September 2019 Issue by HousingWire

HOUSINGWIRE MAGAZINE ❱ September 2019

INSIDERS 50 professionals making the mortgage and real estate industry run.

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PREPARING FOR DISASTER Are you prepared for the next natural disaster to strike? HOUSINGWIRE MAGAZINE ❱ SEPTEMBER 2019

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MORTGAGE BROKERS’ MARKET SHARE IS RISING TOGETHER, WE CAN LEAD THIS MOVEMENT.

WHY JOIN AIME NOW? MILLENNIALS ARE ON OUR SIDE 1 out of 3 millennial homebuyers are using mortgage brokers. AIME prioritizes awareness here as millennials prefer to shop around for options during the homebuying experience.

DIGITAL DNA AIME is connected with everyone who touches a home loan via mainstream media, trade media and social media, understanding that we need to get in front of everyone to let them know they have a nationwide support system.

CIRCLE OF SUCCESS AIME helps maintain the industry success cycle. Mortgage brokers benefit from the consumers’ satisfaction, while AIME thrives from brokers’ accomplishments.

To become a member for FREE, visit our website: https://aimegroup.com/membership

HOUSINGWIRE SETPEMBER 2019 EDITORIAL

CONTENT SOLUTIONS

MANAGING EDITOR Ben Lane

MANAGING EDITOR Sarah Wheeler

EDITOR Jessica Guerin

DIGITAL CONTENT STRATEGIST Alyssa Stringer

REAL ESTATE EDITOR Kathleen Howley ONLINE EDITOR Maleesa Smith

ASSOCIATE CONTENT EDITOR Jessica Davis

I AM deeply honored to bring you this issue of HousingWire Magazine, my first as managing editor of HousingWire. This issue is all about new beginnings, both for us here at HousingWire and potentially for the country’s housing economy as well. On the housing front, we have a real treat for you this month. Recently, our esteemed magazine editor,

ASSOCIATE EDITOR Kelsey Ramírez

CREATIVE

REPORTERS Alcynna Lloyd Julia Falcon

GRAPHIC DESIGN Traci Cortez

CONTRIBUTORS Bill Giambrone, Romi Mahajan, John Smintina, Maiclaire Bolton Smith

NEW BEGINNINGS

COVER PHOTOGRAPHER Stephen Voss

Kelsey Ramírez, traveled to Washington, D.C. for an exclusive sitdown interview with new FHFA Director Mark Calabria. Curious to hear Calabria’s thoughts on the future of Fannie Mae and Freddie Mac? Of course you are. Turn to page 30 for Kelsey’s feature on Calabria and the future of the GSEs.

SALES

CORPORATE

NATIONAL SALES DIRECTOR Jennifer Watson Laws jlaws@HousingWire.com

PRESIDENT AND CEO Clayton Collins

CHIEF REVENUE OFFICER Diego Sanchez CALIFORNIA MARKETING MANAGER Christi Lingard Caren Karris clingard@HousingWire.com MARKETING CENTRAL COORDINATOR Mark Adams Katie Galbraith madams@HousingWire.com CLIENT SUCCESS SOUTHEAST MANAGER Tamara Wren Haley Hess twren@HousingWire.com AD OPERATIONS GREAT LAKES COORDINATOR Lorena Leggett Matthew Stafford lleggett@HousingWire.com CLIENT SUCCESS COORDINATOR Talia Quigley CONTROLLER Michelle Monroe

Beyond that, we’re all very excited to bring you our second annual HW Insiders awards, an honor reserved for the housing industry’s operational all-stars. We created this award program last year to bring acclaim to the unsung heroes that are helping drive the industry forward. Last year’s nominations were amazing, but this year’s blew us away. Picking 50 winners from the scores of worthwhile nominees was agony, but we’re thrilled with the results and could not be more excited to share the winners with you. Check out the winners, starting on page 38. Cheers!

Ben Lane Managing Editor @BenLaneHW

Subscriptions are available for $149 for one year. A subscription includes the print magazine and online access to the digital magazine. Canada and foreign are only eligible to purchase the “Digital Only” subscription plan at $149 for one year. Visit www.housingwire.com/subscribe for more information. The information contained within should not be construed as a recommendation for any course of action regarding legal, financial or accounting matters. All written materials are disseminated with the understanding that the publisher is not engaged in rendering legal advice or other professional services. HW Media does not guarantee the accuracy of information provided, and is not liable for any damages, losses or other detriment that may result from the use of these materials.

Tweets From The Streets Thank you community bankers for being actively engaged for years on the real-time payments initiative. It was your call to action that had a direct impact on the @federalreserve’s decision. Your individual voices matter, community bankers.

by @romerorainey

HOUSINGWIRE ❱ SEPTEMBER 2019 5

Take your office outside. Lower rates and warmer weather mean more homebuyers. But gone are the days of being tethered to your desk to keep loans moving through your pipeline. With Encompass LO Connect™, you can use your mobile device to: • • • •

View your loan pipeline while catching some rays Compare loan pricing while shopping for groceries Send an eligibility letter while on the back nine Create a new loan while watching your kid’s baseball game

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SEPTEMBER ‘19

MARK CALABRIA New director changes course for the FHFA. By: Kelsey Ramírez

INSIDERS

DISASTERS

FINTECH SHOWCASE

HousingWire recognizes 50 operational superstars propelling their companies.

Are you prepared for the next billion dollar catastrophe? Here are the risks.

A deep dive into 22 fintech solutions that are revolutionizing the industry.

By: HousingWire Staff

By: Maiclaire Bolton Smith

By: HousingWire Content Solutions

HOUSINGWIRE ❱ SEPTEMBER 2019 7

YOU’RE BUSY CLOSING DEALS. WE’RE BUSY PROTECTING THEM.

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CONTENTS THE LINEUP

10 PEOPLE MOVERS

Planet Home Lending named Suzy Lindblom its new chief operating officer. 12

EVENT CALENDAR

The Mortgage Bankers Association hosts its Annual Convention and Expo in Austin, Texas. 13

ON THE SHELF

Lindsay Teague Moreno talks about how to be a “momtrepre-

neur,” covering business basics. 14 HOT SEAT

18 VIEWPOINTS 26 LIFE OF LOAN The life of loan premium policy has outlived its usefulness, and hurts borrowers and the FHA. 28 ERA OF AI Is artificial intelligence in residential real estate reality or just the latest hype?

Austin Niemiec talks about Quicken Loans’ success and the state of the mortgage industry. 16 DISPATCH Quantarium has the tech you need for a proactive customer retention strategy. 18 DISPATCH Radian explains how expertise-on-demand can improve quality control for servicers. 20 SOUNDING BOARD HousingWire’s social media followers sound off on a new bill that increases the VA loan limit. 22 TAKE 5

96 Quicken Loans and State Farm

Freddie Mac’s Dominica Groom Williams answers five questions about her life. 24 HOT OR NOT Cheap rates could push mortgage refinancings to a near-three-year high.

Valuation to title innovation

114

BACK DEPARTMENT 92 RENTWIRE America’s rental market heats up as its housing market takes a breather. 96 LENDINGLIFE Quicken Loans, State Farm mortgage partnership shakes the housing industry to its core. 100 OPENHOUSE Housing affordability continues to drop as wages rise at sluggish pace. 104 INSIDE BASEBALL HUD suspends down payment assistance rule change “until further notice.” 110 KUDOS Truist Bank announces $60 billion investment plan for low- and moderate-income communities. 112 Q&A Tim Elkins and Steve Thompson on PrimeLending’s move to boost efficiency. 114 KNOWLEDGE CENTER When it comes to valuation and title, lenders need property intelligence. 116 COMPANIES/PEOPLE INDEX 118 PARTING SHOT HOUSINGWIRE ❱ SEPTEMBER 2019 9

Susy Lindblom Planet Home Lending

10 HOUSINGWIRE ❱ SEPTEMBER 2019

BESAW

McKENZIE SLOAN

FOLEY BROWN

amela Hughes Patenaude, who formerly served as deputy secretary of the U.S. Department of Housing and Urban Development, has joined the board of directors of Habitat for Humanity International. Before she joined HUD in 2017, Patenaude was president of the J. Ronald Terwilliger Foundation for Housing America's Families and the former director of housing policy at the Bipartisan Policy Center. Earlier this year, Patenaude also excepted a position as senior community liaison for the global homeland security and disaster management consulting company IEM. NRT appointed Tim Foley to the position of executive vice president of operations. Prior to joining NRT, Foley served as a managing director of global client services at JPMorgan Asset Management. Additionally, he also served at GE Capital

GREEN

PATENAUDE WESTRA

Planet Home Lending named Suzy Lindblom its new chief operating officer. Lindblom has four decades of industry experience, holding several executive roles at companies including, Stearns Lending, MetLife Bank, Bank of America and more.

as a general manager of national accounts. SimpleNexus welcomed three new vice presidents to its executive team: Kent Besaw, Kevin McKenzie and Shane Westra. Besaw, who has 17 years of experience in the financial services and technology sectors, has been appointed to the position of vice president of customer success. McKenzie has been hired as the vice president of finance and brings 15 years of experience in financial analysis and controllership to the role. Westra has 21 years of experience in product development and will now serve the company as its vice president of product development. The NRP Group hired David Brown as its new regional vice president of development. Before coming to the NRP Group, Brown previously served at LMC as a vice president. He also worked in the financial services department of Ernst & Young. Taylor Morrison appointed Keith

Hurand to lead the company’s operations in Dallas. Hurand is an industry veteran who carries with him more than two decades of experience in the homebuilding industry. Prior to joining Taylor Morrison, Hurand served at Century Communities as its division president and at Newland Communities as its president and chief operating officer. LoanLogics expanded its executive team, appointing Elizabeth Green as its chief collateral officer and Paul Vancheri as its executive vice president of technology. Green has more than 25 years of experience in the mortgage software and valuation sectors, most recently serving Centric Technologies as the company’s president. Prior to joining LoanLogics, Vancheri served Novarica as the vice president of research and consulting. Volly hired Theresa Sloan as its senior vice president of client services. Sloan has more than 25 years of experience in mortgage banking and financial services. Previously, Sloan worked at Ellie Mae as the director of engagement services & professional services, and prior to that, she served as senior vice president and client delivery director at Black Knight. ACES Risk Management appointed Mike Ehring as its new senior director of business development. Ehring brings years of experience as a senior executive in sales and business development for mortgage fintech companies, including Dorado, CoreLogic and most recently at LoanLogics.

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EVENT CALENDAR

MBA ANNUAL19 OCTOBER 27-30, 2019 Host: The Mortgage Bankers Association Location: Austin, Texas Cost: $675-$3,750 The Mortgage Bankers Association’s Annual Convention and Expo is the nation’s largest gathering of housing market professionals. This annual summit extends an invite to professionals navigating the single-family sector of the real estate finance industry. This year, conferencegoers will attend sessions that feature big names including, former New Jersey Governor Chris Christie, CBS News Correspondent Margaret Brennan, Federal Housing Finance Agency Director Mark Calabria and more. Learn more at mba.org

AUSTIN, TEXAS MBA Annual19 will be held in Austin, Texas, also known as the Live Music Capital of the World. If you attend this year’s conference, make sure you head down to Stubb’s BBQ. This world-famous restaurant is home to some of the best live music and delicious barbecue in the country. If you are a fan a good eating and fine music, then this local gem will make you say yee-haw! Learn more at stubbsaustin.com 12 HOUSINGWIRE ❱ SEPTEMBER 2019

ON THE SHELF Ultralearning: Master Hard Skills, Outsmart the Competition, and Accelerate Your Career SCOTT YOUNG HARPERBUSINESS

Scott Young backs up his nine principles for mastering hard skills quickly. He gives examples of “ultralearners” such as chess grandmaster Judit Polgár, Nobel laureate physicist Richard Feynman, and little-known modern polymath Nigel Richards, who won the French World Scrabble Championship—without knowing French. Young documents the methods he and others have used to ace new skills, showing ultralearning is a powerful tool anyone can use.

Boss Up!: This Ain’t Your Mama’s Business Book

Save the date for our 2020 summit!

June 11-12, 2020 Orange County, CA

LINDSAY TEAGUE MORENO THOMAS NELSON

If you know the term “momtrepreneur,” you may also know about Lindsay Teague Moreno, a stay-at-home mom and serial entrepreneur who built a multi-milliondollar income in less than two years using her online platform. She wrote the 2017 Amazon bestseller, “Getting Noticed: A No-Nonsense Guide to Standing Out and Selling More for Momtrepreneurs Who Ain't Got Time for That.” In her latest book, Lindsay covers business basics, such as social media and branding, and outlines her personal philosophies.

Be the first to know, get on our VIP list: www.engage.housingwire.com

HOTSEAT

SPONSORED CONTENT

Austin Niemiec Executive Vice President

Quicken Loans Mortgage Services

ousingWire sat down with Austin Niemiec, executive vice president of Quicken Loans Mortgage Services, to discuss the secret to the company's success, the state of the mortgage industry and how mortgage brokers can benefit from utilizing technology to maximize efficiency and grow their business. HousingWire: Why does QLMS partner with brokers and what are the results? Austin Niemiec: Quicken Loans works with a lot of people who want to get their mortgage online or over the phone, and they do a great job of helping those folks. However, there’s also a big segment of the market that prefers face-to-face contact or local lenders. QLMS partners with brokers, credit unions and regional banks to provide them access to our award-winning technology and processes so they can focus on building and maintaining the relationships with their clients. With our help, loan originators can close more loans with less overhead, and differentiate themselves from their competition. Our process is clearly one that our partners appreciate, and it’s gaining serious momentum in this space. We’ve doubled the number of partners in the last year, growing from 2,500 to over 5,200. They are also taking advantage of our industry-leading pricing and the high-level service we provide. Because of all of this, we’ve seen a 230% year-over-year increase in loan volume when comparing Q2 2018 to the Q2 of 2019.

Q&A

HW: Can you elaborate on how you support your partners through providing tech and other services? AN: One of the things we’re very excited about is our Pinnacle Program, which was launched in July 2018 as an exclusive program for our top partners. These partners have first access to the newest and most innovative tools, resources, expertise and marketing to help them grow their mortgage business. 14 HOUSINGWIRE ❱ SEPTEMBER 2019

When Pinnacle launched last summer, it had 28 partners. By Aug. 1 of this year, the program now stands at 320 partners. HW: What do you consider the secret sauce you can give brokers who partner with you? AN: This industry is more competitive than ever. I think technology and expertise are most key as borrowers and Realtors are looking for speed and reliability. One of our powerful tools at QLMS is “The Answer.” It’s a multi-million-dollar technology platform we give our partners, for free. Think of it like having an underwriter at your fingertips at all times. Instead of thumbing through 100-page guideline packets, or calling underwriters for answers, we’ve taken all the brainpower of our best experts and put them into a search tool that provides clarity in seconds, 24/7, 365. You ask it questions, it gives you answers. Every day we see examples of partners approving loans that would have been denied because they checked The Answer and quickly learned of changes to the guidelines for the loan product they were offering. Our technology also speeds up the process and makes things more transparent for LOs. For example, we are unique in the fact that we take care of third-party vendor items for our partners, like VOEs, payoffs, homeowners insurance, etc. Not only do we do the heavy lifting, we provide 24/7 status visibility of these items on our portal. This ensures that LOs are communicating real-time info to clients and Realtors, creating a better experience and increasing repeat business. We’re seeing successful closings also lead to more referrals for our partners. HW: What do you see as the ideal relationship between lender partners and Quicken Loans? AN: Our goal is to provide intense support for our partners by delivering game-changing technology, incredible efficiency/visibility into the loan process, competitive interest rates and world class AEs. This allows our partners to spend their time and energy doing what they do best – building great relationships with clients, Realtors and referral sources, ultimately winning them more business.

