TRID Loans Closing; Planet Home Finalizes Deal; Vendor Frenzy: New Products, M&A
From my narrow view, the big talk of the San Diego MBA conference so far? Fannie & Freddie's rep & warrant changes, the FHA's position on the CFPB's TILA-RESPA Rule, and the CFPB setting forth upcoming HMDA standards that take effect in 2017. Oh, and don't forget FHA's market share hitting 30% and Ginnie's monthly issuance passing that of Freddie Mac!
Vendor news?
First a quick correction: Advantage Credit introduced its new Rapid Rent Reporting service but unfortunately the email listed didn't work. That issue has been fixed now so anyone interested in getting more information about Rapid Rent Reporting, which allows the reporting of a consumer's rental payment history as a traditional credit report tradeline, feel free to email sales@advcredit.com or call Bob Arrington at 303-952-7573.
Compliance is the name of the game. Banking and lending regulations are getting more diligent, auditing more and more businesses to make sure consumers' data is protected. And they have very good reason for this increased scrutiny. The past year major corporations including Target, Staples, Home Depot, Inc., JPMorgan Chase & Co., and, of course, Sony Pictures, had to step up to the PR podium to announce they had significant online security breaches and cyber-attacks. "Today it's not only critical your company be secure but also all business partners who have access to your customer data. That means your CRM partner or any other SaaS system you use to store or manage your customer's data is compliant with SSAE 16 (Statement on Standards for Attestation Engagements #16). Achieving SSAE 16 compliance is a lengthy and complex process that requires a significant investment of resources by your CRM or SaaS partner. But when it comes to protecting your customers and your company it is critical. SSAE 16 compliance ensures the policies, protocols and procedures are in place and constantly audited to minimize or eliminate the risk of security breach." To understand more about SSAE 16 compliance, you can access an educational whitepaper here. This comprehensive paper is available from InSellerate, an advanced SSAE 16 compliant SaaS specifically designed to meet the unique needs of the mortgage industry. Or, if you're attending the MBA in San Diego, stop by the InSellerate booth #223.
Did you win or lose after October 3rd? "The winning lenders prepared for TRID back in August allowing them to spend the first days of October focusing on next year and capturing more borrowers with Matic, while the losers poured every last ounce of focus into TRID readiness and rollout. Matic seems to be gaining more attention now as a FREE mobile app and borrower portal. Many new apps and technologies have been added recently, but none quite as game changing as this. To learn more and claim your spot on the Matic waiting list, reach out to Kimberlee Foster."
Total Expert LLC, a Minneapolis, MN based Real Estate and Mortgage Software-As-A-Service (SAAS) provider, is launching its flagship Co-Marketing and Compliance Platform, TE-Lender Pro, to mortgage lenders during the San Diego MBA conference. "The launch of TE-Lender Pro coincides with an environment of increasing uncertainty regarding Marketing Services Agreements (MSAs) and related co-marketing activities among real estate and mortgage professionals. In the wake of recent scrutiny by the CFPB, the debate within the industry continues regarding the marketing practices and compliance burdens associated with MSAs. Because such arrangements can present considerable risk for mortgage lenders, many have chosen to halt their MSA programs, leaving a gap in their marketing efforts aimed toward reaching potential homebuyers. Total Expert's TE-Lender Pro platform focuses on addressing co-marketing challenges faced by lenders today. The platform automates the deployment and tracking of co-marketing efforts between real estate and mortgage professionals, while compliance-focused features and corporate-defined controls assist lenders in addressing RESPA Section 8 concerns from a single, integrated dashboard."
Recently Clayton announced it has acquired ValuAmerica, Inc. a Pittsburgh-based, national title agency, appraisal management company and technology provider. "The acquisition of ValuAmerica significantly expands the scope of title and valuation services Clayton offers our mortgage clients and continues to show our commitment to being a complete solution provider to the mortgage and real estate industries," said Joe D'Urso, president of Clayton. (Clayton Holdings LLC, a subsidiary of Radian Group Inc. provides risk-based provider of loan due diligence, surveillance, REO management, valuations and consulting services to the mortgage and real estate industries.)
Ellie Mae signed a definitive agreement to acquire Mortgage Returns, a leader in on-demand customer relationship management (CRM), and marketing automation solutions for the mortgage industry. Mortgage Returns provides a database-driven automated marketing solution to help mortgage originators maximize profitability from clients, prospects and referral partners. Through the TRUE CRM system, Mortgage Returns enables compliant and automated one-to-one marketing that delivers bottom-line results.
IDS has been acquired by Reynolds and Reynolds, a leading provider of automotive dealership software, documents, and compliance services. Reynolds & Reynolds harkens from the automotive loan process. "IDS will maintain its brand, reputation and familiar faces, while striving to innovate in new and exciting ways with the expertise of a knowledgeable business leader paving the way."
Optimal Blue Secondary Services recently unveiled the industry's "first automated bulk bid management module. This comprehensive functionality is available as a component of the Optimal Blue Secondary Services system, a platform that combines real-time market pricing with accurate investor and market eligibility content...The automated bulk bidding functionality enables originators to tame unwieldy bulk bidding processes that currently force inefficient and potentially inaccurate spreadsheet manipulation. Rather than rely on spreadsheets, originators can now bring bids into the Optimal Blue system, and compare them against each other and also against existing executions without having to wrestle with spreadsheets.
