HEAR THAT? Mortgages Are Screaming For A Rebrand THE MORTGAGES OF 2035 Are Already Here CHANGE OF PACE
New laws for energy loans, who’s in first lien position?
BREAKING BARRIERS
Meet the Women Who Are Redefining The Mortgage Banking Industry
REGULATORY CORNER
CARVEOUTS FOR FINANCIAL INSTITUTIONS IN STATE DATA PRIVACY LAWS
CFPB Details State Exemptions Weakening Individuals’ FinData Rights
The Nov. 12, 2024 report by the consumer watchdog summarizes the state laws that give consumers more control over their data, how these rights complement the protections under federal law, and the gaps in protection that result from state law exemptions for financial institutions subject to the Gramm-Leach-Bliley Act (GLBA), which was updated in 2023, or the Fair Credit Reporting Act (FCRA). As the report describes:
• Financial institutions are building new business models around consumer data: Firms in the consumer finance space are increasingly focusing on collecting and using large quantities of consumers’ financial data as a source of revenue, including by selling that data to third parties. This data may include details about people’s income, expenses, and account balances.
• Existing protections for financial data have limits: Consumers place a high value on their financial data and their ability to keep it private. There is broad consensus that existing federal privacy protections for financial information have limitations and may not protect consumers from companies’ novel and increasingly pervasive methods of collecting and monetizing data.
• The new state laws provide new consumer privacy rights: Under at least some state laws, consumers now have the right to know which data businesses have about them, to correct inaccurate information, to take that data with them to another business, or to request the business delete the information entirely, among other rights.
• State policymakers should assess gaps in existing data privacy laws: These exemptions mean that consumers in states with these new laws will not be able to access the state law privacy rights they have in other areas of their economic life to protect the information collected and/or shared by these exempted institutions. States should consider the importance of ensuring that their citizens are protected in instances where federal law currently has gaps or may be ineffective.
STAFF
Vincent M. Valvo CEO, PUBLISHER, EDITOR-IN-CHIEF
Alison Valvo CHIEF OPERATING OFFICER
Beverly Bolnick ASSOCIATE PUBLISHER
Ryan Kingsley EDITOR
Andrew Brooks Baker, Kathryn Fitzpatrick, Katie Jensen, Aaron Marsh ASSOCIATE EDITORS
Julie Carmichael PROJECT MANAGER
Meghan Hogan DESIGN MANAGER
Christopher Wallace, Stacy Murray GRAPHIC DESIGN MANAGERS
Navindra Persaud DIRECTOR OF EVENTS
William Valvo UX DESIGN DIRECTOR
Andrew Berman
HEAD OF CUSTOMER OUTREACH AND ENGAGEMENT
Matthew Mullins, Krystina Coffey MULTIMEDIA SPECIALISTS
Melissa Pianin
MARKETING & EVENTS ASSOCIATE
Kristie Woods-Lindig ONLINE ENGAGEMENT SPECIALIST
If you would like additional copies of Mortgage Banker Magazine call (860)719-1991 or email info@ambizmedia.com Submit your news to editors@ambizmedia.com, www.ambizmedia.com © 2024 American Business Media LLC. All rights reserved. Mortgage Banker Magazine is a trademark of American Business Media LLC. No part of this publication may be reproduced in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without written permission from the publisher.
Advertising, editorial and production inquiries should be directed to: American Business Media LLC, 88 Hopmeadow St., Simsbury, CT 06089, Phone: (860) 719-1991, info@ambizmedia.com
PAGE 40
SEE THE WOMEN WHO ARE MOVING THE NEEDLE by setting an example, holding the door open for their peers and the next generation of powerful women in mortgage banking. >>
Leslie Winick Mortgage Capital Trading (MCT) Chief Strategy Officer (CSO)
Bank On Borrowers, Not Rate Predictions
CHASING RATE FORECASTS WASTES RESOURCES
BETTER SPENT ON COLD, HARD BUSINESS
BY ROB CHRISMAN , CONTRIBUTING WRITER MORTGAGE BANKER MAGAZINE
LRob Chrisman has been in mortgage banking since 1985 and publishes a widely read daily market commentary on current mortgage events.
enders and loan originators who listened to and relied on economists’ predictions hoped that lower rates would materialize all through 2023. Their disappointment carried through until September of 2024, when the Federal Reserve cut interest rates for the first time in four years.
Not only did rates stay elevated for longer than most forecasters projected, mortgage lenders and originators who believed predictions, and based on those predictions, banked on business that never materialized, should rethink their business model.
Predicting the economy’s ebb and flow is very difficult, especially when it comes to complex systems like the U.S. bond markets, and given the number of variables and global “moving pieces” that have an impact on the mortgage rates shown to borrowers. The general explanation why rates have moved higher than “experts” prophesied is that the U.S. economy proved much stronger and more resilient than expected.
Strong economies foster higher rates, and slow economies, lower rates. The U.S. economy is built on housing and jobs. On the housing front, homebuyer affordability has eroded for years as prospective buyers grapple with relatively high interest rates and low housing inventory, which has supported high home prices.
As we move toward the end of 2024, there continues to be a scarcity in existing housing supply, strong seasonal demand, and demographic trends supporting further market strength. There is little reason for the Federal Reserve to significantly lower rates to help housing prices.
In terms of the jobs market, the unemployment rate has moved higher, into the 4% range, but nonfarm payroll numbers continue to be strong. One can slice and dice the employment figures however one sees fit, but the bottom line is that employers continue to add a healthy number of new jobs, helping to keep the economy on solid footing. The Federal Reserve has a close eye on labor market developments, which have largely indicated a jobs market that has remained resilient despite aggressive efforts to cool it down. High demand for workers usually fuels stronger wage growth and, in turn, inflation. The continued fear of higher-than desired inflation kept rates higher than some thought would occur.
at last, and in doing so also signaled that the economy, labor markets, and inflation are on the right track.
“Successful lenders, brokers, and loan originators do not ‘bank’ on someone’s predictions, but instead focus on hard numbers, analytics, and performance.”
“Nobody can predict interest rates, the future direction of the economy, or the stock market. Dismiss all such forecasts and concentrate on what’s actually happening,” so said Peter Lynch, the respected investor and manager of Magellan Funds. Sure enough, as we moved through 2024, earlier predictions proved incorrect. The Fed lowered rates in September,
ROB CHRISMAN
“An economist is an expert who will know tomorrow why the things he predicted yesterday didn’t happen today,” one may think. Moderating inflation has taken pressure off the Fed, but even with the latest cut, borrowing conditions are restrictive. Going forward, the economic data will be important to track, as always, to see if the economy remains as strong as it has been in recent quarters. Like the weather, the economy will do what the economy will do. Lenders and loan officers cannot determine the direction of the bond market, but they can prepare for changes in direction or make their businesses immune from interest rate movements by focusing on products and services their clients request. Successful lenders, brokers, and loan originators do not “bank” on someone’s predictions, but instead focus on hard numbers, analytics, and performance.