QLÂ® MORTGAGE SERVICES

STRONGER TOGETHER Lindsey LaCoste QLMS Account Executive

Amanda Stevenson Loan Officer Answer Home Loans Granite Bay, CA

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QUANTARIUM | SPONSORED CONTENT

Here's the tech you need for a proactive customer retention strategy Quantarium's portfolio services leverage true AI to your advantage

ntelligence is the difference between facts and knowledge, between information and understanding. Although artificial intelligence and machine learning are popular buzzwords in the mortgage industry today, truly machine intelligence based solutions are still a rarity in our space. Fortunately for lenders and servicers, Quantarium is bucking that trend. The company approaches real estate from a scientific perspective, reflecting its founders’ backgrounds in high-end technology, quantum physics and computational genetics. As Quantarium co-founder and CEO Clement Ifrim explained, the company’s understanding of the market and its development of solutions is different from other companies not just in degree, but in kind. “The word quanta describes the smallest entity involved in any physical interaction. Similarly, our initiative from the first days of our company was to use all this data — the smallest pieces of information — meshed with machine intelligence to provide the most accurate solutions on the market,” Ifrim said. Quantarium’s robust AI is a result of the methods the company leveraged from the beginning, applying machine learning solutions, such as neural networks, evolutionary programming and genetic algorithms to understand both individual assets and local market dynamics within the housing market. The company’s ambitious goal was to discover the DNA of real estate by mapping out its chromosomes — the up to hundreds of property characteristics of each asset — and determining how their proportional usefulness, along with the local market environment defined its expressed phenotype, impacting the estimated value. Using this approach, Quantarium can credibly claim true AI. “Combined with our unparalleled data lake, our valuations get more accurate with each new run. Similarly, with our portfolio services, we are generating predictive models that get better every single day,” Ifrim said. Quantarium’s offerings include its automated valuation model, QVM, valuation services, portfolio services, and a data and search platform, which was developed by mathematicians, scientists and computer architects. Romi Mahajan, the commercial head of the company, said, “Quantarium is a 'meaningful AI' company — we use AI not for some abstruse solution in search of a problem but instead to create markets and enhancements in the world’s largest asset class, namely residential real estate.” For servicers in this low-volume purchase market, Quantarium’s portfolio services are especially critical as part of a proactive strategy to retain customers. Servicers need portfolio solutions that identify ongoing opportunities to engage homeowners as they contemplate selling, refinancing or taking cash out — before

16 HOUSINGWIRE ❱ SEPTEMBER 2019

they start looking. With Quantarium, servicers can leverage automated vigilance to see market activity on any loan in their portfolio, giving them the ability to contact borrowers with new offers. They can also gain insight into a borrower’s current status — such as whether they have paid off a loan and still live in the house, sold the property or refinanced with another lender. Additionally, Quantarium’s best-in-class portfolio services can identify borrowers who are likely to list their property or refinance. “We can look at a borrower and say, ‘Do we think this person because of age, job, age of children, etc. is a good cash-out candidate? Or maybe a consolidation candidate?’ Servicers can take a segment of their portfolio and send a very specific message to that group,” Ifrim said. Brian Mushaney, Quantarium’s business development vice president commented further, “Leveraging AI models, allows us to move loan loss beyond simple analysis, so our customers can further understand attrition from their lost customers’ loan purpose perspective and respond accordingly.” Servicers and investors can also use Quantarium’s geocentric property reports to spot neighborhood trends in sales prices and demography, view comprehensive transaction history and get sales comps. “We provide servicers with a statistical analysis of what’s happening in a borrower’s neighborhood, so they can stay in meaningful contact with the borrower, edified to both their individual and market context, all the time. They might see that homes in a particular micro market have increased beyond certain thresholds and now they can let the borrower know that current transforming asset and market circumstance have made them candidates for products within the servicers portfolio that can optimize the borrower’s position,” said Malcolm Cannon, Quantarium’s chief operating officer. Quantarium leverages data from more than a dozen data services, but it also creates new data all the time, using machine learning methods, such as computer vision to add property characteristics and then understand how they impact quality and value, expanding the reach of its intelligent systems. “We begin by sitting down with our customers to find out where their pain points are, then we get our AI scientists together to figure out the solution. If you have a question, we have the data to answer it,” Ifrim said. “We’re so excited about the potency of what Quantarium does — it’s unparalleled,” Cannon said. “We are working with the best tech companies in the world to stay on top of innovation and provide the best possible services for our clients.”

RADIAN | SPONSORED CONTENT

How expertise-on-demand can improve quality control for servicers Outsourcing to a skilled third party provides flexibility and consistency

oan servicers have to navigate a continuously changing mortgage landscape. New regulatory requirements, turnover of experienced talent and other factors are all making the mortgage servicing business more turbulent than ever. But perhaps the biggest challenge, especially for small, growing and non-bank servicers, is ensuring that quality control is maintained even when new demands emerge. In the decade since the financial crisis, costly delinquencies have fallen from their historic highs and refinancings have increased as homeowners take advantage of lower interest rates. However, even with more solid underwriting the cost of servicing a loan has not experienced a decline. According to the Mortgage Bankers Association, the cost of servicing a loan doubled between 2009 and 2013 and has held steady at about $160/loan since then. The regulatory environment has become more demanding in the wake of the crisis and new regulations that go on the books could mean higher costs for servicers associated with development and implementation to fulfill those requirements. An example of that is the Consumer Financial Protection Bureau’s new amended rule requiring servicers to send out billing statements to borrowers who are entering or exiting bankruptcy. While this rule can be helpful for property owners, there are still many questions to be answered: Where does the information for the statements come from? Who will prepare the statements? What is the cost of sending out the statements? These are all questions that servicers must answer with time and resources to develop the means of acting on the regulations. As a result of these new rules, the increased cost of compliance, including maintaining both compliance and audit staff,

18 HOUSINGWIRE ❱ SEPTEMBER 2019

has reduced servicing margins. For those servicers that want to maintain the highest level of quality while they take on new tasks, outsourcing some servicing functions to a skilled third-party may be the most attractive solution. The same applies to servicers that want to grow their portfolios by expanding into different loan types they might not be as familiar with. Outsourcing quality control can help them comply with program requirements and add expertise they may not currently have in-house. For example, a servicer may want to start servicing FHA loans but may lack the depth of experience to feel confident that they are meeting all the HUD requirements or that they have the capability to perform quality control testing, at least initially. Outsourcing quality control allows them to bridge the skills gap by giving them access to seasoned professionals who are well-versed in FHA servicing and who can provide valuable feedback through the testing. With the continually changing regulatory environment, outsourcing also allows servicers the flexibility to modify their QC testing as needed. They can specify the frequency, volume, and areas of testing, which gives them control over costs and allows them to avoid the inefficiencies they might encounter while trying to meet the changing testing criteria on their own. Experience is another issue. The average tenure of servicing staff is a little more than four years according to the MBA. Such a short tenure may make it difficult to build proficiency in the requirements of a specific loan type, let alone a multitude of loans. By using a third-party vendor whose expertise is quality control testing, the servicer gains access to industry trends and best practices that they might not have otherwise. In the course of their work with servicers, vendors accumulate deep experience with loan types and special situations that an in-house team might never be exposed to. Third-party specialists can also tailor their QC testing to a servicer’s particular needs. For instance, if you only need to look at the big risk areas, the vendor can test at a higher level and if you need to look at full compliance the vendor can test in great detail with multiple bankruptcy tests and specific tests for FHA and HUD compliance. Over the past decade, the housing market has experienced enormous changes. Institutions of all sizes have struggled to keep up by relying on their in-house talent alone. But there’s a better way. Vendors offering expertise-on-demand give servicers flexibility and consistency at a reasonable cost. And in a complex and constantly changing operating environment, those can be the keys to success.

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Partner with Experience Senior housing wealth exceeds $7 trillion¹ and yet 42% of Americans will retire broke². Together, we can do better. Let American Advisors Group (AAG), the nation’s number one reverse mortgage lender, be your partner in success: AAG's Concierge Experience allows your originators and processors to learn while they earn AAG's dedicated Lender Support Team guides the entire loan process from application to submission AAG's online marketing portal gives you 24/7 access to custom marketing materials ¹Senior Housing Wealth Exceeds $7 Trillion For First Time. NRMLA. https://www.nrmlaonline.org/about/press-releases/senior-housing-wealth-exceeds-7-trillion-for--rst-time. ²GoBankingRates.com, Survey Finds 42% of Americans Will Retire Broke – Here’s Why (March 2018). For industry professionals only -- not intended for distribution to the general public. American Advisors Group, NMLS #9392, headquartered at 3800 W. Chapman Ave., 3rd Floor, Orange, CA 92868. License information on www.nmlsconsumeraccess.org and www.aag.com/disclosure.

Where experts and pundits sound off on a key industry issue

ON HW'S SOCIAL MEDIA ACCOUNTS

President Donald Trump signed a bill into law that allows the Department of Veterans Affairs to back loans that exceed the conforming loan limit. The bill, H.R. 299, enables homebuyers using a VA loan to borrow above the 2019 limit of $484,350 for most counties, without any down payment. A VA spokesperson told HousingWire that the loan limit will be lifted for loans that are guaranteed or appraised on or after January 1, 2020, and that guidance for lenders would be coming ahead of this date.

Chris Griffith: Veterans taking care of Veterans. Win/Win. Jerry Avila: 100% Mike McDermott: Thank you Trump. Finally got this done. Vets win.

Ulysses Gerena: That’ll work!!! Mario Espinoza I was asked this almost 10 years ago.. a decade to fix this wow

20 HOUSINGWIRE ❱ SEPTEMBER 2019

Rob Thompson: This isn’t necessarily a good thing. B ecky Reilly: Why do you say this? Rob Thompson: Becky Reilly I would preface this by saying I’m retired military and a real estate agent. This move isn’t for the well being of the military member. It is to allow housing prices to continue to expand, partly on the back of the military. Housing prices are not going to continue their meteoric rise and folks need to consider this when buying right now, particularly military whom have relatively short timelines at their duty stations.

Dominica Groom Williams Vice President of Office Inclusive Engagement, Freddie Mac

Dominica Groom Williams, Freddie Mac vice president of office inclusive engagement and HousingWire Rising Star, is restructuring the company's siloed workforce diversity, supplier diversity and community engagement efforts to create a single cross-functional cohesive unit: The Office of Inclusive Engagement. Under Groom Williams’ leadership, her team is finding new ways to further integrate inclusion into the business and throughout the company’s culture. Below, Groom Williams gives an inside look at her life by answering five questions.

1. Signature phrase... “Be the change you wish to see in the world.”

2. Besides my job and family, my greatest passion is… humanitarianism!

22 HOUSINGWIRE ❱ SEPTEMBER 2019

3. My favorite thing to do with my employees is… support their development and aspirations.

4. My last vacation was… to Bali, Indonesia.

5. The future is… full of opportunities to change the world and have an impact.

Congratulations to Freddie Mac Single-Family leaders Senior Vice President of Aﬀordable Lending And Access to Credit

Danny Gardner and Vice President and Chief Data Oﬃcer

Aravind “Jag” Jagannathan on being honored with HousingWire’s 2019 Insiders Awards Two dedicated leaders who make all the diﬀerence to Freddie Mac’s ongoing success. We’re proud of you for your outstanding contributions to our business and the industry.

Aravind Jagannathan

Danny Gardner

HousingWire’s Insiders Awards Program recognizes key players who work across their organizations to drive success and make the mortgage industry tick. Danny and Jag continue to focus on multiple key projects and initiatives, think of smart new ways to lead their teams to new heights and build on the industry’s growth.

Learn more about how Freddie Mac is Reimagining the Mortgage ExperienceSM freddiemac.com

Hot SIZZLE? Not FIZZLE? 1 1 WHY THE

WHY THE

REFINANCES



Low rates could push mortgage refinancings to a near-three-year high, the Mortgage Bankers Association said in its latest forecast. The refi volume probably will grow to $180 billion in 2019’s third quarter, the highest since the $265 billion of refis in 2016’s fourth quarter, according to MBA data. The refi share of total mortgage originations probably will be 33% this quarter, the highest since the first quarter of 2018 when it was 37%, the forecast said. In fact, millions homeowners with 30-year mortgages currently are “refi eligible,” according to Black Knight.



ZILLOW MORTGAGES



BUILD TO RENT Homebuilders are stepping up to the plate and becoming landlords in the latest growing housing industry trend, and more single-family homes are being built to be rented out. This allows investors to buy newly built homes and rent them out instead of selling again, transforming the typical single-family rental into an ever-growing class. Homebuilders are now catching onto the trend and building homes for rent, rather than building to sell. The cost of labor on top of the cost of land, materials and other things, make it hard to profit off the sale of a new build.

BUYER’S MARKET In May, home prices fell 0.7%, declining 3.7% year over year, according to First American’s Real House Price Index. According to First American’s data, unadjusted house prices sit 3.2% above the housing boom peak. Whereas consumer buying power rose 1.3% between April and May, rising 9.3% year over year. First American Chief Economist Mark Fleming explained that as interest rates decline, which he predicts they will throughout 2019, homebuyers’ house-buying power would increase to 13.35, the highest in the history of the series, which dates to the year 2000.

24 HOUSINGWIRE ❱ SEPTEMBER 2019

A few months ago, Zillow Group announced it was officially entering the mortgage arena with the launch of Zillow Home Loans, a move made possible by its November 2018 acquisition of Mortgage Lenders of America. Since then, the real estate giant has been working on the development of its own mortgage software, but it seems the platform’s creation is taking longer than expected. On a call with investors in August, Zillow CEO Rich Barton said the company plans to slow hiring for Zillow Home Loans until the software is officially up and running.

COASTAL CITIES Homeowners continue to flee pricey cities for more affordable metros, with Phoenix, Sacramento, Atlanta and Las Vegas among the destinations that are searched the most online, according to Redfin. In the second quarter, 25% of Redfin users searching for home were looking to move to another city, up 1% from the previous year. Some of the top cities homebuyers are looking to leave include: New York City; San Francisco; Los Angeles; Washington, D.C.; Chicago; Denver; Hartford, Connecticut; Milwaukee, Wisconsin; Houston, Texas and Detroit.

MORTGAGE FRAUD RISK The risk of mortgage application fraud fell in the second quarter of 2019 thanks to a decrease in interest rates. According to CoreLogic’s National Mortgage Application Fraud Risk Index, fraud risks on mortgage applications decreased by 11.4% year over year last quarter. At the same time, shares of refinance transitions increased from 31% in the first quarter to 35.5% in the second quarter. The risk levels from refinance segments decreased anywhere from 12% to 30%, according to CoreLogic. Because these rate-driven refinances increased, it impacted fraud index scores positively.

Arch MI Congratulates Michael Hitt Senior Vice President, Insurance Operations

We congratulate Michael, named a recipient of the 2019 HousingWire Insiders Award.TM As a longtime company leader, he is focused on streamlining customer service to ensure our ongoing success.

ARCH MORTGAGE INSURANCE COMPANY | 230 NORTH ELM STREET GREENSBORO NC 27401 | ARCHMI.COM © 2019 Arch Mortgage Insurance Company. All Rights Reserved. Arch MI is a marketing term for Arch Mortgage Insurance Company and United Guaranty Residential Insurance Company. MCUS-B1036C-0719 HousingWire’s Insiders Award is a mark of HousingWire Magazine.

VIEWPOINTS

By Bill Giambrone

Life of loan premium policy hurts borrowers and FHA Life of Loan has outlived its usefulness

For 85 years, American families of modest means looked to the Federal Housing Adminstration for affordable mortgage loans to attain the dream of homeownership. But these homeowners, many of whom are minority and first-time homebuyers, now face a rude awakening. They will be saddled with years of excessive premium payments amounting to tens of thousands of dollars. 26 HOUSINGWIRE ❱ SEPTEMBER 2019

The culprit is FHA’s Life of Loan premium policy, reinstituted in 2013 as part of a series of steps to bolster the FHA’s Mutual Mortgage Insurance Fund. Only instead of helping to grow the Fund, this premium policy is harming it as more-fortunate borrowers flee FHA to avoid nearly 20 additional years of insurance payments that aren’t assessed on conventional or

Bill Giambrone is CEO of Platinum Home Mortgage and a director at the Community Home Lenders Association.

“Life of Loan unquestionably overcharges borrowers for FHA loans.”

Veterans Administration loans. Simply put, Life of Loan has outlived its usefulness. The insurance fund is replenished since the housing crash and the net worth on FHA’s forward loan program is approaching 4%, nearly twice that required by statute. T he C om mu n it y Home L enders Association, which exclusively represents independent mortgage bankers, who originate most FHA loans, opposed the reimplementation of the policy from the outset. FHA stands alone among mortgage providers requiring that insurance premiums be paid over the 30-year life of the loan. The Homeowner Protection Act of 1998 required private mortgage insurance to be cancelled once the loan-to-value ratio reaches 78%. Life of Loan unquestionably overcharges borrowers for FHA loans. On a $200,000 mortgage, an FHA borrower would pay around $19,000 in premiums over the roughly 11 years it takes to reach 78% LTV. But Life of Loan requires borrowers to pay an additional $15,000 in premiums over the remaining loan term. The combined total premiums are almost 20% of the original home purchase price, many times the actuarial risk of an FHA loan. As a result, FHA borrowers are increasingly refinancing into conventional loans to eliminate the lifetime mortgage insurance fees. Refinancing often occurs before a borrower hits 78% LTV, resulting in FHA losing seasoned loans and several more years of premiums associated with them. In fact, CoreLogic found that FHA has lost over 500,000 quality loans when, “borrowers with good credit history and at least 20% home equity can eliminate their mortgage insurance premium.” Recent FHA actuarial reports cite declines in the insurance fund value from the unexpected loss of revenue from loans that were refinanced sooner than anticipated. CHLA believes ending the Life of Loan policy will be largely revenue neutral to the Fund’s balance. Any lost premiums

after reaching the 78% LTV threshold would likely be offset by premiums generated by loans that would no longer be refinanced early in their term. The Congressional Budget Office disagrees and projects a significant revenue loss. In practice, it is difficult to calculate with any accuracy what will happen because the policy was reinstituted just six years ago. What we do know is that when FHA cut annual premiums 50 basis points four years ago, doomsayers predicted financial calamity. Instead, FHA loan volumes exceeded expectations, the net revenue impact was limited and the change was an unqualified success. CHLA expects the same if Life of Loan is eliminated. Life of Loan also harms Ginnie Mae. The extended premium policy contributes to increasing prepayment speeds and falling security prices, which could create problems for Ginnie Mae. In April, Black Knight reported that prior to 2013 FHA prepayment speeds were consistently and measurably below other loan types. Since Life of Loans was reinstituted, FHA prepayment rates are equal to or higher than other loan types. Influential organizations spanning the political spectrum – including the National Association of Realtors, National Association of Real Estate Brokers, National Association of Hispanic Real Estate Professionals, National Community Reinvestment Coalition, National Housing Conference and National Consumer Law Center – are also calling for an end to Life of Loan. The effort gained momentum when the House Financial Services Committee recently approved H.R. 3141, a bill by freshman Congressman Dean Phillips, D-Minn., to end Life of Loan premiums. Still, given a fractured Congress, it will be a difficult task to enact the bill into law. On the other hand, FHA created the Life of Loan Premium policy and has the power to end it. FHA ought to do so as soon as possible.

