Residential Briefs

Ginnie Mae Solicits Feedback on Digital Collateral Guidelines

Ginnie Mae, Washington, D.C., published a Request for Input on requirements that address acceptability of digital promissory notes and other electronic documents for Ginnie Mae pools and loan packages, as well as participation in its Digital Collateral Pilot.

“This announcement underscores Ginnie Mae’s commitment to modernizing its mortgage-backed securities (MBS) program and platform in order to create a digital mortgage ecosystem, from loan application through securitization, that increases access to credit for many Americans,” said Angel Hernandez, Director of MBS Policy and Program Development. “It will also enhance the integrity of Ginnie Mae collateral by reducing the risk from defects in loan instruments. For these reasons, Ginnie Mae is investing in the development and implementation of the policies, technology and operational capabilities necessary to take in digital promissory notes and other digitized loan files as acceptable collateral for our securities.”

The RFI can be found at https://www.ginniemae.gov/newsroom/publications/Documents/digital_collateral_guide_rfi.pdf.

CBC Mortgage Agency Releases National Down Payment Assistance Study

CBC Mortgage Agency, Cedar City, Utah, released a national down payment assistance study documenting its role as a bridge to sustainable homeownership.

The study, conducted nationwide over the summer, measured the impacts of DPA through personal experiences of lenders and borrowers. Among other findings, the study revealed more than nine out of 10 homebuyers surveyed would not have been able to purchase a home without down payment help. It also found more than half of buyers surveyed are racial or ethnic minorities, and more than one-third of all borrowers who received DPA are the first in their family to buy a home.

“It’s clear that without DPA, millions of Americans would be shut out of the homebuying market,” said CBCMA President Richard Ferguson. “With it, creditworthy buyers and their families can reap the many benefits of homeownership, which creates healthier communities and other positive outcomes for our nation.”

The study queried 735 lenders and more than 1,100 borrowers, asking a series of questions about the importance of DPA, as well as their overall homebuying experience. Respondents cited multiple factors when asked how the availability of DPA had affected their lives:

–Nearly half of all buyers said that saving for a down payment had been the principal reason they had delayed a house purchase.

–A significant portion of respondents said that for single parents, DPA is the only vehicle that makes homebuying possible.

–More than nine out of 10 borrowers who used DPA to obtain a loan said they considered their mortgage “affordable.”

–Lenders called DPA particularly helpful for buyers carrying student loan debt. They also said many of their clients had been paying more in rent than the cost of their new monthly mortgage.

Docutech’s Solex eClosing Integrates with NotaryCam’s Remote Online Notarization Platform

Docutech, Scottsdale, Ariz., announced its agreement to integrate with NotaryCam, a provider of remote online notarization. Once integrated, borrowers can to execute a complete RON eClosing ceremony in Docutech’s Solex eClosing platform by remotely connecting to the other parties (the eNotary, the closing agent, an attorney, etc.) via NotaryCam’s virtual audio/video connections.

NotaryCam’s multi-party/multi-state RON platform allows for efficient and compliant eNotarization of documents, speeding up the mortgage process and ensuring a smooth closing. The platform also includes enhanced security features, such as knowledge-based authentication for added identity verification and audio/visual recording of the entire signing ceremony. The integration provides borrowers with a seamless user experience inside Docutech’s Solex eClosing platform, enabling lenders to provide a consistent eSigning experience to their customers from initial disclosures all the way through to post-closing.

CoreLogic Announces Market Risk Indicators

CoreLogic, Irvine, Calif., announced Market Risk Indicators, an analytics product that provides probability scores for home price declines in the top 392 metropolitan areas in addition to all 50 states and Washington, D.C. Market Risk Indicators are designed to predict the probability of a home price decline over a 12-month period.

Market Risk Indicators are delivered monthly as an add-on module within the CoreLogic HPI or HPI Forecast. Users will get two different score probabilities for each metro area and state–the probability price decline of less than 10% and the probability of a price decline of 10% or more. The product leverages proprietary CoreLogic data sources along with economic information provided by IHS Markit–an economic data provider.

Global DMS Launches EVO-Residential Valuation Technology Platform

Global DMS, Lansdale, Pa., a provider of cloud-based valuation management software, launched its residential valuation platform. Branded EVO-Residential, the platform works with EVO-C, Global DMS’ commercial lending valuation platform, thus allowing for a single-system experience to manage two distinctly different business lines.

