Browse articles from all of our Newsletters related to Technology.

February 23, 2015 - Inside the CFPB

Vendors Nailing Down Smallest Details to Keep Clients Compliant

With many small and mid-tier mortgage companies and banks increasingly worried about straying from compliance with the CFPB’s expanding rules and requirements, vendor representatives are working overtime to alleviate their clients’ anxieties and keep them on task and on budget. “We’re really seeing a lot of fear in the CFPB’s steadily intensifying regulations and requirements,” said Mary Beth Doyle, founder and co-owner of Loyalty Express, a mortgage marketing technology vendor in Woburn, MA. As recently as a year or a year-and-a-half ago, companies were saying they would wait to hear about a new rule themselves from the CFPB. “And today, people are more panic driven. There’s this sense of paralysis because everyone’s afraid of stepping out of bounds and not ...

February 13, 2015 - Inside Mortgage Trends

Using Default Probability Cuts Loss Exposure

Using “probability of default” values instead of credit scores to measure risk in a mortgage securitization can provide far more insight and dramatically cut loss exposure, according to a new white paper from VantageScore Solutions, a joint initiative created by the three major credit bureaus, Equifax, Experian and TransUnion. “Loan securitization has become an essential source of capital for consumer lenders of all sizes, playing a significant role in ...

February 12, 2015 - Inside Mortgage Finance

Policymakers Weigh Relief for Small Banks, CUs From DFA, Trickle-Down Exams, Best Practices

Lawmakers and regulators alike cited the recent move by the Consumer Financial Protection Bureau to liberalize its ability-to-repay rule somewhat as an example of the kind of adjustments that can be made to help ease the regulatory burden for smaller financial institutions, especially those operating in underserved markets. “A few weeks ago, the CFPB announced changes to its mortgage rules – a win for small lenders, particularly those in underserved rural areas,” said Sen. Sherrod Brown, D-OH, ranking member of the Senate Banking, Housing and Urban Affairs Committee, during a hearing early this week. “There is...

February 6, 2015 - Inside FHA Lending

FHA Originations Significantly Down in 2014, Refis Up

Overall, 2014 was not a good year for FHA originations as tight underwriting and high loan costs narrowed the band of borrowers able to qualify for an FHA-insured residential loan, according to an Inside FHA Lending analysis of agency data. FHA total endorsements dropped to $35.2 billion, an 8.1 percent drop in the fourth quarter from the previous quarter, with fixed-rate and adjustable-rate mortgages declining by 7.9 percent and 12.7 percent, respectively. FHA purchase originations suffered a decline of 11.3 percent. There was one bright spot: FHA refinances rose a meager 2.2 percent while the percentage of conventional loans that refinanced into FHA saw a more substantial lift of 13.0 percent quarter to quarter. FHA baseline lending (below $417,000) saw volume drop 8.4 percent in the fourth quarter. FHA jumbo loan amounts up to the statutory high-cost loan limit and ... [ 2 charts ]

February 5, 2015 - Inside Mortgage Finance

FHA Again Seeks Legislation to Make Lenders Pay For IT Upgrades; Officials to Educate Lawmakers

The Department of Housing and Urban Development is once again asking for authority to charge lenders an administrative support fee to fund information technology upgrades and administrative functions at the FHA, a bid that was shot down by Congress last year. As part of the Obama administration’s fiscal 2016 budget proposal, HUD wants to charge lenders up to $30 million in fees, which would be credited as offsetting collections to the FHA’s Mutual Mortgage Insurance program account. The mortgage industry cautioned...

February 4, 2015 - IMFnews

Forms, eSignatures Drive Growth at DocMagic

DocMagic would like to double its nationwide sales staff to 20 by the time 2015 ends.

February 3, 2015 - IMFnews

Interthinx: CFPB’s ATR Rule Has Helped Reduce Mortgage Fraud

The firm noted that employment and income fraud peaked in the fourth quarter of 2013 and has declined ever since.

January 30, 2015 - Inside Mortgage Trends

Watch for Legal Risk in E-signatures

Electronic signatures and records have become such crucial components of mortgage lending that lenders need to understand the process and the risks to avoid potential liability, according to panelists at a recent webinar. Several significant regulatory actions in 2014 opened the door to the increased adoption and use of electronic records and signatures. However, lenders face growing pressure from regulators to maintain appropriate measures when ...

