability and Mortgage Income Next: Under-$30K Earners Denied TARP Assistance in Droves Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Credit Unions Support OCC’s FinTech Proposal, Sort Of Governmental Measures Target Expanded Access to Affordable Housing 2 days agocenter_img Data Provider Black Knight to Acquire Top of Mind 2 days ago in Daily Dose, Featured, Government, News, Technology The Week Ahead: Nearing the Forbearance Exit 2 days ago Aly J. Yale is a freelance writer and editor based in Fort Worth, Texas. She has worked for various newspapers, magazines, and publications across the nation, including The Dallas Morning News and Addison Magazine. She has also worked with both the Five Star Institute and REO Red Book, as well as various other mortgage industry clients on content strategy, blogging, marketing, and more. Credit Unions Fintechs NAFCU OCC 2017-01-13 Brian Honea January 13, 2017 1,406 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles Subscribelast_img read more

House Votes to Drastically Change CFPB

first_img Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Government, News, Secondary Market June 8, 2017 2,094 Views Demand Propels Home Prices Upward 2 days ago Dodd-Frank Act Financial CHOICE ACT 2017-06-08 Brianna Gilpin Governmental Measures Target Expanded Access to Affordable Housing 2 days ago On Thursday, the House of Representatives passed a landmark bill–233 to 186–that, in its current form would dramatically change the future of financial regulation. The Financial CHOICE Act, originally introduced by Representative Jeb Hensarling (R-Texas), Chairman of the House Financial Service Committee, on April 26, 2017, significantly amends the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act.In mid-April, Republicans introduced the bill, arguing that Dodd-Frank and the subsequent regulation that ensued harms economic growth and ultimately, the American consumer. According to the proposal, Dodd-Frank’s particular brand of regulatory complexity and government micromanagement made basic financial services less accessible to small businesses and lower-income Americans.The CHOICE Act is the Republican response to reforms put in place after the 2008 economic collapse. Critics of Dodd-Frank have long argued that the law is too restrictive for financial institutions, driving up the cost of compliance, a cost that is ultimately born by the public. Republicans insist that the CHOICE Act offers financial institutions of all sizes a “Dodd-Frank off-ramp,” which, is an avenue to freedom from an overly burdensome and highly intrusive regulatory regime in exchange for the institutions maintaining significantly larger capital reserves than currently required.”Yes, there are a couple of particular things where we could tighten it up, but the assault on the major set of plans is greatly mistaken,” former Rep. Barney Frank, D-Mass., said recently on Squawk Box Asia. “Any comprehensive legislation needs some changes. If the Republicans hadn’t taken over the House in 2011, with an avowed purpose to get rid of the whole thing, we would have made the changes.”The CHOICE Act purports to achieve three major policy goals:Convert the Consumer Financial Protection Bureau (CFPB) into a consumer law enforcement agency subjecting it to the congressional appropriations process;Eliminate CFPB’s supervisory authority over financial institutions and limit its power to take action against entities;Remove “Too Big to Fail,” or the Financial Stability Oversight Council’s authority to designate non-bank financial institutions and financial market utilities as “systematically important”The bill’s sponsors say the intent of the bill is to create hope and opportunity for investors, consumers, and entrepreneurs by holding Washington and Wall Street accountable, eliminating red tape to increase access to capital and credit.“Supporters of Dodd-Frank promised it would lift the economy, end bailouts, and protect consumers,” Hensarling said in April. “Yet Americans have suffered through the worst recovery in 70 years, Dodd-Frank guarantees future bailouts for Wall Street, and consumers are paying more and have fewer choices. Dodd-Frank failed to keep its promises to the American people, but we will work with President Trump to follow through on his promise to dismantle Dodd-Frank. That’s not what Wall Street wants, but it is what hardworking Americans need to have a healthier economy with more opportunities so they can achieve financial independence.”Congresswoman Maxine Waters, Ranking Member of the House Committee on Financial Services, quipped that she calls the act the “Wrong Choice Act” because it would be extremely harmful for hardworking Americans across the country.“Let’s first talk about why we passed Wall Street reform and created the Consumer Bureau in the first place,” Waters said. “Remember the financial crisis? At the core of it, there was an epidemic of irresponsible and malfeasant behavior by financial institutions. Under-regulated predatory lenders peddled and pushed toxic subprime loans to unsuspecting borrowers. Then Wall Street packaged those loans into securities, paid credit rating agencies to rate them AAA, and made bets that they would fail. When they imploded, it sent the economy tumbling into the Great Recession.”Waters went on to say the Democrats took action to ensure that this sort of abusive behavior could never happen again by passing Dodd-Frank and creating the CFPB and the passage of the CHOICE Act would lead the country down the road to another financial crisis.