EVO-Res is user role-based providing a customized experience for each user, with separate dashboards and task lists that help drive performance by allowing them to focus on the most important tasks of the moment. EVO-Res users can configure every field, new fields can be added on the fly and are instantly reportable. Users can also create new review forms in minutes.

Finicity Releases New Asset Pre-Qualification Report for Lenders

Finicity, Salt Lake City, Utah, released its AssetReady Report, designed to identify a borrower’s assets using consumer-permissioned data during a lender’s pre-qualification process. As a result, lenders can qualify borrowers and generate a higher quality sales funnel for loan officers while enabling a transition into other necessary asset, income and employment verifications needed in the loan origination process.

Lenders have the option to receive balances and other data without having to ask for or include consumer SSN or date of birth. Fast, high-value data with less friction on lower probability applicants can provide lenders with better insights on how to strategically move borrowers forward in the application process without asking for detailed verification reports.

IDS Adds Integrated 4506-T Income Verification Services from QuestSoft

International Document Services Inc., Salt Lake City, Utah, integrated 4506-T Verification Services from QuestSoft Corp., Laguna Hills, Calif. With this integration, QuestSoft customers can now directly order 4506-T income verifications to be eSigned through idsDoc.

Through the integration, loan teams are notified as soon as borrowers complete the 4506-T form in the IDS eSign room, allowing them to streamline the ordering process and pull direct-source data for more accurate income verification. As a result, joint QuestSoft-IDS customers can potentially reduce processing times while improving loan integrity and quality.

Ellie Mae to Acquire Capsilon

Ellie Mae, Pleasanton, Calif., a cloud-based platform provider for the mortgage finance industry, signed a definitive agreement to acquire Capsilon, San Francisco, a provider of AI-powered mortgage automation software for mortgage lenders, investors and servicers.

With the acquisition, Ellie Mae is accelerating its goal of offering a fully digital mortgage by combining Ellie Mae’s Encompass Digital Lending Platform with Capsilon’s AI-powered platforms to create an end-to-end SaaS service for companies in the mortgage industry.

Ellie Mae was advised by Sidley Austin LLP as its legal counsel. Capsilon was advised by Jefferies as its financial advisor and Kirkland & Ellis LLP as its legal counsel in connection with the transaction.

FHFA Releases New Strategic Plan, Scorecard for Fannie Mae, Freddie Mac

The Federal Housing Finance Agency released a new Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac and a new 2020 Scorecard for Fannie Mae, Freddie Mac and Common Securitization Solutions. The Strategic Plan provides a framework for how FHFA will guide Fannie Mae and Freddie Mac to fulfill their statutory missions, focus on safety and soundness, and prepare for a responsible end to the conservatorships.

The Scorecard aligns the Strategic Plan with the GSEs’ tactical priorities and operations, serving as an essential tool to hold the Enterprises accountable for the effective implementation of the Strategic Plan.

The three objectives of this new Strategic Plan and Scorecard are to ensure that the Enterprises:

1. Focus on their core mission responsibilities to foster competitive, liquid, efficient, and resilient (CLEAR) national housing finance markets that support sustainable homeownership and affordable rental housing;

2. Operate in a safe and sound manner appropriate for entities in conservatorship; and

3. Prepare for their eventual exits from the conservatorships.

ComplianceEase Unveils Industry Pre-Exam Portal

ComplianceEase, Burlingame, Calif., said beginning in January, in cooperation with the Multistate Mortgage Committee, it will offer a complementary Pre-Exam Portal “sandbox” to assist all residential mortgage lenders during their preparation for electronic examinations.

The Pre-Exam Portal is a public service available to any lender and is intended to improve lenders’ experience during the preparation for state and federal e-Exams by giving them an opportunity to test the accuracy of the data they are submitting to regulators and previewing audit results. Once enrolled in the portal, lenders will be able to submit up to 100 Lending Examination Format files for validation of proper formatting and evaluation against federal, state and local consumer protection compliance criteria.

The Pre-Exam Portal will return complete ComplianceAnalyzer audit reports, similar to those the examiner in charge will eventually receive. These reports will enable lenders to identify data integrity, mapping and translation issues, as well as view compliance findings before submitting the LEF files for the “live” e-Exam through RegulatorConnect, the regulators’ e-Exam platform.

FormFree Adds Paystubs to Passport Verification Service

FormFree, Athens, Ga., added paystub collection and verification to its Passport asset, employment and income verification service. The enhancement will be available to FormFree customers, including those who use Passport through one of FormFree’s more than 100 integrations and reseller partnerships, in November.