January 30, 2015 - Inside Mortgage Trends

Most Buyers Get a Mortgage Using Online Tech

Is the mortgage industry nearing a tipping point in terms of homebuyers using online capabilities predominantly to secure financing for the biggest purchase of their lives? That increasingly appears to be the case, a recent survey suggests. Nine out of 10 respondents to a survey commissioned by Discover Home Loans said they used online technology of one form or another in the home financing process. One of the benefits of technology is that it ...

January 30, 2015 - Inside Mortgage Trends

Forms, eSignatures Drive Growth at DocMagic

Mortgage vendors usually see their fortunes rise and fall based on loan origination volume, but don’t tell that to DocMagic, which is consolidating its hold in the document preparation business. In a year in which residential production fell 34 percent, the Torrance, CA-based DocMagic grew its client base to 7,500, a gain of 1,000 in just over 12 months. The privately held doc prep/software company doesn’t generally disclose revenue figures, but according to ...

January 28, 2015 - IMFnews

FHFA Chief Defends Agency’s Work on the Common Securitization Platform

“The industry seems to be cut out of some of the development of the securitization platform,” said Rep. Scott Garrett, R-NJ...

January 26, 2015 - IMFnews

Short Takes: Titan Says: Give Us Your Rejects / Ocwen Rising / UWM Rolls Out LOS Platform / DocMagic Keeps Software Developers Happy / Leon Loves Altisource?

Thanks to its settlement with California regulators, Ocwen's share price is on the rise. But for how long?

January 23, 2015 - Inside Nonconforming Markets

Altisource Sees Promise in Non-Agency Market

Officials at Altisource Portfolio Solutions plan to provide services in the non-agency market as part of an effort to increase revenue and rely less on its former parent, Ocwen Financial. In a call with investors last week, CEO Bill Shepro said Altisource is developing products for members of the Lenders One mortgage cooperative. “The Lenders One members represent approximately 17 percent of the largely agency lending market, and with the banks withdrawing from ...

January 23, 2015 - IMFnews

Thanks to Technology, Loan Officers Rarely See the Borrower

One LO who works for a top-10 lender (a bank) said she actually sees her customers half the time...

January 22, 2015 - Inside Mortgage Finance

At Least 90 Percent of the Time the Loan Officer Never Meets the Client Face-to-Face; Does it Matter?

Roughly 90 percent of the time, residential loan officers never see the end mortgage customer, according to several weeks’ worth of interviews conducted by Inside Mortgage Finance. However, few in the industry think it’s a problem. “We have the technology not to see our applicants,” said Jim Picard, vice president of home loans for Denali Alaskan Federal Credit Union. The technology that Picard and others refer to is...

January 20, 2015 - IMFnews

Short Takes: No Minimum FICOs for this FHA Lender / More Mortgage Gifts from President Obama? / Warehouse Mentioned in Earnings from Republic / DocMagic Expecting a Busy Year / Altisource Adds Vella

Assisting DocMagic with its work on RESPA-TILA disclosures is Richard Horn, a former senior advisor at the Consumer Financial Protection Bureau...

January 20, 2015 - IMFnews

Fannie Mae’s New Appraisal Product Causing Anxiety

Fannie's "Collateral Underwriter" will provide up to 20 comparables and appraisers will have to defend the comps they use...

January 16, 2015 - Inside Mortgage Trends

Lenders Take More Control Over Closing Process

This year could be a watershed moment for mortgage lending as industry representatives feel their way around a brand new approach to closing disclosures, thanks to the pending implementation of the integrated disclosure rule from the Consumer Financial Protection Bureau. As a result, it’s likely that more lenders will assume greater control over the closing process as well as the end product. The new closing form is “unlike anything the industry has seen before ...

January 15, 2015 - IMFnews

Mortgage Industry Fumes Over CFPB’s New ‘Rate Tool’

Marc Savitt, president of the National Association of Independent Housing Professionals, pointed to a flaw in the beta version of Rate Checker: it doesn't show the annual percentage rate.


With the recent dip in interest rates, how do you feel about loan volumes this year?

We see loan production ending 2015 flat compared to 2014.
We’re optimistic that our originations will rise by 10 to 20 percent year over year.
We’re really optimistic: We expect production to increase by 20 percent or better from last year.
We’re not so bullish. Originations for us may actually fall.

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