New bill slashes FHA mortgage insurance for first-time homebuyers By: Jessica Guerin

The House of Representatives passed a bill that slashes the cost of upfront mortgage insurance for first-time homebuyers using mortgages backed by the Federal Housing Administration. The Housing Financial Literacy Act of 2019, or H.R. 2162, stipulates that first-time homebuyers who complete a housing counseling program to learn about sustaining homeownership can

get a 25-basispoint discount (0.25%) on their upfront mortgage insurance for an FHA loan.

Rep. Joyce Beatty, D-OH, who presented the bill alongside Rep. Steve Stivers, R-OH, said enhanced financial literacy has proven to be effective. “Whether you are managing your credit, creating a budget, saving for retirement, or purchasing a home, understanding the basic principles of planning, saving, and investing for the future is vitally important,” Beatty said. “Studies show that pre-purchase housing counseling equips first-time homebuyers with the much-needed financial skills and tools to make informed financial decisions that ultimately benefit not only their families, but also the surrounding neighborhood and our entire economy.”

HOUSINGWIRE ❱ SEPTEMBER 2019 27

VIEWPOINTS

By: Romi Mahajan and John Smintina

Artificial intelligence in residential real estate: Reality or hype? Welcome to the era of AI

Every few years, the vast technology industry gets animated by one concept. This concept need not be brand new – often new packaging suffices to kick in the Silicon Valley hyperbole machine. In our 25 years in technology, we’ve seen several of these epochs come and go as people train their sites on the shiniest new object or idea. In 2019, we are indisputably in the era 28 HOUSINGWIRE ❱ SEPTEMBER 2019

of artificial intelligence. From TV commercials to books, from marketing slicks to sales talk tracks, AI makes an appearance in almost every conversation connected to the technology industry.

Interestingly, it has also appeared as the chief guest in the real estate industry. More on that in a bit. Artificial intelligence is not a new concept. In fact, it has been discussed for decades, long before the tech sector became the behemoth it is today. Recently, many books, articles and debates on the history of AI have made their way into the mainstream, provoking a series of important

Romi Mahajan is chief marketing and revenue officer at Quantarium. Mahajan spent nine years at Microsoft and has been associated with over two dozen startups. John Smintina is co-founder and chief analytics officer at Quantarium. Wtth a Ph.D. in genetics and over 20 years of experience in data and analytics, Smintina is a leading voice in the real estate world.

debates on issues of applicability, automation, ethics and innovation. In the world of real estate, for the past five to seven years progressive entrepreneurs have been introducing a variety of technology and digital techniques into what was considered an analog industry. In some ways, this is ironic. After all. residential real estate itself is the world’s largest asset class, reaching $30 trillion in the U.S. alone. On the surface, one would think that it would have been the first to adopt technologies that help maximize profits, given real estate’s enormous size and importance as a bellwether for the entire economy. Still, perceptions can be faulty, as there has indeed been a lag in adoption of advanced technology as the industry shows sign of succumbing to inertia versus embracing innovation. When asked about this lag, industry experts point to a variety of issues: the large real estate ecosystem, regulation, cost, business models and other factors. In the tech world, however, intent is not the only factor in innovation and adoption. Sometimes industries are pushed into change by fledgling players that very quickly become large as they attempt to disrupt industries that are ripe for disruption. Some of these real estate disruptors have become household names. The most prominent of these is Zillow, whose exotic name has reached something like Kleenex or Xerox status amongst real estate consumers. There are countless others, as well, with billions of dollars being poured into technology startups that focus on real estate. A new industry has been christened – Proptech. Real estate-focused tech, or Proptech, is not immune to the hyperbole and exaggeration that characterizes the rest of the sector. A host of ills are associated with this hyperbole including false predictions, premature notices of demise for categories like the real estate agent, false hopes of transparency and a false sense of omniscience. We’ve seen it all. At the heart of the issue is not simply the usual marketing-speak, but also the lack

of understanding of what AI really is. AI is not simply using data, predictive analytics or even number crunching. Yes, they are all part of the AI model, but they hardly describe the sophistication and esoteric nature of real AI. In addition, AI is not an isolated field that is hermetically sealed from other computational areas. Building an AI model that absorbs advances in mathematics, physics, genetics and other areas enhances its power and applicability. With real AI, problems that were thought to be fundamentally difficult can now be managed. Advances in the power of computation, in the cost-structure of processing and in the application of mathematical methods to computing have created not only unprecedented scale and speed but also qualitative change in areas with millions of units affected by thousands of variables in a dynamic environment. Unpacking seemingly simple questions like, “What’s a house worth?” is now possible with AI. Scaling up such questions – asking “What are these 5 million houses worth?” is finally possible with AI. But not only that, as the metaphor goes, “managing business through the rear view mirror” is not useful. AI offers the ability to create propensity models on the fly – mod-

“At the heart of the issue is not simply the usual marketingspeak, but also the lack of understanding of what AI really is.”

els that allow us to predict who might list a house to sell, who might default, what extrinsic variables really affect large movements in the real estate market and countless other hypotheses. AI, on its own motive force, learns from testing these hypotheses and comparing them to fact. In the process, AI refines the hypotheses and offers information in a timely fashion, timely enough in fact to make to be able to make decisions. Here’s the thing though. You can’t “AIize” a technology stack after the fact. Either you approach your data and technology with an AI-native perspective or you don’t. In addition, AI –ready organizations are held back more often by culture than by technology acumen; while organizations can change, the after-the-fact bolt-on schemes don’t do the job. In the business world, most of us search for simplicity. While that is a laudable goal, it also forces us to cut corners. In complex systems with a seeming infinitude of variables and outcomes dictated by data and emotion, planning for the “unknown unknowns” is key to success. Artificial Intelligence offers that, mind you, not by itself but with the active partnership of real humans with real experience. There are no AI silver bullets or magic buttons. Wisdom is still important. Industries, even ones that are complex and large, change over time. Advancements in technology provide an accelerant for this change, with both winners and casualties. Real estate is no different-and if recent history provides ay lessons at all, it is that ignoring the winds of change can only be to the detriment of the entire ecosystem. Fear is understandable, that is if it spurs preparation for the changes coming and coming fast. Which lead us to our final thought: constant invocations of AI in real estate lend themselves to hype but the maturity of some existing AI solutions as they apply to real and significant problems and opportunities in real estate is very needed, very real and very now. We are in the era of real AI for real estate, but you need to kick the tires on all claims. HOUSINGWIRE ❱ SEPTEMBER 2019 29

30 HOUSINGWIRE ❱ SEPTEMBER 2019

Mark NEW DIRECTOR CHANGES COURSE FOR FHFA

Exclusive sit-down with new director on future of FHFA

Calabria By: Kelsey Ramírez

“W

ho do you like more, Fannie or Freddie?” Federal Housing Finance Agency Director Mark Calabria sat at the head of a long table where he frequently meets with his staff to take deep dives into what they are seeing at the FHFA. His hair was slicked back, his posture relaxed. His eyes were pensive, amused. Silence hung in the air and for a second, it seemed as though he might just answer. But only for a moment. “I like them all,” Calabria said.

HOUSINGWIRE ❱ SEPTEMBER 2019 31

President Donald Trump appointed Calabria to take the helm of the FHFA on December 12, 2018. The Senate then officially confirmed Calabria in April by a vote of 52 to 44 as head of the agency. Since then, Calabria has not been silent on his plan to reform the FHFA and the entities it oversees – Fannie Mae and Freddie Mac. Having grown up in rural America, gone to school in suburban America and lived in urban America, Calabria brings not only professional experience from the housing industry, but also personal experience. Calabria served as deputy assistant secretary for regulatory affairs at the Department of Housing and Urban Development during former President George W. Bush’s administration. He has also held positions at Harvard’s Joint Center for Housing Studies, the National Association of Home Builders and the National Association of Realtors.

GSE REFORM “Never again.” That is the stance Calabria takes when he recalls the events of September 2008 when the economy collapsed, and former President George W. Bush took Fannie Mae and Freddie Mac into conservatorship. Talks on GSE reform continue to heat up as many speculate an end to the conservatorship could be on the horizon. In fact, before even taking over as head of the FHFA, Calabria posted a blog where he addressed the Mortgage Bankers Association’s plans for the future of Fannie Mae and Freddie Mac. In the blog Calabria even famously called for the end of the conservatorship. Back in 2017, during a wide-ranging discussion about the government’s role in housing, Calabria, who was then Vice President Mike Pence’s chief economist, revealed that the Trump administration is “committed” to ending the conservatorship of the government-sponsored enterprises. Calabria said the Trump administration is determined not to hand Fannie and Freddie in conservatorship over to the next administration, but cautioned that the process will not be easy. “If it were easy to get GSEs out of conservatorship, it would have been done already,” Calabria said at the time. In fact, in an interview with HousingWire, Calabria explained he preferred not to put a timeline on removing the GSEs from conservatorship. “The exit from conservatorship is absolutely process driven, not calendar driven,” he said. “If you try to set a date with something, it just creates pressure to push stuff out that’s not ready. Fannie and Freddie are not going to leave conservatorship until they’re ready to leave conservatorship.” “I think it’s more important to do it right than to do it right now,” he said. Nevertheless, Calabria expressed his hope that Fannie and Freddie will be out of conservatorship or well on their way by the time his gig as director of the agency comes to an end. “I see my role predominantly is to structure that roadmap,

32 HOUSINGWIRE ❱ SEPTEMBER 2019

and then Fannie and Freddie are the ones who got to get in the car and drive it,” Calabria said, explaining that while some of the objectives that need to be accomplished to remove the GSEs from conservatorship rest on his shoulders, others are dependent on Fannie and Freddie themselves. “Fannie and Freddie are just stuck in a box,” the director said. “They don’t control their own destiny. Part of what I want to be able to do is not give them full control but give them some influence.” As Fannie and Freddie are given more and more control of their destiny, such as being able to raise capital, they will grow closer to exiting conservatorship. But while some of the process will depend on actions taken by Fannie and Freddie to prepare themselves for leaving conservatorship, the FHFA also has some heavy

lifting to do. For example, over the past few years, the FHFA has exercised its enforcement by giving directives to the GSEs. Once out of conservatorship, all of these directives will fall away, former Freddie Mac CEO Donald Layton told HousingWire recently. Calabria explained that his team is working on these directives, and is determining which ones will need to stay, and how to enforce that, and which ones will no longer be needed once the GSEs exit conservatorship. “What are we doing under conservatorship needs to continue under different rubric – what needs to continue and what doesn’t?” Calabria said. The process of reforming the system and releasing the GSEs could take time, but Calabria explained he has been in Washington long enough to not be discouraged by the HOUSINGWIRE ❱ SEPTEMBER 2019 33

> COMPANY CULTURE Calabria also hopes to improve and merge the company culture at the FHFA. When FHFB, OFHEO and the finance board SILO merged to create the FHFA, their company culture did not mesh, leaving a strange mix of three separate cultures. “You have those three different corporate cultures, and one of my objectives over five years is to forge a common culture out of that,” Calabria said. “If you can have a single, more unified, shared perspective on the markets, on regulation, I think we could be far more effective, and I think we could be far more integrated as an agency.”

CUTTING EDGE

wait. He has a realistic view of how long things can take, and will not be disheartened by bumps in the road. “I’m here for five years, that’s my time horizon,” Calabria said. “There’s a lot to get done, but I believe if one starts now and is very methodical about it and very structured about it, that a lot can get done in five years.”

> BEYOND THE GSES “The first duty of the director is to ‘foster a competitive, efficient, resilient mortgage market,’” Calabria cited. “I do have a broader perspective and a broader duty than just Fannie/Freddie, or the federal banks, but to foster a more competitive market.” Shaping the future of Fannie Mae and Freddie Mac is a large part of the FHFA director’s job, but it is far from his only responsibility. The FHFA is still new, turning 11 years old at the end of July, but Calabria has big plans for the agency.

> TAKEN SERIOUSLY Before conservatorship, Fannie and Freddie were regulated by the Federal Housing Finance Board and the Office of Federal Housing Enterprise Oversight, who’s regulatory authority did not have near the reach of FHFA. Calabria explained that OFHEO was not taken seriously by the government and therefore by the entities it oversaw. “This agency has been taken far more seriously. We’ve made a lot of progress. It’s important for me to cement that progress in place, because if we don’t have that, we’ll end up back where we started,” Calabria said. 34 HOUSINGWIRE ❱ SEPTEMBER 2019

When Calabria walks out of his office at the end of his term, he said he wants the FHFA to be considered an agency of progressive thinkers. “I want it to be in a spot where, for instance, if you’re a young lawyer coming out of law school and you have an offer from the Fed or the OCC, that you may be willing to entertain an offer to come work at FHFA,” Calabria explained. “I think it’s critical that we have a deep research function and are viewed as cutting-edge thinkers.” Calabria explained that other entities, such as the Federal Reserve, are well regarded for their research. He explained that he will continue to modernize the agency and its technology while making full use of its data sets to ensure it is producing revolutionary thinkers who are shaping the housing industry for the better. He also explained there are other areas – outside of the FHFA itself and even outside the housing industry – where he can use his influence to improve the overall economy and keep the housing market growing. Calabria said the market is based on three factors: land, labor and loans. And while loans would fall under Calabria’s jurisdiction, for the other two, he plans to use his position to influence. But Calabria isn’t the only one in Washington taking this approach. In June 2018, HUD Secretary Ben Carson traveled to his hometown of Detroit for the groundbreaking of the nation’s first EnVision Center. Carson had previously announced HUD would be launching EnVision Centers that would be located on or near public housing developments and would act as hubs for what it calls the four key pillars of self-sufficiency: character and leadership, educational advancement, economic empowerment and health and wellness. Calabria echoed these sentiments when he explained many factors work together to create a better economy, boost family income and therefore encourage and allow more Americans to buy homes. “Ten basis points is not suddenly going to make it easier to build in San Francisco,” Calabria said, explaining that many of the solutions to the affordability crisis are beyond his jurisdiction, but not beyond his influence.

By working with jurisdictions on their zoning laws environment.” Calabria said he is ready to bring a new focus to the and helping create a better environment for builders, Calabria can encourage areas to work with the federal agency. But through his plans, Calabria hopes that the FHFA government to help ease the affordability problem. He also emphasized the importance of labor, saying will maintain a positive relationship with the GSEs – a more work should be put in to helping students choose sharp contrast to the relationship the GSEs had with their trade professions to ease labor shortages and open up regulators pre-crisis. “It’s really important if there’s a post conservatorship, options for those who don’t plan to attend a traditional that what we have is a continuation of that cooperative four-year college. “A 10-basis-point difference in rates is not going to cre- relationship with the entities, and that we don’t go back ate a lot of plumbers or carpenters there, so how do we fix to pre-conservatorship,” he said. “Some of this is going the whole system instead of just focus on the lending?” to be solidifying the authorities and the credibility of this agency.” Calabria questioned. As Calabria moves forward with his goals, he is workCalabria explained his goal is to take a more holistic ing closely with his team to enapproach to housing – fixing sure every voice is heard at all what he can at the FHFA, and levels of the agency. talking about other sectors in the The FHFA holds weekly board hopes of influencing the parts he meetings in a room that fits doesn’t directly oversee. about 14 or 15 employees from “Secretary Carson is obviThe first duty of the director is to all different ranks and sections ously out there talking about ‘foster a competitive, efficient, of the agency so that Calabria these other things, other people can hear what they have to say. are talking about these other resilient mortgage market.’ “As a bigger issue, I’ve spent things,” he said. “I think we’ve a lot of time in my career probagot some momentum and hopebly doing an abnormal amount fully can focus on that.” - Calabria of reading and thinking about But he pointed out that his institutions that have failed,” quest is not without selfish moCalabria said. “And where I’m tive for the agency he oversees. going with this is that nine times “I do have a vested interest, out of 10, there always seems to not just because it’s the right thing to do, which it is, but also because it directly in- be somebody in the organization who has the critical fluences – either helps or hobbles – the mission of this information and it just never gets to where it needs to go to avoid a failure.” agency,” Calabria said. For example, he is currently looking into servicing, which he describes as a critical failing and weak spot MOVING FORWARD TOGETHER during the financial crisis. While the government has The future may be uncertain, but Calabria’s path is clear. He is prepared to handle the hurdles that could come up, made a lot of regulatory moves in the sector, this was done when Calabria was out of the government field. He and his vision is set. Calabria explained that under his vision, Fannie Mae is now going through and taking deep dives to see what, and Freddie Mac would be ready to catch the market if it if anything, should be changed in the FHFA’s servicing policies. crashes, not leading the pack. “Doing my due diligence, making sure that I think the “I don’t think economists are very good at calling turns in the cycle, I certainly am not forecasting a downturn, important parts of the system are working the way they but I think you have to prepare for one as part of your should is a really critical function for me at this point,” Calabria said. responsibility,” he cautioned. The director has strong views and a strong vision, fed If and when a downturn comes, Calabria’s vision would have Fannie and Freddie counter-cyclical and ready to by years of work in the housing industry – both in govcatch the market, rather than pro-cyclical and driving ernment and for the private sector. But he is still on a constant search for more knowledge, making sure every the market to the bridge. “My view tends to be: If it’s something that the rest of move he makes is a step in the right direction. “I want to make sure that I hear a lot from the employthe private sector can do, then perhaps they should do that,” Calabria said. “I think it’s hard to be a counter- ees of this agency as well as outside stakeholders before weight and a support for a system in a time of stress if we move too far too progressively,” he said. “I’ve tried you’re at the front of the pack going over. Fundamentally, to map out the plan and a roadmap where I think we’re the role of Fannie and Freddie and the federal banks is going, but want to hear and make sure we do this in the to be that safety net, that source of liquidity in a stressed most effective, most appropriate manner.” HOUSINGWIRE ❱ SEPTEMBER 2019 35

MBA Congratulates HousingWireâ&#x20AC;&#x2122;s 2019 Insiders Honoree!