“Although financial services reform was necessary in the wake of the crisis, the passage of Dodd-Frank represented an overcorrection that ushered in an overly burdensome and unnecessarily complicated regulatory scheme for the mortgage industry,” said Five Star Institute President & CEO Ed Delgado. “Now nearly a decade later, the industry has partnered with government stakeholders and adapted to the new climate at great cost. I urge congress to be mindful of the business reality and enact any common sense financial reform in an incremental fashion to ensure continuity for the American Consumer.” Related Articles Sign up for DS News Daily About Author: Brianna Gilpin Share Save Tagged with: Dodd-Frank Act Financial CHOICE ACTcenter_img Servicers Navigate the Post-Pandemic World 2 days ago Previous: Secretary Carson Defends HUD Budget Proposal Before Housing Subcommittee Next: JPMorgan Chase to Undergo Leadership Changes The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / House Votes to Drastically Change CFPB The Week Ahead: Nearing the Forbearance Exit 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago House Votes to Drastically Change CFPB Subscribe Data Provider Black Knight to Acquire Top of Mind 2 days ago Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation’s leading diversified media and information services companies. To contact Gilpin, email [email protected] last_img read more

The Week Ahead: Examining Home Prices and Affordability

first_img Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Examining Home Prices and Affordability Sign up for DS News Daily in Daily Dose, Featured, Market Studies, News Previous: Housing Market Health Indicators Next: Angel Oak Appoints New Accounts Executives Demand Propels Home Prices Upward 2 days ago Subscribe Affordability Home Prices Metropolitan Median Area Prices and Affordability report NAR National Association of Realtors 2018-05-13 David Wharton Related Articles Share Save About Author: David Wharton  Print This Post Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days agocenter_img May 13, 2018 1,568 Views Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Affordability Home Prices Metropolitan Median Area Prices and Affordability report NAR National Association of Realtors Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago David Wharton, Managing Editor at the Five Star Institute, is a graduate of the University of Texas at Arlington, where he received his B.A. in English and minored in Journalism. Wharton has over 16 years’ experience in journalism and previously worked at Thomson Reuters, a multinational mass media and information firm, as Associate Content Editor, focusing on producing media content related to tax and accounting principles and government rules and regulations for accounting professionals. Wharton has an extensive and diversified portfolio of freelance material, with published contributions in both online and print media publications. Wharton and his family currently reside in Arlington, Texas. He can be reached at [email protected] Governmental Measures Target Expanded Access to Affordable Housing 2 days ago On Monday, May 14, at 10 a.m. ET, the National Association of REALTORS will release the latest installment of their Metropolitan Median Area Prices and Affordability Index. This release of the Index will cover Q1 2018.The previous edition of NAR’s Metropolitan Median Area Prices and Affordability Index found that the national median existing single-family home price in Q4 2017 was $247,800. That was up 5.3 percent over Q4 2016’s national median existing single-family home price of $235,400. NAR found single-family home price increases in 162 out of 177 MSAs, or 92 percent of measured markets.Here’s what else is happening in The Week Ahead.Redbook Release, Tuesday, 8.55 a.m. ESTNAHB/Wells Fargo Housing Market Index, Tuesday, 10 a.m. ESTMBA Mortgage Applications Survey, Wednesday, 7 a.m. ESTCensus Bureau New Residential Construction Survey, WednesdayFederal Housing Administration HUD Delinquency Activities and Loss Mitigation Programs webinar, Wednesday, 2 p.m. ESTFreddie Mac Primary Mortgage Market Survey, ThursdayPhiladelphia Fed Business Outlook Survey, Thursday, 8:30 a.m. ESTFed Balance Sheet, Thursday, 4:30 p.m. EST Home / Daily Dose / The Week Ahead: Examining Home Prices and Affordabilitylast_img read more

Creating Consumer Connect

first_img December 21, 2018 1,577 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Ellie Mae Encompass Consumer Connect Experian Mortgage Fannie Mae Joe Tyrrell Michele Pearson 2018-12-21 Donna Joseph  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Home / Featured / Creating Consumer Connect Demand Propels Home Prices Upward 2 days ago Demand Propels Home Prices Upward 2 days ago About Author: Donna Joseph in Featured, Headlines, News, Servicing, Technology Related Articles Tagged with: Ellie Mae Encompass Consumer Connect Experian Mortgage Fannie Mae Joe Tyrrell Michele Pearsoncenter_img The Best Markets For Residential Property Investors 2 days ago The Best Markets For Residential Property Investors 2 days ago Donna Joseph is a Dallas-based writer who covers technology, HR best practices, and a mix of lifestyle topics. She is a seasoned PR professional with an extensive background in content creation and corporate communications. Joseph holds a B.A. in Sociology and M.A. in Mass