SocialSurvey is hiring a Mortgage Industry Software Sales Executive. SocialSurvey provides a platform for clients to collect customer feedback, share it on social media, boost SEO, retention, recruiting, and social proof. With over 10,000 users in the first year of business, this is a great opportunity for somebody with the right experience and contacts. "If you can get us the meetings, we can help make you a rock-star!" SocialSurvey is offering salary, commission and equity to the right candidate.
For more information or to provide a confidential resume, contact Scott Harris.
Each week the Identity Theft Resource Center (ITRC) releases its Data Breach Report. This report contains, among other information, a running tally of the annual number of data breaches. In its most recent report, released on October 19th, the ITRC calculate that there have been 783 data breaches through the first nine and half months of 2016. That equates to 20 breaches a week! In total, over 29.5 million people have had their records put at risk for identity theft. Our industry, classified as Banking/Credit/Financial on the IRTC report, accounts for 4.2% of the breaches which put at risk over 26,000 records, or 684 records per week.
Although not all breaches end in identify theft and the resulting financial damage to the victim, the fact that our industry exposes almost 700 people per week to the risk of identity theft supports our industry’s push to improve data security. We at String fully support this push and consider the security of our customer’s data as our number one priority. It is one of the key reasons why we’ve spent the time and resources to obtain ISO 27001 certification and SSAE 16 Attestation. Though it’s our use of Virtual Private Networks (VPNs) that does the most to help us protect our customer’s data while affording us several additional benefits that we’ve shared below.
But first, what’s a VPN?
VPNs are one of the best ways to transfer data that contains Non-public Personal Information. As the name implies, a VPN is a private network that is built on top of a shared or public network, such as the internet, for the specific purpose of sharing or transferring secured and encrypted data from point-to-point or site-to-site. In effect, a VPN is a tunnel from one business to another business that is only accessible to and used by the two businesses.
Why we like VPNs
1. Whether it is for personal or business use, security is the number one benefit of a VPN. All data transmitted and received through a VPN is encrypted and, as the owner, you get to choose the level of encryption. Furthermore, data is only routed through the VPN when one of its owners makes a connection. As such, a VPN is much less vulnerable to unauthorized access and the potential theft of data. They are a great tool to help you address the security concerns and regulations of our industry and the reason why we at String conduct over 90% of our business through VPNs.
2. VPNs can be set up quickly, and as we frequently do, can be built remotely. There are no standards on how a VPN should be set up so it is up to you to determine which authentication and security protocols are used. While this may be a daunting prospect to those who have never set up a VPN, rest assured that due to the popularity of VPNs there is an abundance of professionals, or even business partners, that can assist you in creating a VPN. For example, Strings’ IT team routinely sets up VPNs for our new customers.
3. VPNs are cost effective in that they can often be created using your existing servers.
4. VPNs provide a more stable and dependable connection than other networking alternatives. Since they do not rely on third-party networks, they are less susceptible to outages and when issues do occur, those issues can be more readily addressed. Case in point, our IT team is on-call 24/7 to troubleshoot and fix any issues that may arise with our VPNs.
5. VPNs are very easy for your employees to use. By following simple step-by-step instructions, they can quickly connect to a VPN and begin transferring secure, encrypted data with your business partner.
While technology advances at a rapid rate and new and better networking technologies have improved the features of VPNs, much of the underlying technology has remained the same. This consistence, coupled with the popularity of VPNs, provides evidence to the effectiveness of VPNs as a secure communication tool.
Every so often here in The Weekly Collaborative, we like to take a whirlwind around the world wide web, highlighting some of our favorite industry websites and links to relevant content ...
Let’s start with more reaction to the PHH/CFPB ruling. The two best links for analysis I’ve found are Dave Lykken’s interview of attorney Mitch Kider (who worked on the case) and Diehl & Associate’s Scott Weghorst’s thoughts on what it means for the industry.
Best current websites for daily news updates on our industry for my money are Housing Wire, Mortgage News Daily, and Mortgage Daily. Those three sites, MBA NewsLink, and Rob Chrisman’s daily email - and you’re not going to miss anything in this business.
Strangely, outside of some of the great blogs maintained by lenders and industry service providers, there are next to no good truly indepenent blogs or bloggers for the mortgage industry anymore. On exception is The Truth About Mortgage and they recently published a list of the top 40 residential lenders in America in 2015.
