Customer Intelligence, LOS, AVM, Hedging Tools; CU, DOJ, and Redlining; Freddie and Fannie Changes

I think that I read somewhere that there’s an election today (in addition to the Boeing strike ending). Certainly, the sun will come up tomorrow, and people will still want to own a home. For me, this morning involves a flight to Minneapolis for the Fusion 24 Event. Mortgage technology will certainly be on tap at the event, and coincidentally in today’s Advisor Angle Zoom call, STRATMOR’s Garth Graham, Nicole Yung, and Brett McCracken will share trends from the latest Lender Intelligence TIS module including the proprietary Lender Loyalty Score® Analysis measures and how it can help lenders choose their technology providers. (Today’s podcast can be found here, and this week’s is Sponsored by Calque. Partner with Calque to offer better loan solutions. Scale your business with a partner that puts your brand first and empower your clients to buy before they sell. Hear an interview with TidalWave’s Diane Yu on AI technology that reduces the cost and time of loan origination by automating tasks traditionally handled by loan officers.)

Lender and Broker Software, Services, and Products

Imagine receiving daily, data-driven insights to transform your mortgage risk management… All at the click of a button. The Position Assistant in Optimal Blue’s CompassEdge hedging and loan trading platform offers critical daily insights into changes in risk exposure by automatically summarizing the top drivers impacting hedged mortgage pipeline positions. By analyzing factors such as loan volume changes and hedging adjustments, this AI-driven solution provides a comprehensive overview that helps lenders quickly assess and adjust their risk. Traditionally, secondary marketing managers must manually sift through numerous complex data points to analyze risk positions, a process that is both time-consuming and labor-intensive. With Position Assistant, lenders have the information they need to manage risk exposure proactively, which is essential for maintaining profitability across changing market conditions. Position Assistant is another step in Optimal Blue’s steady stream of no-cost product enhancements backed by advanced technology. Read more in the press release.

“When you choose a subservicer, you trust them with your most valuable assets: your customers and your reputation. Given that they are critical to the success of your business, you deserve to have them nurtured with the same level of care and attention that you would provide. Ask yourself if your current subservicer is meeting your high standards. If they are falling short, it’s time to partner with Servbank. At Servbank, we offer a best-in-class experience for your customers that is seamless and representative of your brand in every communication and interaction. With our private label offering, it’s as if you’re delivering the service yourself. Plus, with our 99% customer satisfaction rate and 84% Net Promoter Score, your clients will continue to stay loyal. It’s your business and your brand, so you can’t afford to settle for anything less than excellence. Let us strengthen the relationships you’ve worked hard to build and provide the excellence you and your customers deserve. It’s your business and your brand. Don’t settle. Learn more about Servbank here.”

DOJ Fines Credit Union $6.5 Million in Redlining Settlement. Redlining is a credit union problem, too. That’s the clear message the Department of Justice sent this month in its first-ever redlining settlement with a credit union. A $5.8 billion-asset credit union agreed to pay more than $6.5 million to settle claims that from at least 2017 through 2021, the credit union redlined majority-Black and Hispanic neighborhoods in and around Philadelphia by not providing mortgage lending services and discouraging those living in these neighborhoods from applying for mortgages. What caused the fair lending violation? What does the redlining settlement mean for future credit union fair lending enforcement? Ncontracts discusses this and more in its latest blog. Read the entire blog for more.

“At MBA Annual, NCS/Service 1st (S1) announced our new pilot for 8821 tax transcripts. Find out more here. Also in our meetings, prospective customers were quite concerned about December presents they don’t want: price increase letters. S1 is all about keeping customers and earning new ones. Scores, employment/income data, credit, automation services and cascades are all here. Reach us here.”

Tappable equity (the amount a homeowner can borrow against while keeping a 20% equity stake) has grown by 100% since late 2019. Many homeowners are “locked in” to their homes due to high interest rates and they need extra money to cover living expenses. The time for lenders to prepare is now. While the valuation process can be one of the most time-consuming and costly parts of home equity loan origination, ICE’s automated valuation models (AVMs) and digital valuation solutions can help change that and increase your success and profits. Download the new eBook, How to grow a successful home equity lending business, today to learn how ICE’s solutions can help you quickly gain an advantage in today’s home equity lending market.

LoanStream wants you to “Fall into More Business” before the end of the year with November Specials including Up to 60 BPS Price Improvement (when combined with Select Specials on qualifying loans), 25 BPS Price Improvement on ALL Programs (purchase, refinance, and cash-out refi). Programs include Conventional (FNMA, FHLMC), Government, Non-QM, Jumbo, and Closed End Seconds. Plus, Select Price Improvement Specials: 30 BPS on FNMA/FHLMC FICO 700+ and <=80% LTV, 35 BPS on Government Loans FICO 680+ and Loan Amount $250K+ (Excludes DPA). Specials valid for loans locked 1/1/2024 through 11/30/2024. Contact your AE for details. Unlock New Business with Non-QM! Join its LIVE Q&A Webinar hosted by Non-QM Expert, Shaun Dennison, EVP of Non-Conforming. Register now!