We Salute Your contributions to MBA and

Alicia P. Roundy Associate Vice President, Digital Marketing Strategies Mortgage Bankers Association

the real estate finance industry are critical to our success. Congratulations on this well-deserved honor.

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AWARD PROGRAM

2019

AWARD PROGRAM

38 HOUSINGWIRE ❱ SEPTEMBER 2019

AWARD PROGRAM

WINNERS 40

Viviana Abarca, loanDepot Lesley Alli, Home Point Financial

Randy Kozlowski, CoreLogic Dave Lamy, Floify Kelley Mangel, LBA Ware

Nik Athanasiou, Guaranteed Rate Dan Bailey, WFG Lender Services Jeff Birdsell, ReverseVision

Jonathan Maughan, First American Tina Mausser, IDS Aasif Mohammad, Tavant

Tim Choi, NMSI Liz Collins, Sierra Pacific Mortgage Ragen Cunningham, Plaza Home Mortgage

Jemma Pachiano, Mid America Mortgage Elijah Pallante, loanDepot Nicole Peraino, AIME

Cyndi Danko, Fannie Mae Chris Diedrich, Covered Insurance Paul Drobot, SimpleNexus

Heather Cantua Philips, Unison Emily Robbins, NotaryCam Jessica Rosillo, United Wholesale Mortgage

Justin Duff, Fannie Mae James Duncan, Thrive Mortgage Gary Ferguson, Class Valuation

Alicia Roundy, Mortgage Bankers Association Evan Sauer, PeerStreet Tori Schallot, Home Captain

Rich Ford, Roofstock Brian Francis, FormFree Danny Gardner, Freddie Mac

Colleen Schofield, CMG Financial Christopher Smith, Genworth Mortgage Insurance Johnny Spagnola, The Money Source

Doreen Ghusar, Roostify Josh Grupe, Envoy Mortgage Rebecca Hill, Academy Mortgage

Ashley Spindle, PrimeLending Jason Stenger, Movement Mortgage Naveed Tejany, OJO Labs

Michael Hitt, Arch Mortgage Insurance Stacy Hoover, Reali Cathy Hunt, Evolve Mortgage Services

Kenny Turner, Genworth Mortgage Insurance Terri Waring, Freedom Mortgage Rob Zambito, Qualia

Aravind Jagannathan, Freddie Mac Steve Keleher, Radian Guaranty Elana Knoller, Better.com

HOUSINGWIRE â?ą SEPTEMBER 2019 39

AWARD PROGRAM

The mortgage industry has a lot of moving parts, and often times operational superstars are the keys that drive a company forward, its secret to success. Housin gWire In sider s recognizes these key players. These leaders are those who do the leg work and make the mortgage industry tick. Insiders are absolutely essential to the performance of their companies within the housing space. Flip through to read more about HousingWire’s 2019 Insiders.

Viviana Abarca

Vice President of Underwriting loanDepot Dedicated to her profession and to the company, Viviana Abarca’s eye for detail is enabling the company to integrate digital automation into a full business transformation. Strategic and methodical by nature, Abarca has grown from an underwriting manager with a team of 10, to a channel leader with a team of more than 300. Her dedication to process has enabled her to improve every department with which she has worked since she joined loanDepot. Under Abarca’s leadership, the company has seen a 25% year-over-year overall improvement in efficiencies, and, by end of year, projects that percentage to increase to 50%. Additionally, Abarca is instrumental in the development of additional underwriting process improvements. Abarca embraces challenges—no matter how large or extensive—and breaks them into digestible, attainable goals. By setting herself as an example, her team is dedicated to excellence in everything they do. “I attribute my success to the leaders and teams I’ve worked with and currently work with My leaders have always trusted in my ability and in turn I want to provide the same for my teams. I strive to give the right guidance, development and motivation along with the company vision. From there I empower my teams to leverage their abilities and talent to drive operational excellence.”

Lesley Alli

Managing Director of Strategic Partnerships Home Point Financial A steadfast influencer and product expert at Home Point Financial since it started doing business in 2015, Lesley Alli has had a wide reach when it comes to the company’s rapid growth – building and running its product development efforts, facilitating the company’s business model transition from retail to third-party originations, managing strategic external partnerships and aligning internal strategies. Through her inter-connectedness, Alli played a pivotal behind-the-scenes role in Home Point growing to become a top-three wholesale lender by increasing its loan production by more than 100% in the last 12 months. Alli also manages and cultivates strategic partnerships with all of Home Point’s agency and investor partners, and mortgage insurance companies. She played a big role in designing and launching a proprietary technology solution tool that helps mortgage brokers get the best possible mortgage insurance rates with instant approval. “Many of my initiatives require contributions from multiple teams both inside and outside the company. I would not be successful without the collaboration and dedication from so many others. Individually, I believe success is a function of preparation and professional integrity. I try to go into every meeting or interaction prepared so that I can ask thoughtful questions.”

40 HOUSINGWIRE ❱ SEPTEMBER 2019

AWARD PROGRAM

Dan Bailey

Executive Vice President of Operations WFG Lender Services

Nik Athanasiou Chief Operating Officer Guaranteed Rate

A s c h ie f op e r at i ng of f ice r of Guaranteed Rate, Nik Athanasiou provides the vision and strategic leadership necessary to ensure the company’s national growth. His extensive experience and knowledge have brought improved efficiencies and optimized performance to the company’s national sales, operations and underwriting departments. During the last 12 months, Athanasiou implemented numerous initiatives to manage costs and streamline the loan process that limited the effect on profitability caused by lower revenue and excess capacity. After opening the company’s first New England branch in Boston, he moved to the corporate headquarters Chicago to run the Guaranteed Rate’s Direct Division. In less than two years, he guided an operation of 150 employees and $400 million in volume to one with 400 employees that funded $2 billion. Athanasiou sets high standards and goals for himself and the Guaranteed Rate team and he works with tireless grit to achieve them every day. “Nik embodies the Core Values of Guaranteed Rate. His commitment to his colleagues and Guaranteed Rate’s customers is evident to all those he comes in contact with.”

Dan Bailey is more than the executive vice president of operations at WFG National Title. He is a champion for positive change within the company and within the industry, always looking to find ways to improve the title insurance process and to save clients money. Bailey spearheaded many important company initiatives launched over the past 12 months, distinguishing himself as a torchbearer for positive change. Among his initiatives is DecisionPoint, an instant, clear-to-close decision engine for home equity and refinance channels that analyzes transactions depending on the type of property or the borrower’s characteristics, and assigns them grades based on the length of time it will take to clear title. In comparison to the hours or even days it typically takes to render a home equity or refinance decision, DecisionPoint is capable of issuing a title clear grade in less than three minutes – allowing WFG’s clients to speed up closing timeframes, improve loan conversion rates, and ultimately, enhance the borrower experience. “First and foremost, success does not come without a lot of hard work. You have to be willing to put in the time and effort to yield your desired results. In our business you must be client focused and set your goals and objectives to align with customer expectations and desires. Lastly, perfection is impossible.”

Jeff Birdsell

Vice President of Professional Services ReverseVision Jeff Birdsell is among the reverse and Home Equity Conversion Mortgage industry’s most influential technology experts. Throughout his career, Birdsell has been instrumental in solidifying ReverseVision’s position as a ubiquitous industry technology that supports more HECM and reverse transactions than all other systems combined. Over the last 12 months, Birdsell has worked with ReverseVision’s leadership and product development teams to bring the opportunities offered by reverse mortgages into technological and operational coexistence with the world of traditional mortgage lending. Among his achievements is the development and launch of the new comparison calculator within RV sales accelerator. The comparison calculator is an interactive tool that allows loan originators to give consumers side-by-side comparisons of how HECMs and their unique features perform against other home equity loan products over the projected life of the loan. “Three keys to my success have been taking an attentive, yet creative approach to my work, acknowledging the accomplishments and value of my colleagues and actively engaging industry associations to pursue strategies that cultivate and strengthen the housing economy and quality of life for seniors.” HOUSINGWIRE ❱ SEPTEMBER 2019 41

AWARD PROGRAM

Liz Collins

Vice President Division Manager – East Sierra Pacific Mortgage

Tim Choi

Vice President of Operations NMSI Tim Choi is a one man wrecking crew and his staff hold him in high regard. He rolls up his sleeves and works alongside his team not delegating and demanding items or task get completed. He also goes above and beyond for the company’s external broker partners to help facilitate the operations/broker relationship. Over the last 12 months the company has doubled its wholesale volume to nearly 300 million per month. With Choi’s leadership skills, the company accomplished this growth with little disruption to its turn times, and without adding significantly more staff members. Choi is a visionary on the process side. He is instrumental, working with vendors and IT partners to streamline process flows both internally and externally for the overall client experience. Choi also handles agency approval and state and federal audits. Choi goes above and beyond the call of duty and doesn’t complain when asked to step in and help or do a function that he isn’t responsible for. “My favorite quote is, ‘Success is walking from failure to failure with no loss of enthusiasm,’ by Winston Churchill. I find my attitude towards taking my mistake as an opportunity to grow made me who I am today.” 42 HOUSINGWIRE ❱ SEPTEMBER 2019

Liz Collins is an exceptional leader with a sales-forward mindset and more than 30 years of industry experience. Her industry insight and candid ability to see operational and sales viewpoints equally are valued throughout all levels of the organization. In the past 12 months, Collins focused on providing best-in-class customer service and streamlining internal efficiency. She has also supported the growth of production. Playing a pivotal role in the expansion of Sierra Pacific within the East and Southeast Divisions, Collins is well on track to grow market production by over 22% above 2018 levels. She has also concentrated on process improvement within Sierra Pacific, deploying the company’s secure income and asset validation program and enhancing all of its retail and wholesale workflows, improving cycle times by over seven days. Collins’ dedication to excellence is evident every day as she continues to hold herself and her team accountable for performing to company standards while upholding the highest standards of ethical behavior. “To me, success is best described by several keys, all equally important. Always stay laser focused on relevant tasks, activities and goals that will produce the results that you want to achieve. Making sure that you, ‘Don’t mistake activity with achievement,’ as John Wooden once stated.”

Ragen Cunningham

National Renovation Lending Manager Plaza Home Mortgage Ragen Cunningham, a veteran mortgage professional with more than 20 years of experience, is a critical player in Plaza Home Mortgage’s growing renovation lending business: innovatively developing every aspect of new and evolving renovation loan offerings to wholesale and correspondent clients. Cunningham leads Plaza’s team of regional renovation specialists and is also responsible for best lending and sales practices, operational efficiencies, tools, resources and product development. Cunningham has been instrumental to the development and rollout of several renovation and construction programs, including the company’s One-Time Close Construction-To-Permanent loan program. Streamlining the process that approves the borrower for both a construction loan and a permanent 30-year mortgage at the outset of the project—thus avoiding two closing and having the convenience of two loans in one. “It is crucial to have all the right ingredients or even the best of recipes will not turn out. Surround yourself with the best people in the industry, get to know your clients on a level where you can anticipate their needs and always be truly passionate about your work.”

AWARD PROGRAM

Chris Diedrich

Chief Administrative Officer Covered Insurance

Cyndi Danko

Vice President of Credit Risk Policy – Single-Family Fannie Mae

Chris Diedrich is a change agent, steward, manager, and leader wrapped in one. The work Diedrich does behind the scenes at Covered is invaluable. As the chief administrative officer of a rapidly growing startup, now scale-up, Diedrich is the glue that keeps the company on track. His exceptional commitment to building a world-class business, critical eye for detail and mission-driven personality have accelerated the company to new heights. The last 12 months have been an intense period of growth for Covered. Diedrich has played a critical role in guiding the company through these changes. For example, he led the hiring process for Covered during a time of dramatic scaling, bringing the number of employees from six to 18 in the past year, with a goal of reaching 50 by year-end. He also led account management for one of Covered’s enterprise partners, Realty ONE Group, which boasts more than 11,000 real estate agents.

Cyndi Danko is a recognized change agent whose leadership has enabled Fannie Mae to drive the market forward and deliver transformational products and solutions for customers. Her work within the digital products organization has been critical to the success of numerous major digital products, including ones that are now industry standard tools like Desktop Underwriter and the Day 1 Certainty program. Because of her strong leadership and close connection to risk teams, Danko was asked to take on the head of single-family policy role, enabling her to influence change at the beginning of the credit process and through the lens of our risk management activities. As product owner for DU, she has continued to lead the vision for the platform as the primary way Fannie Mae distributes credit risk-management applications. These include the groundbreaking Day 1 Certainty Program and appraisal waiver offerings – all while ensuring that customers can receive product, policy, risk and eligibility criteria at any time.

Paul Drobot is the secret weapon behind SimpleNexus’ reputation as the digital mortgage platform that meets the unique needs of each of its lender clients. With more than 11 years of experience in helping lenders select, deploy and adopt mortgage origination technology, Drobot understands what it takes for lenders to recognize a return on their investments in technology. Drobot’s customer-first mentality has been key to the company’s rapid market penetration and revenue growth. His responsibilities span all revenue-generating activities, from new business development to coaching and mentorship of the sales team to assisting with complex integrations. In the past year, Drobot’s has been instrumental in helping SimpleNexus become the digital mortgage platform of choice for over 20,000 loan officers and 15 of the nation’s top 25 lenders. Under his leadership, the company has acquired the business of 60 new enterprise clients and grown revenue by 102% annually.

“Change doesn’t happen overnight. You have to keep at it, not be afraid to try new things, and when they don’t work, learn and move on.”

“I have an obsessive attitude towards impacting the success of my organization, which has translated into my own professional success. Each of my accomplishments can be traced back to carefully listening to clients, partners and industry experts, and relentlessly generating new ideas and seeking ways to improve on existing practices.”

“To be successful requires diligent prioritization, scheduling and tracking of the various departmental requirements with a focus on compliance and team execution. Putting in place a great team to which I can delegate tasks and know they’ll be thoroughly completed allows me to focus on the things that matter most. I find a mix of structured meetings and informal one-on-one check-ins allows me to keep the business moving forward.”

Paul Drobot

Vice President of Sales SimpleNexus

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AWARD PROGRAM

James Duncan

Director of Education and Engagement Thrive Mortgage

Justin Duff

Director of Business Unit Finance – Financial Planning and Analysis Fannie Mae

James Duncan’s professionalism, easy-going humor and training capabilities have elevated Thrive Mortgage to a whole new level. Over the past few years, Duncan has worn many hats at Thrive Mortgage. However, he currently serves the company as its director of education and engagement. In this role, Duncan is recognized as a well-respected leader who often inspires fellow employees to go above and beyond in all aspects of their jobs. As a true team player, Duncan is never too busy to lend a helping hand or take on extra duties when the need arises. Aside from managing Thrive’s marketing team, Duncan has also been instrumental in the implementation of an internal loan officer Facebook page for the company’s sales strategies. In fact, Duncan has even helped Thrive build a new website, which is used in order to conduct corporate training for employees as well as garner awards and recognition throughout the company.

As Fannie Mae’s director of business unit finance, Justin Duff is a highly collaborative and influential leader that demonstrates a keen ability to influence leaders across the organization. Duff leads a team of more than 20 resources supporting strategies related to the firm’s financial results and its $174 billion mortgage portfolio. Duff has positioned his team to provide critical strategic and financial support to manage Fannie Mae’s balance sheet and is helping to develop new tools and analytics that will support Fannie Mae’s future state. He has also contributed to the success of many key initiatives, not only during his entire nine-year tenure at Fannie Mae, but within the past twelve months. Over the past year, Duff has been instrumental in the development of Fannie Mae’s hedge accounting program and the buildout of new tools that support liquidity management. Duff’s leadership and contributions to these complex initiatives have overall helped Fannie Mae better optimize their business model.

With more than 25 years of software engineering experience, Gary Ferguson provided Class Valuation with the tools necessary to bring new technology to appraisers nationwide. Ferguson has moved the company forward in just a short amount of time, positioning Class Valuation as a leader in appraisal innovation. Ferguson has spearheaded Class Valuation’s pursuit of tech solutions aimed at bringing monumental change to the collateral valuation space. With Ferguson at the helm of Class’ technology development efforts, the company is poised to lead the industry towards the future of valuation. In addition to building and launching Class Valuation’s proprietary tech stack, Ferguson was a lead contributor to Class Valuation’s decision to invest in InsideMaps. InsideMaps is a technology solution that generates 3D tours and floor plans of both the interior and exterior of homes. This will allow the company to create the industry’s first ever property fingerprint.

“My success has come from my team and my network, who enable me to understand and communicate the big picture behind everything I work on.”

