One of the primary reasons mortgage lenders have been working to take their operations fully electronic is that paper is expensive. Storing it and then finding it later is extremely costly. And borrowers, for the most part, are tired of dealing with printed paper. For many lenders, the digital mortgage promises an end to paper and its expense.
Discover Home Equity Loans (Discover) is among the most innovative companies in the mortgage industry, and the six-year old mortgage arm of Discover Financial Services (NYSE: DFS) has outpaced home equity loan growth at other banks and credit unions, becoming the largest provider of closed-end second mortgages and growing to more than $1 billion in home equity loan balance in 2019.
This month’s changes were geared mainly toward document updates. In this post, you’ll find links to some of the work our experts were engaged in last month to keep our clients up to date and fully compliant. We bring you all the news in this month’s compliance update.
Virtually every lender is trying to remove physical paper from their loan origination process and get to a true end-to-end digital mortgage. Unfortunately, the Consumer Financial Protection Bureau’s TRID rule made it harder for many lenders to do so.
How can mortgage lenders best navigate the fine line between reducing the risk of lending to highly leveraged borrowers and making homeownership available to more people? Over the decades, the pendulum has swung between tight lending standards that are safer (but more restrictive) and looser standards intended to help first-time homebuyers, lower income borrowers, or those with student loan debt.
There wasn’t a lot of investor activity in December, as you might expect, given the holidays. The states were likewise fairly quiet last month. But our compliance team was quite busy.
In this post, you’ll find links to some of the work our experts were engaged in last month to keep our clients up to date and fully compliant. We bring you all the news in this month’s compliance update.
For the past three years, Docutech has been your one-stop-resource for tracking Fannie Mae and Freddie Mac’s new uniform residential loan application (URLA) for mortgage originators. While most of the changes have been released publicly since late 2018, lenders have been waiting on a new timeline for implementation.
November was a relatively quiet month on the rules side, with only a couple of states making any changes of note. However, Fannie Mae is previewing its plans for early 2020, and between URLA and new ARM products, we expect to see several significant new regulations in the first quarter of the year. November was busy on the document update side, however.
While automating the mortgage experience for consumers is a top priority in the industry, true success in adopting eMortgages includes creating the tools to support electronic workflows post-closing as well. These tools must not only ensure security and privacy, but make it easy to store, transfer and access closed eNotes.
To provide a more secure eVault experience for interim funders like warehouse lenders and secured parties like the Federal Home Loan Banks, MERSCORP Holdings, Inc., the parent company of Mortgage Electronic Registration Systems, Inc. (MERS), has launched the MERS eRegistry Secured Party and Secured Party Delegatee fields. These new Rightsholder fields enable those parties to better identify their security interests in electronic promissory notes.