Transform your lending operations with Vesta’s innovative LOS. Vesta’s data-driven, task-based approach eliminates manual tasks, enabling your team to focus on what truly matters. With real-time analytics, automated workflows, and unparalleled efficiency, Vesta helps lenders achieve faster closing times, higher loan quality, and lower operational costs. Experience the benefits of a platform designed to evolve with your needs: join the future of lending with Vesta and take your company to the next level. View demo now.

Join MeridianLink® on November 19 at 11 a.m. ET for “Timing the Upgrade: How Long Does a Mortgage LOS Upgrade Really Take?”, a webinar exploring key elements of the mortgage LOS upgrade process, as well as tips to help you optimize your operation every step of the way. We’ll unpack how upgrade timelines can impact new opportunities, tools to help your team succeed, and common challenges navigated along the way: Learn More & Register Today!

In a world where inboxes, social feeds, and even texts are overrun with generic sales and marketing messages, how do you convince skeptical consumers that your communications deserve better than being banished to the SPAM folder? By thinking beyond personalization and focusing on humanization. For too many financial organizations, personalization begins and ends with just putting someone’s name at the top of the email. Humanization means demonstrating that you truly understand each customer’s financial situation, their short-term needs, and their long-term goals. Total Expert Customer Intelligence gives you the tools to truly understand your customers’ financial situation so you can engage them in authentic, meaningful conversations that build loyalty and drive growth. Learn how to turn your data into deeper relationships.

Agency News and Updates

Fannie Mae: Effective July 1, the Third-Party Sales (TPS) application within Property 360 was made available for all servicers to request access. Corporate administrators must grant access to users via Technology Manager to use Property 360 for managing TPS cases going forward. View the TPS User Guide for more information.

Fannie Mae: October 31 is the deadline for implementing the borrower-initiated reconsideration of value (ROV) framework. Get answers to common questions with the joint FAQ, developed by Fannie Mae and Freddie Mac. Read the ROV FAQs. Additionally, review Selling Guide Announcement SEL-2024-03.

As part of a recent Mortgage Lender Sentiment Survey® (MLSS) special topic analysis, Fannie Mae economists asked mortgage lenders about opportunities to simplify and standardize closing cost line-item descriptions, as well as their opinions on which cost areas would benefit from clearer definitions to increase transparency for borrowers. In a new Perspectives blog, John Thibaudeau, Vice President of Single-Family Real Estate Asset Management, and Mark Palim, Senior Vice President and Chief Economist, share why they believe meaningful opportunities exist for the mortgage industry to increase transparency around closing costs and potentially help save consumers money. Learn more by reading the new Fannie Mae Perspectives blog, or access the full research report.

Freddie Mac announced it will expand its performing loan repurchase alternative pilot to lenders nationwide beginning in the first quarter of 2025. The company also announced a new fee-only option for performing loans. Under that option, lenders can obtain immediate representations and warranties (R&W) relief in lieu of repurchasing a defective loan under the company’s traditional performing loan remedies framework. Finally, Freddie Mac committed to greater transparency and reporting on repurchases. View the Release for additional information.

Freddie Mac announced several measures that will boost housing affordability for borrowers and first-time homebuyers in particular. With advancements to its automated underwriting system, appraisal waiver expansions and progress in the down payment assistance space, the company continues its collaboration with the industry to increase efficiency, lower costs and provide additional opportunities to get qualified borrowers into homes they can afford.

Freddie Mac enhanced its performing loan repurchase remedies that provide you with the opportunity to opt in to our expanded pilot or benefit from the new enhancements to our traditional performing loan-level remedies. Information can be found on the QC webpage. Freddie Mac will be sharing details on the pilot, including the fee schedule, methodology and details on the opt-in process at a later date.

Freddie Mac and Fannie Mae (the GSEs) released a detailed timeline for migration to the Uniform Appraisal Dataset (UAD) 3.6 and dynamic Uniform Residential Appraisal Report (URAR). While the timeline has not changed, specific dates for each implementation phase have been provided to help the industry develop more detailed plans for implementation activities. View the Full Announcement and Timeline.

Fannie Mae Announcement SVC-2024-04, the July Servicing Guide update clarifies expense reimbursement policies and provides other miscellaneous updates.

Fannie Mae and Freddie Mac have published a detailed implementation timeline for the industry migration to the Uniform Appraisal Dataset (UAD) 3.6 and dynamic Uniform Residential Appraisal Report (URAR) that provides specific implementation dates. While the timeline has not changed, we’ve updated previously provided quarters with specific dates to help the industry develop more detailed plans for implementation activities. View Fannie Mae’s Full Announcement.

