Industry Briefs July 14, 2020
FirstClose Integrates with Temenos Infinity Loan Origination
FirstClose Inc., Austin, Texas, a provider of technology platforms for banks and credit unions, partnered with Temenos, a banking software company. With integration of the FirstClose ONE platform into Temenos Infinity Loan Origination, customers can order instant and bundled reports on credit, flood, valuation, tax and title directly from the loan origination system.
This integration gives Temenos Infinity customers the ability to speed up turnaround times and reduce costs, ensuring they stay profitable and keep borrowers happy. These efficiency gains also help financial institutions stay competitive, regardless of the current market conditions.
CFPB Releases Report on Debt Settlements, Credit Counseling
The Consumer Financial Protection Bureau released a report examining recent trends in debt settlement and credit counseling. The report documents changes over time in how consumers have used these debt relief options for unsecured debt.
Using the Bureau’s Consumer Credit Panel, a nationally representative sample of five million de-identified credit records maintained by one of the three nationwide consumer reporting agencies, the report said nearly one in 13 consumers with a credit record had at least one account reported by the creditor as settled or with payments managed by a credit counseling agency from 2007 through 2019.
The report also showed debt settlements rose dramatically during the Great Recession to a peak of $11.4 billion. More than half of these settlements occurred within a year of the account first becoming delinquent. Debt settlement and credit counseling became less common after that recession, but recently settlements have been on the rise following changes in delinquencies and credit tightness.
Credit Plus Integrates with Fannie Mae Day 1 Certainty Services
Credit Plus, Salisbury, Md., a provider of data and verifications for all stages of the mortgage lending process, announced it is an Authorized Report Supplier for its income and employment verifications which are now accessible through Fannie Mae’s Desktop Underwriter validation service.
Credit Plus follows a uniform, auditable process which produces verifications in a timely manner. Re-verifications can also be performed just before closing to ensure that the applicant is still employed. These can be accomplished online if the original employment verification was conducted through The Work Number or manually.
Ginnie Mae June MBS Outstanding Rises $2.130 Trillion
Ginnie Mae, Washington, D.C., said issuance of its mortgage-backed securities totaled $61.33 billion in June, providing financing for more than 231,000 homeowners and renters.
A breakdown of June issuance includes $58.22 billion of Ginnie Mae II MBS and $3.11 billion of Ginnie Mae I MBS, which includes $2.87 billion of loans for multifamily housing. Ginnie Mae’s total outstanding principal balance of $2.130 trillion is an increase from $2.076 trillion a year ago.
Fannie Mae Lender Letter Update Extends Temporary Policies
Fannie Mae, Washington, D.C., updated Impact of COVID-19 on Originations Lender Letter (LL-2020-03) and Impact of COVID-19 on Appraisals Lender Letter (LL-2020-04) to extend the temporary policies to applications on or before Aug. 31.
Fannie Mae also extended the timeframe for verification of self-employment from 10 to 20 days, and extending the temporary guidance related to HomeStyle Renovation loans until further notice. More information can be found at https://singlefamily.fanniemae.com/media/22316/display.
Premium Title Adds Remote Online Notarization
Premium Title, Luxembourg, a national provider of title and settlement services, announced it added remote online notarization to its suite of e-close capabilities that already includes hybrid e-close and total e-close.
The company is integrated with leading electronic web-based closing platforms to help customers digitize the loan closing process so they can more effectively navigate the impacts of the COVID-19 outbreak.
HUD Provides Eviction Prevention and Stability Toolkit
HUD, Washington, D.C., released an Eviction Prevention and Stability Toolkit to encourage public housing authorities and housing choice voucher landlords to implement strategies to keep families housed and mitigate economic hardships due to coronavirus.
The CARES Act relief bill included an eviction moratorium for 120 days on public housing, housing choice vouchers, FHA-insured multifamily properties and multifamily-assisted properties. The 120-day eviction moratorium ends on July 25.
HUD’s Eviction Prevention and Stability Toolkit includes a public housing authority best practices guide, tenant brochure with tips to avoid eviction, housing choice voucher landlord flyer to encourage engagement with tenants before the moratorium expires and repayment agreement guidance.
For FHA-insured multifamily properties and multifamily-assisted properties where the owner is receiving forbearance mortgage payment relief, tenants cannot be evicted solely for nonpayment of rent for the duration of the forbearance period. HUD issued guidance on July 1 for owners of these properties, including a new online brochure for owners to share with tenants.
Colony Capital, Vantage Data Centers Form Data Center Partnership
Vantage Data Centers, Denver, and an investor group led by Colony Capital Inc., Los Angeles, formed a partnership valued at $3.5 billion to expand Vantage’s wholesale data center ownership throughout North America and Europe.
As part of the agreement, the Colony-led investor group will invest $1.2 billion in Vantage’s portfolio, which includes 12 stabilized North American data centers that span more than 1.4 million gross square feet and 150MW of IT capacity. Vantage’s management team will continue to operate these assets.
Citi served as Vantage Data Centers’ financial advisor in the transaction.
Brasa Capital Management Expands into Credit
Brasa Capital Management, Los Angeles, closed its first credit vehicle, Brasa Credit I LP.
Brasa Credit I LP will allow Brasa to provide both debt and equity on commercial real estate transactions up to $100 million on behalf of its pension fund investors.
Brasa Capital Management said it partners with experienced developers and operators to provide between $5 million and $25 million in value-add capital for the acquisition, reposition or ground-up development of commercial properties in the western United States and Texas. The firm completed its first two transactions of the new vehicle with a $16 million preferred equity investment in a Denver multifamily development and the acquisition of a $4 million sub-performing note secured by a mixed-use asset in Los Angeles.
Freddie Mac Prices $1.1 Billion Multifamily K-Deal
Freddie Mac, McLean, Va., priced a new offering of Structured Pass-Through K Certificates backed by fixed-rate multifamily mortgages with predominantly 10-year terms.
The company said it expects to issue $1.1 billion in K-111 Certificates, which should settle on or about July 16.
Wells Fargo Securities LLC and Deutsche Bank Securities Inc. served as Co-Lead Managers and Joint Bookrunners. Amherst Pierpont Securities LLC, Brean Capital LLC, PNC Capital Markets LLC and Stern Brothers & Co. managed the process.
SimpleNexus Launches ConnectUs Chat for Real-Time Loan File Collaboration
SimpleNexus, Lehi, Utah, released SimpleNexus ConnectUs Chat, a messaging feature that enables real-time loan file collaboration between loan originators, borrowers and real estate agents within the SimpleNexus platform.
SimpleNexus ConnectUs Chat centralizes loan file communication, enabling LOs and borrowers to reference past conversations and collaboratively advance loan progress in real time using the SimpleNexus mobile app or desktop experience. This direct communication channel lets borrowers receive support in the same place they sign forms and submit documentation for their loan. Vital borrower conversations are automatically logged in the SimpleNexus app, eliminating the need for LOs to consolidate communications from various personal and business communication channels.
Regorra Publishes Lenders Guide to Working with Fintechs
Regorra, Boston, published a white paper, The Mortgage Lenders’ Guide to Working with Fintechs, a guide for lenders to understand the value of fintech partnerships.
The white paper includes content from thought leaders (Sherry Graziano, Truist, Kevin Peranio, PRMG, Trip Jendron, Wyndham Capital, Jason Sorochinsky, Digital Federal Credit Union and Paul Orlando & Christy Soakhamneut of Flagstar Bank) on best practices for lenders interested in working with fintechs.
The white paper can be downloaded at https://go.reggora.com/fintech-guide.