Thursday, December 20, 2012

HOLIDAY PRIZE: Holiday Traditions

Throughout the month of December many families participate in holiday traditions. Whether new or from long ago they never fail to bring smiles to the faces of those participating. This is nostalgic time of year for almost everyone. The smell of pine trees, candy canes, wrapping paper, shopping, holiday music and of course the magic of the holidays in the air. 

If you received one of our Holiday Cards this year please share with us one of your favorite holiday traditions from this time of year. 

Happy Holidays from IDS!

Friday, December 7, 2012

CFPB, Justice Agree to Coordinate Fair Lending

CFPB, Justice Agree to Coordinate 
Fair Lending Enforcement
The Consumer Financial Protection Bureau and the Justice Department yesterday signed an agreement to coordinate their fair lending enforcement efforts and avoid duplication, the agencies said in a joint press release.

Both the CFPB and the Justice Department have authority to protect against discriminatory lending under the Equal Credit Opportunity Act. But the Dodd-Frank Act also authorizes the bureau to conduct joint investigations with the justice department on fair lending-related matters.

Under the memorandum of understanding they signed, both agencies will meet regularly on investigations and establish strict confidentiality  for shared information. The CFPB, like other federal banking regulators, will refer matters to the Justice Department, "when it has reason to believe that a creditor has engaged in a pattern or practice of lending discrimination," the memorandum said.

The agencies also agreed to notify each other at key stages of their enforcement work, such as an investigation's opening or when a lawsuit is filed. The Justice Department "welcomes the new tools and resources the CFPB can bring to the fight against lending discrimination," said Thomas Perez, assistant attorney general for Justice's Civil Rights Division. 

Thursday, December 6, 2012

Tech Trends All Center Around Compliance Side

Mortgage Technology Magazine: Tech Trends All Center Around Compliance Side

When asked to name a significant theme in automation, executives participating in a roundtable discussion at the SourceMedia Mortgage Technology Conference in Miami Beach last week, singled out the need to keep up with regulatory demands.

Automation has helped the industry keep up with Consumer Financial Protection Bureau regulations, good-faith estimate fee disclosures and single point of contact requirements that have challenged the industry, the executives said.

They noted that the concerns which various forms of automation aim to help the industry address include efforts to get GFE fee estimates in line with required tolerances in an effort to avoid monetary penalties for breaches, and the need to secure document operations and communications in order to mitigate the rising risk of an audit in today's market.

Participating in the roundtable discussion moderated by director Mark Fogarty and Mortgage Technology managing editor Austin Kilgore were Kelli Himebaugh, vice president, Mortgage Builder; John Guzzo, managing director, Berkery Noyse; and Tim Armbruster, chief technology officer, ClosingCorp. 

Wednesday, December 5, 2012

What Does Paperless Mean to You?

What Does Paperless Mean to You?

Does scanning paper files and emailing loan documents makes an office paperless?

Is collaborating with internal and external parties using an electronic loan folder a key component to making an office paperless?

Is an organization not considered paperless until it is doing a true eMortgage?

Is it true that to be a paperless solution, technology must provide the flexibility to work with paper, images and electronic documents?

Going paperless in the real world, especially a paper driven world (the mortgage industry) isn't always easy and pain free. But with the future home buying generation having technology, processes and information literally at their fingertips, paperless is the direction our industry is taking. 

What is Driving Paperless?

The pressure to comply with industry regulations and standards is the greatest factor impacting eMortgage and paperless initiatives. Similarly, the growing focus on compliance has affected how organizations evaluate successes resulting from mortgage technology.

Paperless can be part of the solution. It allows us to create audit trails and transparency throughout the lifecycle of the mortgage process. 

- 90% of people cited access to an audit trail as an important benefit of going paperless
- 88% consider how well a solution supports compliance for industry regulations as a n important paperless benefit.

Even though going paperless has it's pain points for the industry, but it also has it's solutions and benefits!

Paperless Benefits:
  • Efficient origination and delivery process
  • Empowers communication: information anytime, anywhere
  • Business intelligence: best practices- continuous improvement, what gets measured, gets managed
  • Data security: file security, physical security, secure consumer communication and role based security
  • Regulatory compliance: audit trails, no missing documents and current

Industry Adoption:
Nearly half of respondents, 43%, believe the mortgage industry will close more than half of all loans as an eMortgage within the next four years, up from 28% in 2011. Thirty six percent believe it will be within the next 5-7 years; 11% say it will be within the next 8-10 years; 10 percent say it will be within the next 10 years and 8% say that more than half of all loans closed will be as an eMortgage in 1-2 years from now.

Paperless is the answer for our industry right now and the more we head in that direction the easier it is going to be for our industry to stay on top of regulatory concerns, security and data concerns, customer service and business flow. Join IDS in the paperless revolution!

Tuesday, December 4, 2012

Your Online Reputation

Last week at the SourceMedia Mortgage Technology Conference in Miami, Flordia there were several discussion regarding online presence in the industry, whether it be availability of online information, social media presence, or compliance educational and training tools. However, one discussion in particular stood out by me and that was the discussion hosted by Erin Lantz the Director of Mortgage Business at Zillow.

Lantz discussion was focused on how we can rethink our business for the next generation of buyers- pretty much the online, smart phone, tablet generation.

One point that she hit on was the rising importance of your online reputation and what it means for lenders, as well as us technology vendors. She stressed that online reputation is just as important as your offline reputation. Future and current customer have access to a lot of information about your company before they even set foot into your office to pursue your services. Because of this there are several diffrent public online forms rewarding and bringing down those who provide exceptional service and those who don't.

As lenders and service providers we need to use these reviews to our advantage. We need to know what people are saying about us and about our competitors online and on all social media platforms. This also gives us the opportunity to widen the recognition of the customer service you provide. Customer service can become very evident when something is expressed negatively. We can either go with it and respond in a helpful, knowledgeable and kind approach or we can go completely baslistic making our online reputation and company reputation fragile.

Our online presence is becoming more and more detremental to the success and recogonition of a company. Remember who your target market is and who will be using your services.

Monday, December 3, 2012

Fewer Mortgages in 2013?

Fewer Mortgages in 2013?

Next year could see 20% fewer residential mortgages being originated, according to a new study issued by the American Action Forum, a Washington, D.C.-based think tank.

The study states that the Dodd-Frank Act and the Basel III accords can be lauded as "well-intended regulations proposed to shore up weakness in the mortgage finance system at the behest of Congress and the international financial community." However, the study adds that Dodd-Frank amd Basel III- along with the anticipated implementation of the qualified mortgage and qualified residential mortgage guidelines- could create more harm than healing.

"The study finds that the Dodd-Frank regulations and Basel III capital standards would not only hinder qualified borrowers from access to loans, but also result in 20% fewer loans than otherwise would be made," says Douglas Holtz-Eakin, president of the American Action Forum and co-author of the report. "Other impacts include up to a million fewer housing starts over the next three years, 3.9 million fewer jobs and a loss of 1.1 percentage points of GDP growth."