Communication, both from the University of Bangalore, India. She is currently working on two books, both dealing with women-centric issues prevalent in oppressive as well as progressive societies. She can be reached at [email protected] Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Ellie Mae Appoints New SVP of Enterprise Sales Next: Housing Finance in 2019 Ellie Mae, a California-based, cloud-based platform provider for the mortgage finance industry, announced enhancements to Encompass Consumer Connect, that include identity, employment, and income verification. These enhancements help lenders engage with homebuyers and provide a more streamlined application process, to help foster interest, engage borrowers and convert opportunities. The enhancements include the integration of Experian’s CrossCore platform, which enables lenders to use a passive, multi-layered approach to establish identity and assess risk, providing a positive experience for borrowers. Mortgage lenders can combine historical data, such as demographic information, and first-party fraud risk assessment with step-up authentication methods to verify an individual during the application process. Upon submission of the loan application, the data is immediately sent to the identity verification provider and a report is generated and sent to the Encompass eFolder within one hour of submission.Since the launch on July 9, 2018, Encompass Consumer Connect continues to add key functionality which now includes support for verification services that provides lenders the ability to automate borrower identity, employment, and income verification to achieve day 1 certainty from Fannie Mae to close loans faster. In addition to providing a seamless digital experience for homebuyers, Encompass Consumer Connect helps lenders close loans faster. “At Experian, we are constantly innovating to modernize the mortgage process and support the industry’s evolution,” said Michele Pearson, General Manager of Experian Mortgage. “We’re proud to work with Ellie Mae to maximize the power of data and analytics to more quickly and accurately authenticate prospective borrowers while helping businesses make smarter lending decisions.”“Lenders are looking for more efficient ways to engage homebuyers and with these updates to Encompass Consumer Connect, we’re making it easier for borrowers to complete their loan applications,” said Joe Tyrrell, EVP of corporate strategy at Ellie Mae. “Our recent enhancements to Encompass Consumer Connect offer identity, employment and income verification, and an integration with Experian that simplifies and expedites key verification activities for an improved borrower experience.” Sign up for DS News Daily Servicers Navigate the Post-Pandemic World 2 days ago Share Save Creating Consumer Connect Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img read more

Five Minutes With: SunTrust’s Ken Meyer

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post The Best Markets For Residential Property Investors 2 days ago Editor’s note: this piece originally appeared in the May edition of DS News.As CTO of SunTrust’s consumer banking arm, Ken Meyer is responsible for many aspects of Enterprise Information Services (EIS), the organizational unit that provides the company’s overall technology and information-related support. Most recently, he was the head of wholesale lending operations at SunTrust where he was responsible for the middle office that supports small business banking as well as commercial and business banking and private wealth management. Meyer joined SunTrust in 2013 from Accenture where he worked with leading financial institutions including SunTrust. He recently spoke to DS News about how technology is changing the servicing side of the business and why providing a complete digital experience to consumers will be more important than ever for lenders.Which technologies are defining the mortgage and servicing industry this year? This year is less about one technology and more about continuously changing it based on client expectations and experience. Lenders who use technology successfully will be the ones who can leverage it to reduce the stress of buying a home and really educating borrowers about the process while being transparent throughout their mortgage experience. People don’t understand the rules and regulation when it comes to originating a loan. They just want to buy a home and their expectations are changing with different experiences especially with online retail giants like Amazon.The question is how do we try to reduce the friction in a safe way and educate homebuyers along the way and communicate transparently? Digital engagement is the way of the future. It doesn’t just start and stop where technology can help with origination. We should be looking at automation and different technologies in the future and at things like artificial intelligence and machine-learning as well as other ways to leverage data to better and quicker decisions for our clients.That way, we can reduce the ultimate cycle turn and really equip our teammates from an underwriting and servicing perspective in a way that they have more information and more data than they ever had before. Fewer clients want to call or go see somebody for their borrowing needs. While those channels still exist and will continue to be there, clients are becoming more comfortable with the idea of leveraging technology and digital channels. Lenders must make sure they’re