“The key to my success is thinking bigger. With each project comes a new opportunity to go beyond the status quo and create a piece of technology that is future-focused. I love to push the boundaries of what is possible and dream up something that will propel our technology far beyond that of the competition.”

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“When you equip your team with the knowledge, skills and tools they need to be successful. Point them in the right direction and then get out of their way, they’ll make you look like an absolute genius. The media and marketing team at Thrive Mortgage is one of the best in the industry. We all have our areas of specialization and complement each other in a very collaborative way.”

Gary Ferguson Chief Technology Officer Class Valuation

AWARD PROGRAM

Brian Francis Chief Financial Officer FormFree

Rich Ford

Co-Founder and Chief Development Officer Roofstock

Brian Francis joined FormFree during its infancy stage and has since proven himself to be an indispensable member of the company. With 29 years of experience leading high-performing technical teams, Francis contributions have been integral to FormFree’s continued growth and product improvement. As FormFree’s chief technical officer, Francis is responsible for overseeing the design and development of the firm’s groundbreaking automated asset, income and employment verification products to more than 1,000 lenders nationwide. Over the last year alone, Francis has helped FormFree spearhead integrations with BeSmartee, Black Knight Loan Sphere Exchange Digital, LendingQB and LoanBeam. This has brought FormFree’s number of integrations with mortgage technology platforms to over 100. Notably, Francis has also been instrumental in helping the company join the Financial Data Exchange, a nonprofit group that promotes information sharing and security standards for the financial sector.

Since Roofstock’s initial founding in 2015, Rich Ford has been a pioneer of single-family rental investing and a driving force behind the company’s rapid expansion. As Roofstock’s co-founder and chief development officer, Ford brings over 20 years of merger and acquisition and capital raising experience to the position. His extensive background has provided Roofstock with the necessary relationships, tools and industry savvy needed to create industry-leading analytics and underwriting models. Because of this, Ford has been a driving force behind Roofstock’s growth, which has eclipsed $1.6 billion in transaction volume to date. In the past year, Ford has also successfully grown Roofstock’s institutional client base to such an extent that the company made its first acquisition to better serve these clients. The acquisition will provide investors access to one of the nation’s few large-scale property management services certified to manage single-family rental homes.

Danny Gardner is a key driver of Freddie Mac’s success. Gardner is responsible for fulfilling the company’s community mission to provide sustainable homeownership education and financing to families who are traditionally underserved by the market. Notably, he is on the forefront of other key aspects of Freddie Mac’s business, such as overseeing delivery and performance against Single-Family Affordable Lending’s goals, Duty to Serve regulation and Access to Credit activities in the FHFA Scorecard. In 2019, Gardner has helped the GSE launch many solutions including, HomeOne, which is a low-down payment product for first-time homebuyers, as well as HomePossible, a program that allows buyers to earn credit towards funds to close. Additionally, he helped the GSE collaborate with EarnUp to develop a fintech solution that better helps buyers prepare for homeownership.

“I often find myself referencing Thomas Edison – ‘Opportunity is missed by most people because it is dressed in overalls and looks like work.’”

“It’s an exciting time to be a part of the mortgage industry and to participate in its evolution. My role at Freddie Mac empowers me to bring creative ideas to the table, with the goal of reimagining the loan origination process for our clients, community partners and, ultimately, borrowers.”

“Staying plugged in to leading-edge technology developments in cloud architecture and artificial intelligence has set me apart professionally. It has been my personal prerogative to ensure that FormFree and its clients are backed by technologies that are considered worldclass – not just best-in-class.”

Danny Gardner

Senior Vice President of Single-Family Affordable Lending and Access to Credit Division Freddie Mac

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AWARD PROGRAM

Josh Grupe Loan Originator Envoy Mortgage

Doreen Ghusar

Director of Regulatory Compliance Roostify With more than two decades of mor tgage indust r y exper ience, Doreen Ghusar truly understands the unique nuances of the lending process. As the director of regulatory compliance, Ghusar assures that all applicable regulatory requirements are implemented and adhered to by Roostify. Ghusar is continually asking herself, “How can we ensure our platform is compliant, sustainable and evolving to accelerate the mortgage lending experience?” Ghusar answers that question by making sure Roostify is always adhering to the industry’s regulations. This in turn ensures the company maintains a fast, efficient and compliant user experience for everyone. Recently, Roostify grew into an international organization, with global financial institutions such as HSBC joining its clientele. As the company continues to navigate this transition, Gushar has made herself readily available to solve any compliance concerns immediately, regardless of time zones. “Embrace your dreams and visualize your purpose. Grasp the opportunities, be disciplined and respectfully exhibit valiant strength to constantly move beyond obstacles. Keep moving towards your ambitions. Remember to always aspire and empower others.” 46 HOUSINGWIRE ❱ SEPTEMBER 2019

Josh Grupe has devoted his life to the mortgage industry and has spent the last 16 years establishing himself as a respected leader among his peers. When Grupe joined Envoy in 2017, it was immediately apparent he was a determined and resourceful loan originator. In fact, during that year, Grupe was named the Division 1 Rookie of the Year and qualified for the Envoy Circle of Excellence awards trip, a feat that is often unattainable by many first-year originators. In 2018, Grupe’s leadership yielded several new hires, referral sources and reaffirmed Envoy’s presence in the Eastern and North Eastern Wisconsin market. This year, Grupe received the 5 Star Mortgage Professional Award from Milwaukee Magazine, and is once again positioned to obtain qualification for Circle of Excellence. Each of Josh’s supervisors, coworkers and referral partners can’t help but feel that Grupe not only takes on any challenge that he is presented with but surpasses them with flying colors. “When I meet with customers I always try to take the approach to go above and beyond to help educate them on all parts of the process, like credit, programs, monthly payments and closing cost options. By spending the extra time on the educational side, it’s one small thing we can do to give a good experience. I always want customers to feel like they are being helped as if they were family.”

Rebecca Hill

Regional Operations Manager Academy Mortgage Rebecca Hill has enjoyed a 16-year career in the mortgage industry. Over this time, she has gained invaluable experience in all operations functions including, mortgage banking, customer service and quality control. In 2013, Hill joined Academy Mortgage as its regional operations manager for the company’s Southeast region. Over her six-year tenure, Hill’s leadership responsibilities and coverage area have grown significantly, as she now manages 64 operations team members across nine states. Concurrently, Academy has experienced tremendous growth in production in its Mid-South, Southeast and Florida regions, which can be partially attributed to Hill’s hard work. A servant leader, Hill is frequently called upon to contribute her knowledge of best practices to guide and direct Academy’s operational policies and procedures. In fact, Hill was named a member of the company’s Leadership Academy, a 12-month certificate program reserved for a select group of team members deemed future leaders of the company. “Over the years, my keys to success have evolved with my different roles. While hard work and determination will always be paramount, I have also come to realize the tremendous impact of relying on those around me through trust and empowerment.”

AWARD PROGRAM

Stacy Hoover Head of Product Reali

Michael Hitt

Senior Vice President of Insurance Operations Arch Mortgage Insurance As senior vice president of insurance operations, Michael Hitt plays a vital role in establishing Arch MI as the industry leader in delivering world-class customer service. At the head of a 300-person team made up of several departments, Hitt has been pivotal in improving customer response times and enhancing the customer experience as the company processed more than 250,000 applications for mortgage insurance over the past year. In 2018, he oversaw the development and launch of ASK Arch MI, which provides answers to lenders’ complex mortgage insurance underwriting questions in one hour or less. Hitt has 22 years of experience in all phases of the mortgage process, having held key roles in business analytics, finance, customer service and operations. One of Hitt’s mottos is, “you can’t do it by yourself,” and he emphasizes the importance of trust within a team to ensure they work in unison to produce better products and more focused customer service. “You have to realize success can’t all come from you. To get the best solution, draw upon your team’s expertise and listen to a diversity of thought.”

Stacy Hoover leads product innovation for Reali, a real estate technology brokerage. With an iOS and Android app along with technology-driven tools, Hoover is setting a new standard for the way real estate transactions are done. She has demonstrated exceptional leadership and innovation while delivering on Reali’s mission to create a seamless customer experience during one of the most stressful moments in life – buying and selling a home. As the head of Reali’s product team, Stacy Hoover is diligently focused on understanding the buyer and seller journey from end to end and has contributed to Reali’s full-stack real estate platform with innovative products. Successfully coordinating – and traveling – between Reali’s headquarters in San Mateo, California, in the United States and the R&D team in Tel Aviv, Israel, Hoover strikes an impressive balance between high-level strategy and sleevesup productivity. “I’m very fortunate to work with so many talented people trying to help enhance the way people buy and sell homes. In my role leading product development at Reali, I have the great opportunity to create a process designed to transform that monumental experience. We know buying or selling a home can be an incredibly stressful event, so to be able to make that a more transparent and enjoyable experience is my mission.”

Cathy Hunt

Executive Vice President of Operations Evolve Mortgage Services As executive vice president of operations for Evolve Mortgage Services, Cathy Hunt is extremely knowledgeable about the industry and Evolve’s internal operations, and has established herself as a leader of each. Her intelligence and demeanor enable her to communicate effectively, while also creating an environment where her teammates can grow and thrive. During her 10 years with Evolve, she has brought out the best in people because she leads by example. She recognizes the importance of having a productive team environment while also delivering superior results to our clients, and she does both remarkably. Evolve has grown extraordinarily over the last 12 months, and Hunt’s group of 125 employees is a large reason for its success. More than just an internal operational all-star, clients absolutely depend on Hunt for the success of their businesses. They know they can present any challenge to her and she will meet it with a clear, concise, and dependable response. “At Evolve we view ourselves as true partners to our clients. I am surrounded by an amazing team, and together we form long term relationships with our customers. We strive to be adaptable and solutions oriented every day to ensure that our services are a seamless extension of our clients.” HOUSINGWIRE ❱ SEPTEMBER 2019 47

AWARD PROGRAM

Steve Keleher

Senior Vice President of Portfolio Management Radian Guaranty

Aravind Jagannathan Vice President of Single-Family Chief Data Officer Freddie Mac

Aravind Jagannathan, Freddie Mac vice president and single-family chief data officer, played a seminal role in the company’s successful creation, integration and June 2019 launch of the world’s newest and second-largest bond market, the $4 trillion “To Be Announced” market for uniform mortgage-backed securities. For the last seven years, Jagannathan led a team of 170 experts in technology to plan, test and implement Freddie Mac’s participation in a revolutionary joint venture—Common Securitization Solutions, which administers the UMBS. UMBS will bring more liquidity to the housing market, lower costs for borrowers and make Freddie Mac a more agile and competitive company. Over the course of the project, Jagannathan maintained the morale of his team and fostered a winning attitude that accomplished its goals. Jagannathan’s leadership in this role has enabled the company to advance products that make mortgage lending quicker and more affordable. “The key to success is to formulate a winning attitude across your team and drive forward. Empower colleagues for their development, and you will see the benefits across the team.” 48 HOUSINGWIRE ❱ SEPTEMBER 2019

As a senior leader of Radian’s mortgage insurance business, Steve Keleher manages an analytics-driven risk management team and platform. This platform drives growth in the economic value of Radian’s portfolio, which, at more than $220 billion dollars of insurance in force, is one of the largest in the industry. Keleher’s oversite includes the development and evolution of Radian’s risk-based pricing platforms as well as the execution of high-value risk distribution strategies which reduce Radian’s “through the cycle” volatility. His efforts make Radian an even stronger counterparty. Keleher has been a driving force behind each of Radian’s credit risk transfer transactions. He is also responsible for the development and execution of Radian’s pricing strategy, which includes offering a spectrum of risk-based pricing solutions for Radian’s customers. Since joining the company in 2008, Keleher has demonstrated Radian’s corporate values with a strong focus on partnering across the organization to innovate for the future and create shareholder value. “I am extremely fortunate to have an opportunity to work with such a talented and hardworking team here at Radian. We’ve been able to accomplish some really great things as a result of our team’s persistence, determination and ability to work together.”

Elana Knoller

Vice President of Strategy Better.com Elana Knoller is a former Goldman Sachs trader turned vice president of strategy at Better.com who brought her financial chops and killer instincts to shape, develop and launch the operational structure and strategy that has led to the company to attract and raise over $160 million from investors including American Express Ventures, Citigroup, Ally Financial, Goldman Sachs and Kleiner Perkins. Knoller started at Better.com when there was a handful of employees and today, there are nearly 700. Over the last two years, Knoller built up the B2B business from scratch, leading a cross-functional team to spearhead end-to-end digital mortgage servicing between Better.com and Ally Financial Knoller helped to create the operating model that in January launched three new business offerings (title insurance, homeowner’s insurance and real estate) that have brought in nearly a million dollars of additional revenue over the last six months. “Better.com provides an unlimited upward trajectory for anyone who is willing to roll up their sleeves and be proactive to solve problems on a first principal basis, even if beyond their previous experience. My attraction to taking on new challenges and roles allowed me to gain exposure to each aspect of the business here.”

AWARD PROGRAM

Dave Lamy

Director of Engineering Floify

Randy Kozlowski

Executive of Performance Excellence CoreLogic Randy Kozlowski is an industry pioneer with more than 30 years of leadership in the mortgage servicing and tax industries. Throughout his eight years with CoreLogic, Kozlowski has transitioned from spearheading the reinvention of the company’s tax services division by centralizing its operations in Dallas, to now working as a performance excellence executive operating as the liaison between CoreLogic and the company’s top 50 tax and flood customers. Every day he listens to these customers’ goals and concerns to help them develop unique solutions to meet their business objectives. His personal approach and passion for helping clients to succeed has created a trust with his network that has significantly impacted CoreLogic’s bottom line. Outside of his day-to-day tasks, Kozlowski works with the CoreLogic LeaP program, designed to promote development for transitioning junior military officers to leadership positions with the CoreLogic. “Keeping a positive attitude is the key to success. Early in my career, I found that positioning challenges or failures as learning opportunities helped me grow professionally. Through these learnings, I also discovered the importance of teamwork.”

As a seasoned software engineer and director of engineering at Floify, Dave Lamy has consistently been a driving force behind the company’s success since he joined in 2017. Lamy’s technological expertise as well as dedication to improving the mortgage lending industry has helped Floify become an industry-leading point-of-sale system, which so far has supported more than 800,000 lenders, borrowers, and other mortgage stakeholders with the mortgage origination process. Floify’s mantra is “speed wins” and Lamy has epitomized this through his dedication to ensuring Floify is always first-to-market with emerging mortgage tech solutions. Lamy, who encourages every member of his engineering team to practice extreme ownership of Floify’s mission and objectives, has successfully led the company to rapid growth. As part of Floify’s hiring process, Lamy is responsible for on-boarding new engineers as well as properly introducing them to the solution’s robust code and company’s best-practices, ensuring the dynamic structure of his team remains intact. “I think a key to my success has been winning the trust of my customers and co-workers with the right balance of confidence and humility plus a can-do attitude. Also, it helps to try and have some fun while at it!”

Kelley Mangel Director of Marketing LBA Ware

Kelley Mangel has been essential to LBA Ware’s evolution from a little-known Georgia startup to a high-visibility industry influencer. Mangel is the embodiment of a “go-getter.” Hired as LBA Ware’s sixth team member and first “non-technical” employee, she rolled up her sleeves and developed the LBA Ware brand from scratch, creating and executing the company’s first marketing plan. Mangel oversees all branding and corporate identity initiatives, including the design and development of marketing collateral, client case studies, email campaigns and videos. She has a passion for keeping client needs and expectations at the forefront of everything she does and is dedicated to ensuring that client experience is always consistent, clear and exceeding expectations. In 2018, she was promoted from marketing manager to director of marketing and now joins LBA Ware senior leadership’s monthly team meetings to help guide the direction of the company. “My career successes are the product of my innate curiosity and desire for self-growth. I thrive on challenge and am intrinsically driven to understand the big picture context behind the immediate task at hand. For me, every challenge presents an opportunity to learn.”

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AWARD PROGRAM

Tina Mausser

Client Support Manager International Document Services

Jonathan Maughan Solutions Executive First American Mortgage Solutions

Jo n at h a n M aug h a n , S olut i o n Executive for cleanFile solutions by First American, is known for his ability to hone in on customer needs and deliver practical solutions through creative problem solving. With a strong operations background serving lenders, servicers and investors, Maughan has led many successful initiatives to gain efficiencies, reduce costs and streamline workflows for customers. He possesses the unique ability to decipher customer pain points and find solutions. The result is enhanced, innovative, cost-saving products and services that benefit customers. Maughan is incredibly dedicated to his work and is known for his creativity and out-of-the-box ideas, which have helped him navigate his role with great effectiveness. His commitment to First American’s customers is demonstrated in many ways, from being willing to jump on a plane at a moment’s notice to being ready to educate and train others. “Dedication, honesty and commitment to the customer. These cornerstones form the foundation of my approach to the business and have driven my success. The people-first culture at First American reflects very similar values and helps inspire creative approaches.” 50 HOUSINGWIRE ❱ SEPTEMBER 2019

As client support manager, Tina Mausser manages the largest service team in International Document Services’ history. Mausser has been with the company for 14 years, spending time in several departments – including integrations and implementations. Spending time in those different areas allowed Mausser to gain total knowledge of IDS’ operations and Mausser utilizes that knowledge to succeed in her current position. Since her promotion, Mausser implemented a number of procedures aimed at improving the quality of support IDS provides to its customers. Under Mausser’s leadership, the customer service team has improved the documentation and testing of those changes, which eases the production process both internally and externally. Additionally, Mausser oversaw the creation of a training and benchmarking system that is used to educate new employees, as well as an individualized support system and case management method that is client-specific to manage the increase in document preparation regulations and lender-specific requirements. “I have always had an incredible support system here at IDS, always pushing me to be better and guiding me along the way. I would not be successful without the amazing support I have received from my mentors, my managers and my peers.”

