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Residential Briefs

MBA Staff
CFPB Launches Mortgage Trends Online Tool

The Consumer Financial Protection Bureau launched an online tool to provide consumers with access to public mortgage information collected under the Home Mortgage Disclosure Act.

CFPB Director Richard Cordray said the tool enables greater transparency by helping inform people of trends in their local mortgage markets. “Our tool puts valuable information into the hands of the public in an accessible way, so they can understand what is happening in their local mortgage markets,” he said. “A more transparent mortgage market will lead to a better marketplace and better outcomes for consumers.”

The CFPB’s online HMDA tool is available at:

The tool focuses on the number of mortgage applications and originations, in addition to loan purposes and loan types for 2010 through 2012. It looks specifically at first-lien, owner-occupied, one- to four- family and manufactured homes. Using the tool, the public can see nationwide summaries or they can choose interactive features that allow them to isolate the information for metropolitan areas. Users can explore millions of data points with user-friendly graphs and charts.

Fitch: Taper Hold to Boost U.S. Mortgage Near-Term Volume
The surprise decision by the Federal Reserve to maintain its bond purchases will likely spur increased mortgage volume over the near term, said Fitch Ratings, New York.

Fitch noted in recent months, mortgage rates have increased sharply in response to concerns over a Fed pull-back; the Mortgage Bankers Association reported this week that the 30-year fixed rate for conforming loans stood at 4.75 percent. This rise in rates had also begun to weigh on mortgage application volume with a sharp decline in refinancing activity.
“We believe yesterday's Fed announcement will reverse some of these recent trends,” said Fitch Director Rui Pereira. “We expect mortgage interest rates to decline and give a short-term boost to mortgage volume as borrowers look to take advantage of the temporary reprieve. While still representing a very modest part of the mortgage market, a short-term boost in mortgage volume may also result in a modest increase in [residential mortgage-backed securities] volume later this year.”

CoreLogic: Growth to Temper Going Forward
CoreLogic, Irvine, said in its latest MarketPulse that economic conditions suggest a slowing in growth over the coming months.

CoreLogic said long-run potential gross domestic product growth is estimated to be 1.75 percent today as opposed to 3.5 percent prior to the recession. Single-family housing starts have moderated recently, influenced by rising mortgage interest rates. The report noted the housing sector has played a pivotal role in driving GDP growth since late 2011, but rising rates will modestly temper the contribution moving forward.

First National Bank of Long Island Partners with Fiserv
Fiserv Inc., Brookfield, Wis., said The First National Bank of Long Island, Glen Head, N.Y., implemented Common Origination Platform to meet its consumer, business and mortgage lending needs.

Common Origination Platform is a single-platform that gives lenders a holistic view of their borrowers across all lending channels and products, aggregating data in one place regardless of the point of origination or loan type. Through Common Origination Platform, the bank will have the ability to originate all types of loans and integrate its lending system into its account processing platform.

Mortgage Capital Management Offers Real-time Market Reporting Tool
Mortgage Capital Management, San Diego, now offers Diffusion Analysis, a customizable reporting tool designed to track movements in the market to help traders identify appropriate times to buy and sell.

The Diffusion Analysis provides a view of the market highlighting three key statistics: direction, momentum and volatility. Direction indicates an increasing or declining price; momentum designates the rate of change in the direction of the market; and volatility notes the relative stability of the market. The tool identifies market trends that impact trader pipelines. The trend information, combined with other fundamental analysis, events or volume-related data helps traders be prepared to move when the time is right.

RE/MAC: Summer Home Selling Season Closes Strong
RE/MAX, Denver, said the summer selling season ended on a strong positive note, with both home sales and prices significantly higher than last year.

The RE/MAX Housing Report said August marked the 19th consecutive month in which both metrics were higher than the same month in the previous year. August home sales rose by 6.5 percent and the median price of $188,450 was 12.9 percent higher than a year ago.

The survey of MLS data in 52 metropolitan areas also found that the rate of inventory decline from last year was 17.4 percent, less than the 20.7 percent decline observed in July. “As inventory returns to a more normal level, home prices will likely stabilize,” the report said. “At the current rate of home sales, the number of months required to move the entire inventory was 4.4, still below the 6 month supply recognized as a market balanced between buyers and sellers.”

CSi, eOriginal Team Up ton Transaction-level Risk Management
Compliance Systems Inc., Grand Rapids, Mich., announced a partnership with eOriginal. CSi’s IntelleDoc leverages a single, data-driven system to assemble compliant documentation for all financial institution lines of business. eOriginal SmartSign Web is an electronic signature solution that offers flexibility, compliance and control within an advanced software platform..

The integration of these two technologies are designed to reduce a financial institution’s compliance risk as the systems automatically place signatures in the proper locations and specify the correct signers based on the transaction data.

Ellie Mae: Purchase Share Continues to Rise
Ellie Mae, Pleasanton, Calif., said purchase loans continued to gain share in August, climbing by 4 percent to 57 percent of all loans.