To use the new feature, loan applicants can grant Passport permission to electronically collect paystub data from supported payroll providers. Alternatively, applicants can submit a photo or upload a PDF or scanned image of their paystub using the Passport verification app. FormFree’s analytics engine corroborates the collected payroll data against public and proprietary data sources to verify that the applicant’s stated employer is a valid business with whom the applicant has a verifiable association. At the same time, FormFree compares payroll data against the applicant’s financial assets to confirm the frequency and source of direct deposits and calculate the applicant’s annual net pay and gross income. FormFree then pushes the verified asset, income and employment data directly into lender systems such as digital loan applications, origination software and automated underwriting systems.

Home Point Financial Joins Lender Price Marketplace Pricing Engine

Lender Price, Pasadena, Calif., added Home Point Financial, Ann Arbor, Mich., to its Marketplace pricing engine. Lender Price distributes the Marketplace pricing engine through a partnership with the National Association of Mortgage Brokers. Together, Lender Price and NAMB offer the Marketplace to all of its members at no cost.

Finicity Releases New Asset Pre-Qualification Report for Lenders

Finicity, Salt Lake City, Utah, released AssetReady Report, designed to identify a borrower’s assets using consumer-permissioned data during a lender’s pre-qualification process.  As a result, lenders can qualify borrowers and generate a higher quality sales funnel for loan officers while enabling a seamless transition into other necessary asset, income, and employment verifications needed in the loan origination process.

Lenders have the option to receive balances and other data without having to ask for or include consumer SSN or date of birth. Fast, high-value data with less friction on lower probability applicants can provide lenders with better insights on how to strategically move borrowers forward in the application process without asking for detailed verification reports.

CoreLogic Integrates Credit Services with Blend Digital Lending Platform

CoreLogic, Irvine, Calif., announced integration of its Instant Merge consumer credit report within the Blend digital lending platform. This move allows Blend customers to automatically access credit report data during pre-qualification and mortgage origination, helping to expedite the decision-making process.

The direct integration of Blend’s pre-qualification technology provides the added benefit of automatically running credit requests through Desktop Underwriter to speed up the credit pre-qualification process. 

New American Funding Selects Origence Mortgage Platform

Origence, Irvine, Calif., announced NewAmerican Funding, Tustin, Calif., selected the Origence platform as its new mortgage loan origination system.

The Origence platform provides lenders a mortgage lending platform that offers a point-of-sale and loan origination system to increase purchase close rates and throughput while reducing lenders’ cost and cycle time. Origence can scale services to fit the evolving needs of mortgage lenders, significantly reducing manual work and risk. It offers point-of-sale and fulfilment systems focused on reducing friction in the mortgage process, while simultaneously increasing pull-through rates through marketing automation.

Payments Risk and Fraud Consortium Launches

The Payments Risk and Fraud Consortium launched with founding members Advantage Payments Services, ENACOMM, Central Payments, FSV Payment Systems, Payment Solutions Consultants and Womble Bond Dickinson.

The goals of the PRFC are to openly and transparently share data, analysis and insights related to fraud; create Key Risk Indicators to measure prevention, mitigation and recovery effectiveness; decrease overall costs associated with fraud detection, intervention and recovery; leverage collective knowledge base to gain additional perspective, analytics and considerations; and provide community perspective and act as a sounding board for members’ fraud reduction initiatives.

Essent Integrates with Ellie Mae’s Total Quality Loan Program

Essent Guaranty Inc., Radnor, Pa., a nationwide provider of mortgage insurance and subsidiary of Essent Group Ltd., and Ellie Mae, Pleasanton, Calif., a cloud-based platform provider for the mortgage finance industry, announced a partnership to offer Essent’s products and services through Ellie Mae’s Total Quality Loan Program.

The TQL Program from Ellie Mae streamlines the lenders’ mortgage lending workflow through automated MI allocation, side-by-side rate quote comparison and process automation, granting lenders improved tools to manage their Essent products and services.

Tavant Grows Fintech Vertical, Expands New Office in Dallas

Tavant, Santa Clara, Calif., expanded a new technology innovation center in Dallas, focused on new product development and providing new age digital experiences to lenders via Digital Factories. To support its growing customer base in the area, Tavant is increasing its staff and capabilities in Dallas. Customer centricity is core to Tavant’s services and this proximity to its customers as well as prospects ensures the company is meeting those needs while also continuing to attract and grow talent.