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YOUR CAREER IN HIGH GEAR
PACE YOURSELF
HOW GREEN DREAMS FOR HOMEOWNERS TURN INTO LENDERS’ RED FLAGS
BY BOB NIEMI, CONTRIBUTING WRITER, MORTGAGE BANKER MAGAZINE
Bob Niemi, CMB is the Director of Government Affairs at Weiner Brodsky Kidder PC, and Chair of the American Association of Residential Mortgage Regulators.
Imagine it’s Saturday evening. You missed a call. Your cell phone begins chiming incessantly as text message after text message arrives from a concerned borrower. The refinance mortgage that your borrower can finally afford has an issue: the preliminary title report reveals a PACE lien on the property, rendering it ineligible for Fannie Mae financing.
Panicking, you sift through your loan origination system and find the appraisal images—solar panels flash into your mind. The pace of this speedy refinance deal has come to a grinding halt, all because your borrower upgraded their home’s energy efficiency.
Overseen by the Department of Energy, Property Assessed Clean Energy (PACE) programs are deployed to provide affordable financing for energy-efficient home improvements like solar installations, but differ from standard home improvement loans or second mortgages because the liens these loans create are attached to the property, not the homeowner.
“When a homeowner goes to sell their home, the new homeowner agrees to assume the PACE obligation. The new first mortgage holder must agree to the PACE lien remaining, and the mortgage lender is now subordinate to the PACE lien.”
—BOB NIEMI
sold, or refinanced.
Because PACE financing is repaid through property tax assessments, the PACE lien takes precedence over the first mortgage lender in the event of default. As a result, PACE liens supersede any existing or future mortgages, leaving homeowners with limited options when it comes to selling or refinancing their property.
Federal rules and regulations prohibit the Federal Housing Administration (FHA), Veterans Administration (VA), Fannie Mae, Freddie Mac, and the Federal Home Loan Bank system from financing homes with PACE liens, unless those liens are clearly subordinated to a new first mortgage. This means that the PACE lien must be repaid before selling the home if the new buyer intends to use a Fannie Mae, Freddie Mac, FHA, or VA mortgage program.
Unless the proceeds generated by a sale can repay the PACE lien and the outstanding principal mortgage balance, a homeowner’s options for selling their home drop dramatically because buyers will not be able to secure government-backed financing for the home. The PACE repayment also significantly reduces a homeowner’s down-payment capacity for the next home.
This double impact of PACE liens can bring a homebuyer’s dream to a full and complete stop. The presence of a PACE
lien on a property can bring the loan officer or lender pursuing a purchase or refinance on that property to a complete stop, too.
The mortgage industry is not opposed to homeowners improving their properties with energy efficiency upgrades, extreme weather-related protections, or accessibility measures. However, programs for financing these modifications must provide full disclosure to counterparties impacted by the liens, including consumer protections with clear disclosures to prevent abuses.
Advocates of increased transparency around PACE programs believe that the complex structure of the financing and the potential for abusive sales tactics necessitate PACE’s adherence to all mortgage-related federal consumer protection requirements, to include truth-in-lending regulations that mandate ability-to-repay protections and clear disclosures.
Additionally, companies and individuals selling home improvement products financed with PACE programs should operate under the direct supervision of state and federal mortgage regulations, requiring state licensing. Such licensing entails upfront education, thorough background checks, and ongoing education. Efforts to implement these measures, actually, are already underway.
PROTECTING CONSUMERS, PROTECTING LENDERS
The Consumer Financial Protection Bureau (CFPB) was authorized in 2018 to issue rules that help protect homeowners from the potential dangers and negative impacts posed by PACE liens. The CFPB proposed rules for review and comment in the middle of 2023, but is still reviewing the comments received. A potential rule and revisions are still under development, but it is expected that the CFPB will issue a rule and implement supervision in the next year or so.
PACE programs have been active in California for some time, and were previously offered in many other states like Florida. Many county jurisdictions across Florida adopted PACE programs, only to turn around and cancel them due to consumer complaints.
Predatory salespeople and contractors have reportedly misrepresented the costs associated with PACE, suggesting that there are no upfront payments or out-of-pocket expenses, creating the impression that these services are free. In California, these abuses lead to the passage of consumer protection statutes in 2017 and 2018, as well as the creation of a consumer awareness website run by the California Department of Financial Protection and Innovation.
Now, a new statute in Florida is bringing PACE back to the headlines and homeowners’ front doors—or rooftops, solar-speaking. The updated PACE statute, effective July 1, 2024, has also garnered the critical attention of many county tax collectors, as local tax collectors are required to oversee the program. The vague language in the statute allows for home improvements beyond energy efficiency to be funded with PACE financing.
So far, the implementation of Florida’s statute
absent federal clarity has led to challenges across the Sunshine State on a county-by-county basis. Meanwhile, concerns grow that while waiting for federal standards to be proposed, state legislatures across the country may enact seemingly beneficial bills—that inadvertently lead to consumer harm after implementation.
Fortunately, other states’ statutes model effective PACE legislation for Florida (and other states) to follow. Minnesota and Ohio, for example, have successfully passed legislation requiring PACE liens to be clearly subordinated to any residential mortgage. These efforts provide a framework for effectively managing residential PACE liens in relation to mortgages.
Diligent lenders and loan officers must carefully monitor state and local laws to identify jurisdictions where PACE liens are available and review the provisions regarding lien priority, and by consulting resources like Fannie Mae’s website, which outlines important considerations for refinancing. By proactively seeking this information, lenders can prevent a PACE lien from complicating the mortgage process and negatively impacting their borrowers’ experiences.
Savvy originators who prioritize managing their client databases and aim to be lifelong lenders actively share information with their customers to raise awareness. These originators recognize the importance of informing both past and future clients about all available financing options for home improvements—from renovation loans and second mortgages to PACE programs, too.
Discovering a PACE lien on the title late in the approval process can derail a loan and hinder future referrals, not just shorting today’s revenue, but tomorrow’s revenue, too. Staying proactive, we can ensure a smooth experience for clients and maintain strong referral networks.
Remember Your Marketing Department?
RATE CUTS SIGNAL OPPORTUNITY IN 2025. YOUR LOs — AND CLIENTS — SHOULD HEAR IT FROM YOU
BY CHRIS HARRINGTON, SPECIAL TO MORTGAGE BANKER MAGAZINE
AChris Harrington is the co-founder and CEO of Usherpa, the mortgage industry’s only privately owned CRM developer. Prior to Usherpa, she worked in the marketing department for a major mortgage lender.
fter two years of waiting, the Federal Reserve finally reduced interest rates in mid-September by half a percentage point. Because this easing in borrowing costs was already priced into mortgage interest rates, no big changes occurred during the immediate aftermath. But, the rate drop sent ripples through the housing industry — consumers are beginning to wake up. When consumers rise, the housing economy will come back to life. The pace of existinghome sales lingered near historic lows through the third quarter, despite rates for 30-year-fixed conforming mortgages dropping roughly 100 basis points since the second quarter. Now the Federal Reserve has entered its easing cycle, affordability should steadily improve. As the housing economy heats up, as we’ve seen in the past, business will flood back in quite rapidly.