meeting clients where they want, when they want, and how they want.SunTrust and BB&T announced a merger of the two banks. What will be the impact of this deal on the digital lending platforms of both the banks, especially in the mortgage space? The news about our merger was exciting for SunTrust and BB&T. It looks like a great opportunity for two purpose-driven companies to come together and bring even more value to both of our clients. Though it is still early days to comment on how we plan to leverage our digital platforms, we look forward to sharing more as soon as we can.Speaking about SunTrust specifically, our digital mortgage journey has been all about how we get to the point where we put as many tools in the hands of our clients to self-serve seamlessly. We’ve been improving the servicing as well as origination aspect of mortgages through digital initiatives.From the servicing perspective, we’ve been on the same journey as many other financial institutions, especially those that have a mortgage presence. In many institutions, you would have separate logins, separate portals, and separate experiences when it comes to post-closings and the different mortgage servicing aspects. We’ve continued to work on integration into our online channels and mobile channels over the past few years to get to to the point where clients can easily manage their own mortgage alerts and schedule their payments. Through online banking, we’ve focused on things like how we leverage digital capabilities to engage our clients with things like escrows, settlement, and mortgage statements.From the origination perspective, we launched SmartGUIDE nationally in March 2018, as a digital platform for clients to engage with us at the point of sale and as a tool for our loan officers to help them guide clients through what is an extremely stressful period of their life—the actual process of buying a home. To date, we’ve had over 13,000 applications submitted via this platform, and we’ve seen a 25 percent rise in the use of this application since October, which goes to show the strong digital adoption by homebuyers.What are some of the trends that will define lending in the second quarter of the year? The mortgage industry continues to be ever changing. We’ve seen volume in the refinance area decreasing while the focus has increased on the purchase origination side of the house. However, the biggest trend that’s emerging is the increasing willingness of borrowers to engage with lenders in a digital fashion. Lenders, this year, would do well to focus on digital engagement platforms for their clients. For example, within a year of rolling out our digital platform, 75 percent of our applications come through the digital channel. Lenders must create a best-in-class experience that, regardless of what their clients are interested in and whatever they ask for can be leveraged digitally because it is easy to use and educates them along the way.What does a typical day look like for your team? As a team that works across various bank operations and businesses, we want to make sure that the foundation for all our digital initiatives remains strong. As a result, my team is always focused on continuous improvement and making sure that we offer a safe, secure, stable, and reliable experience to our clients. Based on client and teammate feedback, we try putting the best technology stack in front of them to ensure a great experience. Our teams are heavily integrated with our business partners and we’re taking on more of an agile mindset with how we develop software and run the different applications. We’re constantly trying to disrupt ourselves, so a lot of discussion is around how do we ultimately leapfrog into the future and make sure that we’re not only thinking about our clients’ needs for today but also for the future. in Daily Dose, Featured, News, Print Features May 23, 2019 3,199 Views Demand Propels Home Prices Upward 2 days ago Related Articles Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Mike Albanese Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Counseling Legal mortgage Servicing Share Savecenter_img Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Five Minutes With: SunTrust’s Ken Meyer Five Minutes With: SunTrust’s Ken Meyer Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe The Week Ahead: Nearing the Forbearance Exit 2 days ago Previous: The Next Frontier in Home-Flipping Investment Next: Latest Look at Housing Trends Mike Albanese is a reporter for DS News and MReport. He is a University of Alabama graduate with a degree in journalism and a minor in communications. He has worked for publications—both print and online—covering numerous beats. A Connecticut native, Albanese currently resides in Lewisville. Counseling Legal mortgage Servicing 2019-05-23 Mike Albanese Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days agolast_img read more

How Servicers are Handling Remote Working

