On August 17, 2022, the Federal Housing Finance Agency and Ginnie Mae jointly announced updated minimum financial eligibility and capital rules for seller/servicers and issuers. These changes update the capital and financial eligibility requirements for non-bank servicers that have been modified over the past year. Understanding the new requirements is critical for seller/servicers and issuers to maintain compliance; however, these changes also raise potential strategic and operational challenges in the future.
Tag: Business Strategies
Terrell Cassada of LoanLogics: Real Secondary Market Loan Confidence Happens from Within
New technologies, including AI, machine learning tools and rules-driven workflow, are finally being applied to the loan production process with gusto. Real results are being achieved through automation that drives fewer underwriting touches and exposes quality issues earlier in the production process. And now the secondary market—one of the last remaining components of loan manufacturing still awash in spreadsheets, manual processes, and data inconsistencies—is finally getting its turn at bat.
Francesco Paola of Mozaiq.ai: How Intelligent Automation Helps Lenders Win
Lenders are squeezed on both sides – the need to improve loan profitability and at the same time ensure that their loan quality meets the new compliance criteria. Make no mistake, these two are related—compliance directly impacts profitability (and the lender’s reputation).
Christy Moss, CMB, of FormFree: It’s Time to Stop Punishing Borrowers with Outdated Underwriting
Tthere is nothing inherently wrong with traditional credit scoring models. In fact, they are excellent tools for gaining insight into consumers’ repayment history. However, there is a problem with the way they are treated as the end-all-be-all mortgage underwriting metric.
Elevating Your Quality Quotient, Part II: Mortgage Servicing Post-Pandemic
Regulations offer guardrails, but rebuilding trust is key to a vibrant mortgage servicing industry. The hurdles of the Great Financial Crisis have been largely overcome and the COVID-19 Pandemic National Emergency was formally decreed behind us on April 10. So, what does the marketplace for servicing look like today and what aspects of servicing could look different in the future?
Elevating Your Quality Quotient, Part II: Mortgage Servicing Post-Pandemic
Regulations offer guardrails, but rebuilding trust is key to a vibrant mortgage servicing industry. The hurdles of the Great Financial Crisis have been largely overcome and the COVID-19 Pandemic National Emergency was formally decreed behind us on April 10. So, what does the marketplace for servicing look like today and what aspects of servicing could look different in the future?
Christy Moss, CMB, of FormFree: It’s Time to Stop Punishing Borrowers with Outdated Underwriting
Tthere is nothing inherently wrong with traditional credit scoring models. In fact, they are excellent tools for gaining insight into consumers’ repayment history. However, there is a problem with the way they are treated as the end-all-be-all mortgage underwriting metric.
Francesco Paola of Mozaiq.ai: How Intelligent Automation Helps Lenders Win
Lenders are squeezed on both sides – the need to improve loan profitability and at the same time ensure that their loan quality meets the new compliance criteria. Make no mistake, these two are related—compliance directly impacts profitability (and the lender’s reputation).
Michael Carpenter of NContracts: Risk Management Controls—a Primer
Risk management is a critical aspect of banking and mortgage operations. However, one area that often draws resistance is risk management controls. The concept may seem intimidating or overwhelming, but when you break down the components, you’ll find risk management controls aren’t nearly as complicated as you think.
Michael Carpenter of NContracts: Risk Management Controls—a Primer
Risk management is a critical aspect of banking and mortgage operations. However, one area that often draws resistance is risk management controls. The concept may seem intimidating or overwhelming, but when you break down the components, you’ll find risk management controls aren’t nearly as complicated as you think.