Aasif Mohammad Senior Engineering Executive Tavant

The driving force behind many of the company’s largest projects and implementations, Tavant senior engineering executive Aasif Mohammad, acts as a tech-functional leader at the company. Mohammad has been instrumental in leading various client engagements, including a longterm technology transformation initiative to develop a next-gen enterprise underwriting platform for a mortgage insurer; green-field development of point of sale systems targeted towards Millennials for a mortgage lender, and a custom platform for file review for a real estate services company. Mohammad is also spearheading a top seven national lender’s implementation of Tavant VELOX, the company’s AI-powered digital lending product suite that maximizes the use of data-driven processes in the automation of the loan origination lifecycle. Mohammad has been awarded the company’s Excellence Award multiple times, as well as its Finding Optimism Award for his positivity, ability to find fun, and his way of working with individuals that motivates them to do their best. “The key to my success is to align myself with a greater purpose, stay prepared for any opportunities, and be driven to accomplishment without fear of consequences.”

AWARD PROGRAM

Elijah Pallante

Senior Vice President, Enterprise Innovation loanDepot

Jemma Pachiano

National Support and Training Director Mid America Mortgage Jemma Pachiano serves a unique role as one of the main liaisons between Mid America Mortgage’s executive team, operations team and the company’s branches. Pachiano is Mid America’s self-proclaimed “ideas woman,” helping to bring the branch employees’ perspective to the table on projects of all sorts, including those related to technology, onboarding new teams and implementing and improving new processes. Pachiano has been a successful loan originator for more than 18 years, and brings insights gained during that time to develop ideas for new processes, policies, products and systems. Pachiano also plays a significant role in onboarding new employees and leading systems training on new vendor products, loan origination systems upgrades and company-wide initiatives. “Having spent 18 years in the mortgage industry, I know all too well the daily challenges and struggles our sales and ops teams face. Being reliable, knowledgeable and resourceful has always served me well, and I strive every day to apply these traits to my role in supporting Mid America’s efforts to provide the best products and a superior lending experience to our clients and referral partners.”

Elijah Pallante is helping drive the mortgage business into its digital future. As senior vice president, enterprise innovation at loanDepot, Pallante played a key role in the development of the mello smartloan, loanDepot’s fully digital mortgage. The company claims it can close the digital mortgage in as little as eight days. In developing the program, loanDepot combined its proprietary mello loan origination technology with expanded intelligent data sources to create its end-to-end digital mortgage. The company views Pallante’s contributions as “instrumental” to the digitization of the entire loan process, working specifically in areas that had not previously had much exposure to technological advancements, like title, hazard and flood. As a results of Pallante’s work, loanDepot is rolling out hybrid e-close in all 50 states, creating further time- and cost-efficiencies to the mello smartloan. Additionally, Pallante’s commitment to efficiency projects have helped the company save up to $500 per loan and achieve a more than 25% overall savings. “The keys to my success have been the people I surround myself with and my willingness to change. I see every event as a lesson and every person as a teacher. I have come across a lot of very talented people throughout my career and I’ve made a conscious effort to surround myself with them.”

Nicole Peraino

Video Producer Association of Independent Mortgage Experts Video plays a huge role in the marketing strategy of the Association of Independent Mortgage Experts, a trade membership association for mortgage brokers, and Video Producer Nicole Peraino is at the forefront of AIME’s video production. An 18-month-old organization, AIME advocates for the independent mortgage broker. In the group’s short year and a half of existence, the mortgage broker market share grew from 8% to 15%, and AIME’s efforts played a key role in that increase. And a big part of AIME’s efforts were led by Peraino, who conceptualizes the ideas from the beginning stages, orchestrates the planning and execution of the filming and also oversees the editing of the final product. Her constant refrain to the AIME marketing team as she leads the charge for video production is, “capture everything and anything.” Peraino also plays a role in the group’s events, coordinating all the audio/video production for AIME events. Beyond that, Peraino ensures that she is constantly sharing tips and tricks for shooting video, so that others can stay up to date with branding their business. “I’m unapologetically me – never shy, never ashamed and always curious. I’m not afraid to ask questions and my fuel is learning something new from every single person I meet.” HOUSINGWIRE ❱ SEPTEMBER 2019 51

AWARD PROGRAM

Emily Robbins

Customer Success Manager NotaryCam

Heather Cantua Phillips Associate General Counsel Unison

As associate general counsel at Unison, a company that helps people across the country buy homes or access their equity with a new category called home co-investing, Heather Phillips wears many hats within the company. Phillips ensures that employees and partners of Unison understand the nuances of home co-investing, and also actively works with industry regulators at the state, local and national levels to create the foundation for how this space operates, helping to pave the path for a legally compliant and responsible new method of home buying and homeownership. Since joining the company in 2017, Phillips has done everything from drafting the employee handbook to writing out the company’s policies and helping write marketing materials, but one particular area of focus has been on addressing the company’s gender divide. Phillips worked closely with company leadership to prioritize hiring women. “My approach has always been to lead from a place of trust and listen more than I talk. One of my proudest achievements is when colleagues, staff and leadership come to me with questions that are outside strictly legal inquiries.” 52 HOUSINGWIRE ❱ SEPTEMBER 2019

In her role as customer success manager, Emily Robbins is in a unique position of working closely with each part of the NotaryCam organization, including the notaries, real estate team, clients, enterprise and title partners, lender partners and company leadership. Since joining NotaryCam, Robbins has helped to improve the eClosing process to make sure all parties have the resources necessary to complete their transactions and closings successfully, resulting in the firm’s strong customer satisfaction rating and “excellent” Net Promoter Score. Robbins’ efforts have had a substantial impact on NotaryCam’s growth and success, including a nearly 140% increase in new users in 2018. As customer success manager, Robbins focuses on successful onboarding and account management, as well as fostering those relationships daily and working on improved workflows and implementations to make sure that the client’s needs are being met. As part of her responsibilities, Robbins also ensures new clients receive support throughout the onboarding process, including educational materials and co-branded marketing opportunities. “On a continual basis, I find it necessary to stay focused on the true reason for remote online notarization which is providing a smooth, convenient option for buyers and sellers closing on their home.”

Jessica Rosillo

Associate Vice President and Training Leader United Wholesale Mortgage Jessica Rosillo leads sales training for United Wholesale Mortgage, which saw a 41% increase in production in 2018 and recently became the No. 2 overall lender in the United States. As the leader of UWM’s sales training team, Rosillo played a significant role in UWM’s growth in loan production by consistently raising the bar for the top sales team in the industry. Rosillo and her team designed a training program that prioritizes continuous improvement for the company’s more than 600 account executives. In the first 6 months of 2019, Rosillo’s team administered more than 42,000 hours of sales training. Rosillo is also responsible for ensuring that the company is delivering informative, engaging training for mortgage brokers through its Success Track program, a series of classes that combine the company’s comprehensive mortgage expertise and training methods in a series of courses dedicated to championing the success of brokers everywhere. Rosillo develops the curriculum for these classes and has also helped expand class offerings. “I enjoy when challenges come along and pushing myself to see how I can overcome them. It’s about working hard, picking yourself up when you’re down, and finding a way to come out on top.”

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Evan Sauer Director of Research PeerStreet

Alicia Roundy

Associate Vice President of Digital Marketing Strategies Mortgage Bankers Association Alicia Roundy is constantly pushing the Mortgage Bankers Association to evolve from a digital marketing perspective, and widening its exposure through leadership on social media and email marketing. Roundy plays a key role in the communications strategy of the MBA, the largest trade group in housing finance. Roundy oversees web and email strategy and leads the promotional aspects of social media for the group. During the last 12 months, Roundy worked hand-in-hand with the group’s IT team and internal stakeholders to a new association management software system, more than doubled ad sales on MBA.org, launched a newly refreshed MBA.org website, worked to increase MBA’s engagement on all social media platforms, led the MBA’s initiative to utilize marketing automation and conversion data to understand marketing’s impact on sales, and continues to contribute on projects and initiatives throughout the organization. “I have always approached my work with an eye toward new ideas that can help MBA reach its members. The challenges and rewards that come with researching, identifying and applying new approaches and tactics are what drive me every day.”

Director of Research Evan Sauer is one of PeerStreet’s earliest employees, and he has had a tremendous impact on the company since joining in 2016. Sauer began his career at PeerStreet as one of the company’s most experienced underwriters, and quickly took on varied roles including spearheading new and existing lender relationships, building out the company’s cash management infrastructure, piloting new products and guiding underwriting standards and processes. Most notably, Sauer created the company’s fastest growing product ever – Residential for Rent loans, which resulted in more than $120 million in loans submitted to the company’s platform. Last year, Sauer independently assumed responsibility for idea generation, market research and credit box development for this product. While Sauer continues to lead the Residential for Rent program and act as its product manager, he has also facilitated, motivated and coordinated contributions from marketing, product, underwriting and relationship management teams across the organization. “Perspective: gaining it, expanding it and challenging it has always been a key difference maker for me. It is what allows me to be calm under pressure, or try to achieve longer term results when faced with immediate problems.”

Tori Schallot

Director of Product Management Home Captain Tori Schallot has had a major impact on the design, development and product implementation of Home Captain’s technology. As director of product management, Schallot was responsible for leading a number of innovative projects that significantly elevated the company’s offerings. These offerings included a lender-centric MLS search application and a proprietary AI technology that pairs with Home Captain’s concierge service to provide mortgage lenders with a lead nurture and conversion ecosystem. As a former nuclear engineer for the Navy and a start-up entrepreneur who mentors others, Schallot exemplifies the work ethic and innovation that embodies real success. Her colleagues credit her for creating an essential synergy between Home Captain’s marketing, product and technology divisions, making her standout as a true leader among her teammates. They also praise Schallot for her ability to provide top-notch customer service by determining which core offering is best suited for clients and communicating how the best return can be achieved. “Don’t look at others’ failures as a reason to not try, use them as a launching pad for success.” HOUSINGWIRE ❱ SEPTEMBER 2019 53

AWARD PROGRAM

Christopher Smith

Director of Enterprise Architecture Genworth Mortgage Insurance

Colleen Schofield

Operations Manager – Eastern Division CMG Financial Operations Manager of the Eastern Division Colleen Schofield is known throughout CMG as the go-to subject matter expert. Her colleagues say that if anyone has a question, whether it’s a senior manager or a loan officer, they can call Schofield. As the national retail operations manager, Schofield is the glue that holds many departments together. Schofield is an experienced mortgage professional with years of management and hands-on operational experience. She embodies confidence, she naturally owns all issues, and once she takes ownership, she solves it. Not only that, but she inspires confidence in everyone, according to those who work with her. Everyone she interacts with follows her lead, resulting in a team that performs more effectively and efficiently together, they say. Schofield’s attitude encourages the entire staff to take pride in how well they do their job, and they are particularly proud of how much they accomplish. “Colleen displays a level of caring and ownership that is over and above most employees – and best of all, it’s contagious. Everyone she interacts with follows her lead, resulting in a team that performs more effectively and efficiently together.” 54 HOUSINGWIRE ❱ SEPTEMBER 2019

Chris Smith is a results-oriented and solution-driven IT executive responsible for establishing strategic technology direction as the director of enterprise architecture at Genworth Mortgage Insurance. Smith is known by those who work with him as a technology visionary and a proven relationship builder who has a unique ability to establish and deliver strategic technology plans by partnering with all levels of the organization. With more than 20 years at the company, Smith is credited with helping to refine Genworth’s multi-year technology road map to simplify and modernize the application and technology portfolio by 50%, thereby eliminating more than 60 systems. In his role, Smith is often on call to assist with business needs and troubleshoot IT problems, and often takes his work beyond office hours to help solve issues and ensure a secure and simple experience for users, both internal and external. Smith’s business acumen and technical knowledge allows for creativity in solution design and show IT’s value to the business. “My success has really been driven by authenticity and passion. I knew at an early age that technology was my passion and that helped guide every career decision. One of my favorite quotes is, ‘Authenticity is at the heart of success,’ and an important leadership trait that all great leaders must possess.”

Johnny Spagnola

Vice President of Customer Care The Money Source Johnny Spagnola is relatively new at TMS, but that hasn’t stopped him from making a tremendous impact in a short amount of time. As vice president of Customer Care, Spagnola has helped drive the company’s customer satisfaction rating to 98%. Spagnola named TMS’s call center team members “Customer Careologists,” a term that defines his thoughtful approach to customer service. When he took over, his goal was to drive a behavior where happy people answer every call with a smile in 60 seconds or less, make a personal connection, and utilize data to deliver solutions. Spagnola believes that team members should be recognized for delivering a great customer experience by implementing rewards and recognition programs. Through creative challenges and fun team goals, he inspires team members to set new records in things like registering for the online borrower portal or setting up reoccurring payments, enabling him to lower servicing costs as he increases borrower satisfaction. Spagnola is constantly creating new ways to spotlight team members and build a culture that cares. “True success comes as a direct result of the positive influence you have. To create this, it takes exceptional leadership and exceptional engagement.”

AWARD PROGRAM

Jason Stenger

Senior Vice President of National Director of Operations Movement Mortgage

Ashley Spindle

Vice President of Secondary Markets PrimeLending Known for answering her phone at all hours, even on the weekends, Ashley Spindle is relentlessly dedicated to solving problems and helping loan officers close one more loan. A veritable encyclopedia of department policies and procedures, she is a tireless operational superstar who helps to raise the game of everyone she works with. As vice president of secondary markets, Spindle and her team of analysts and lock desk specialists make a daily positive impact on the production of more than 1,400 PrimeLending loan officers. Handling an average of 300 requests per day covering a wide range of program and pricing questions, her team is always prepared to provide immediate assistance thanks to Spindle’s comprehensive training, support and leadership. Spindle, who has been with the company for 16 years, is company’s go-to expert on the company’s secondary market policies and procedures – in fact she wrote the book – creating detailed process documentation that has help her lead countless training sessions for co-workers. “I’m a firm believer that hard work and dedication pay-off. If you’re willing to put in the time and energy, your efforts will be acknowledged and rewarded.”

Jason Stenger lives and breathes the 6-7-1 process that is the culture of Movement Mortgage. That is, to underwrite files in under six hours, process files in seven days and be clear-to-close in one business day. As senior vice president of national director of operations, Stenger oversees all of Movement’s operations in Charlotte, North Carolina; Norfolk, Virginia; and Tempe, Arizona. He led his team to achieve an all-time record month in May 2019, closing $1.54 billion in funded loans, which put more than 6,100 families into homes. What’s more, 80% of those loans closed within Movement’s seven-day goal. Stenger’s colleagues say he is quick to answer the phone and fix a problem for a loan officer – or walk through the ops floor and offer encouraging words and high-fives or fist bumps to staff. “Stenger makes you feel like you’re the long lost friend he’s catching up with over a beer,” his team noted. “Like we said, this guy actually answers his emails!” “For me, the key to success is a commitment to delivering superior customer service while staying true to the golden rule of treating others the way you want to be treated. I’m also very grateful for an incredible team around me that shares my same passion to make Movement a place where people want to come to work.”

Naveed Tejany Chief Financial Officer OJO Labs

As the chief financial officer of OJO Labs, Naveed Tejany has been monumental in executing some of the company’s most important strategic milestones. Some of these milestones include raising more than $70 million from OJO’s partners, navigating the acquisition of the largest MLS data aggregation company in the U.S. and helping to build an impactful relationship with the St. Lucian government. Tejany performed these tasks and more, all while not losing site of the company’s long-term vision, goals and investments. Tejany was the second employee at OJO Labs, and has worn multiple hats as the company has grown to employ more than 325 internationally. Tejany is credited for his superb financial acumen, which has enabled the company to adapt a disciplined approach to managing cash and making the right investments. While playing in instrumental role in OJO’s capital raising, Tejany was also a key executive for the internal team, driving and forcing accountability for the entire organization to stick to company values and continue to invest in its people and culture. “Hire great. Never compromise on people. Your success is directly correlated with the quality of people you surround yourself with.” HOUSINGWIRE ❱ SEPTEMBER 2019 55

AWARD PROGRAM

Terri Waring

Executive Vice President and Chief Credit Officer Freedom Mortgage

Kenny Turner

Director of Capital Markets Genworth Mortgage Insurance Kenny Turner develops and executes key strategic initiatives that move Genworth Mortgage Insurance forward, including establishing its reinsurance program that has provided over $1 billion in capital support, creating a new credit insurer to participate in the GSE credit risk transfer market and establishing an insurer focused on helping meet the needs of portfolio lenders. Turner has been working diligently to establish another new mortgage insurance entity focused on insuring loans lenders retain in portfolio or sell to other private market investors. Turner encountered and successfully overcame a variety of roadblocks to operationalize such a broad-reaching initiative. Turner’s colleagues say he is driven by excellence and collaboration, and maintains a mindset focused on continuous improvement to help Genworth deliver smart growth and provide the right solutions. “To succeed, we must foster the right culture and the right leadership. The right culture relies on high engagement (working hard), excellence (working smart) and teamwork (working together.) The right leadership provides a vision of where we want to go, tools to get there and space for employees to create solutions.” 56 HOUSINGWIRE ❱ SEPTEMBER 2019

Terri Waring’s career arc at Freedom Mortgage not only mirrors the evolution of the company, but highlights her role as a key contributor to its growth. Since joining the Freedom in 1993, Waring has demonstrated a preternatural understanding of credit trends and has successfully steered the ship through a variety of housing markets. Waring’s role as chief credit officer requires her to oversee the credit quality of loans closed by Freedom Mortgage, while also ensuring that the underwriting demands of Freedom’s customers are met. Waring’s underwriting staff oversaw over $50 billion in production last year, while her credit staff ensured that the company maintained the highest levels of quality. Waring is always looking toward the continued growth of the credit department, both developing leadership from within as well as spearheading the Underwriting First Flyer Program, which provides opportunities for college graduates who are looking to begin a career in underwriting by following a curriculum developed by one of the strongest credit leaders in the industry. “It may sound simple, but I think the secret to success is having the determination to be the best you can be, and then striving to be better! To do that you must have the ability to embrace the challenges you are faced with and be tenacious in order to overcome them.”

