What types of anti-money laundering risks are most common with real estate and mortgage transactions?
In August, 2017, the Financial Crimes Enforcement Network (“FinCEN”) issued an advisory to financial institutions and real estate firms and professionals warning of the dangers of money laundering and providing insight into the types of risks that exist in the industry. FinCEN explained that real estate transactions are particularly vulnerable to such abuse because they may involve high-value assets, opaque entities and processes that can limit transparency. FinCEN indicated that real estate transactions are an attractive vehicle for money laundering because they can assist in appreciating the value of the funds, while also “cleaning” the funds.
As part of the Advisory, FinCEN encouraged mortgage lenders and real estate professional to keep the following risks in mind when identifying and reporting suspicious activity:
Although not required to by regulation, FinCEN encourages real estate brokers, escrow agents, titles insurers and other real estate professionals to voluntarily report suspicious transactions. Mortgage lenders should speak with their third party vendors and business partners about the dangers of money laundering and encourage them to report any suspicious activity to them if it involves a transaction that both parties are involved in.
It is important for mortgage lenders to maintain an AML Program that meets regulatory requirements. This includes, but is not limited to, performing AML risk assessments and independent audits of the Program at least every 12-18 months.
The FinCEN Advisory (FIN-2017-A003) referenced in this article may be found at: https://www.fincen.gov/sites/default/files/advisory/2017-08-22/Risk%20in%20Real%20Estate%20Advisory_FINAL%20508%20Tuesday%20%28002%29.pdf
If you missed Digital Mortgage 2017, you missed 1100+ of the mortgage industry's most innovative executives gathering to gauge which innovations will drive the industry's red-hot forward momentum.
After each round of demos, attendees voted for the demos they thought were most likely to succeed. The winners from each grouping then faced off in the final voting, with TMC Preferred Partner Notarize winning best in show!
Click on this link to see Notarize's demonstration at Digital Mortgage 2017.
Congratulations to the team at Notarize including Pat Kinsel, CEO & Adam Pase, Co-Founder & COO on winning this highly sought after crown in the digital mortgage space!
Secondary Marketing Executive: How Much Skin Should Be in the Game? Featuring TMC Capital Markets Committee Chairman Arthur Prieston
From page 27 of Secondary Marketing Executive's October Issue by Patrick Barnard "How Much Skin Should Be in the Game?" with commentary from industry veterans on Freddie Mac has made some adjustments to how borrowers can reach Home Possible Advantage’s 3% minimum down payment requirement. Click here to view the October publication.
Arthur Prieston, chairman of The Prieston Group, which includes subsidiary PBIS and affiliate American Mortgage Law Group, says, “Ideologically, the FHFA is more inclined to support programs where the borrower has a significant-enough stake in the investment.” This ideological stance, he says, could have been part of the rationale for the change.
Prieston, who also serves as chairman of the Mortgage Collaborative’s newly formed capital markets committee, points out that the recent guideline change for Home Possible brings Freddie Mac “more in line with Fannie Mae and the Federal Housing Administration, which both have three percent programs.” This, he says, also could have been part of the rationale.
Another possible factor in Freddie’s decision, Prieston says, is that “there is growing interest amongst affinity groups to co-support down payment assistance programs.” For now, lenders can still do 1% down loans using Freddie Mac and other loan programs.
Trusted for market coverage since 1992, MBSQuoteline is pleased to announce another enhancement to its market information service. MBSQuoteline now gives its users the option to see MBS price tracking using price increments of either 32nds or basis points. Mortgage loan originators will especially benefit from the ability to see MBS prices tracked in basis points. Originators will find it easier to keep up with real-time price movement and to use the information to impress their customers.
Go to www.mbsquoteline.com for the mortgage market information you need, when your need it, wherever you are. Take a free trial. Special pricing is available to employees of The Mortgage Collaborative member companies.
Contact Joe Farr at email@example.com for any questions.
NCS founder Robert E Knuth will resign from his position as
President/CEO and become Chairman of the Board.