Loan officers (LOs) who prioritize staying in touch with past borrowers and business referral partners will find themselves much better positioned to win new business when it returns. Some may already be receiving a higher volume of phone calls and emails week to week.
A NEW REALITY LEAVES NO ROOM FOR ERROR
As the market enters and evolves through this transition, prioritizing new borrowers must not replace efforts to retain existing clients—and attracting even more. If they haven’t automated their marketing, lenders’ pipelines will empty. As originators turn their focus to newly qualifying
homebuyers, those who keep their marketing consistently stronger will win business longer. Changes in borrowing costs are not the only shift we see in mortgage lending today. The massive shift in employment has changed the way our companies look — fewer people in the marketing department and more competition among remaining loan officers are two results.
An even more serious shift has impacted our business referral partners in real estate sales.
The National Association of Realtors (NAR) settlement has rattled the real estate community. Not yet certain as to the settlement’s longterm fallout, every working agent has been preoccupied with assessing these changes and will not respond well to extra requests for help from loan officers.
Mortgage rates are expected to ease further in 2025, but the best lenders and originators know that mortgage longevity is about more than making sales. Mortgage transactions are deeply personal for most borrowers. Whether purchasing their first home, refinancing to improve their financial situation, or investing in property, borrowers need an LO who not only facilitates an efficient, successful process, but also provides guidance and reassurances.
Winning the borrower is about establishing trust, which demands availability and reliability from loan officers — the correct answers to the wrong questions when those are inevitably asked. At the same time, real estate agents need partners who can consistently close deals with financing solutions that meet the needs and desires of their buyers.
Unfortunately, agents do not have ample extra time for developing and nurturing relationships with loan officers. Agents are ensuring they
are listing properties and signing buyer’s agreements with consumers. So, what does it require for an LO to stand out to them?
BEST RESULTS STEM FROM BEST PRACTICES
Anyone marketing mortgages is likely to seek a boost in interest as borrowing costs ease. Capturing the business (and the referral to boot!) will only occur if everything goes smoothly from pre-application to closing. To agents, loan officers who excel throughout the mortgage process promise to bring the greatest experience to the homebuyer.
Similarly, the most effective agents drum up extra leads and referrals to share with partners. Heavy homebuyer demand currently sits on the sidelines, waiting for affordability to align with their budgets. A proactive and efficient approach to marketing and lead generation enables LOs — and agents — to capture their share of the demand that’s likely to enter the market.
Time is your most valuable resource, especially when interest rates start to fall and the market heats up. The same will be true for your business referral partners. Streamlining your workflow allows you to focus more time on building new relationships while maintaining current ones.
This means having a clear, repeatable process for every stage of your client interactions, from lead generation to closing. When your process is smooth and efficient, you can respond quickly to inquiries, meet client needs, and stay ahead of the competition.
Many lenders cut their marketing budgets during the past two years to help trim costs amidst lower revenues. As they look to re-invest in these departments, managers should think of their marketing processes the same way they think about loan processing — the best results stem from best practices and monitoring LOs to make sure they comply with the approved process.
There may be multiple pipelines that new prospects travel down, but every step in each pipeline should be mapped. A lender’s most-effective LO can be their most-effective example, allowing managers to create systems that help every LO perform at the level of top producers. Basic management tactics involve measuring what matters.
When it comes to winning more business in this transition to lower rates, everything that LOs do to prospect, nurture, and close loans with new borrowers matters, from measuring how many prospects an LO adds to the marketing platform to how often prospects are touched, to how long it takes the LO to respond to requests for information, to how often the LO posts to social media. Effective, automated marketing technology makes these measurements easy.
A CULTURE OF — AND FOR — TOP ORIGINATORS
Driving more business to originators stems from stronger marketing. Loan applications don’t happen by accident. In fact, marketing and relationship building begins long before a loan application is received. Nurturing these relationships turns LOs into a trusted partner who clients can feel comfortable returning to for future mortgage needs.
If you want people to call you for information, you have to be known in your market as the person who knows the answers. That reputation builds from consistent practice, by consistently adding value for partners and clients in your community. Speeches in front of civic groups, attendance at community meetings and events, authoring articles in the local paper, starting a podcast, or being active on social media can all make your LO’s voice the voice of authority.
While picking up the phone is still one of the most effective ways to convert leads into clients, the abundance of opportunities for getting in front of borrowers — and staying
“Managers should think of their marketing processes the same way they think about loan
in front of borrowers — has never been greater. Whether following up on an inquiry or checking in with a potential client you haven’t heard from in a while, persistence and variety in marketing pays off.
The easiest and most effective way to differentiate your company and originators in home lending is through being immediately responsive to requests for information. When the phone rings, answer it. If you can’t answer when it rings, call them back. When you call them back, be prepared with answers to the questions they might ask.
When the business comes back, effective processes for staying visible to consumers and agents — and a culture of discipline that enables top LOs to do what they do best — will keep business in your pipeline long after competitors see their pipelines run dry.
Educate. Innovate. Motivate.
The mortgage industry is going through a significant change. For mortgage origination professionals, it’s a struggle to keep on top of all the changes, and to keep your sales strategies and marketing initiatives at their peak. You need to keep your pipeline filled, and you need the tools and directions to stay profitable, efficient, and effective. We’ve brought together the best in the business to create a top tier event specifically designed for mortgage origination pros.
Traditional Mortgages Won’t Exist
By 2035
Chad Smith is the President and Chief Operating Officer of Better (NASDAQ: BETR). A veteran in direct-to-consumer channels, Chad holds over 20 years of experience building lead-routing strategies and partnerships for distributed retail, recapture, and MSR ownership.
BUILD A BOAT OR LEARN TO SWIM — A WAVE OF 3RD-GENERATION HOUSING
TECHNOLOGY IS CRASHING OVER THE INDUSTRY
BY CHAD SMITH, SPECIAL TO MORTGAGE BANKER MAGAZINE
BECOMING A HOMEOWNER in the U.S. has long been the benchmark of success in achieving the American Dream. Forty years ago, when a borrower was prepared to buy a home, they likely took a drive around the neighborhood to see what was on the market before connecting with a real estate agent and heading to their local bank branch to secure financing for a mortgage.
Today, only 6% of homebuyers drive by homes or neighborhoods as a first step in their homebuying journey. The housing universe we operate in today is lightyears away from where it was when I joined the mortgage industry more than 20 years ago.
Out of necessity, the digitization of mortgages accelerated during the Covid-19 pandemic, but technological evolution in real estate has been
occurring for some time.
In 1995, REALTOR.com was launched as the first portal to obtain MLS listings in mass. Online marketplace platforms like Zillow and Trulia popped up in the early 2000s, completely changing the way people search for and find their dream homes — suddenly, homebuyers were able to view home listings nationwide in the palm of their hand.
By 2022, nearly 99% of homebuyers between the ages of 24 and 57 used the internet to shop for homes. Though digital mortgage lending gained momentum after secure platforms and e-signature technology were developed, it expanded even more rapidly during the pandemic-era refinance boom.