This election, you have to laugh (to keep from crying), and if you like to laugh - this spoof video of a Hillary Clinton/Ken Bone dance-off is one of the funnier election related internet productions of the fall. No truth to the rumors that the Cleveland Browns have signed Ken Bone to play quarterback for them though.
With much of the industry headed to Boston for the MBA Annual this weekend, here’s a great list of some off-the-radar things to do in Beantown if you have any down time.
Remember The Mortgage Implode-O-Meter? It’s still around! But (thankfully) with far fewer updates these days.
And finally - my Cleveland Indians!! Anyone that knows me knows that I have been on Cloud Nine these past few weeks and was crying sweet tears of joy last night. Game one of the World Series is next Tuesday night, and starts about an hour after the conclusion of TMC’s reception at McGreevy’s in Boston. We’re getting the Cleveland contingent together for a little watch party! Let us know if you’re interested! Enjoy the off-season Bautista! GO TRIBE!
If you are a mortgage lender funding $15 million or more in correspondent lending, you should strongly consider selling to Envoy Correspondent! Envoy works daily to create innovative partnership with lenders, and one of the best ways they do that is through the Charity Awards Challenge. The Charity Awards challenge presents lenders working with Envoy the opportunity to give back to their communities through donations to the charity of their choice, and will participate in the presentation of the charitable donations! The Charity Award is based off the tier of funded production the lender achieves. Through this outstanding philanthropic program, Envoy has contributed over $300,000 in 2014 & 2015 alone. While 2016 is winding down, now is the time to get involved with Envoy for 2017 to do something great in your community!
"The idea behind the ‘Charity Award$ Challenge’ was to recognize the escalating costs to originate loans for today’s mortgage lender", says Todd Potter, CMB ‐ SVP Sales at Envoy Correspondent. "Owners and executives alike must make challenging decisions within their budgets. Reducing or eliminating their contributions to the communities that they live and serve are sometimes the first to go. In recognizing this dilemma, being a good business partner involves investing in each other, every day."
To learn more about Envoy Correspondent, contact Todd Potter.
After nearly nine months of watching lenders struggle to fully implement the TILA-RESPA Integrated Disclosures (TRID) regulations that went live in late 2015, the Consumer Financial Protection Bureau (CFPB) released a series of proposed amendments. While there are no large individual changes, depending on a business’s practices, there are several small tweaks that could greatly impact the lender’s processes and procedures.
Understanding what is – and what is not – in the proposed changes will help lenders prepare for the next phase of TRID.
Erasing the Gray Zones
The changes in the rules will not result in any major form or document changes. Essentially, the CFPB has compiled and formalized some of the rule clarifications and informal guidance that had been distributed over the past several months. Here is a summary of some of the larger changes included in the proposed rule.
The first is in changing how the tolerances for the total of payments are calculated. Under the amendment, tolerance provisions would include the total of payments that parallel existing tolerances for the finance charge and disclosures affected by the finance charge.
The second major change involves how the exemption for housing assistance loans is applied. The proposed change clarifies which fees and taxes are included in the analysis to determine whether a housing assistance loan is exempt from the rule.
The new proposal also extends TRID’s coverage to include cooperative units, simplifying compliance for lenders. Because a coop loan is sometimes not considered a real property transaction, the rule change makes it so that all coop purchases are treated the same.
The new rules also clears up some technical issues regarding the calculating cash to close table. These technical changes adjust the way lenders calculate and disclose the closing cost financed and down payment funds from and for borrowers.
Most of these clarifications are good. They remove the grey areas that can plague a compliance department and waste time and money trying to implement unclear regulations.
Some Areas Still Need Clarity
Unfortunately, there are still some areas that need clarification. The most significant involves cures for small technicalities. The CFPB has commented extensively that they were not going to take up cures because it would lessen the industry incentive to get things right the first time, but providing a simple way to cure minor, inadvertent errors can help lenders avoid scratch-and-dent secondary sales or costly, time-consuming reengagements with the borrowers to redo the mortgage.