The company’s August Origination Insight Report said the overall closing rate fell to 53.1 percent in August, down from 55.4 percent in July. Home Affordable Refinance Program-related high LTV refinances (95 percent or more) continued their resurgence, moving up from 11.1 percent in July to 13.4 percent in August.

The report said the average FICO score for closed loans dropped to 734, the lowest level since Ellie Mae began tracking in August 2011.

IDS, Lending QB Create Mortgage Doc Prep/LOS Integration
International Document Services Inc. Salt Lake City, Utah, and LendingQB announced development of a joint interface designed to create an integration between the LendingQB LOS and idsDoc.

The LendingQB interface with idsDoc ensures LendingQB users need never leave the LendingQB system to generate zero-default initial disclosures and closing documents through IDS. 

Veri-Tax Certifies Six eSign Vendors
Veri-Tax LLC, Irvine, Calif., partnered with six electronic signature providers to deliver compliant tax transcript requests used by mortgage lenders to verify a borrower’s income when applying for a mortgage loan.

Adobe EchoSign, DocMagic, DocuSign, DocuTech, eLynx and eSignSystems have all been certified to provide electronic signatures on the IRS Form 4506-T when customers request tax transcripts through Veri-Tax. These certifications allow lenders to continue to leverage their existing e-sign partnerships without needing to make internal changes in order to meet IRS electronic signature guidelines.

Fannie Mae: Full-Year Growth of Two Percent Still Expected Despite Choppy Quarterly Pattern
Fannie Mae, Washington, D.C., said better net exports and stronger inventory build-up than originally reported led to a revision in economic growth in the second quarter to a 2.5 percent annualized rate, up from the previously released sub-2 percent pace.

Fannie Mae’s Economic & Strategic Research Group said the upward revision for past quarter has neutralized the previously anticipated strengthening in the current quarter, which also faces potential downside risks from monetary and fiscal policy concerns, rising oil prices and further mortgage rate increases. However, the report said growth is expected to pick up again in the fourth quarter as fiscal drag fades and household wealth continues to rise.

“Incoming data for the current quarter paint a mixed picture, but overall we expect economic growth to slow from the surprising pace seen last quarter," said Fannie Mae Chief Economist Doug Duncan. “On the bright side, consumer spending appears to be improving from the tepid pace seen at the beginning of this quarter. Although Americans may continue to exercise caution, real consumer spending growth should improve modestly to slightly over 2 percent in the current quarter.”

NFCC Launches New Financial Education Program
The National Foundation for Credit Counseling launched the Sharpen Your Financial Focus initiative, a grassroots effort developed to help Americans identify and resolve immediate financial concerns, gain a deeper understanding  of critical issues related to their unique situations and move forward toward long-term financial stability.

With a minimum contribution of $1 million each, financial institutions including Bank of America, Chase, GE Capital Retail Finance and Wells Fargo became founders of the Sharpen Alliance.

The three-step SYFF program consists of the NFCC’s online financial self-assessment tools, MyMoneyCheckUp and ChequeoDeMiDinero, a one-on-one financial review with an NFCC-certified financial professional and a “deep dive” educational program based on the consumer’s specific requirements. The overall program is consumer-driven with the individual choosing which beginning step best meets his or her needs. 

NCS Integrates with Calyx
NCS, Egg Harbor City, N.J., integrated with Calyx Software’s Point loan origination software, enabling mortgage lenders to streamline the process of verifying a borrower’s income.

Through this integration, users of Calyx Network now have access to NCS’ line of TRV Services tax return transcript products, allowing them to obtain borrower income data from the IRS without leaving Calyx Point.

Susquehanna Bank Selects Vantage Production’s CRM Platform
Vantage Production LLC, Holmdel, N.J., announced that Susquehanna Bank selected its Vantage Integrated Production service.

VIP will provide Susquehanna Bank with additional capabilities to strengthen its CRM and marketing efforts and at the same time provide greater visibility and control over these functions.

Mortgage Returns Launches Business Analysis Reports
Mortgage Returns, St. Louis, launched its Business Analysis Reports, giving mortgage originators’ marketing departments information on production statistics, marketing ROI, customer retention and loan officer performance that can be used to increase the impact of their marketing efforts.
The Business Analysis Reports are designed to compare lenders’ marketing performance to that of their peers, enable sales managers to evaluate branch performance, empower marketing departments to track ROI and allow loan officers to review marketing activities and results in order to make changes to current marketing plans.

LoanLogics Acquires Parker & Co.
LoanLogics, Fort Washington, Pa., acquired the assets of Parker & Co., a provider of risk management services in the mortgage industry.

“The acquisition is strategic because it enables us to move LoanDecisions more deeply into the secondary market,” said Brian Fitzpatrick, president and CEO of LoanLogics. "It gives us additional capability in the secondary marketing and risk management side of the business.”

LoanDecisions is an eligibility and loan pricing service that delivers investor pricing and eligibility data.