At their core, digital mortgages leverage technology to connect with borrowers at all stages of the mortgage
It won’t be long before local, brick-andmortar lenders and the traditional mortgages they offer are a relic.
CHAD SMITH
process, from pre-application to origination to post-closing, allowing for cost savings and automation that’s never been brought to bear on the industry before. Automated rules-based decision engines and software platforms remove bottlenecks from traditional mortgage processes, providing an end-to-end solution that optimizes loan sales and automates loan processing and mortgage loan underwriting.
For more than two years, homebuyers and lenders have been navigating a harsh housing market. 2023 clocked in as the least affordable year in more than a decade for purchasing a home. In the third quarter of 2023, Freddie Mac’s 2024 Cost to Originate Study showed the cost to originate a mortgage averaged roughly $11,600 — a 35% increase in originations costs just from 2020. The top cost-increase drivers included back-end operations and loan officers.
Necessarily, it’s incumbent upon lenders to find ways to make homeownership more accessible to all Americans by identifying opportunities for efficiency and passing savings through to homebuyers. Digital mortgages help make that happen. Automation can lead to lower interest rates and origination costs whereas manual processes result in higher costs for the borrower. Traditional mortgage lenders rely on the expertise of loan officers, processors, and underwriters to drive
complex workflows throughout the origination process. By implementing mortgage technology throughout the origination process, lenders can streamline processes by breaking them down into tasks that can be automated, optimizing the total cost needed to originate a mortgage.
It’s incumbent upon lenders to find ways to make homeownership more accessible to all Americans by identifying opportunities for efficiency and passing savings through to homebuyers. Digital mortgages help make that happen.
CHAD SMITH, COO OF BETTER
Cost savings aren’t the only benefit that come with digital mortgages, though. They also save time — a lot of time, at all stages of the process. Top-performing financial institutions process loans 63% faster than their competitors. An expedited mortgage lifecycle means faster access to home financing, which can make or break the chance to secure a dream home for many. Digitization also supports compliance and security, largely because document handling and borrower verification is inherent to automation. Digital mortgages contribute to a 15% reduction in errors and a 20% increase in loan approvals. Documents that were once provided manually over the course of weeks can be uploaded online — or, better yet, sourced electronically directly from government bureaus which can reduce the risk of customer fraud and lender error.
Originating traditional mortgages is like operating in the 2nd generation of housing technology when we’re already living in the 3rd. One of the first technological advancements in housing was the portal to post MLS listings en masse. The 2nd generation brought developments
allowing buyers and agents to connect virtually, and begin the home search through online marketplaces.
Welcome to the “3rd generation” of housing technology, a space that empowers homebuyers with digital mortgages to save time and money. Soon, the mortgage process will be unrecognizable for some — take the silent generation for example, born between 19281945.
$20.5 billion
GLOBAL DIGITAL LENDING PLATFORMS EXPECTED TO GROW BY 2028.
Research shows that millennials use mobile devices nearly twice as often as the silent generation in their home searches. But, they’re not alone — only 48% of Gen Xers and baby boomers first looked online for homes compared to 99% of younger generations. It won’t be long before local, brick-and-mortar lenders and the traditional mortgages they offer are a relic.
Nearly 60% of millennials and 70% of Gen-Z applicants want the process to be completed entirely on a mobile app. Local lenders that fail to evolve with the future of digital mortgages will struggle to meet the evolving demands of homebuyers.
The share of fintech companies and online lenders in the mortgage industry continues to increase each year, with global digital lending platforms expected to grow to $20.5 billion by 2028. It’s not too late for local lenders to catch up, but it’s time they begin to shape up and get with the times — digital mortgages are the future of homebuying.
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Empowering Women In Mortgage Welcome to the Mortgage Women Leadership Council
A warm welcome to you! I’m Kelly Hendricks, the Managing Editor of Mortgage Women Magazine and Senior Vice President of Delmar Mortgage, and it brings me great joy to extend this invitation to you. Throughout my career in the mortgage industry, I’ve been fortunate to have leaders and mentors who played pivotal roles in shaping my journey. I am thrilled to introduce a transformative initiative – the Mortgage Women Leadership Council, created by Mortgage Women Magazine.
In my role, I’ve experienced the challenges that women face in leadership within the mortgage sector. These challenges led to a profound realization — the need for a dynamic network to empower women in our industry. This realization is the driving force behind the creation of the Mortgage Women Leadership Council. I believe in the power of collective support, and I am excited about the opportunity to share and benefit from each other’s experiences.
Our mission is clear: to promote and empower women’s leadership in the mortgage sector. The council aims to create a supportive environment for professional growth, mentorship, and networking. Joining the
council comes with various benefits, including networking opportunities and access to industry-specific professional development resources. We understand the unique challenges women face in mortgage leadership and have tailored mentorship and support systems to address them.
I invite you to join this movement to empower women in the mortgage industry. The Mortgage Women Leadership Council is committed to fostering a welcoming and supportive environment. Your involvement will not only contribute to your personal and professional growth but also play a crucial role in advancing women’s leadership in our industry. To join or get involved, simply click here to apply.
Thank you for considering this invitation to join the Mortgage Women Leadership Council. For further inquiries about the council and details on how to join, please contact Beverly Bolnick at bbolnick@ambizmedia.com. Let’s work together to advance women’s leadership in the mortgage industry — because collective action brings about meaningful change.
Kelly Hendricks Managing Editor, Mortgage Women Magazine
As a valued member, enjoy these benefits:
Access to a Powerful Platform: Amplify your voice and influence through Mortgage Women Magazine, exclusive sponsored programs, email newsletters, and impactful events.
Editorial Opportunities: Showcase your expertise and insights through editorial features in Mortgage Women Magazine, gaining visibility and recognition among industry peers.
Awards and Recognition: Receive well-deserved recognition through our award programs, celebrating your achievements and contributions to the mortgage industry.
Community Support: Become part of a dedicated community committed to celebrating and driving meaningful progress in the mortgage sector. Connect with likeminded women leaders, share experiences, and foster collaborative initiatives.
Mortgage Women Magazine: Enjoy your complimentary digital subscription to Mortgage Women Magazine, the premier publication for women in mortgage. Read advice, learn about industry updates, and take in the inspiring stories of your peers.
Join us and be a driving force in creating a more inclusive and thriving mortgage industry. Together, as a united community, we believe we can make real change.
Enjoy 1 year of your individual membership free! Use code MWM2024
Become a member today. mwlcouncil.com
THE LOCK DESK
When It Comes To MSRs, Hold On Tight!
IF EVERY PENNY COUNTS, PRICING LOANS ACCURATELY MAKES AND BREAKS PROFITABILITY
BY PREETAM PUROHIT , CONTRIBUTING WRITER, MORTGAGE BANKER MAGAZINE
For investors, mortgage servicing rights (MSR) are an esoteric asset class often less liquid, less transparent, and carrying higher risks compared to more traditional asset classes like stocks, bonds, or real estate. These features of MSRs are also what make their valuations open to interpretation by lenders, impacting the servicing value lenders pass to borrowers on ratesheets.
