TMCDirect, The Mortgage Collaborative's private label loan trading platform, powered by Resitrader is attracting a massive amount of interest throughout the mortgage industry with an innovative platform that transforms the loan trading process by expediting the trading of spreadsheets and bid-tapes while adding additional layers of the security for their buyers and sellers. Here are insights from Resitrader offered to Rob Chrisman this past week.

Resitrader reports on-going interest in buyers and sellers moving to its secondary market digital platform due to internal and external audits. “Our clients are getting pushback on e-mailed bid tapes, whether they’re password protected or not, due to NPI [Non-public Personal Information] data transmission through e-mail being insecure. And that’s driving them to online platforms,” said John Ardy, CEO of Resitrader. “We hear from our larger buyers, especially the regulated institutions, that the days of the emailed bid tape are numbered.”

For more information on what Resitrader can innovate and streamline your loan trading process, contact:

• Diane Capers, Regional Sales Director

TMC Preferred Partner Timios is simplifying the closing process with their paperless closing process! Timios is also creating additional transparency with their 24/7 accessibility to loan documents and transaction progress on their website and mobile app.

Additionally, Timios is now offering escrow fee pricing in California with a flat fee of $575 per side, which makes the competition hard-pressed to match Timios’ customer service levels, let alone their pricing!

In case you missed it – Vice Capital Markets is now integrated with TMCDirect!
 
This integration now allows clients of Vice Capital Markets to complete loan trading on behalf of their clients utilizing the real-time data and tools of the TMCDirect platform that's powered by Resitrader.

Here’s how it works…

• Vice Capital extracts all client data from the seller’s LOS creating mapping into Resitrader’s platform format.
• The client receives daily reports on details and positioning of all hedged loans which is instantly uploadable into TMCDirect. This eliminates the need and time for manipulating the data.
• Sellers receive agency loan-level pool execution data from Vice Capital, including payups for new production stips and custom low loan balance premiums, which are also uploaded into TMCDirect.
• When a client uploads loans for bidding into TMCDirect, an email is auto-generated to the Hedge Desk at Vice Capital, so Vice’s traders are ready to prepare any adjustments for appropriate hedging.
• Once buyers start to bid on the loan pool through TMCDirect, Vice Capital’s Hedge Desk is immediately notified which allows real-time execution on bulk bids and agency cash commitments.
• Once executed, sold loan reports are sent by Resitrader to both the client and Vice Capital, and general ledger data is sent to the client by Vice Capital and recorded into HedgePro.
• Finally, executed loan data is uploaded into the client’s LOS through TMCDirect’s LOS data integration.

 
Think there’s a lot of steps involved? You could be sifting through bid tapes and spreadsheets for the rest of your day.

We know that our lender members are some of the best of the best in the industry, so it's excellent to see our preferred partner recognizing their greatness too! The Mortgage Collaborative is excited to share that 8 of our lender members have been recognized on SocialSurvey's 2017 List of Top Performers. Congratulations to our friends that made the list!

• Axia Home Loans
• Envoy Mortgage
• First Community Mortgage
• FirstBank
• Hallmark Home Mortgage
• Inlanta Mortgage
• MSI
• New American Funding

Check out the entire list here.

QUESTION:
With wire fraud on the rise in the mortgage industry why should I have a Wire Modification Process in place and what are some steps I can take to mitigate the risk of wire fraud?
 
ANSWER:
The potential of wire fraud is on the rise. Perpetrators have grown more sophisticated in their ability to disguise and find ways to make an email look legitimate.  In fact, the FBI reported that the amount targeted by perpetrators via business email compromised in 2016 was $5.3 billion.1  Over the past three years, the Minneapolis FBI office has tracked approximately 14,000 victims in the United States with fraud approaching $1 billion.2
There are some steps to take in an effort to mitigate wire fraud by implementing process controls and best practices such as the following:

1. Independently validate the bank account and routing numbers on the wire instructions by phone and embed them into the Loan Origination System (LOS) with restricted access to updates.
2. Leverage the settlement agent’s secure portal or secure email to obtain wire modifications.
3. Ensure you have a strong policy and procedure (and training for employees) in place when there are changes to the wire instructions whereby your funding team follows-up with a phone call to the settlement agent or title company (not using the phone number on the modified instructions) to ensure the changes are accurate. Phone numbers on compromised wire modifications will likely be answered by the perpetrators.
4. Educate borrowers early in the loan process about the dangers of last minute wire instruction changes and the prevalence of phishing scams.

Once confirmed, the LOS should be updated with the validated changes by a member of the management team and the data field should be locked down to prevent any additional changes, which have not been validated.

1. Internet Crime Complaint Center (IC3) | Business E-mail Compromise E-mail Account Compromise The 5 Billion Dollar Scam. May 4, 2017. Accessed February 23, 2018. https://www.ic3.gov/media/2017/170504.aspx#ref1.
2. Van Nest, Jeffrey. "KARE 11 Investigates: Email scam targets homebuyers." KARE. May 02, 2017. Accessed February 23, 2018. http://www.kare11.com/article/news/investigations/kare-11-investigates-email-scam-targets-homebuyers/435752635.
   

For more information on MQMR or other hot button compliance related topics, contact:

• Britt Haven or call 818.940.1200 Ext. 421
  
• Alan Ridenour or call 818.940.1210
  

Ten years of manipulated interest rates held at record lows and a refinance atmosphere that settled most into a secure environment of consistent production has led to a comfortable but risky complacency.
 
The television has been saturated with commercials touting the fastest ways to refinance and begs our Veteran population to borrow up to 100% of their home’s value to eliminate consumer debt created during the past 10 years of mediocre economic growth.
 
Much of our loan officer population has less than 10 years’ experience. They’re extremely tech savvy, but can they sell in a rising interest rate market when purchase, not refinance, is order of the day?
 
If asked, can your origination staff define index or margin? Most are too inexperienced to know what an Adjustable Rate Mortgage is and how it works. ARMs will return because the homebuyer is used to interest rates in the 3% range and will demand a low rate with an affordable payment.
 
The media will gasp as lenders promote ARMs, remembering only those programs that were interest-only with little to no underwriting required. The 3/1 – 5/1 - 5/5 and 7/1 adjustable rate programs, fully amortizing with solid caps and solid underwriting will be an attractive alternative to a higher fixed rate offering. Let’s not forget caps and fully indexed rate, something else the LO will have to learn about in order to intelligently discuss and explain to the borrower exactly how the adjustable rate mortgage works.
 
Dust off your ARM disclosures, search for a quality portfolio investor and begin to train your sales staff to sell. ARMS, when sold to the right borrower, are a great way to diversify your product offering.
 
Keeping interest rates at record lows assisted our industry, but hurt the over 62 population. There’s been no gain on fixed income assets and very small increases in their Social Security check.
 
Rates will rise, but it’s not the time to panic. It’s time to think, to train and prepare to offer and sell a viable alternative to the fixed rate loan, ARMS!