As we’ve written about before, on March 1st Fannie Mae announced two changes to their quality control requirements. Both will be effective September 1st, 2023. These changes move quality checks up in lenders’ origination processes. Why? Because it makes sense to look at high risk loan characteristics and make sure loans in the pipeline are quality checked before they are…
Just announced March 1st, the timeframe for completion and reporting of post close QC reviews to Fannie Mae is being reduced to 90 days from 120 days. As well, Fannie Mae is now requiring lenders complete a minimum number of prefunding reviews monthly. The total number of loans to be reviewed must equal the lesser of 10% of the prior…
Fannie Mae’s Selling Guide Announcement from 3/1/23 communicated a variety of updates. This blog is a two-part series to discuss in more detail two of the areas covered: Valuation Modernization and Lender Quality Control Updates. Also related is our recent blog, Appraisal Modernization is Now! The modernization of anything should include more flexibility and more reliance on tools versus people.…
Baumol’s Cost Disease is a well-known economic theory by economists William Baumol and William Bowen that explains the paradox: why do costs continue to rise in labor-intensive sectors even as manufacturing and technology become more efficient? As productivity increases or wages decrease across industries due to advancements in technology and productivity in other sectors, those industries that rely heavily on…
The mortgage industry is heading into 2025 at a crossroads. The long-standing struggle with unstructured data has reached a tipping point—one that demands action. While AI-powered automation, advanced analytics, and digital transformation have surged ahead, too many lenders are still stuck in the past, relying on manual processes that slow them down. The time for change is now. Mortgage lenders…
Cost overruns are plaguing mortgage manufacturing, and the prime suspect is the lack of system-driven automation. Finastra, in partnership with LoanLogics®, aims to change this with its latest enhancements to its MortgagebotLOS loan origination system (LOS). This AI/machine learning based task automation technology is designed to reduce or eliminate the manual work performed by origination staff. Embracing Mortgage Automation The…
Speed, accuracy, and compliance are crucial in today’s fast-paced mortgage lending environment. Lenders must balance processing efficiency with stringent regulatory demands while delivering exceptional borrower experiences—all without inflating operational costs. However, traditional manual methods often introduce delays, errors, and risks. Automation transforms loan processing efficiency, and LoanLogics leads the way with solutions like LoanBeam Processing Automation (LBPA). Let’s explore how…
Manual loan processing is a significant bottleneck, leading to delays, errors, and increased operational costs. According to a recent survey, conducted by Freddie Mac®(A), lenders who failed to automate at high rates, experienced ~14% or $1,700 more overhead per loan file and extended cycle times by 7 days. Enter LoanBeam Processing Automation (LBPA), a game-changer in the loan processing landscape.…
Mortgage lending can be tricky; even small mistakes can create big problems. A miscalculated escrow payment or missing paperwork might not seem like a big deal, but these issues can lead to compliance risks, unhappy borrowers, and higher costs. To help lenders tackle these challenges, LoanLogics analyzed common loan defects from our Quality Control production group over the past year.…
