ComplianceEase would like to invite all of TMC members to our upcoming Risk & Compliance Summit on November 1-3 in San Francisco, by offering TMC members an exclusive offer to register.

2017 Risk & Compliance Summit - Exclusive TMC Special

• $495 Registration Fee ($200 Savings*)
  
• Use Discount Code: 17TMC
• Hotel Discount: ($229/night*)
  

If you have any questions related to the Summit, please email event@ComplianceEase.com

*Offer expires Friday, September 22, 2017. Hotel discount excludes taxes and fees.

• For more information about the Summit, visit the website to view our agenda and other details.
  

Fannie Mae is updating Desktop Underwriter® (DU®) effective Saturday, August 19, to offer Property Inspection Waivers (PIWs) on some purchase transactions (view DU Release Notes). This update responds to market changes, and allows our lenders to offer your borrowers a choice for efficiency and cost savings by foregoing an appraisal on some lower-LTV loans.
 
Eligibility is limited to one-unit principal residences and second homes up to a maximum 80 percent loan-to-value ratio. It is estimated that PIW offers will be issued on less than 5 percent of purchase transactions. Offer rates will vary by lender and fluctuate over time.
 
Lenders have the option to exercise a PIW offer, and may not accept it if they have any reason to believe that a full appraisal should be provided (for example, if there was a hurricane or other natural disaster in the area of the property), or if the borrower wants an appraisal. View more information about PIWs.
 
Borrowers always have the choice to obtain an appraisal. Based on Fannie Mae’s experience with purchase appraisal waivers, we expect the acceptance rate on appraisal waivers for home purchases to be low. Many home buyers want an appraisal to support the price they pay for a home, and the majority of purchase contracts include a contingency clause for an appraisal.
 
Fannie Mae continues to require full appraisals on the vast majority of purchase money mortgages to establish market value of homes and provide valuable input to our appraisal database to support Collateral Underwriter® analytics and future innovations.

• For more information on Fannie Mae, please contact Beth Millstein or Tammy Trefny.
  

Article from The M Report - Published July 4, 2017 Click here for original article.

Author - David Kittle, President & Vice Chairman of The Mortgage Collaborative

The future of many companies—success or failure—could be decided by one specific characteristic, and it’s not in margin increase or hedging profitability. It’s whether or not companies are committed to entering the diverse minority lending markets.Traveling the country and speaking to mortgage banker groups and State Associations, one thing is clear: most of the audience is over 50, male, and white. There’s very little youth or minority represented in the audience.

Who will be the successors to the mortgage industry, the next generation of leaders? When posing this question to the audience, one response is companies are recruiting and hiring younger, more diverse sales staff. Great! But, why aren’t they sending them to the meetings and conferences? Where’s the long-term investment towards internal practices? It’s important enough for executives and leadership teams to attend, so why not the company’s future as well?

Diversity must be a cultural change inside companies, and not just at the board level. According to the Joint Center for Housing Studies (JCHS) at Harvard University, as many as 17 million new U.S. households will be formed from 2010 to 2025, and as many as 13 million of these new households could be comprised of minority families.

How will lenders communicate with the future borrower—and not just at the origination of the loan, but throughout the entire process all the way to servicing?

Maria Zywiciel, President of the National Association of Hispanic Real Estate Professionals (NAHREP), had this advice:

• Hire/Partner with companies that not only have diverse consumer expertise but also industry expertise
• Take inventory of operations support team. There is generally more diversity represented among the operation ranks than in sales. It could be a great potential opportunity to a career path. Promoting a solid operations employee to sales internally is usually more beneficial than to seeking and hiring inexperienced sales staff outside the company.
• Attract diverse talent by showcasing senior leadership that is committed to the segments, diversity among the various ranks of the organization, a marketing team that can support their efforts, and a cultural competent operations group.
• Get involved in trade organizations like the National Association of Hispanic Real Estate Professionals to get to know the movers and shakers and stay actively involved! Don’t be intimidated; engaging with these groups doesn't require Hispanic heritage or even the ability to speak Spanish to join!

The JCHS reports that lending demographics will be up to 70 percent Hispanic, Asian-American, and African-American by 2025, and the Home Mortgage Disclosure Act says if companies are not serving these markets, they could be at risk of redlining! This data should necessitate diverse markets as vital company strategy. With many minorities—in particular Latinos—largely being first-time homebuyers, it’s a market that deserves a concerted approach. That would include not only marketing and fulfillment strategies, but also recruiting strategies to reflect the consumer base.

Let’s not forget the reverse side of the youth diversity equation. If reverse mortgage is part of a company’s playbook, then a youthful origination staff can’t develop the relationships necessary to compete in the marketplace. People of age are imperative to the process when discussing an over-62 mortgage product with someone considered a senior citizen. In this arena, hiring age experience goes a long way.

In 2025 the minority will be the majority! Companies must prepare and invest now to successfully engage long-term in diversity, or prepare to be left behind.

Multiple mortgage industry publications have noted a spike in the frequency of defects, fraudulence and misrepresentation in the information submitted in mortgage loan applications over the last several months.

With Plaza Home Mortgage’s Certified Loan Program, including Rep & Warranty Relief, you are fully insured against repurchase risk for any loan sold to our partner, Plaza Home Loans.