The mortgage lenders that will thrive in the future will be those that lead the market’s charge toward “frictionless” originations, according to a recent white paper from Oracle Financial Services, a division of the global technology provider. The key for lenders is to re-invent their processes and adopt digital-based customer-centric originations in order to improve efficiency, reduce cost and enhance the borrower experience.“The correlation between process and profitability is ...
Some lenders are generating extra revenue by providing a valuable service to real estate agents: providing leads on potential homebuyers. Real estate agents report mixed feelings about the services offered by Quicken Loans and others, according to a recent survey conducted by Campbell Surveys and sponsored by Inside Mortgage Finance. Interactions between lenders and real estate agents typically relate to homebuyer referrals by agents to lenders. However, some lenders also sell homebuyer leads to real estate agents. “There is...
A borrower recently filed a lawsuit seeking class-action status against Fannie Mae related to an inquiry made into his credit file after his bankruptcy process was completed. Some attorneys said the case hints at a new type of lawsuit on the horizon stemming from the Fair Credit Reporting Act. Grant Bailey alleges that the government-sponsored enterprise made unauthorized inquiries into his credit after bankruptcy released him from any debt he owed to Fannie. Bailey filed documents in federal court on June 15 stating that the inquiry without his consent was not permissible under the FCRA and did not serve any legitimate business need. These allegations represent...
Subservicing firms now process roughly 16.3 percent of all home mortgages in the U.S., the highest reading since Inside Mortgage Finance began publishing these data two years ago.
Velocify, a provider of sales automation software, found that lenders that invest in technology to meet changing borrower expectations are more likely to grow.
A special edition of the CFPB’s supervision highlights report issued last week claims that some mortgage servicers continue to use failed technology that has already harmed consumers, putting such firms in violation of the agency’s servicing rules, which were released in 2013. “Mortgage servicers can’t hide behind their bad computer systems or outdated technology. There are no excuses for not following federal rules,” said CFPB Director Richard Cordray. “Mortgage servicers and their service providers must step up and make the investments necessary to do their jobs properly and legally.” The bureau acknowledged that some servicers have made significant improvements in the last several years, partly by enhancing and monitoring their service platforms, staff training, coding accuracy and auditing, and allowing ...
A majority of mortgage companies plan to increase their spending on technology as part of their efforts to boost profit margins, according to the latest results from Fannie Mae’s quarterly survey of lenders. Some 56 percent of the 169 lenders surveyed by Fannie in the second quarter of 2016 listed technology investment as one of their top two strategies to increase profit margins, marking the first time a majority of respondents plan to increase tech spending to help profits since ...
Intercontinental Exchange will acquire a majority equity position in the owner of Mortgage Electronic Registration Systems and “modernize” MERS, according to the companies. Terms of the investment weren’t disclosed, though ICE said the price and terms of the transaction are “immaterial” to the company. The transaction is expected to be completed at the end of this month. MERS is owned by MERSCorp Holdings, a private corporation and member-based organization ...
CFPB examiners found problems with loan modification acknowledgement notices, including sending them too late and having incorrect information or deceptive statements…
RSS