The other area that needs clarity is in the disclosure for closing costs. While the proposed rules fixed the cash to close table processes and calculations, the disclosure itself is not as useful for borrowers. The way information is currently shared does not reflect closing costs that will be financed in the loan and the disclosure of down payment is not what is commonly understood by borrowers. Lenders want a standard way to disclose how much cash the borrower needs to bring and accurately reflect what is required in cash and what is being funded as part of the loan.
Let Your Voice Be Heard
There is still time to provide the CFPB feedback on the TRID revisions. Open comments are available until October 18, 2016. The CFPB has indicated it expects to issue the final rule in April 2017, putting an implementation date in late 2017 or early 2018.
And no matter what the final rule looks like, Docutech will have you prepared with its compliant document and disclosure engine. Learn how we can lower your compliance costs while improving customer experience by requesting a demo today.
Written By: Fred Gooch
To request a demo or learn more about the products & services offered by Docutech, contact Tony Inskeep.
How long does negative information really stay on a credit report and how long will it affect scores? This can vary based on what the negative information is, but in most cases it’s going to be seven years. As it ages there will be less and less of an impact on a credit score, but will have at least some affect for the entire seven years.
Let’s break it down:
Collection accounts - will remain on a credit report for seven years from the date it first became delinquent. Years ago if a collection was sold during that time, the seven-year time frame started all over but that is no more. No matter how many times a collection is sold it must fall off the report after the initial seven years. For example, if ABC collection held the account for five years and then sold it to DEF collection, after two years it would fall off paid or unpaid. The clock does not start over when a collection is sold. Let’s say a collection agency has not collected on a debt and after four or five years the original creditor that hired the collection agency decides to recall the collection, then that collection agency should fall off immediately. If a debt is returned to the original creditor, then the collection agency legally can no longer report the account.
Charged off accounts - same as a collection account. It should fall off seven years from the first late payment that preceded the charged off status whether it is paid or not. If they have sold the account to an outside collection agency, even if it was several years after, both accounts should fall off at the original seven-year mark.
Judgments - will remain on your credit report for seven years from the date filed or until the statute of limitations runs out. Some states have statute of limitations that is only five or six years, but for most states it is seven years.
Tax liens - Paid tax liens will normally stay on your credit report for seven years from the date it was paid (released). Unpaid liens can stay on a credit report for up to 15 years. Again this will vary some depending on the statutes in each state.
Bankruptcies - A chapter 7 Bankruptcy will remain on a credit report for 10 years from the date filed. A Chapter 13 bankruptcy will remain for seven years from the date filed. While the Chapter 7 bankruptcy will remain as a public record for 10 years, the credit accounts that were included in the bankruptcy should only remain for seven years.
If there is a collection, charge off or judgment on a credit report it’s not always a good idea to pay it, especially if it is older and let’s say has only one or two more years before it falls off on its own. When you pay any of these, it brings the reporting date to the current date, making it look like a new collection and can actually have a negative affect on the credit score. So before paying any of these off it is always a good idea to find out exactly when the collection or charge off began. If it was several years ago it might be better to wait out the additional few years and let it fall off on it’s own, instead of taking the chance of updating that reporting date and possibly hurting the credit scores even more.
Seven years can seem like a long time but time really does “heal all wounds.” The older the negative information is the less it will affect the credit scores. It will always have some affect but lessens as it ages. If any of the above does appear on your credit report, eventually it will go away, paid or unpaid.
By: Mindy Leisure, Rescore Express Manager at Advantage Credit.
The mortgage industry got astronomical news earlier this week when it was announced that the US Court of Appeals ruled in favor PHH in its appeal against the CFPB. The ruling vacated the $109.4 million fine levied against PHH and also declared the structure of the CFPB “unconstitutional”.
The inside baseball from the court case indicates that it was an indisputable and decisive win for PHH and their high-powered legal team, led by Ted Olson, he of Bush-Gore recount fame.
While it’s nearly certain that the CFPB will appeal, and that a final resolution of any sort as to their fate is at least a year away, what does this mean for our industry in the short term? Here’s some thoughts & predictions.
- In my opinion, the decision will clearly embolden more mortgage lenders to challenge CFPB fines and enforcement actions. This will (hopefully) cause the Bureau to put more guidance in writing, giving lenders more clear and consistent interpretations of the rules, which MBA has been arguing for on the industry’s behalf for some time.