The pricing for regular bonds such as U.S. Treasuries and mortgage-backed securities (MBS) are inversely proportional to interest rates, meaning, as interest rates rise, the value of those bonds go down. MSRs are one of the very few asset classes which actually increase in value as interest rates rise. This feature makes MSRs a natural hedging tool for lenders. Rising interest rates make origination more difficult, but owning MSRs helps lenders cushion their losses.
The chart below compares the change in value of the servicing associated with a $400,000 conforming loan compared to 5-year Treasury futures as interest rates change.
Because an MSR signifies the right to receive a portion of the future cash-flow from a performing mortgage loan, when that loan is paid off, the value of the MSR drops to zero. Before that loan is paid off, however, the value of the
MSR attached to that loan fluctuates, influenced by a web of factors such as interest rates, loan performance, servicing fees, prepayment speeds, regulatory conditions, and market conditions — factors that impact cash flows and the quality of those cash flows as new loans and MSRs are being produced, packaged, and sold.
Understanding these factors are essential for accurately valuing MSRs and making informed decisions in the mortgage servicing market, especially as the market transitions to falling rates.
INTEREST RATES
Changes in market interest rates have the greatest impact on “prepayment rates” — how quickly mortgage loans are being repaid after origination. Lower interest rates typically lead to higher prepayment rates as borrowers refinance to capture savings on their monthly payment.
This reduces MSR value because of increased percentages of refinanced loans (zero MSR value) in the overall pool of loans. Rising interest rates generally slow refinance rates, i.e., prepayment speeds, typically increasing MSR values.
Interest rates also impact earnings from principal paydowns, pay offs, and escrow accounts where servicers hold funds for
disbursing property tax and insurance payments on the mortgage-holder’s behalf. These escrow funds are invested, generating returns (“float income”) for servicers. Higher interest rates can increase those earnings, boosting MSR values. When borrowers fall behind on mortgage payments, servicers must advance principal and interest payments to investors, in addition to insurance and property tax disbursements. Higher interest rates lead to higher advancement costs for servicers, hence contributing negatively to MSR values. Advances are discussed in more detail later in this article.
LOAN QUALITY
The performance of MSRs’ underlying loans — specifically, the rates of default and delinquency — directly affect MSR values because of the disruptions they cause to those loans’ cash flows. Delinquencies lead to higher advance payments for servicers, making them unattractive for the
PARALLEL INTEREST RATE SHOCKS
SOURCE: PREETAM PUROHIT
MSR investors. Meanwhile, higher default rates can lead to higher costs and reduced income for both servicers and investors, decreasing MSR values.
Conversely, lower delinquency and default rates are favorable for MSR valuation. The likelihood of delinquency and default are directly tied to the credit quality of a servicing portfolio, which corresponds to the borrower characteristics in that loan pool.
The overall credit quality of the servicing portfolio influences MSR valuation indirectly. Higher FICO credit scores and lower debt-toincome (DTI) ratio loans lead to lower rates of delinquency and default, rendering MSRs with those underlying qualities more valuable.
Beyond the credit qualities and performance of MSRs’ underlying assets, the manner in which a loan is originated and serviced, including the ambient market conditions, ties the value of the MSR to the reason a lender, servicer, or investor may want to hold an MSR in the first place.
ORIGINATOR TYPE AND MARKET CONDITIONS
Depository banks and independent mortgage banks (IMBs) have different strategies when it comes to servicing mortgages. IMBs typically focus on loan origination and sell servicing rights because they lack the capital reserves to hold them on their balance sheets. Depositories, however, can integrate servicing into other bank operations and hold the loans in their portfolios.
When the Federal Reserve dropped its benchmark borrowing rate to zero during the COVID-19 pandemic, trillions of dollars worth of mortgages were originated (2020, 2021) at the lowest rates ever. Flush with cash, IMBs were able to retain servicing without the need to sell it. The tables turned, however, when the Fed started raising rates in the second quarter of 2022.
As origination profitability tumbled, MSR values began increasing significantly, keeping pace with interest rates. Increased escrow amounts and earnings, combined with low delinquency and default rates, pushed servicing values considerably higher.
Because holders of servicing (depending on the state guidelines) can earn interest on the escrows, MSR values increased significantly as Fed fund rates have gone from 0% to 5.25%.
State guidelines play a significant role in determining how much a servicer earns from escrows.
As originations and origination profitability eroded over the past two years, however, lenders have sold their MSR books, taking advantage of strong valuations to better manage cash flows and shore up liquidity. Still, very few market transactions of MSRs occur on a monthly basis because it is an esoteric asset class.
Lenders rely on fair value estimates to book the value of servicing. This measure of the MSRs’ worth reflects the present value of expected future cash flows, adjusted for risks and uncertainties. Fair value considers assumptions such as
prepayment rates, default rates, interest rate changes, and servicing costs. It is more theoretical and based on models that project these future cash flows and risks rather than marks derived from trading MSRs.
Discounted Cash Flow (DCF) analysis is commonly used to estimate the fair value of MSRs, which involves forecasting future cash flows from servicing fees and discounting those cash flows back to present value using an appropriate discount rate. The discount rate associated with Ginnie Mae servicing, for example, is higher than for Fannie and Freddie loans because of Ginnie loans’ inherently riskier collateral.
Nevertheless, MSR valuation is integral to pricing mortgage rate sheets because it influences a lender’s understanding of servicing costs, profitability, and risk. By accurately valuing MSRs, lenders can set competitive mortgage rates that reflect the costs and benefits associated with servicing mortgages, ultimately affecting their overall pricing strategy.
When MSR values are high, lenders may offer more attractive rates to borrowers because they expect to generate significant servicing income or can sell those MSRs at a premium. When MSR values drop, lenders might adjust mortgage rates upward to mitigate the impact of reduced servicing income, increased servicing costs, or lower fair book values when selling in bulk. It is crucial for lenders to regularly back-test the fair book value with the market value so as not to underestimate or overestimate servicing valuations.
Also important for lenders to remember, servicing value used for the rate sheet is a function of the interest rate and loan balance being originated. Significant mismatches can occur when using an average servicing value for all loans originated on a particular day. Considering the table below, using the MSR value for a $250,000 loan to price a $100,000 loan would result in a lower profit for the lender.
Lenders often hedge their MSR exposure to manage risks associated with interest rate
fluctuations and prepayment speeds. The valuation of MSRs helps in establishing these hedges and can influence mortgage pricing. Effective hedging strategies, informed by MSR valuations, can allow lenders to offer more stable and competitive mortgage rates, while protecting lenders from sudden shifts in the primary market or investor attitudes.
ADVANCES
As mentioned previously, servicers are sometimes required to advance payments to investors when a borrower is delinquent, covering missed principal and interest payments. The servicer later recoups these advances when the borrower catches up on payments or through foreclosure proceeds.
LOAN SIZE
Source: Preetam Purohit
This advance requirement has the potential to create a liquidity issue for IMBs if a massive delinquency event hits an IMB/servicer all at once. This is one of the major reasons that IMBs usually only retain a small servicing book, if one at all. However, one potential way to overcome this issue is using early buyouts (EBOs).
