November 5, 2019
Industry News, Asset Manager, C Suite, Default Manager, Investor, Loan Officer, Operations, Processor, Quality Control, Risk Manager, Underwriter, GSE Government, Origination, Secondary Market, Servicing
Top Takeaways from the 2019 MBA Annual Convention
Last week, over 4,000 mortgage and real estate finance professionals gathered in Austin, Texas for the 2019 MBA Annual Convention and Expo. Industry leaders delivered informative updates and discussed a variety of key topics—we’ve summarized the top takeaways below.
1. HUD announces changes to FCA processHUD and the DOJ announced that False Claims Act matters will be addressed administratively, in an effort to increase FHA lending. The share of FHA-insured mortgages originated by depository institutions plummeted from 43% in 2010 to less than 14% in 2019, adversely impacting low-income borrowers’ credit access. Under the new plan, HUD will be the first line of review of any claims implicating the False Claims Act. If a case requires further action, it will be escalated to a Mortgagee Review Board, and then finally to the DOJ.
2. Strategic plan but no timeline for GSE reformFHFA director Mark Calabria laid out his strategic plan to get Fannie and Freddie out of conservatorship. His focus is currently honed on improving their risk profiles. Calabria noted that great progress has been made since he took office in April – leverage against the GSEs went from 1000:1 to 500:1. The timeline for exiting conservatorship is still unclear, although Calabria stated he will not move slowly.
3. Looming recession expected to impact the 2020 refi marketMBA’s chief economist, Mike Fratantoni, projected a possible recession in the first half of 2020, with refinance activity dropping steeply in the second half of 2020. However, originations are still expected to grow slightly in 2020 due to low rates and increasing demand from first-time home buyers. The largest population of first-time homebuyers since the Great Recession is projected to purchase between 2020 and 2022, accounting for up to 9.2 million originations.
4. Hybrid eClosings are a major opportunityConsumers continue to demand digital experiences, including at the closing table. The main barriers to full eClosings are antiquated notarization laws, which require wet signatures on certain documents. However, hybrid eClosings can still speed up the process by allowing buyers to sign eligible documents electronically, only requiring wet signatures on a few docs. Experts estimated that 93% of loans could be eligible for hybrid eClosing.
5. Be prepared: cybersecurity threats are escalatingRansomware attacks doubled from 2017 to 2018, and experts predict they will continue to increase. Organizations should prepare for cyberattacks by establishing a backup and testing it regularly. In the event that your organization is targeted, it is essential to report the attack quickly. For example, there is a 70% chance of recovering wired money if wire fraud is reported within 24 hours, but waiting 48 hours decreases the chances to 38%.
7.9% Year-Over-Year Increase in Median Prices According to the New Radian Home Price Index
In data released in September 2019, the Radian Home Price Index (HPI) showed a 7.9 percent year-over-year increase in median values.
Transformation in the Valuation Industry Webinar
Watch our experts help you ensure you are leveraging effective tools to improve the accuracy of your valuations and manage cost.
Four Reasons to Buy a Home Now
Download this infographic that highlights four important reasons why right now may be the best time to buy a home.
Minority Household Growth is an Opportunity for Mortgage Lenders
Read about the growing segment of minority borrowers and see how lenders can better serve their homeownership needs.
Social Distancing Daily Schedule for Loan Officers
Download this infographic of a sample schedule to help LOs get their workday back on track due to social distancing and working from home.
5 Reasons to Refinance for Homeowners
Read five key benefits to share with your borrowers on why refinancing their mortgage can be one of the best financial decisions they make.
Title and Technology: How People and Robotics are Working Together to Improve the Title Industry
Read how the title insurance process can be further supported by Robotic Process Automation (RPA) with Attended Bots.
Understanding Alternative Valuation Types
There are a variety of valuation products on the market that vary in complexity. Read more about the different valuation options available.
4 Strategies Servicers Can Utilize to Keep Default Rates Low
Read key strategies servicers can use to keep default rates low in the mortgage landscape of changing regulations and increased transparency.
September 2019 Event Takeaways
Read our key takeaways from all September 2019's big events to help you stay well-informed on the latest trends in the industry.