Fannie Mae announced changes to the eligibility requirements for Value Acceptance (previously known as appraisal waivers) and Value Acceptance + Property Data (also known as inspection-based appraisal waivers), two key components of the company’s valuation modernization options. The changes are part of Fannie Mae’s ongoing efforts to offer a balance of traditional appraisals and appraisal alternatives to confirm a property’s value in order to meet the needs of the market. Beginning in Q1 2025, for purchase loans for primary residences and second homes, the eligible loan-to-value (LTV) ratios for Value Acceptance will increase from 80% to 90% and Value Acceptance + Property Data will increase from 80% to the program limits. Both options are designed to match the risk of the collateral and the loan transaction.

Capital Markets

eRESI Capital, LLC announced that it has secured a new investment from insurance accounts managed by KKR, a leading global investment firm. “These insurance accounts initially invested in eRESI in 2021. The additional capital is expected to help the Company continue to reach new origination milestones and drive further innovation, excellence, and value for its customers… The new commitment is expected to help broaden eRESI’s funding capabilities and operational capacity to capture market share and further increase liquidity to its customers.”

Today is the last day we have to talk politics for another four years. Thank goodness! Markets are on the edges of their seats watching the election and its implications for economic policies, so review your lock policies and expect some volatility throughout the trading day. Since we are all sick of talking politics, let’s move to the other big risk event this week: the FOMC meeting and decision. Expectations are for a quarter of a percentage point federal funds rate cut to a range of 4.50 percent to 4.75 percent, but Fed Chair Powell’s remarks at his post-decision press conference are arguably more important.

Important economic releases this week include the ISM Services PMI and the international trade report. Business activity in the services sector likely rose, while the trade deficit is expected to widen notably on the back of a large deterioration in the goods trade balance; Importers increased their purchases of consumer products ahead of the dock workers’ strike, while exporters’ sales of petroleum products fell as benchmark prices moved lower.

We learned yesterday that factory orders declined 0.5 percent month-over-month in September following a downwardly revised 0.8 percent decline (from -0.2 percent) in August. Excluding transportation, factory orders rose 0.1 percent on the heels of a 0.2 percent decline in August. Transportation equipment orders (-3.1 percent), led by weakness in nondefense aircraft and parts orders and defense aircraft and parts orders, were the primary basis for the decline in factory orders in September.

Today’s economic calendar began overnight with the latest monetary policy release from the Royal Bank of Australia, where there was no change from its 4.35 percent rate. The September trade deficit ($84.4 billion, as expected) kicked off the U.S. calendar. Expectations were for $84.9 billion from $70.4 billion in August. Later this morning brings Redbook same store sales, final October S&P Global and October ISM manufacturing PMIs, and some Treasury activity that will be headlined by $42 billion 10-year notes. We begin Election Day with Agency MBS prices roughly unchanged from Monday’s close, the 2-year at 4.19, and the 10-year yielding 4.33 after closing yesterday at 4.31 percent.

Employment

HMA Mortgage Expands Footprint with New Jersey and Chicago Branches! HMA Mortgage is excited to announce the expansion of its operations with the opening of new branch locations in New Jersey and Chicago. This strategic move reinforces HMA Mortgage’s commitment to providing exceptional mortgage services to clients across key regions. Leading the New Jersey branch is the dynamic duo of Jim and Greg Malamut. Known as the Malamut Mortgage Team, they bring a shared dedication to simplifying the mortgage process and delivering unparalleled service. Jim Malamut, a Rutgers University Business School graduate, honed his skills under the mentorship of his father, Bill Malamut, and led his team to become the top FHA lender in Atlantic County. Together with his brother Greg, Jim aims to uphold their legacy of integrity and efficiency, ensuring client satisfaction throughout the homeownership journey.

The Chicago branch is spearheaded by Daniel Andersen, a seasoned professional with over 15 years in the mortgage lending industry, a 3-time 5-star professional award winner, and recognition from the Scotsman Guide for top closed transactions. His team is focused on providing educational resources and outstanding customer service to each client, ensuring a seamless mortgage process from contract to close. Tom Mills, Managing Partner of HMA Mortgage, expressed his enthusiasm for the expansion, stating, “Our growth into New Jersey and Chicago is a testament to our dedication to bringing personalized mortgage solutions to more communities. With the Malamut and Andersen teams at the helm, we are confident in delivering top-tier service that aligns with our values.” For more information, visit here or contact the HMA Team at 877-309-1555. HMA Mortgage is a leading mortgage provider dedicated to guiding individuals and families towards achieving their homeownership dreams through expert advice and exceptional service.

National mortgage lender Certainty Home Lending, a Rate Company, has appointed long time mortgage origination professionals Larry Torch as EVP, Divisional Manager (33 year vet), and Craig Thomason as VP, Mortgage Lending (30 year vet). Mr. Thomason will be focusing on the residential markets in Northern California while Mr. Torch will be running the Central Division. Congratulations!

The Federal Housing Finance Agency (FHFA) announced that Victoria Nahrwold has been named Deputy Director, Division of Enterprise Regulation (DER) to provide management oversight, direction, and support for all examination activity involving the Enterprises, the development of supervision findings, and preparation of the annual reports of examination.

(As a reminder, anyone searching for employment can post their resume at no charge at www.lendernews.com, and potential employers can view all resumes for several months for only $75.)