first_img Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Demand Propels Home Prices Upward 2 days ago Phil Britt started covering mortgages and other financial services matters for a suburban Chicago newspaper in the mid-1980s before joining Savings Institutions magazine in 1992. When the publication moved its offices to Washington, D.C., in 1993, he started his own editorial services room and continued to cover mortgages, other financial services subjects, and technology for a variety of websites and publications. Leveraging TechnologyTechnology topped the list of concerns when management at Fairway Independent Mortgage Corp., an interim servicer, decided to shift to a work-from-home environment in mid-March, said Kim Yowell, EVP for Servicing. Since the move was made before any shelter-in-place orders were invoked, the servicer was able to dispatch an IT specialist to aid with initial setup of laptops and docking stations (taken from the office). Other servicers also had IT heavily involved to ensure the technology worked at home much as it did in the office.Another option, contained in an advisory from the National Mortgage Servicing Association (NMSA), are newer infrastructure services, such as Desktop-as-a-Service (DaaS), which are designed to securely connect and scale remote workforces without business disruptions. Amazon Workspaces is one example, which has encryption protocols to encrypt client-based traffic in transit and at rest. Many servicers simply moved equipment like laptops, docking stations, desktops, and headsets from offices to home environments, with IT helping with any setup issues. A few servicers, including Mr. Cooper and AHP Servicing, purchased additional laptops and similar equipment for workers to use at home prior to moving their workforces.Kenneth Daniel, President of AHP Servicing, said it was fortuitous that the company moved early on those purchases. As servicers and other businesses moved their workforces from centralized offices to remote work, laptops, monitors, and similar equipment became difficult or impossible to find and delivery times were extended from a day or two to weeks or more.Doherty added that the immediate concerns were ensuring that staff had internet communications and dual monitors needed to perform their jobs. After meeting those immediate needs—particularly as volume spiked with the jump in forbearances the first few weeks of the pandemic—the company started addressing more minor issues like keyboards, advanced headsets, etc.“We wanted to go from just the basics to get the job done to an optimal work environment,” Doherty said. “While most of the country has access to broadband communications, that isn’t the case in certain pockets. We had to see who had solid internet connections,” Doherty told DS News. “For those who didn’t have them, we started handing out Wi-Fi devices so that they had solid connections.”Patrick Coon, Senior Managing Director, Servicing for Home Point Financial Corp., said, that while all staff was already equipped with laptops and monitors prior to the pandemic, Home Point offered a stipend for remote employees to offset costs associated with working from home.Servicers who were using cloud-based communication systems said they offered advantages because all they had to do was move headsets or headset/handset combinations to another location with internet connectivity to mimic the office telecommunications environment. Jane Mason, CEO of Clarifire, said that there are other, smaller communications issues that have been new to people suddenly working from home, such as proper lighting and appropriate attire for video calls. Data Provider Black Knight to Acquire Top of Mind 2 days ago How Servicers are Handling Remote Working This story originally appeared in the July edition of DS News.While some servicers had staff working remotely prior to COVID-19 the onset of shelter-in-place orders for many municipalities and state governments, at the end of February, most servicers had the bulk of their staff working in centralized offices. By the end of March, most of them had all but a few personnel working from home, requiring a dramatic reevaluation of working arrangements, management techniques, and other facets of day-to-day work.Seeing reports of the emerging pandemic starting in late January, Mr. Cooper Group executives began discussing remote working strategies in late January. The company adjusted its teams to work from home in only five days in the middle of March. Prior to the pandemic, the company had less than 10% of its staff working from home, a figure that grew to 97% by the start of the spring, according to Kelly Ann Doherty, Chief People and Communications Officer for Mr. Cooper Group. What was experienced by Mr. Cooper, the third-largest servicer in the country, was typical of many in the industry.“This is something no one ever envisioned,” said Wes Iseley, Senior Managing Director for Carrington Holding Company.“The industry has rallied. The industry as a whole has done a wonderful job. We’ve all worked together to share best practices on what is working.”While few within the industry had seriously anticipated a health crisis of this scale, most of the executives DS News spoke with for this piece said they were following the progress of the pandemic before March and shifted their workforces to remote working even ahead of any government shelter-in-place rules.As with many other industries, there were numerous challenges servicers had to address when moving from centralized offices to remote work. For this piece, DS News spoke to representatives of Carrington Holding Company, Mr. Cooper Group, and other servicers to learn how they handled and are continuing to work through historic challenges, even as volumes began peaking due to the record number of forbearances. Balancing Work and PlayWithout the need to commute and without the need to drive children to practices, school, etc., and similar time-consuming tasks, servicing workers can spend more time on the job without losing time for personal activities. This can be both a blessing and a curse, according to those we spoke with. NMSA recommends maintaining regular working hours, including planned breaks—planning working hours and penciling in suitable breaks allows employees to focus on what needs to be done and when. Carrington has advised its employees to stay focused within their scheduled time periods so that work doesn’t bleed over into personal time, Isley said.