Industry Briefs June 3, 2020
FHFA: Fannie Mae, Freddie Mac Sell 127,000 Non-Performing Mortgages
The Federal Housing Finance Agency released its latest report on the sale of non-performing loans by Fannie Mae and Freddie Mac. The report shows that, through December 31, 2019, the Enterprises sold 126,757 NPLs with a total unpaid principal balance of $23.8 billion.
FHFA said NPLs sold had an average delinquency of 2.9 years and an average loan-to-value ratio of 91 percent. The average delinquency for pools sold ranged from 1.4 years to 6.2 years. NPLs in New Jersey, New York and Florida represented nearly half (44 percent) of those sold. These three states accounted for 47 percent of the Enterprises’ loans that were one year or more delinquent as of December 31, 2014, prior to the start of NPL program sales in 2015.
Fannie Mae sold 86,216 loans with an aggregate UPB of $15.8 billion, an average delinquency of 3.0 years, and an average LTV of 89 percent. Freddie Mac sold 40,541 loans with an aggregate UPB of $8.1 billion, an average delinquency of 2.9 years, and an average LTV of 98 percent.
FHFA Announces June 4 Public Webinar on Re-Proposed Capital Rule for Fannie Mae, Freddie Mac
The Federal Housing Finance Agency will host a webinar on the re-proposed capital rule for Fannie Mae and Freddie Mac on June 4 from 2:00-3:00 p.m. The webinar is open to the public, media, stakeholders and market participants.
FHFA’s re-proposed capital rule for the Enterprises, released on May 20, is designed to strengthen the Enterprises so they can serve the mortgage market and help low- and moderate- income households access credit during good times and bad.
Interested participants can register at https://ems8.intellor.com/?do=register&t=1&p=827742.
Redfin Mortgage Expands to Arizona, Delaware, New Hampshire
Redfin Mortgage LLC is now offering loans to homebuyers in Arizona, Delaware and New Hampshire.
A subsidiary of Redfin (www.redfin.com), Redfin Mortgage currently offers fixed- and adjustable-rate conforming mortgages in 20 states and the District of Columbia. Buyers who are just getting started can fill out an online application and can typically get pre-approved for a loan in 90 minutes or less. For approved buyers, Redfin Mortgage offers a 30-day closing guarantee or it’ll give the homebuyer an extra $1,000 credit towards closing costs, subject to terms and conditions. For buyers that go one step further and get a fully underwritten pre-approval, Redfin Mortgage offers a 25-day closing guarantee.
STRATMOR: Lenders Need to Make Pandemic Lessons Permanent
In its latest Insights Report, STRATMOR Group, Greenwood Village, Colo., said from interest rate volatility to servicing liquidity issues to bursting refinance pipelines, mortgage lenders have weathered the coronavirus storm fairly well. But lenders must retain the lessons they’ve learned, especially when it comes to customer service
The report features an article by Mike Seminari, “Creating a Customer Centric Culture in a Brave New World,” which offers advice on how lenders and servicers can make positive changes realized during the pandemic permanent.
“It turns out customers are happy with the service they’ve been getting since the pandemic hit,” Seminari writes. “Work from home fulfillment teams have not only increased productivity, they’ve also provided more white-glove service to each borrower. For the mortgage industry, this pandemic has meant ramping up borrower communications, finding creative ways to virtually attend closings, and tapping into the emotional needs of borrowers.”
The report can be accessed at https://www.stratmorgroup.com/insights/.
HSBC Bank Partners with RateReset
HSBC Bank USA NA, New York, partnered with RateReset to license its platform, KNOCK KNOCK. The platform, branded “EasyReset” for HSBC, allows the bank to reset existing Adjustable Rate Mortgage loans with the click of a button.
EasyReset provides RateReset with a digital platform that helps streamline the customer experience and allows the bank to retain and recapture loans. For existing customers, it transforms the refinance process to a digital process that is completed in minutes. When a customer is eligible for a rate reset, an offer is automatically sent via email and can be reviewed, signed and accepted in less than 90 seconds.
DocMagic Provides eSign Technology at Zero Cost
DocMagic Inc., Torrance, Calif., announced it made an agnostic version of its eSign technology available for free in order to help organizations increase productivity, efficiency and compliance among work-from-home employees during COVID-19 stay-at-home orders as well as after they are lifted.
DocMagic’s eSign technology is traditionally used by mortgage loan borrowers to compliantly eSign initial mortgage loan document disclosures and closing documents. However, DocMagic has modified the platform, making it document agnostic, enabling it to handle the execution of documents such as contracts, NDAs, LOIs and virtually any other agreement, to be electronically signed and legally binding.
DocMagic’s eSign platform is 100 percent web-based, requires no installation or maintenance and can be securely accessed via any device with an internet connection. DocMagic eSign also provides for secure capture of electronic signatures for all documents stored in the PDF file format. Documents are digitally sealed and access is provided to all parties with audit trail capabilities, document versioning, tracking and email notifications.
Radian Brings Companies Together Under One Radian Brand, Launches New Website
Radian Group Inc., Philadelphia, announced launch of radian.com, its redesigned corporate website that serves as the online experience for the full family of Radian companies. Radian provides mortgage insurance and a suite of mortgage, risk, title, valuation, asset management and other real estate services.
The website launch marks the culmination of a comprehensive rebranding initiative that highlights the company’s ONE Radian approach –blending many decades of risk management expertise with data, technology and analytics to disrupt the mortgage and real estate landscape.