With EBOs, an IMB can partner with a private investor to buy any loans that are 90+ days delinquent from their servicing book. These loans are then modified in a manner that enables the borrower to get current on their mortgage. One popular vehicle for Ginnie Mae issuances is for the loan to be conveyed into an ET pool (40- year pool), reducing the borrower’s monthly payment with a longer amortization. When the borrower is current, the loan is sold to investors.
CONCLUSION
With the Fed beginning its easing cycle with a 50-basis point cut to its benchmark interest rate in September, the employment side of the central bank’s double mandate is attracting more focus than the inflation battle. Recently originated and retained servicing will provide opportunities to refinance. At the same time, and in the absence of a strong recapture strategy, the least that a lender can do is hedge this MSR book.
Understanding and executing effective MSR strategies is crucial for lenders aiming to maintain profitability and competitiveness in the everchanging mortgage landscape. As interest rates and market conditions continue to fluctuate, the ability to accurately value and strategically leverage MSRs will remain a key differentiator between lenders struggling with loan volume.
Preetam Purohit, CFA, CQF, FRM, is currently the head of hedging and analytics at Embrace Home Loans.
In this issue, Mortgage Banker Magazine highlights the women who are making an impact. We recognize and honor the Powerful Women of Mortgage Banking — it’s important for women to see women leaders within the industry, especially in areas where they may not expect to see them in great numbers, such as technology, finance, and the C-suite.
Read about the women who are moving the needle by setting an example and holding the door for their peers and the next generation of powerful women in mortgage banking. Meet the women who have blazed the path and left their mark on the industry for years to come.
Cathy Blaszyk
Intercontinental Exchange (ICE) Director, Partner Development
As Director of Partner Development for mortgage technology at ICE, Cathy Blaszyk has played an integral role in building the industry’s leading partner integration network which drives innovation across the mortgage ecosystem. Cathy has led her partner development team with the understanding that third-party providers aren’t just vendors; they’re partners that function as an extension of ICE, bringing additional value to mutual customers and advancing our shared mission of delivering an interconnected, end-to-end real estate and housing finance experience.
Through her work to grow the partner ecosystem, ICE is able to give our customers access to more service integrations so they can unlock new efficiencies and capabilities across their workflows. One of Cathy’s crowning achievements has been the launch of ICE’s digital partner Marketplace, which allows lenders to browse and
search ICE’s approved partners and solutions while giving partners a way to differentiate themselves by creating profiles and earning ratings and reviews. Additionally, she has developed standardized partner onboarding and support, liaises with engineering to accommodate partners’ technical needs, and identifies new partners and emerging solutions that fill gaps in workflows and provide customers with more choices.
What differentiates her? How is she impacting the industry or the people around her?
Cathy’s efforts to expand the partner network have not only provided ICE customers with greater flexibility in how they structure their technology stack to better serve their borrowers, but have also promoted growth and innovation across the industry. ICE’s continued investment in the API-based Encompass Partner Connect platform allows the partners that Cathy supports to
innovate and enhance their integrations as much as they want - ultimately allowing our mutual customers to advance on their technology journey to improve and streamline the loan manufacturing process.
Before growing a thriving network of nearly 300 integration partners offering more than 1,000 solutions, Cathy managed some of ICE’s largest partnerships and worked closely with cross-functional teams to promote the adoption of the partner network’s products and services.
Prior to taking a position at ICE, Cathy was a VP at one of its integration partners and spent two decades as a mortgage banking executive. She has also participated in several MBA panels on the topics of technology and regulatory compliance.
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Michele Buschman
American
Pacific Mortgage Chief Information Officer
What are some of the key milestones in your career?
A major milestone in my career was discovering my passion for software development while managing trading operations at IMX Exchange. I identified inefficiencies in our platform for managing pricing and locking and worked with developers to create innovative solutions. This experience shifted my career towards the technical side of mortgage banking. IMX Exchange played a pivotal role in bringing the technology we use today to search, price, and lock loans online, marking a key moment in my professional journey.
Can you share a significant achievement or project you are particularly proud of?
One achievement I am particularly proud of is supporting the development of a proprietary application at American Pacific Mortgage. This platform streamlined the onboarding process
for branches and employees, including NMLS licensing and automated account provisioning across various cloud and SaaS solutions. The result has been a significant increase in operational efficiency, reducing the need for adding a significant headcount in these areas, as the organization grew. This project not only improved internal processes but also allowed the company to scale more effectively, enhancing productivity without the need for a large operational workforce. Additionally, access to critical information is now easily accessible, making our organization more effective.
What role do you believe women play in shaping the future of the industry?
Women play a critical role in shaping the future of technology and mortgage banking. Through organizations like Mortgage Bankers' mPower and Proofpoint's "Women Who Cyber," I have seen women bring fresh perspectives to leadership and
innovation. As one of the few women in leadership roles early on, I have witnessed first-hand the value of diversity. Today, there is increasing representation of women in executive positions, which strengthens the industry by encouraging inclusive and creative problem-solving.
How do you see the mortgage banking industry evolving in the next 5-10 years?
The mortgage industry will continue its digital transformation, reducing costs and speeding up the loan process. I foresee significant investment in security and creating more open systems to integrate financial services data, streamlining mortgage origination. As digital solutions mature, the time and cost to obtain a mortgage will decrease, making homeownership more accessible to Americans. The entire mortgage manufacturing process will evolve, driven by data accessibility and advanced digital tools.
Rachel Caple
Geneva Financial Chief Revenue and Sales Officer
Rachel is an unstoppable force of nature! Rachel navigated industry upheaval with flair and finesse. Her 23 years of experience shine through her expertise in sales, operations, and leadership, turning employees into superstars while driving strategic expansion without missing a beat.
Rachel’s secret weapon is her humancentric approach, making people feel valued and supported. As Chief Sales and Revenue Officer, she’s a revenue-maximizing, benchmark-setting powerhouse who transforms markets and embodies Geneva’s core values.
Rachel Caple isn’t just leading—she’s revolutionizing the industry with her upbeat, innovative spirit.
What differentiates her? How is she impacting the industry or the people around her?
Rachel Caple is a pivotal figure in the Mortgage Banking industry, noted for her exceptional leadership during a time of significant disruption. Since joining Geneva Financial in 2019, she has driven a growth rate exceeding 270% over the past three years. Her strategic vision and execution have facilitated rapid, quality growth by engineering a sales and operations bridge. With over 23 years of experience, Rachel excels in sales, corporate operations, and leadership, significantly contributing to business growth and employee development.
As Chief Sales and Revenue Officer, Rachel maximizes Geneva’s sales effectiveness, driving market expansion and setting industry benchmarks. Her human-centric approach ensures employees and customers
are prioritized, fostering a positive work environment and aligning with Geneva Financial’s mission and vision. Her commitment to core values and innovative strategies has profoundly impacted both the company and the industry.
Rachel Caple’s dedication and expertise not only propel Geneva Financial’s success but also inspire industry advancement. Her leadership embodies excellence and care, making her a significant contributor to the Mortgage Banking industry.