“We want to make sure people aren’t overworking themselves.”Some servicers pointed to the need for more flexible schedules, particularly since many employees now had children home from school.“There have been a few instances of burnout,” Yowell said. “We’ve reached out to people to make sure that they manage their PTO properly. Once they have a certain amount, they can’t accrue any more.”Daniel said that many team members have been able to spend more time on the job because they no longer need to waste time commuting—sentiment other expressed as well. He added that it’s easier for remote staff to take a quick break while working from home than from the office. The latter requires taking an elevator each way and going through security to re-enter the building. “There’s more flexibility when you’re remote.”However, without managers being able to oversee staff as closely as they can when in the office, AHP asked employees to fill out reports on what they worked on each day. Daniel, Coon, and others said being more flexible with schedules has helped as well.Coon added that his company recognized that many workers had delayed or forgone planned vacations since travel and lodging options had become limited. In April, however, the company insisted that workers take at least one day off to balance life/work and completely away from anything work-related. Servicers Navigate the Post-Pandemic World 2 days ago Home is Where the Challenges AreCentral offices are designed to keep background noise to a minimum. Not so the typical home office. In addition to the occasional barking dog, loud lawnmower, or other such distractions, there are also interruptions from family—even more so once children began homeschooling in the spring.“Another hurdle we encountered early on was thinking outside the box for our team members that are juggling other responsibilities while at home,” Adams said. “For example, team members that have children at home or who are caregivers to a loved one. For those folks, they are pulled in both directions, which can be physically and emotionally exhausting. In order to combat some of that stress, we offer flexible scheduling whenever possible.”It has become more the norm than not to hear people or pets in the background during a meeting, Adams added. “When that happens, we take the opportunity to engage with our extended RoundPoint family. Really, the only way to get through these tough times is to have some fun and laugh when you can.”Other servicers said that everyone knows “we’re all in this together,” so managers and customers are much more tolerant of the background noises common in many home-based offices. For work-at-home employees, NMSA recommends designating a workspace and ground rules for interacting with others; being clear from the outset as to where your working space is and the hours you’ll be working; locking your machine at all times when not in use; and leveraging technology and tools to eliminate manual printing of documents. Data Provider Black Knight to Acquire Top of Mind 2 days ago Subscribe 2020-07-23 Mike Albanese Share Save July 23, 2020 2,147 Views The Week Ahead: Nearing the Forbearance Exit 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago Related Articles Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Demand Propels Home Prices Upward 2 days ago Back to the Office?While most servicers moved from their centralized offices to home offices relatively quickly—typically within a couple of weeks or less—those interviewed told DS News that there was no rush to return to the previous working environment, due primarily to concerns about the safety and health of employees. One notable exception is AHP, which saw most of its small servicing staff return to the offices at the Chicago Board of Trade building once the city permitted it at the beginning of June. Daniel said that the building is set up for safety—requiring masks for entry, no-touch elevators that go only to designated floors, etc. Some staff will continue to work remotely but will still come into the office once or twice a week.According to Yowell, Fairway officials have already decided to have the servicing team remain in their remote office environments through the remainder of the year. Other servicers haven’t announced anything as definitive, though they all say they will be extremely conservative in their transition back to centralized offices. Another factor—far behind the health and safety of the staff—is that servicers have found that staff has not only kept up productivity and other key performance indicators but, in some instances, have actually improved on them since moving to home-based environments.