EGG HARBOR CITY, NJ, October 20, 2017 – National Credit-reporting System (NCS), a full-service consumer reporting agency specializing in third-party verification solutions and credit intelligence, announced today that its Board of Directors has elected Curtis R Knuth as President and Chief Executive Officer, effective November 1, 2017. Curtis has served as Executive Vice President at NCS since 2010. Robert E. Knuth, the company’s founder, will resign from his role as President/CEO and become Chairman of NCS’ Board of Directors.
“The Board and I believe that Curt and the Executive Team have positioned the company upon a solid growth plan for the coming years,” said Bob Knuth. “Curt’s ethics and leadership capabilities will serve NCS and our clients very well. I’m quite proud of him.”
Curtis and the Executive Team at NCS have led a company-wide transformation to embrace additional data verification solutions that have cross-appeal to multiple marketplaces, such as its recently launched solution for verification of employment. As Executive Vice President, Curtis has played a critical role in the development of the company’s leadership team. He is also responsible for overseeing key strategic initiatives at NCS and regularly interfaces with government and industry resources for the firm.
“My father has been an incredible mentor to me professionally and personally,” said Curtis. “He has set an ethical leadership example at NCS, has mentored many in our industry and is well known for his humility, determination and thoughtful analysis on tough issues. As I assume leadership of the firm, we’ll work even harder to assist benefit providers in their determination of who they should lend to today, and in the future.”
Curtis holds a B.A. in political science from Stockton University in Southern NJ. He’s active in multiple industry trade associations and is a frequent writer and speaker on topics concerning the mortgage industry.
NCS (National Credit-reporting System, Inc.) is a leader in verification solutions with the distinction of being the first organization to offer IRS tax transcript solutions (TRV® Services) nationwide. NCS’ solutions include a full suite of credit reporting and verification solutions. Since 1978, NCS has offered advanced verification products and services to the financial industry.
MBSQuoteline's service provides real-time, concise, easy to understand answers as to why current prices may not be as good as they were a day ago or even an hour ago. MBSQuoteline's market information is available to originators at their desk, phone, e-mail or by text!
Impressed Customers Generate More Referrals
Surprises area a big deal to customers, especially when it comes to what they are asked to pay (i.e. rate sheet changes). Price movement creates an opportunity for an originator to impress a customer with what he or she knows, and counsel the customer through the decision to lock. A vague or incomplete explanation can result in customer mistrust. Happy customers make for happy referral partners!
No one knows where prices will be tomorrow.
MBSQuoteline's goal is to help the originator focus on what is known and react to that. Their price tracking graphs show, at a glance, when intra-day price movement puts current mortgage rates at risk of moving. Their calendar of future economic announcements can be used as a call to action.
Convenient Answers to Questions about Rates.
Customers expect originators to know about changing mortgage rates, but the answers do not have to be complicated. MBSQuoteline offers a convenient source of real-time mortgage-backed securities prices, which leaves more time for the originator to focus on other customer needs.
Become Top of Mind with Referral Partners.
Every Friday morning MBSQuoteline produces a newsletter summary what happened to mortgage rates over the course of the previous week, and a look ahead to events that may effect rates over the course of the coming week. The content is easy to understand and added to a template that is personalized with the originator's contact information, photo and company logo. This allows the originator to share with clients and referral partners with a personal touch!
The Company Benefits as well.
Your company will benefit from originators having MBSQuoteline. In addition to more referral business, the information provided can enhance the company's reputation by empowering originators with additional knowledge and understanding of rate movement to share with their clients and create better relations with investors.
It’s the most patriotic event I’ve witnessed in years. Americans standing – cheering – many are crying as a young man sings our National Anthem.
The American Flag is on screen, waving, and we’re about to be treated to a one on one interview with George W. Bush. We’re in Texas and of all the dates: It’s 9/11/17.
Before the introduction of President Bush one of the associations prominent members gets the crowd excited about what is to come, about who each of them are and closes with: We Stand with DACA!
This isn’t just any opening General Session at a mortgage or Real Estate conference, it’s opening day at NAHREP!
Those Americans (most) are Latino Americans reciting the Pledge of Allegiance, everyone participates, hands on their hearts with great respect for a Country that does not fully embrace or respect them.
Except for very a few states Latino Americans are viewed as immigrants and often, illegal immigrants even though they were born in the United States.
