November 4, 2019Asset Manager, C-Suite, Default Manager, Investor, Loan Officer, Operations, Processor, Quality Control, Risk Manager, Underwriter, Industry News, GSE Government
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%.
Preparing for an Influx of REO Volume
Now is a critical moment to prepare for the anticipated wave of foreclosures coming and ensure you have the people, processes, and technology ready to meet the challenge ahead.
Meet the Faces of Valuations
Radian’s Valuations team shares their insights on changes impacting the real estate industry.
Case Study: E-Closing & Remote Online Notarization (RON)
The need for lenders and borrowers to conduct loan transactions safely during the COVID-19 pandemic has accelerated the need for low-contact and no-contact closings. Learn how Radian facilitated innovative remote closing services for one of the largest commercial banks in the U.S.
Mortgage Disruption Outlook
Key takeaways from the HW Spring Summit 2021 Mortgage Disruption Outlook panel.
Radian Technology in Action
Amid a global pandemic that has accelerated the demand and need for digital products and services, we are at the forefront, delivering new and better ways to manage credit risk and execute real estate transactions.
The Changing Role of HR: Leading People into the Unchartered Future
Mary Dickerson shares her key priorities as Radian’s new Chief People Officer and how the role of HR professionals has changed over time.
Podcast: 2020 Home Prices Year-in-Review
Dive deeper into 2020 real estate market trends with a year-in-review of data from the Radian HPI.
Working in 2021: Mortgage Lenders Speak Out
Radian polled executives and senior leaders within mortgage companies to share their evolving action plans, implemented responses, and their future plans for work environments.
Meet the Faces of Title: Part 2
Meet additional members of the Radian Title Services sales and operations teams.
Are You Ready for URLA Updates?
According to the GSEs, the new Uniform Residential Loan Application (URLA) is designed to enhance data quality, improve consistency and clarity, and strengthen the entire application process.