“As a result of our approach, our RoundPoint teams are doing amazingly well working from home,” Adams said. “They have taken adversity in stride and continue to meet, if not exceed, the goals set forth.” Security ConcernsOffice environments tend to have the latest security precautions. Servicers are working with sensitive financial and personally identifiable information, meaning there are severe potential fines, as well as other business and reputational risks, for any potential security breaches. For the most part, servicers had workers take home their desktops or laptops from the office, so those already had company-installed security precautions. Home Point Financial Services Corp. and other services also added virtual private network capabilities for staff—another of NMSA’s recommendations designed to provide an extra level of security.While most had access to laptops or desktops, there were some at Home Point Financial that needed to get new machines. In those instances, company IT worked with employees to ensure that the devices had all of the necessary security protocols, Coon said.Security is also a regular part of training for many servicers—many of whom emphasized that they stepped up training once the pandemic hit.NMSA also recommends establishing and implementing well-defined security awareness training programs, with programs and security awareness notifications delivered to employees on an ongoing basis, regardless of where employees are working. Other NMSA security precautions for employees working from home include implementing a secure mail protocol such as Mimecast; using a third-party managed detection security vendor so that a security operation center monitors all network entry points, internal and external facing, for threats, viruses, malicious network intrusion, and unusual activities around the clock; and implementing a third-party identity provider such as BitGlass to increase control and authentication, and to prevent data leakage from mobile devices such as iOS and Android cell phones and tablets. About Author: Phil Britt in Daily Dose, Featured, News, Print Features Home / Daily Dose / How Servicers are Handling Remote Working Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Collaboration is KeyMost servicers are conducting team meetings via Zoom (the most popular option among the servicers that DS News interviewed), Google Meets, or similar applications, with many conducting more team and more one-on-one meetings than they had previously to help ensure that everyone is engaged and feels they are integral in their companies.“We want our team members to know that they are vital to us,” Doherty said. She added that one strong indicator of how Mr. Cooper Group’s managers are engaging with teams is the results of the pulse surveys the company conducts. The surveys are used to solicit employee feedback on a variety of issues to help the company continue to improve its employee engagement. Last year, 70% of workers replied to one survey that they felt a “family” or “team” feeling within the company. This year, that same survey showed an improvement to 75%.“That really spoke to how well our team members are working with each other,” Doherty said.Home Point uses daily surveys to understand and address and assist with any COVID-19-related problems or technical issues the remote staff is experiencing, Coon said. Some of the biggest changes for servicers have been related to simply managing a decentralized workforce in the absence of the natural interactions co-workers and managers experience in an office setting.“The biggest adjustment to working remotely has been determining the right amount of communication to keep everyone in the know,” said Dawn Adams, SVP of Default Servicing for RoundPoint Mortgage Servicing Corp. “We want to be transparent, but we do not want to overwhelm people with communication.”Nevertheless, regular, ongoing communications are critical to help staff work through their own challenges of dealing with the pandemic, servicers agree.“We meet with our teams daily and have an all-hands meeting with our chairman every week,” Coon said. “We have huddle sessions the first thing in the morning. We’re trying to bring the office to the staff.”“It’s important that no team member ever feel isolated in today’s environment, so we work hard to give the team that continual sense of community. We are all in this together and must support each other in any way possible,” Adams said.“The company culture is very important to us,” Doherty said. “We’ve been incredibly proud of our teams. Our people have been very productive addressing customer needs and in supporting each other.”Doherty said Mr. Cooper Group is communicating with employees three times as much as previously, including videos from the CEO, biweekly leadership calls, virtual huddles, emails, and other communications. In addition to more time spent communicating with their teams, Fairway supervisors have spent additional time analyzing metrics to ensure workers continue to meet or exceed KPIs, Yowell said. “We wanted to make sure our team members working from home were quickly trained,” Doherty said. Doherty said Mr. Cooper utilized WebEx to deliver training to more than 1,000 employees on the new forbearance plans offered by the government as a result of the pandemic. Other servicers told DS News they made use of Zoom or other applications for similar purposes.Some larger companies with servicing and origination operations had to quickly move people from other areas to servicing, meaning a need to train people on different skill sets to get them up to speed quickly, Mason said. The change to a remote work environment has also necessitated more individual coaching and training, Iseley said. Interpersonal IssuesServicers interviewed for this piece agreed that the pandemic has heightened stress levels for many. While they’ve worked hard to help ensure that staff has the same technical and work-related management support that they had in the centralized office, there are workers who know someone who has suffered from COVID-19, entertainment and vacation options are limited, and there are other stress factors in play as well. As such, many companies within the industry are taking extra steps to try to lift workers’ spirits.