It’s time, past time for real immigration reform! We can argue over the moral aspects of DACA but let’s approach it from a mortgage lending perspective.
The Mortgage Bankers Association says over the next 15 years that Latinos will make up over 60% of the home purchase market. Enough said!
This is an economic and market stabilization decision that must move forward. The programs and guidelines need to be reworked in order to effectively lend to this group of Americans. If immigration reform is not addressed, not accomplished, the Real Estate, mortgage-lending business will be in serious trouble.
This is a political hot potato, it shouldn’t be. We fail miserably as a country around this because neither the Republicans nor Democrats view this as an American issue.
Two things must happen. First the right leaning public must accept Latino Born Americans as … Americans. They’re us and deserve every Right we embrace. The left leaning public must accept The Rule of Law. Immigrants that cross the border illegally cannot continue to ask for and be given amnesty or allowed to stay because they have children.
There will be those that say this is too simplistic. Why does it have to be difficult? It’s a start to take the big issues and the prejudices off the table.
Name an ethnic group, you won’t find one with a stronger work ethic, discipline to save, that live within their means, love of family and country and as deep a belief in God than Latinos. Their desire for homeownership far exceeds the millennial market in the United States today.
Fix it, it’s not hard but fixed it must be once and for all, for all the reasons, moral, political and economic.
David G. Kittle, CMB is a founding partner and serves as President & Vice Chairman of the Mortgage Collaborative.
Equity Prime Mortgage, TMC lender member and leader in the mortgage industry, has a main company goal to build lasting relationships within both the real estate and financial industries. In this, they have recently partnered with reputation management firm and TMC preferred partner, SocialSurvey.
Eddy Perez, CMB, President at Equity Prime Mortgage is quoted saying: “Company reputation is an important aspect with any business. We at Equity Prime Mortgage want to showcase our sales team's efforts in the field. Their hard work is a testament to how we run our company. We are confident this partnership will allow our community to experience transparency in how we operate.”
Social Survey is leading the way for Enterprise Reputation Management solutions. They’re passionate about enhancing and promoting a favorable reputation for their client’s brand. SocialSurvey provides a system that meets compliance requirements, insuring prospects can quickly identify a client’s best professionals amidst the noise of competitors in all social media channels.
About Equity Prime Mortgage
Founded at the height of the mortgage crisis in 2008, Equity Prime Mortgage has grown to become one of the leading mortgage lenders in the U.S., operating 16 office locations across the nation, and currently licensed in 45 states. The mission of Equity Prime is to provide a “unique road map” for clients that will strengthen their Mortgage origination platform while working through our customized, “boutique service offering.” Equity Prime Mortgage is set to move into the next stage of professional development.
Headquartered in Atlanta, Ga., Equity Prime Mortgage provides an array of lending resources such as Conventional, FHA, VA, 203K, Reverse and USDA loans as well as a trusted Fannie Mae, Freddie Mac & Ginnie Mae Seller/Servicer. With a dedicated staff of highly experienced professionals, Equity Prime provides exceptional pricing for thousands of clients annually, without compromising follow through and customer service. For more information about Equity Prime visit Equityprime.com.
Plaza Home Mortgage's Certified Loan Program protects their correspondent partners from loan manufacturing defects such as underwriting errors, fraud and misrepresentations, including defects from compliance, miscalculation of income, occupancy, undisclosed debts and appraisal issues. Plaza helps protect their correspondent lenders at no additional cost, thus substantially mitigating correspondent repurchase risk.
Plaza Home Mortgage’s Correspondent Lending Division provided case study data to display the dramatic savings that can be realized by being protected through their Certified Loan Program.
REPURCHASE CASE STUDY #1:
FINDINGS – CASE STUDY #1:
Calculating the Value of CLP Insurance (in bps) on a per loan basis – Spreading the savings in losses across each loan based on past total volume purchased up until the time of the client’s first insurance claim.
In this case, Plaza’s Certified Loan Program saves the client between $64,500 and $232,500 depending on the outcome.
REPURCHASE CASE STUDY #2
In the case, Plaza’s Certified Loan Program helps the client avoid a total loss of over $118,000!
TMC - Chief Operating Officer