And of course a few months ago MIAC rolled out its Mortgage Delivery Specialists ("MDS"), part of the MIAC Group, is the leader in outsourcing solutions for the delivery of mortgage loans to Fannie Mae, Freddie Mac, Ginnie Mae and Private Investors. The MDS system "focuses on perfecting loan and data to execute loan-selling strategy that maximizes the number of loans sold, in the most efficient manner. Utilizing the MDS proprietary analytics system to audit and produce data uploads for the delivery of MBS data and MSR data allows buyers and sellers to have confidence in the underlying product quality they are transacting on.
Another partnership has formed in an effort to target young adults who are typically overwhelmed by the variety of lending options online and often settle for a loan that doesn't fit their needs. A while back Lendingtree chose the creative services of Onion Labs to develop smart, savvy, easy-to-understand and witty branded content. "LendingTree recognizes that humor is often a powerful vehicle to share information," said Todd Lauer, LendingTree's VP of Brand and Creative. "We wanted to shed light on the absurdity of traditional, tedious loan processes as we introduce a better way to shop for money. Because The Onion has dominated satirical content for years, it was an easy decision to partner with them to produce break-through content." Utilizing humor in today's mortgage climate complexities may be just what the Doctor ordered.
Washington DC based business advisory firm, The Collingwood Group, LLC, announced the formation of Collingwood Capital Advisors, LLC, a registered broker dealer which will provide M&A advisory, capital raising and strategic advisory services to clients in the financial services and fintech industries. "For nearly seven years, we have been advising and preparing companies for success and growth. Collingwood Capital Advisors is the next critical step in providing clients a full lifecycle of services," commented Tim Rood, Chairman of The Collingwood Group. Collingwood Capital Advisors services include: mergers and acquisitions, strategic advisory services, due diligence, special situations, restructurings, recapitalizations and the private placement of equity and debt capital.
In pure lender news, Planet Home Lending, LLC, a leading national residential mortgage lender and servicer, has formally closed the acquisition of the employees and certain assets of HomeBridge Funding, the correspondent division of HomeBridge Financial Services, Inc. "Planet considers this acquisition to be a major strategic advance towards its goal of assembling a strong and viable third-party loan origination platform. HomeBridge Funding, located in Irvine, California, offers delegated and non-delegated mortgage loan products to community banks, credit unions, national builders and independent mortgage bankers. The transaction was structured as a purchase of certain assets of the correspondent division, including a technology platform. The current employees have been hired by Planet Home Lending. And Planet Home Lending is pleased to announce they will be lowering its net worth requirements for it' Correspondent customers to $1.0 million dollars. Certain requirements will have to be met by the correspondent to qualify.
Turning our collective attention to the markets and rates, overall economic data over the last week mostly disappointed with soft retail sales, continued declines in headline inflation and a contraction in industrial production output. As the Federal Open Market Committee prepares for their Oct. 27-28 meeting, last week's data raise new questions about underlying demand fundamentals and the inflation outlook over the next several months. The odds of a short-term rate increase in 2015 continue to ebb...
For scheduled news this week we start with the NAHB Housing Market Index today. Tomorrow is the usual Housing Starts & Building Permits duo. Wednesday is the non-market moving MBA Mortgage Application Index. Thursday are Initial Jobless Claims, August FHFA Housing Price Index, September Existing Home Sales, and September Leading Indicators. Friday is some forgettable U.S. Markit Manufacturing PMI number. We closed the 10-year Friday at 2.02% and this morning we're at 2.05% with agency MBS prices worse roughly .125.
Jobs and Announcements
In job news a "top national retail mortgage company is searching for an experienced regional manager who can grow and support the NorCal area. The company is looking for a minimum of 10 years of current mortgage experience that includes regional sales management, someone who resides in Northern California, and is looking to join a company that values people as much as they do profit. Don't miss this opportunity to be a part of an organization that is built on superior leadership, can lend in all 50 states, has cutting edge technology, and an operations team like no other." If this appeals to you send me a message and I will send your contact information along.
Brokers take note: 1st Alliance Lending LLC; a national leader in FHA lending to the underserved borrower, has announced it has expanded its wholesale presence in the Southern California region with the addition of three Business Development Managers; Victoria Arguella ( Orange County), Heather Michaud ( San Diego), and Christine Garcia ( Northern LA County). The FHA wholesale lender who specializes in lower credit, manual underwriting and FHA "Back to Work" loans continues its national expansion now lending in 47 states. The Company also announced it will roll out a non-delegated correspondent program for FHA loan products in the fourth quarter. The East Hartford-based approved GNMA issuer/servicer also offers VA, USDA and Conventional products.
Hamilton Group Funding, a rapidly growing mortgage banking firm, is seeking an experienced Senior Capital Markets Analyst to join the Capital Markets team in its corporate office. Interested candidates must be willing to relocate and relocation assistance will be provided. Hamilton, headquartered in the Ft. Lauderdale, FL area, has a strong management team, award-winning technology, and competitive compensation with full benefits. Inquiries should be made to Brandy Meiteles. Mark Korell, President and CEO, is available to meet interested parties in San Diego: 303.501.3611.
"Trid or Treat...In this case Treat. New American Funding is pleased to announce it closed its first post Trid loan in just 8 business days. The details are here. New American Funding CEO Rick Arvielo says the recipe is simple: "The borrower e-consented and executed his intent to proceed immediately, the file was turned in 100% sold and as a complete package, The NAF team and borrower were in constant communication to insure authentication of all applicable disclosures (i.e., LE and CD). It really is the same adage - a clean file, e-consent and a fully sold and engaged borrower coupled with an awesome ops team and files can close quickly and efficiently."