- It could also cause CFPB to write new rules. With the recent Wells Fargo news, most oddsmakers giving Hillary Clinton a 80-90% chance to win the White House, and a potentially more CFPB sympathetic Supreme Court in the future - I wouldn’t expect the Bureau to sit on their hands, even if it is going to be tougher for them to affect behaviors by enforcement actions as opposed to clear rule-making.
- Marketing services agreements between real estate brokerages and settlement services providers like mortgage lenders will pick back up. Those that were in the process of pulling out of those agreements could reverse course, and with rates expected to rise, refinances expected to tail off, and volume likely to decrease this winter - we're likely to see others make MSA's a part of their marketing strategy once again.
- This could lead to Richard Cordray more publicly pursuing a run for Governor of the State of Ohio, which has been widely speculated for some time in the Buckeye State.
- Could this news embolden PHH to shake things up with their company? They pulled out of correspondent/wholesale five months ago, but were the 7th largest lender in all of America in 2015. Could they look to use their new status as the industry’s “peoples champion” to unveil a new product or origination channel? Word is, they’ve known they were going to win this case for some time.
Seroka Launches New Division that Specializes in the Next Generation of Digital Communications for the Mortgage Industry.
Seroka, the premier provider of brand development, marketing, and strategic communication services to the mortgage industry since 1987, announced it has launched a new division, Seroka Digital. The division will focus on serving the mortgage industry's need for true digital communications leadership.
The dedicated digital division expands upon Seroka's current, core digital services and will complement the firm's well-established certified brand development and strategic communications divisions. Seroka Digital will assist its clients with the effective utilization of these demanded marketing tools as they increasingly target and engage with Millennials.
The services offered through Seroka Digital include:
Seroka chose to launch this new division in advance of the MBA annual convention in Boston. Seroka is planning meetings to educate and outline how digital and mobile services can be integrated into marketing plans.
To meet with a member of Team Seroka in Boston, e-mail John Seroka.
Headquartered in Philadelphia, Radian connects leaders, homebuyers, investors, and loan servicers using a suite of private mortgage insurance and related risk management products and services.
Radian helps promote and preserve the tradition of homeownership while protecting lenders from default-related losses on residential first mortgages. They also facilitate the sale of low-down payment mortgages in the secondary market. Their commitment to homeownership is built on a foundation of evaluating credit risk; they help clients and investors expertly and prudently manage risk in any market condition.
Radian Group Inc. is traded on the New York Stock Exchange under the symbol RDN.
For more information on Radian, please contact Shelley Duffy.
- It's a house divided at TMC for the next week as my beloved Cleveland Indians take on TMC Co-Founder & Vice Chairman David Kittle’s beloved Boston Red Sox. Our daily calls have gotten a little more tense as of late. TMC CEO Jim Park (Padres fan) didn’t even know the playoffs had started. :-)
- Of course, the MBA Annual is coming up in Boston in a little less than three weeks. It’s such a great conference city. Very walkable. Great food, people, pubs, neighborhoods, and accents. Water, parks, bridges, boats, bike paths, Fenway, and the best Little Italy in America for my money. I’d rank it only behind San Diego and Nashville on my personal list of favorite conference cities.
- Conferences tend to have undertones and themes, and I expect to hear a lot about innovation, growth, efficiency and servicing in Boston later this month.
- There’s an interesting dynamic happening in mortgage banking right now. Due to many factors, our industry was still in the stone ages from a technology perspective until just these past couple of years and companies are scrambling to assess the options that can make their process and customer experience more streamlined and innovative.
- At the same time, companies are trying to grow to outpace the cost to originate and to prepare for a market that is primarily purchases and higher interest rates. A lot of interesting 2017 budget expenditure debates are going on in board rooms of mortgage lenders right now.
- It seems like more than ever before, firms are looking to adjust their strategy on servicing. Those that have been in the servicing game are frustrated with the cost and compliance. Yet never before have I talked to more companies that are looking to start to service loans.
- With market share shifting rapidly to IMB’s, a Hillary victory in November will mean a much larger CFPB in 2017 and beyond. Two areas I’d urge IMB’s to focus on is cybersecurity and fair lending practices and procedures.
TMC - Chief Operating Officer
President/CEO - Pulte Financial Services