Rob Zambito

Director of Customer Success Qualia Rob Zambito’s tireless commitment to customer success has helped guide Qualia products and services to national recognition. He built a team of customer success leaders that have extremely high expectations for the levels of satisfaction Qualia’s end-users must achieve. And rather than sacrifice career satisfaction for business performance, Zambito’s leadership has contributed to a can-do, positive workplace culture that led to Qualia’s recognition as an official Best Places to Work by Austin Business Journal. Zambito has truly lived his director of customer success title by building, scaling and managing teams that ensure that Qualia’s customers are not only successfully using Qualia’s software, but that they are gaining best practices to improve their businesses and career satisfaction themselves. His efforts have resulted in deeply satisfied clients and a growing library of customer success stories. Zambito has scaled and managed six different internal Qualia teams responsible for the satisfaction of the thousands of Qualia users across the country. “’The way to build a big company is by building big people.’ It’s a quote I made up that’s been central to my personal management philosophy here at Qualia. I’m proud to say we’ve lived by it, too!”

CONGRATULATIONS ASHLEY!

Ashley Spindle Vice President, Secondary Marketing

2019 HousingWire Insider Thank you for your leadership and commitment to achieving excellence. Through your dedication and relentless drive, you have made a tremendous contribution to PrimeLending and strengthened our outstanding Operations Team.

PrimeLending.com

ÂŠ2019 PrimeLending, a PlainsCapital Company. (NMLS: 13649) Equal Housing Lender.

58 HOUSINGWIRE ❱ SEPTEMBER 2019

Assessing the risks of natural disasters By: Maiclaire Bolton Smith In the last 20 years, the U.S. has seen an average of almost seven events per year that each produce damage in excess of $1 billion, and 2018 marked the third consecutive year of higher than average natural hazard event losses.

ABOUT THE AUTHOR Maiclaire Bolton Smith is a seismologist and CoreLogic senior leader, research and content strategy. Bolton Smith joined the company in March 2013 and leads Thought Leadership for the Insurance and Spatial Solutions division of CoreLogic. Prior to her time at CoreLogic, Maiclaire held previous positions at RMS, Emergency Management British Columbia, the International Seismological Centre and the Geological Survey of Canada. As an earthquake education enthusiast, Maiclaire has spent much of her career dedicated to promoting earthquake risk awareness and preparedness. From 2008 to 2010, she cochaired the original launch of ShakeOut in Canada with the Great British Columbia ShakeOut. In 2010, she co-founded the British Columbia Earthquake Alliance and remains a lifetime honorary founding director. HOUSINGWIRE â?ą SEPTEMBER 2019 59

urricane Florence, a massive Category 1 storm at landfall, drenched North and South Carolina in rainfall-induced flooding in. Hurricane Michael, a Category 5 storm, caused $3 to $5 billion in losses in 2018. The Camp and Woolsey Fires burned hundreds of thousands of acres, claimed many lives and caused between $15 and $19 billion in losses. And that was just in the U.S. These events, which globally included flooding, hurricanes, wildfires, severe convective storms, earthquakes and more, caused significant loss and damage to homeowners and businesses left dealing with the catastrophic aftermath. To prepare for future catastrophes we must first look to the past, focusing on the high-impact perils of flooding, hurricanes, wildfire, severe convective storms and earthquakes.

Peril

# of Events Exceeding $1 B. in Last 20 Yrs

Wildfire Tropical Cyclone Severe Convective Storm Flood

13 24 83 18

Average # of $1B. Events Per Yr 0.65 1.2 4.15 0.9

Source: National Oceanic Atmospheric Administration

As the trend of catastrophic losses continue to rise with events like Hurricane Harvey in 2017, the Camp Fire in 2018 and the North Bay Fires in 2017, it becomes more and more important for homeowners and businesses to know their risk to accelerate their recovery.

CoreLogic estimated that Harvey had caused bet ween $25 billion and $37 billion in damage to residential and commercial properties, with 70% of them uninsured.

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Fl ood and hurricanE Flooding is the No. 1 natural disaster in the U.S., unique in its ability to affect any location. In 2018, there were over 1,600 significant flood events that occurred in the U.S., 59% of which were flash flood-related. On average, about 300,000 homes are flooded in the U.S. every year. Some of the most devastating floods in recent years have been associated with hurricanes. In 2017, Hurricane Harvey, a Category 4 storm at landfall, stalled over the Greater Houston Metropolitan Area and caused massive precipitation-induced flooding. An estimated 500,000 parcels were flooded, a majority of which saw damage. CoreLogic estimated that Harvey had caused between $25 billion and $37 billion in damage to residential and commercial properties, with 70% of them uninsured. This trend repeated in 2018 when Hurricane Florence, a massive Category 1 hurricane slowly trudged over North Carolina, South Carolina and Virginia, causing massive flooding. CoreLogic estimated flood damage to residential and commercial properties ranged from $19 billion to $28.5 billion, of which roughly 85% of residential flood losses were uninsured. Because of their frequent and indiscriminate nature, flood damage represents a risk to all. Most properties in the U.S. have at least some risk of damage from flooding coastal storm surge flooding, like in Hurricane Katrina in 2005, riverine flooding and off-plain or flash flooding risk exposes every state in the U.S. It is estimated that less than 4% of homes in the U.S. have a flood insurance policy, usually through the

National Flood Insurance Program. Established in 1968, the NFIP offers flood insurance to residents in communities that adopt floodplain management ordinances to guide development. It is regulated by the Flood Disaster Protection Act of 1973 and the Flood Insurance Reform Act of 1994 and indicates that homebuyers within a designated special flood hazard area must purchase flood insurance in order to obtain a home loan. Still, flood risk can and does impact properties outside of a SFHA, as seen in the cases of Hurricanes Florence and Harvey. With the upward trend in catastrophes yearover-year, itâ&#x20AC;&#x2122;s more important than ever for homeowners and businesses to understand the risk they face, and for their insurer to educate and guide them to making decisions based on accurate, granular data.

Wil dfire A 2016 CoreLogic study showed that 1.8 million single-family homes across 13 states in the western U.S. exhibit an extreme or high wildfire risk of wildfire damage. Cumulatively, this represents a total reconstruction cost value of nearly $500 billion. In addition, 27 million properties, with an estimated RCV of $6.7 trillion, are designated with a moderate to low risk of wildfire damage. These categories are based on the CoreLogic Wildfire Risk Score, which assigns a value between 5 and 100 to individual properties. It does so by not only combining the risk rating, but also factoring in proximity to higher risk areas that could affect the property via windblown

embers. In addition, it considers slope, aspect, vegetation/fuel and surface composition. From 2012 to 2016, California wildfires destroyed a yearly average of 1,172 structures. However, in 2017, more than 10,000 structures were destroyed by fire, and in 2018 more than 22,000 structures were destroyed. 2017 and 2018 were two of the most devastating wildfire years in U.S. history. A total of 11 western states had at least one wildfire that exceeded 50,000 burned acres; the leading states were California and Oregon, each with seven fires that burned more than 50,000 acres. Historically, wildfire has been managed through the designation of the Wildland-Urban Interface zonation process. In California alone, almost 4.5 million homes, representing almost one-third of California housing units, are in the WUI zone, according to the Silvis Lab at the University of Wisconsin-Madison. The 2017 fires in Sonoma County, California remind us that homes in areas adjacent to the WUI are at risk. Wildfire is a unique peril in that it can and does cause 100% destruction, resulting in the total loss of a home and all its contents. The 2018 Camp Fire destroyed over 18,000 structures and took more than 80 lives. Many of the homes, like in the case of those in Paradise, California, will never be rebuilt, giving extended clarity for the need to be protected. Adequately assessing the reconstruction value of a home is paramount for homeowners and insurance carriers to gain an accurate understanding of the components and price to rebuild.

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Inadequate insurance valuation can keep coverage limits artificially low, leaving policyholders without proper coverage in their time of need and forced to face unexpected rebuilding costs for underinsured properties. CoreLogic recommends reevaluating every two years to incorporate the current building and material costs.

Se vere convec t ive s t orm Severe convective storms are among the most common and most damage-inducing natural catastrophes in the U.S. Severe convective storms are the product of violent thunderstorms, and the expression of these storms include tornadoes, hail storms and high-speed winds. Damaging convective storms are not distributed throughout the country but are concentrated east of the Rocky Mountain continental divide. With the dramatic damage from winds that can exceed 150 mph, tornadoes are the most frequently recognizable aspect of severe convective storms though hail storms are possibly the costliest. The geographic distribution of tornado touchdowns is shown in the map below from the National Oceanic and Atmospheric Administration. The average annual number of tornadoes in the US from 2005 to 2015 is 1,402, but there is great variation in the annual counts with 2008 seeing 2,194 tornadoes and 2013 seeing only 943 tornadoes. Hailstorms are very damaging to property. Hail arrives to the surface as frozen precipitation, and the kinetic energy in a hail stone that could be four inches or more in Mean number of tornado days per year within 25 miles of a point 198-2015

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diameter can do significant damage to automobiles, windows, the roofing and siding of a home and sometimes damage to the underlying structure. In a two-month period in the spring of 2016, CoreLogic documented four storms in Texas alone that cumulatively impacted more than 900,000 homes with hail. The estimated damage to residential homes for those four storms exceeded $700 million, with damage to automobiles and commercial construction contributing to an expensive summer for Texans. Hail-resistant roofing and siding products are being introduced for this high-frequency loss peril and owners of older homes in the severe convective storm regions should consider strengthening their homes to reduce the likelihood of a loss to their property.

E ar t hquake The risk of a damaging earthquake is not always top of mind. While there have been many small shakes and events like the 2011 Virginia and 2014 Napa earthquakes that have caused some damage, the last time the country experienced a major loss from an earthquake was 25 years ago during the 1994 Northridge earthquake in the Greater Los Angeles area. The risk of a catastrophic earthquake is real. A 2014 study, the California Uniform Earthquake Rupture Forecast â&#x20AC;&#x201C; Version 3, notes that while highly unlikely, it is possible that the full length of the San Andreas fault could rupture in a massive earthquake â&#x20AC;&#x201C; from Humboldt County in northern California to Imperial County near the Mexico border. This fault runs through high populous

areas such as the San Francisco Bay Area and the Greater Los Angeles area. CoreLogic demonstrated that between 2 million and 3.5 million single-family homes could be damaged in an earthquake of magnitude 8.0 or higher along the San Andreas fault and could result in a total RCV of more than $289 billion, and a damage value from $180 billion to $190 billion for a worst-case San Andreas scenario with a magnitude 8.3. While this earthquake would have a very broad impact, there are many other earthquakes that could occur on smaller, local faults that could be even more damaging and, while still low, are a higher probability than the full rupture of the San Andreas. The 2018 HayWired Scenario conducted by the U.S. Geological Survey looks at a hypothetical magnitude 7.0 earthquake followed by 16 aftershocks ranging from 5.0 to 6.4 along the Hayward Fault in the San Francisco East Bay. For this scenario, CoreLogic analysis showed that more than 1.1 million homes would be likely to sustain visible damage and cause an estimated $170 billion in total losses, with only a small fraction of those damages insured. Because of the infrequent nature of large, damaging earthquakes the average homeowner often doesn’t believe the risk will ever impact them personally. As with all hazards, the first step to preparedness is to understand the risk. In California, where the earthquake risk is greatest in the country, the Alquist-Priolo Earthquake Fault Zoning Act requires a buyer to be notified if property is in a defined Earthquake Fault Zone. These zones are a map of known active faults and the expected surface area rupture only along the fault. It is important to note that these are a first approximation and the risk extends beyond these zones. There are many steps to take to personal preparedness, including making an emergency kit and having an emergency plan. FEMA and Outsmart Disaster, a California multi-agency coalition, offer suggestions on how to get prepared. When it comes to protecting your property the California Earthquake Authority offers incentives for earthquake insurance for properties that are retrofitted. Earthquake damage is not covered as part of a standard homeowners’ insurance policy, but an earthquake insurance endorsement can be purchased separately. The California Earthquake Authority offers a number of different options for policy holders, both homeowners and renters.

K now your risk, accel er at e your recovery For the average homeowner, the risk of their property to natural disasters is invisible without the intimate details of risk at a location. There are several publicly available sources for understanding your risk, yet still the average person is unaware of the risks that may be upon them. When homeowners are without insurance, they are forced to use their savings or a loan to finance the repairs to restore their homes. Or, in some cases, their homes

CoreLogic analysis showed that more than 1.1 million homes would be likely to sustain visible damage and cause an estimated $170 billion in total losses don’t get repaired at all. The ramifications of uninsured damage to properties can lead to delinquent mortgages and ultimately foreclosure on damaged collateral. The absence of funds to repair properties systemically weakens our communities. Even families who repair their home or those in homes that were undamaged are impacted in the long run. FEMA’s flood zone designations are publicly available. Homeowners can work with insurance carriers to find the right coverage based on the right science to protect them financially. The ability to recover after an event is crucial to the development of a resilient society. Our ability to recover can be improved by strengthening our homes and buildings or by setting aside the financial resources necessary to rebuild, usually through the purchase of insurance. If in a flood, hurricane, wildfire or earthquake risk zone, borrowers should take the necessary steps to prepare their home. The Institute of Business and Home Safety introduced its Fortified Home program with construction standards designed to help protect home from severe weather disasters. The California Earthquake Authority introduced the Earthquake Brace and Bolt program with financial incentives to retrofit your home from earthquake damage. With stronger homes, we can see less damage. Whether it be investigating FEMA flood zones or Alquist-Priolo earthquake fault zones or working with their insurer to better understand their exposure to natural hazards, there are a variety of steps home and businessowners can take to ensure they are covered. HOUSINGWIRE ❱ SEPTEMBER 2019 63

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Introducing the Power Forward Podcast Hosted by Justin White, Emmy Award winner and UWM Brand Journalist, and Mateen Cleaves, first-round NBA draft pick and current UWM Leadership Coach, Power Forward offers a fresh new look at what it takes to achieve success. How did playing on a championship basketball team help lay the groundwork for one of the fastest-growing companies in the nation? Why is creating a strong culture so important to attracting and retaining top talent? You’ll find the answers to these questions and more on Power Forward, a new podcast from your partners at UWM. Power Forward isn’t about mortgages. It’s a series of in-depth conversations with some of the most impactful and influential people in our industry and beyond. Stories of leadership, culture, business and more that will stay with you and motivate you to Power Forward in all that you do.

Listen now on UWM.com, iTunes, Google Play and other podcast apps

YOU + UWM = YOUNITED | 800.981.8898 | UWM.COM This information is provided to mortgage and real estate professionals only and is not intended nor is it authorized for consumer distribution. NMLS #3038

FINTECH PRODUC T SHOWC ASE

Consumer demand for Amazon-like customer service continues to grow across every sector â&#x20AC;&#x201D; and consumer expectations for a faster and easier home-buying process are higher than ever. Mortgage and real estate companies are turning to tech solutions to provide a seamless experience from beginning to end, all while saving companies time and money. In this section, we feature 22 companies providing solutions that span the entire home-buying and mortgage loan life cycle, all with one thing in common: they make the homeownership process better and more profitable.

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68 69 70 71 72 73 74 75 76 77 78

Advanced Data Altisource Auction.com Continuity Programs CoreLogic Covered DocMagic DocuSign FICS Finicity Homebot

79 80 81 82 83 84 85 86 87 88 89

Land Gorilla ListHub MetLife Mortgage Cadence Optimal Blue Origence Roostify SimpleNexus Snapdocs States Title Tavant

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FINTECH PRODUCT SHOWCASE Sponsored Content

Advanced Data is fully focused on verifications for digital mortgages ADVANCEDDATA.COM PRODUCT: u D igital Verifications DESCRIPTION: u Advanced Data’s proprietary eVoE tool, combined with strategic partnerships with data and system providers, offers lenders a complete solution for verifications.