“There’s a lot of anxiety when you’re not prepared for the work-at-home environment,” Mason said.RoundPoint offers regular exercise options, tips on working from home, options to become more involved by giving back to the community, etc.Mr. Cooper Group offers a robust employee assistance program providing employees with access to counselors and resources to help them manage through emotional stress. Additionally, the company launched an online education platform including training courses, articles, and podcasts to address a variety of issues such as caring for children or parents living with team members (Doherty said half of the Mr. Cooper Group staff is doing so), and other “life” issues that may have resulted during the pandemic. The company has also been streaming live virtual exercise sessions and different challenges (e.g., push-ups, steps), as well as other videos designed to encourage connectivity with team members, Doherty said. Home Point has workers share videos and photos of family and friends and host contests for best photos/videos within certain categories (e.g., at-home haircuts) to try to keep employees engaged and lighten the mood. Gift cards are awarded to contest winners.In addition to offering virtual exercise, AHP has been offering virtual fitness and dietary programs. Clarifire, meanwhile, has offered streaming cooking classes to its employees. 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Foreclosure Filings Drop to 16-Year Low

first_img in Daily Dose, Featured, Foreclosure, Headlines, News Home / Daily Dose / Foreclosure Filings Drop to 16-Year Low Previous: Brooks Resigns, Paulson to Become Acting Comptroller of the Currency Next: The Increasing Popularity of Virtual Home Tours Servicers Navigate the Post-Pandemic World 2 days ago Related Articles Nationwide foreclosure activity plummeted in 2020 to record depths, according to new statistics released by ATTOM Data Solutions.Last year saw foreclosure filings—covering default notices, scheduled auctions, and bank repossessions—on 214,323 residential properties in 2020, a 57% decline from 2019 and a 93% tumble from the 2010 peak of nearly 2.9 million properties. The 2020 figures represented the lowest level since ATTOM began tracking these numbers in 2005.The 2020 foreclosure filings total encompassed only 0.16% of all housing units, compared to 0.36% in 2019 and 2.23% in the 2010 peak year.However, last year ended with something of a foreclosure filing uptick: ATTOM Data Solutions also reported there were 10,876 properties with foreclosure filings in December, an 8% increase from November—but also an 80% drop from December 2019.“The government’s moratoria have effectively stopped foreclosure activity on everything but vacant and abandoned properties,” said Rick Sharga, EVP of RealtyTrac, an ATTOM Data Solutions company. “There is a backlog of foreclosures building up loans that were in foreclosure prior to the moratoria; loans that would have defaulted under normal circumstances; and loans whose borrowers are in financial distress due to the pandemic. While it’s still highly unlikely that we’ll see another wave of foreclosures like the one we had during the Great Recession, we really won’t know how big that backlog is until after the government programs expire.”As 2020 closed, ATTOM Data Solutions determined that lenders repossessed 50,238 properties through foreclosure (REO), a 65% year-over-year decline. Lenders started the foreclosure process on 131,372 properties in 2020, down 61% from 2019.The states with the highest foreclosure rates in 2020 were Delaware (0.33% of housing units with a foreclosure filing); New Jersey (0.31%); Illinois (0.30%); Maryland (0.26%); and South Carolina (0.24%). Tagged with: ATTOM Data Solutions Foreclosure Filings REO Rick Sharga Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago About Author: Phil Hall Foreclosure Filings Drop to 16-Year Low ATTOM Data Solutions Foreclosure Filings REO Rick Sharga 2021-01-14 Phil Hall Demand Propels Home Prices Upward 2 days agocenter_img The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago January 14, 2021 1,232 Views Sign up for DS News Daily Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Phil Hall is a former United Nations-based reporter for Fairchild Broadcast News, the author of nine books, the host of the award-winning SoundCloud podcast “The Online Movie Show,” co-host of the award-winning WAPJ-FM talk show “Nutmeg Chatter” and a writer with credits in The New York Times, New York Daily News, Hartford Courant, Wired, The Hill’s Congress Blog and Profit Confidential. His real estate finance writing has been published in the ABA Banking Journal, Secondary Marketing Executive, Servicing Management, MortgageOrb, Progress in Lending, National Mortgage Professional, Mortgage Professional America, Canadian Mortgage Professional, Mortgage Professional News, Mortgage Broker News and HousingWire. Share Save Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Postlast_img read more