Automation provides a wealth of benefit to any manual process, inlcuding speed (file reviews in under 5 minutes), accuracy (99% for data validation) and traceability (audit trail of defects), to name a few. But, in the case of HMDA, lenders are often surprised to find that it brings three unique value-adds to their reporting process. Automation can eliminate “check the…
In a recent article published in the Scotsman Guide, I predicted that last year would be the biggest year for mortgage consolidations since 1994. The prediction was correct but, for different reasons. While I expected a significant increase in the range of interest rates, the loss to the mortgage industry was caused by somewhat higher interest rates resulting in squeezed…
Implementing new processes, policies, and software can be a challenge for any organization. Sometimes, two systems struggle to communicate with one another. Other times, key individuals may find it difficult to adopt the newly introduced element. Here at LoanLogics, we see these challenges every day as companies endeavor to start up our systems and, as a result, reconsider their policies…
Instead of a digital experience to manage the flow of data and decisions in situations like a negotiated trade transaction, many investors still rely too heavily on spreadsheets and phone calls. Often, this leaves both buyer and seller equally unsatisfied with the process and turn-time. Correspondent investors who bring together the 3 steps in the negotiation process through a digital…
The presence of one or more red flags is not necessarily indicative of fraudulent intent, but it does point out the need for additional review. Red flags must be documented in the loan file, including red flags identified through various underwriting engines like Fannie Mae (DU), Freddie Mac (LPA). The following are just some examples of red flags related…
FHA guidelines state that their recommendation is not an absolute approval as “The Mortgagee may not accept or deny an FHA-insured Mortgage based solely on a risk assessment generated by TOTAL Mortgage Scorecard.” There still needs to be a determination that the borrower has the ability to repay the debt. One of the areas left up to underwriters, regarding FHA…