2024
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Jesse Decker
Sagent EVP, Customer Success
Serving as Sagent’s EVP, Chief Customer Officer for over four years, Jesse Decker leads transformative initiatives that benefit both Sagent and our customers. Jesse has been instrumental in developing an endto-end customer success story for Sagent’s clients, engaging with customers to ensure that they are receiving the value they expect from Sagent’s extensive range of servicing products.
Throughout the development of Sagent’s future-of-servicing platform, Dara, Jesse has kept our customers up to date with our progress, helping to build excitement and drive interest for the platform. Jesse works with Sagent’s customers to understand the struggles they face with existing technology and relentlessly communicates that information to Sagent’s engineering team to ensure those issues are addressed (in real time) with the new platform.
Outside of Dara, Jesse has fostered a
culture of collaboration and teamwork within Sagent. She has worked diligently to revamp Sagent’s customer communications and support teams to drive maximum value for our customers. Under her guidance, Sagent has achieved a 200% increase in its Net Promoter Score (NPS) and has renewed every expiring customer contract over the past four years.
What differentiates her? How is she impacting the industry or the people around her?
Jesse believes building modern servicing technology is about more than delivering an excellent customer experience. To lead an evolution in servicing, new platforms — including Dara — need a bedrock of collaboration between providers and customers, plus deep servicing expertise all around to identify nuances that lead to increased costs, compliance risks, or inferior homeowner experiences. It’s impactful that Jesse’s comprehensive understanding of the servicing sector and empathic leadership skills have
empowered Sagent to build products that solve our customers’ real-world problems. It’s those same skills enabling Jesse and her team to communicate effectively about the benefits of an end-to-end platform like Dara to current and potential customers, including America’s largest and most successful servicers.
One example, Jesse promotes a customer-first culture at Sagent by improving internal processes to gear every decision toward enhancing the customer experience. From careful orchestration during the sensitive onboarding process to ongoing implementation to Sagent’s products and even contract renewal discussions, she puts herself in our customers’ shoes, understands their concerns (technical or otherwise) and advocates for their success in every action she takes. And because Sagent only succeeds when our customers do, Jesse’s contributions continue to be mission-critical at Sagent in 2024 and beyond.
OF MORTGAGE BANKING 2024
Kim Hoffman
Mortgage Connect President of Mortgage Connect Risk Solutions
What are some of the key milestones in your career?
In the 35 years that I have been a mortgage banker, I’ve worked for multiple major banks and lenders in almost every area. My career has exceeded my wildest imagination. Having a solid foundation and being an avid learner has allowed me to tackle major business transformations, like outsourcing large-scale operations, leading a global workforce on multiple continents, buying mortgage companies and helping to take a company public. All this has led me to the role I hold today, President of Mortgage Connect Risk Solutions, formerly Adfitech. Joining Mortgage Connect was the pivotal milestone in my career. The company had just acquired Adfitech, a due diligence leader that had served the industry for 40 years, and my job was to retain its prestige while refining and enhancing operations, and to simultaneously facilitate its integration into the Mortgage Connect family and subsequent rebrand to MC Risk Solutions.
Can you share a significant achievement or project you are particularly proud of?
I’ve been fortunate to participate in many successful projects of which I’m proud. BUT becoming a CMB was one of the proudest days of my career. It was a grind, but to be a mortgage banker and earn this designation, well let’s just say I couldn’t be prouder.
What role do you believe women play in shaping the future of the industry?
During my career I’ve seen women make tremendous strides moving up within the industry, but our numbers are still light in the C suite. I often wonder what is holding us back, but I’m hopeful we’ll see the glass ceiling shatter for good and all people will be elevated based on skill and talent. Women bring a unique perspective to the conversation, and their views are invaluable as we work to expand access to homeownership and solve a growing affordability issue. Diverse voices lead to more dynamic, nuanced solutions,
and having women at the boardroom table is critical to bring these to light.
How do you see the mortgage banking industry evolving in the next 5-10 years?
I believe the industry will look significantly different in 2034. I believe technology – AI and generative AI – will transform our lives in ways we can’t imagine. I hope to be a part of the massive opportunities that will no doubt arise from this technology and from technology on the horizon, like quantum computing. Before my career ends, I’d like to see people getting mortgages with the ease of a car loan or credit card without risk to the financial system, because we’ve opened our minds to the art of the possible through technology. It’s a moon shot, but if we aim for it, we’ll get somewhere between where we are today and there. Like so many in our industry, I love what we do and the role we play in facilitating the dream of homeownership. It sounds cliché, but it’s not – it’s our daily reality.
OF MORTGAGE BANKING 2024
Lana Izgarsheva
A&D Mortgage LLC Chief Operating Officer
What are some of the key milestones in your career?
My professional life is mainly dedicated to A&D Mortgage. I have achieved several milestones that have shaped my professional path with this company. I have been an active participant in building A&D Mortgage from the ground up to become the nation’s top officially verified Non-QM lender. This accomplishment is meaningful to me, given the competitive nature of our industry.
In addition, I have put a great deal of effort into improving the efficiency of the company’s operations. I have worked on streamlining the underwriting process, which I believe has ultimately become a critical factor in establishing A&D Mortgage as an industry leader, ensuring that we deliver exceptional service while maintaining high standards.
Driven by my passion for creating a positive and supportive work environment, I’ve also decided to
transform our HR department. I’ve helped cultivate a workplace where employees feel inspired to develop their skills and reach their full potential.
Can you share a significant achievement or project you are particularly proud of?
One of the key accomplishments I am particularly proud of is the recent transformation of our underwriting workflow at A&D Mortgage. I’ve put my effort into integrating automation and refining our underwriting processes. Thus, the implementation of Loan Operating System (LOS) automation and Liquid QC, as well as the integration of QC into Loss Mitigation, resulted in a 40% increase in the volume of files sent to closing, a 50% reduction in underwriter discrepancies, and more accurate forbearance decisions. This project improved our efficiency and ensured that we could continue to provide exceptional service to our clients. These underwriting changes were a key driver of our becoming an Originator Choice Lender.
How do you see the mortgage banking industry evolving in the next 5-10 years?
The mortgage banking industry is poised for significant transformation over the next 5-10 years, driven largely by advancements in technology and shifting borrower demographics. I anticipate greater adoption of AI and automation to streamline the lending process, enhancing efficiency and improving the borrower experience. Non-QM lending will also continue to expand as more self-employed borrowers and gig workers seek flexible financing solutions. Additionally, we’ll see an increased focus on environmental, social, and governance (ESG) factors, as lenders integrate sustainability into their practices. Regulatory frameworks will evolve to accommodate these changes, and the industry must adapt quickly to remain competitive. At A&D Mortgage, we’re committed to leading these innovations while maintaining a strong emphasis on customer-centric solutions.
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Rebecca Seward
Ocrolus Director of Product (Mortgage)
Rebecca has helped Ocrolus revolutionize digital lending by building document automation and analysis products that delight customers and drive innovation in the mortgage lending industry. Rebecca brings valuable industry experience to ensure Ocrolus solutions address key challenges facing the mortgage industry.
