Industry Briefs July 9, 2020
Rocket Companies Files Registration Statement for Proposed Initial Public Offering
Rocket Companies Inc., Detroit, filed a long-speculated registration statement on Form S-1 with the Securities and Exchange Commission relating to a proposed initial public offering of its Class A common stock.
Application has been made for listing the common stock on the New York Stock Exchange under the ticker symbol “RKT.” The number of shares to be offered and the price range for the proposed offering have not yet been determined. The offering is subject to market conditions, and there can be no assurance as to whether, or when, the offering may be completed or as to the actual size or terms of the offering.
A registration statement on Form S-1 relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.
Rocket Companies is a Detroit-based holding company consisting of personal finance and consumer service brands including Rocket Mortgage, Rocket Homes, Rocket Loans, Rocket Auto, Rock Central, Core Digital Media, Rock Connections, Lendesk and Edison Financial.
CFPB Ratifies Regulatory Actions
The Consumer Financial Protection Bureau ratified most regulatory actions it took from January 4, 2012 through June 30, 2020. The ratification of previous regulatory actions provides the financial marketplace with certainty that the rules are valid in light of the Supreme Court decision in Seila Law.
“The Bureau is taking action to ensure that consumers and market participants understand that the same rules continue to govern the consumer financial marketplace,” said CFPB Director Kathleen L. Kraninger.
The document can be accessed at https://files.consumerfinance.gov/f/documents/cfpb_ratification_bureau-actions_2020-07.pdf.
NPL Manager, USRES Partner on Enhanced Default Services to Private Lenders
US Real Estate Services Inc., Lake Forest, Calif., a provider of default management and component services, and NPL Manager, a cloud-based technology platform for investors and business partners in the non-performing loans and re-performing loans space, partnered to provide valuation and ancillary default services to private lenders nationwide.
Through this alliance, NPL Manager now features core USRES product offerings including valuations, inspections, REO liquidation and eviction management services within its platform. The NPL Manager Platform provides technology for investors to manage their notes, connect to service providers digitally, submit work orders and track task completion, all in real-time within a secure, digital environment. Through the alliance with USRES, the platform now includes access to a robust network of highly specialized licensed providers accustomed to delivering quality products within strict timelines and compliance protocols.
QuestSoft, Vendorly Announce Partnership to Streamline Due Diligence Process
QuestSoft Corp., Laguna Hills, Calif., and Vendorly entered into an agreement to improve and streamline the due diligence process. QuestSoft’s due diligence information is uploaded one time into the Vendorly platform and then becomes available to all lenders who use QuestSoft products and the Vendorly platform.
Once a lender visits the Vendorly platform and indicates they are a QuestSoft customer, the QuestSoft Vendor Management department verifies that information and unlocks access to the due diligence documents. Under the arrangement, Vendorly is waiving any due diligence fees for QuestSoft customers that would be normally assessed to add and maintain the vendor relationship.
ATTOM Data Solutions Acquires Home Junction
ATTOM Data Solutions, Irvine, Calif., acquired Home Junction Inc., a real estate data technology company that specializes in building geographic boundary datasets for neighborhoods, school attendance zones and subdivisions.
The acquisition will expand ATTOM’s data warehouse by adding proprietary school and neighborhood boundary data, crime, points of interest and demographics. ATTOM will continue Home Junction’s commitment of servicing real estate agents, teams and brokers with a suite of products that include custom websites and data widgets.
Altisource White Paper Addresses FHA Property Preservation, Risks
Altisource, Luxembourg, released a new white paper, “FHA Property Preservation: Improving Processes and Reducing Risks in FHA Property Preservation Services”
The paper notes with smaller down payment requirements and flexible qualification criteria, FHA loans have become increasingly attractive to first-time home buyers in recent years. While foreclosure rates have been dropping to new lows, FHA-insured loans make up an increasingly larger proportion. As a result, property preservation field services for properties secured by FHA-insured loans in delinquency and REO phases present a growing area of risk for loan servicers. However, due to complex FHA guidelines, tight timelines and cost penalties, managing preservation services for these properties is a time-consuming, labor-intensive process that could end in financial loss.
The paper outlines challenges and solutions of servicing FHA properties from delinquency to conveyance. It provides an efficient framework based on FHA requirements, a nationwide vendor network and a robust technology platform. It can be accessed at https://pages.altisource.com/200522_FHA_Whitepaper.html.
HUD Provides Eviction Prevention, Stability Toolkit
HUD released the “Eviction Prevention and Stability Toolkit” to encourage Public Housing Authorities and Housing Choice Voucher landlords to plan for and implement strategies to keep families stably housed and mitigate economic hardships due to coronavirus.
To assist families in mitigating hardships that may arise, HUD has provided an Eviction Prevention and Stability Toolkit (https://www.hud.gov/program_offices/public_indian_housing/covid_19_resources), composed of a PHA best practices guide, tenant brochure with tips to avoid eviction, HCV landlord flyer to encourage engagement with tenants before the moratorium expires, and repayment agreement guidance in addition to sample documents to provide increased clarity for landlords and renters utilizing the resources.
Genworth Mortgage Insurance Secures $300 Million of Additional Capital Protection
Genworth Mortgage Insurance, Raleigh, N.C., completed an excess of loss reinsurance transaction with a panel of reinsurers covering a portion of the loss tier on subject loans written between 2009 and 2019 book years, effective April 1.
The transaction provides reinsurance coverage in excess of the PMIERs capital requirements as of March 31, in response to an anticipated higher level of delinquencies as a result of COVID-19. As such, the company expects up to $300 million of additional PMIERs capital credit when required assets are in the covered tier, subject to GSE approval as part of their evaluation.
