In this three-part blog series, we’re looking at ways lenders can reduce risk and improve loan quality. Part 1 focused on identifying military status, and Part 2 looked at senior lien risk mitigation. Now, in Part 3, we’ll look at owner-occupancy status and new tools that are improving quality control and helping servicing staffers uncover fraud ..read more

Home equity lending is expected to be one of—if not the—fastest growing loan categories for the foreseeable future. While second mortgage liens are generally considered less complicated than first mortgages, they are by no means risk-free ..read more

Government Sponsored Enterprise (GSE) buybacks have become a hot topic of debate within the mortgage industry. On one side mortgage companies and trade groups contend that demands are up significantly because the agencies are aggressively looking for minor flaws on performing loans. In response, the GSEs have said that they aren’t doing anything differently and the volume of putbacks is simply the result of several ultra-high-volume years during which underwriting was more challenging in the COVID-19 work-from-home environment ..read more

Sir Isaac Newton is famously quoted for saying: for every action, there is an equal and opposite reaction. He wasn’t talking about the mortgage industry, of course, but his theory can be applied to the ups and downs of the market. Every market cycle brings new opportunities and with them the potential for risk. Minding – and mining – important details is critical in mitigating risk, maintaining compliance, and improving underwriting. This is the first of a three-part series that will delve into important risk factors that lenders face, especially in this current lending market. In this blog w ..read more

By: Brian Haber, Product Manager, First American Data & Analytics What We’re Watching is a monthly blog of industry news curated by Brian Haber, who monitors the mortgage market for First American Data & Analytics. Here’s what Brian is focusing on now. Enhanced Payment Deferral/Forbearance is Back The FHFA is making the COVID-era six-month deferral permanent, allowing borrowers to skip up to six monthly payments and add them to the end of the mortgage as a non-interest-bearing balance due payable at maturity’s refinance or payoff. Fannie Mae and Freddie Mac (the Enterprises) will work ..read more

First American Data & Analytics and Docutech attended ICE Experience 2023 this year. The mood was upbeat and attendees seemed focused on getting the most out of lively sessions and insightful conversations in the hallways and meeting rooms. As we have seen with other conferences, those in attendance were there to maximize every moment, reconnect with partners and prospects, and get a sense of what is working and what is not in the current lending environment. A variety of themes emerged that show just what lenders have on their minds as we all continue to navigate this challenging market ..read more

As home equity lending gains momentum among both traditional and non-bank lenders, so too does the competition to gain market share. In Part I of this two-part blog series, we reviewed how lenders can gain ground by reducing risk and decreasing costs for more efficient and profitable HELOC originations. For Part II, we’ll look at how to use data to increase marketing return on investment (ROI ..read more

Are HELOCs the new cash-out refis? Given the steep rise in interest rates and the sharp decline in refinance volume, HELOCs and other home equity products are now top of mind again at many banks, credit unions and fintech lenders. Nonbank lenders are also exploring these products, working in tandem with investors looking to create a secondary market for home equity. There’s no question that going forward HELOCs will be the product of choice when equity-rich consumers need liquidity. The better question is: Will our industry originate and market HELOCs the same way they did 10 or 15 years ago ..read more

It’s surprising how quickly times can change. In 2021, the mortgage industry set a new record for refinance volume: $2.3 trillion. But six months and three Fed-rate hikes later, the refinance market is rapidly shrinking and is now expected to close out 2022 down by two-thirds, according to a recent Mortgage Bankers Association forecast. The rapid decline of refinance lending is expected to usher in a return of home equity lending, a product category that for most of the last decade has been overshadowed by cash-out refinances ..read more

“Those who cannot remember the past are condemned to repeat it.” George Santa ..read more