Under Rebecca’s product leadership, Ocrolus innovations are helping mortgage lenders reduce processing time, improve accuracy and maximize profit margin on every single loan, while freeing up more time to focus on critical lending decisions and giving lenders the flexibility and scalability they need amid fluctuating demand for home mortgages.
Her work on Ocrolus’ mortgage solutions has created efficiency in the origination process by automating a significant part of this workflow, combining mortgage document classification, data capture and income analysis into one user-friendly product. The solution offers the ability
to streamline the qualification of both traditionally and self-employed borrowers, and provides lenders with multiple calculation options from most to least conservative so they can make faster and better decisions with trusted data.
Rebecca and her team are leading the way in supporting mortgage lenders’ needs for document automation with an objective and standardized approach to evaluating the borrower’s income, increasing confidence in lending decisions and reducing risk of human error.
What differentiates her? How is she impacting the industry or the people around her?
Early in her career, Rebecca worked hands-on as a Closing Coordinator at First Home Mortgage, manually verifying and filing documents to ensure successful loan execution. Today, she is designing products that automate these same tasks, and in doing so, she is moving the lending industry forward.
Rebecca understands the pain points
that mortgage lenders endure because she has experienced them first-hand. Rebecca’s passion for building intuitive, scalable products is evident throughout Ocrolus’ mortgage solutions. She leverages her deep industry experience to key in on inefficiencies in the mortgage lending workflow, helping lenders make high-quality lending decisions with trusted data.
Rebecca’s work focuses on aligning her products with lenders’ needs and improving efficiency and productivity in their operations. The impact is evident in testimonials from Ocrolus’ lending customers. Compeer Financial, a Midwest-based cooperative that provides loans, leases and other financial solutions, is a company that prides itself on its relationships with clients. After turning to Ocrolus to automate parts of their workflow and spend more time nurturing client relationships, their VP of rural living solutions Tim Tjosaas said, “We believe in spending our money in smart ways, and Ocrolus has proven to be a very good buying decision.”
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Danielle Walker
Xactus
SVP, Business Development
What are some of the key milestones in your career?
I have been in the mortgage industry for 18 years. Throughout that time, I headed up the teams that developed several large platforms and apps, including a tax verification platform, an appraisal management software, Appraisal FirewallX, which was one of the first platforms in the industry that allows lenders to manage their own appraisal process and connect with their various appraisers and AMCs; developing Appraisal ScorecardX for automated and manual appraisal reviews; and VerisiteX, a proprietary app allowing lenders to verify the current condition of the property with borrower-taken photos.
Can you share a significant achievement or project you are particularly proud of?
I currently oversee the success of Xactus’ property and data solutions: Appraisal FirewallX, Appraisal ScorecardX and VerisiteX. Since taking over, my team and I built out the VerisiteX report to be the first enhanced-AVM with 12+ pages of
subject and market data. By using this enhanced AVM report, lenders can look beyond the subject property, get insights into the surrounding market and quickly review a subject’s approval for HELOCs. Appraisal ScorecardX also saw major enhancements, including me spearheading the addition of AI being built into Appraisal ScorecardX to better indicate the presence of potential bias and presence of faults with the property that could cause a delay at Underwriting.
What role do you believe women play in shaping the future of the industry?
I believe women to be instrumental in shaping the future of our industry, while forming a positive workplace culture that prioritizes work-life balance, mental health, and professional development. We are finally in a time where we are seeing women at the top of large mortgage banks and fintechs. And yet, still only one-third SVP and C-Suite positions are held by women. We need to do better. We need to be better mentors and advocates for future generations of women who are entering our industry, and provide guidance
and support to the women currently in our industry who are going to help shape the future of mortgage banking and fintech. We need to help promote gender equity in this industry.
How do you see the mortgage banking industry evolving in the next 5-10 years?
Advanced technology will continue to shape and streamline processes. Companies that invest in extensive digital platforms and user-friendly interfaces will likely gain the market share. AI and computer vision will continue to play an increasing role in decision-making processes. We have only seen the beginning of this in our industry. With enhanced AI, our industry will be able to better asses credit risk, personalize consumer offers, and effectively analyze property and collateral, plus so much more across all facets of the loan process. We are seeing ongoing advancements with data analytics that will also provide deeper looks into the behavior of consumers, in turn helping lenders best tailor their products and services to meet the needs of our customers and industry.
OF MORTGAGE BANKING 2024
Leslie Winick
Mortgage Capital Trading (MCT) Chief Strategy Officer (CSO)
What are some of the key milestones in your career?
At this point in my career, I find myself in a cycle of constant reflection. Each laugh line, every gray hair is an earned gift. I’m grateful for the opportunities that have come my way, and I’m also proud that I recognized and capitalized on them. Every day I’m setting new goals and checking off boxes – for MCT, CapitalW, and myself. Milestones abound. However, if I had to pick a few instances over the past 30-odd years, it’s the moments when people of respect and influence reached out to create a personal connection. As mentors, they wanted to learn about me (all of me) and helped me raise my game. Also early on, I saw the value of mentorship, and throughout my career, I’ve tried to emulate their teachings. I became the one reaching out, and I’ve never stopped. It feels so good to elevate others.
Can you discuss any initiatives or programs you have been involved in that support women in mortgage banking?
2024 is the year of CapitalW Collective. Launched in May, the 501(c)(3) nonprofit has already made a name for itself in the industry. CapitalW is the only organization focused on educating, elevating, and empowering women in mortgage capital markets. Along with Amy Creason and Patricia Peters, I’m a very proud co-founder, and we’re also fortunate to have Deb Jones join us on the Board.
Education is our cornerstone. We’ve been developing virtual resources, as well as launching our education committee. We’ve also been building relationships with the Mortgage Bankers Association and industry collaboratives. None of this would be possible without our corporate sponsors, so I’m deeply grateful to MCT and Agile Trading Technologies for immediately lending their backing. Soon, we’ll be announcing several more industry stalwarts who believe in our mission and ability to deliver.
How do you see the mortgage banking industry evolving in the next 5-10 years?
Further faster. The impact of technology and the speed with which it will be implemented will be staggering.
Think about the digitization that came out of necessity during the pandemic. Every process step from loan origination to sale was affected, and in many instances, made more efficient, secure, and profitable. Looking ahead, no matter where a company plays in the mortgage value chain, it will need to become a “fintech” or cease to exist. Many roles and processes we use today will be disintermediated.
I don’t’ anticipate that affordability pressures will lessen. It’s also likely that the frequency and ferocity of climaterelated events will continue, and we’ll see more climate refugees seeking shelter. For those who still have homes, the price of insurance (if it’s still available) will continue to take a larger share of family income. These are all complicated and inter-related issues that require a holistic solution.
Mortgage Banker Magazine is looking to recognize the 2025 Legends of Lending — the key players who have dedicated their expertise and years of experience to mortgage, and represent the industry with confidence, compassion, and pride.
Nominate yourself, or someone you know who has blazed a path and left their mark on the industry for years to come.
SUBMISSION DEADLINE: FRIDAY, MARCH 14, 2025