This is a true game-changer in that lenders have never before been able to solidly rely on a vendor to 100% fulfill their verifications.” 68 HOUSINGWIRE ❱ SEPTEMBER 2019

s the industry continues to digitize the mortgage process, it is essential for lenders to invest in fraud prevention and trustworthy verification methods. Advanced Data, the only vendor fully focused on the verifications space, conducted a fiveyear study and found over 30% of Verifications of Employment were returned with inaccurate or missing data that the lender is responsible for correcting. In an effort to eliminate common verification challenges, Advanced Data provides a number of verifications, income tax, property, fraud, compliance and quality control solutions for mortgage professionals. “With a focus on validation services, all technology that we develop is designed specifically to optimize verifications fulfillment, and we are often first to market with innovations — such as our proprietary eVoE tool, the first of its kind in the industry,” said Allen Johnson, CEO at Advanced Data. Advanced Data’s eVoE enables employers to use a proprietary process to securely complete a 1005 form electronically with intelligence to ensure an accurate and reliable verification. Users reported significantly shorter turnaround times, reduced costs and increased accuracy. These verification solutions are a first for the mortgage industry, with precise timing for lenders focused on digital mortgages. Advanced Data developed their eVoE portal to generate the following benefits for clients: u Lenders are not exposed to the risks inherent in transmitting personal financial data through email or fax. u Lenders are able to complete more VOEs because the forms are returned without errors or missing required data. u The technology is configured so that VOEs cannot be returned to the lender until they are 100% complete.

u T he possibility of illegible handwriting is eliminated. u L enders will never have to go back to the employer for more information or to correct a mistake. “This is a true game-changer in that lenders have never before been able to solidly rely on a vendor to 100% fulfill their verifications,” Johnson said. With almost 10 years of verification experience, Advanced Data’s fulfillment team maintains an excellent service level while keeping pace with changes in available data stores, technology and regulatory concerns. As a result, Advanced Data can provide one or more resources that have direct experience with rare or esoteric verification types that lenders traditionally face. Full dedication to validation services increases the depth of the solutions that Advanced Data offers, including training for loan officers and customers to add momentum to the adoption of new market practices such as verification of assets. While most validation service providers’ offerings typically stop at the fulfillment level, Advanced Data goes several steps further by assisting lenders with additional training on new digital practices. “When a processor sends us an order, they know it will be completed on time… We have never missed a closing in 10 years,” Johnson said. “For almost a decade, Advanced Data has earned a reputation for excellent service, configurable, proprietary technology and an experienced, well-trained staff.”

FINTECH PRODUCT SHOWCASE Sponsored Content

Altisource’s Trelix offers end-to-end fulfillment services ALTISOURCE.COM PRODUCT: u Trelix, an Altisource business unit DESCRIPTION: u T relix offers end-to-end solutions for loan processing, closing, licensed underwriting and quality control services, which can act as an extension of the customer’s workforce, helping to reduce costs and supplement back-office operations. Trelix offers a global workforce and 24/7 resources that will help grow the customer’s business without expanding its workforce.

We show you where we can add value to help enable your existing staff to be more productive. Depending on your needs, we can offer as much or as little help as you need to reach your goals.”

intech provider Altisource originally delivered a la carte offerings of processing, underwriting, closing and additional single solutions for the mortgage and real estate industries. However, with ongoing increases in loan origination costs, the company realized its clients needed a service provider capable of handling their complete end-to-end origination requirements while also reducing costs and maximizing efficiencies. To help fill this market void, Altisource rolled out its end-to-end fulfillment services solution: Trelix. Trelix offers an industry-leading suite of licensed fulfillment, quality control, and due diligence services that help mortgage professionals manage risk and lower costs. Clients who use Trelix now have a seamless experience from receipt of loan application until closing at an incredible speed and uncompromised quality. The suite of products has helped users save more than 30% on traditional loan origination. “Our suite of services is highly customizable and can be adapted to meet the needs of your business,” said Senior Vice President of Origination Solutions at Altisource Phil Huff. “We show you where we can add value to help enable your existing staff to be more productive. Depending upon your needs, we can offer as much or as little help as you need to reach your goals.” Trelix users receive assistance from trained Altisource staff who work directly and seamlessly inside the customer’s platform. With its bifurcated process, Altisource aims to help banks understand how their staff or customers will interact with Trelix. Altisource’s full-time staff is available to help mortgage professionals increase their efficiency and keep the focus on building customer relationships.

“We allow you to expand without having to manage the employment roller coaster with fluctuating markets,” Huff said. “We are a solid, long-term solution with permanent, inhouse staff working directly with your current staff.” Altisource has developed an extensive library of systems and works to utilize each user’s LOS to configure Trelix into their original setup. At the same time, staff are able to give feedback on how to increase efficiencies. The Trelix end-to-end solution is wrapped with the CastleLine Certified Loan, which serves as additional protection against underwriting violations and errors, fraud, misrepresentation and compliance errors. CastleLine also offers benefits to mortgage investors, including helping to provide opportunities to reduce loan loss reserves, improve execution in securitizing loan pools and improve pricing on pools with certified loans. Trelix provides 24/7 coverage, working around the clock to help its clients provide quick solutions and exceptional service to their customers. Through Trelix, Altisource also provides a long list of stand-alone component service options to help with problems such as work loan performing verifications and trailing doc follow-up. “An enormous benefit of Trelix is that we use your technology and work in your system so that there is no interruption in your day-to-day processes,” Huff said.

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FINTECH PRODUCT SHOWCASE Sponsored Content

Auction.com adds Bid Interact to its Portfolio Interact dashboard AUCTION.COM PRODUCT: u Portfolio Interact DESCRIPTION: u Auction.com’s business intelligence seller dashboard delivers unprecedented asset-level detail, portfolio reporting and robust analytics for informed pricing control and real-time asset decisioning.

We are building a solution that gives control back to both our buyers and sellers and removes the friction that prevents real progress in this industry.” 70 HOUSINGWIRE ❱ SEPTEMBER 2019

he lack of decision-making data and portfolio reporting for REO assets creates a complicated process for investors and lenders in the distressed property market. Auction.com, a leading online real estate marketplace for residential bank-owned and foreclosure homes, addresses this problem with a solution that delivers a seamless interaction between buyers and sellers. Launched in June 2018, Portfolio Interact provides asset-level details, robust analytics and proper portfolio reporting to provide users with actionable data to make more informed decisions. The latest feature of Portfolio Interact, Bid Interact, was released as a result of continual innovation of Auction. com’s marketplace. Bid Interact delivers the power to monitor REO auctions in real time, make reserve changes instantly and accept a live bid with a click of a button. “The traditional method of disposition holds sellers captive to a series of non-transparent intermediaries who may not be aligned with the seller’s ultimate goal,” said Ali Haralson, Auction.com’s chief business development officer. Portfolio Interact, featuring Bid Interact, is the first and only available tool that transforms the process of selling distressed assets using real-time functionality. The business intelligence dashboard delivers unprecedented asset-level detail, portfolio reporting and robust analytics. By offering easy-to-access information for portfolio performance and actionable data for pricing optimization, Portfolio Interact increases efficiency and sales performance. “Never have sellers been empowered with real-time decision-making, direct control of inventory in a live environment and the ability to make decisions about assets that can drive sales,” Haralson said. “Auction.com has achieved a level of technological advance-

ment that offers transparency in real estate that has never been allowed before.” By adding real-time functionality to Portfolio Interact, Bid Interact increases a seller’s power to sell by enabling them to: u Monitor live competitive bidding of assets u Review asset-level details and bid history u Make reserve changes instantly u Accept a live bid in real time with a click of a button Sellers using Portfolio Interact, featuring Bid Interact, reported that the tool speeds sales, gives easy access to meaningful data and creates a connection between the specific asset and the bidder. “One major financial institution client told us that Bid Interact has changed the way they run its REO business. It gave them a new perspective on their inventory and the best economical path to take with their properties,” Haralson said. Portfolio Interact is a part of the Auction Interact suite of tools. These solutions were developed by Auction.com with the goal to build a bridge of transparency and enable buyers and sellers to conduct essential functions in real time. “We are building a solution that gives control back to both our buyers and sellers and removes the friction that prevents real progress in this industry,” Haralson said.

FINTECH PRODUCT SHOWCASE Sponsored Content

Continuity Programs provides automated marketing for LOs CONTINUITYPROGRAMS. COM PRODUCT: u MyCRMDashboard Mortgage CRM DESCRIPTION: u MyCRMDashboard is an innovative CRM exclusively for residential mortgage lenders. The easy-to-use software is not only a CRM; it also includes automated marketing based on 46+ years of experience. The turnkey campaigns nurture relationships and generate exclusive leads, online reviews, and repeat business for mortgage loan officers.

SOURCE: 1. Customer Retention: How to Become Their Lender for Life | Mortgage Bankers Association

MyCRMDashboard automates many of the functions that steal time and energy from LOs — and the company’s bottom line.”

hile it’s important for loan officers to win new business, it’s just as important to stay front-of-mind with past borrowers. Lenders have a poor track record of capturing repeat business, retaining less than 8% of their original customers, according to an article featured by the Mortgage Bankers Association1. After a loan is closed, many borrowers never hear from their LO again. To help lenders capitalize on this missed opportunity, Continuity Programs developed MyCRMDashboard mortgage CRM — an automated platform that provides LOs a way to stay in touch with borrowers without spending countless hours doing it manually. “We were driven by our users to develop and continuously improve an easy-to-use CRM exclusively for residential mortgage lenders,” said Kirk King, president of Continuity Programs. “The super-slick user interface doesn’t require extensive training and every user is able to submit feature requests.” MyCRMDashboard runs automatically once the LOS integration is set up, pulling all the necessary data from the LOS to match each contact to the right marketing campaign. The system includes mortgage-specific features, and because Continuity Programs does it all for them, LOs are not left to figure out how to set everything up on their own. MyCRMDashboard delivers executive reporting to management teams while providing marketers with a storefront where they can order corporate-approved designs as needed. MyCRMDashboard generates mortgage leads without the LO having to lift a finger. Instead of having to sift through new listings every day or week, the technology does it automatically. MyCRMDashboard automatically generates marketing communications directed to those sellers so prospecting doesn’t get lost in the rush of other daily demands. Automated drip campaigns are sent to

pre-qualified borrowers, helping to increase LOs’ closing rate. This increased productivity means LOs are able to drive more closings without extra effort, growing the company’s bottom line as a result. “After the loan is funded, the customer will automatically be moved from the milestones campaign into their post-closing program,” King said. “MyCRMDashboard is completely turnkey, which is why loan officers love it.” Lenders who use MyCRMDashboard report many amazing results. “The programs, results, leads, referrals, reviews and testimonial features, combined with their great service, set this company apart in the marketplace,” said Joe Culver, senior vice president and mortgage banking manager at NBT Bank in Norwich, New York. “NBT Bank averaged in the mid-80% range for customer satisfaction before using MyCRMDashboard. In 2019, we have risen to 94% satisfaction.” Since implementing MyCRMDashboard, Continuity Programs sees a 217% over-average CRM adoption rate, and its clients average: u 43% email open rate u 4 4% customer satisfaction survey response rate u 24% conversion rate on CRM-generated leads “MyCRMDashboard automates many of the functions that steal time and energy from LOs – and the company’s bottom line. Lenders can improve productivity, job satisfaction and referrals while reducing turnover, ensuring compliance and enhancing work-life balance,” King said.

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FINTECH PRODUCT SHOWCASE Sponsored Content

CoreLogic adds Collateral solution to popular AutomatIQ suite CORELOGIC.COM PRODUCT: u AutomatIQ Collateral DESCRIPTION:

u The latest addition to the CoreLogic AutomatIQ Suite of Digital Mortgage Solutions, AutomatIQ Collateral is your command center from which lenders may confidently assess all aspects of collateral. From collateral valuation to title and hazard workflows, AutomatIQ Collateral is your single end-to-end collateral solution.

Clients will access streamlined workflow tools within the AutomatIQ Collateral solution, removing time, touch and costs from the underwriting and closing process.” 72 HOUSINGWIRE ❱ SEPTEMBER 2019

oreLogic is dedicated to providing impactful solutions to difficult industry challenges, and the company’s latest solution — AutomatIQ Collateral — is no exception. CoreLogic launched its AutomatIQ Suite of Digital Mortgage Solutions last year. The underwriting solution is designed to help lenders streamline their current mortgage workflows, and now includes both AutomatIQ Borrower and AutomatIQ Collateral. This complete view of the borrower and collateral will drive improvements in efficiencies across the entire underwriting process and speed up the time it takes to manufacture a mortgage. The AutomatIQ Borrower solution minimizes human error and standardizes the verification process with an intuitive UI and powerful automation. With direct-sourced data, dynamically applied rule sets and industry-leading algorithms, AutomatIQ Borrower makes it possible to access what was once a series of disconnected supply chains via a single trusted provider. Lenders are more productive, more efficient and able to access a transparent paper trail that reduces the complexity of verification.

Additionally, AutomatIQ Collateral answers three critical questions for the lender:

u Who owns the property? u What is it worth? u What is its risk profile? Quick, reliable answers to such information are powerful in the hands of a lender when preparing to make important underwriting decisions, and AutomatIQ Collateral provides these data and services faster than ever before. “AutomatIQ Collateral joins the existing AutomatIQ Borrower solution as the second in CoreLogic’s AutomatIQ solutions suite. Utilizing AutomatIQ Collateral, lenders will enjoy comprehensive workflow and accurate data-based collateral insights leveraging the robust CoreLogic collateral database,” said Glen Evans, executive with CoreLogic Valuation Technology. “Clients will access streamlined workflow tools within the AutomatIQ Collateral solution, removing time, touch and costs from the underwriting and closing process.” The solution provides simple access to all the tools necessary to complete valuation, title and hazard underwriting on a loan. Users of AutomatIQ Collateral and AutomatIQ Borrower enjoy the ability to leverage a one-stop shop for all their underwriting needs, eliminating the necessity of managing multiple integrations with multiple vendors. AutomatIQ Collateral greatly improves the transaction experience for loan originators, underwriters and borrowers.

FINTECH PRODUCT SHOWCASE Sponsored Content

Covered Insurance delivers rapid, customized quotes ITSCOVERED.COM PRODUCT: u Covered Insurance Solutions – Home Insurance Marketplace DESCRIPTION: u Covered Insurance Solutions’ digital marketplace combines intuitive technology with a human touch to help new and existing homeowners quickly quote, compare and purchase the right coverage at the best price in minutes. As a full-service provider, Covered makes sure clients get the best value for their insurance with top carriers at the best prices while being able to bundle home policies with auto, motorcycle, umbrella, RV, pet and other personal lines to further reduce expense and hassle.

We are different because no matter what direction we take our service offerings, our consumer-facing, customer focus remains at the center of all we do.”

hile shopping for home insurance in 2016, brothers Ross and Chris Diedrich became frustrated with how difficult it was to purchase homeowner’s insurance and compare quotes online. In their efforts to search for a system that compares policies online, the brothers instead found lead aggregation websites that sold personal information to multiple third parties who provided non-differentiated, non-customized insurance information in a mass marketing barrage. Covered pioneered a 21st-century approach to insurance with its simple digital marketplace, rapid, customized and accurate quotes, and approachable and licensed insurance agents whose main focus is to find customers the best policy at the best price from top carriers. Covered is an independent insurance agency, which allows it to provide trustworthy, unbiased quotes from multiple leading carriers to homeowners. “As our company grew, we quickly discovered many groups used similar forms of information transfer protocols and standards,” said Ross Diedrich, Covered’s CEO. “By using this standardized information, Covered is able to create products that span multiple mortgage and insurance channels and simplify the consumer experience with only a handful of pertinent questions. This leads to a best-in-class smart and simple insurance questionnaire.” Covered’s key guiding principles are to remain customer-centric and to create an exceptional customer experience. Here’s how the company has accomplished this: u Being an independent insurance agency offering multiple carrier options u Delivering a clean and simple marketplace where consumers can truly compare apples to apples in policy options

u P roviding educational tools throughout to ensure a confident, informed decision u Never selling consumer data u M eeting consumers where they prefer to connect “We are different because no matter what direction we take our service offerings, our consumer-facing, customer focus remains at the center of all we do,” Diedrich said. “Accurate comparison and name-brand carrier choice are at the core of our beliefs, values and products.” A core part of Covered’s philosophy is to meet consumers when they need guidance most – in the home-purchase process. Through partnerships with lenders, servicers and real estate agents, Covered arms mortgage professionals with the proper tools to guide their clients, reducing unnecessary closing delays as a result. Covered ensures first-time homebuyers are no longer left in the dark when searching for the right insurance policy to fit their needs. Covered also closes the loop by delivering evidence of insurance right back to the lender. With new customer acquisition costs more than 5x greater than the costs of keeping existing customers, lenders and servicers are looking for opportunities to increase customer retention. Covered’s marketplace is a natural mortgage product extension that proactively assists customers, drives positive customer engagement and builds brand loyalty. “Ultimately, having a consumer-facing brand builds trust and allows us to offer the best service to our customers,” Diedrich said.

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FINTECH PRODUCT SHOWCASE Sponsored Content

DocMagic’s AutoPrep solution uses AI to go beyond basic OCR DOCMAGIC.COM PRODUCT: u AutoPrep DESCRIPTION: u DocMagic’s AutoPrep technology offers an enhanced capability to absorb data and documents from any source or format, and then intelligently e-Enables those documents for eSignature, eDelivery and other digital processes. The solution employs high-accuracy and proprietary rules-based technology to instantly auto-prep documents for easy, accurate and compliant eClosings.

If your documents are not e-Enabled for eSign, eDelivery, eNotary or eClosing, this technology gives you instant access to those capabilities.” 74 HOUSINGWIRE ❱ SEPTEMBER 2019

n an effort to help lenders quickly and easily transition to an eClosing workflow, DocMagic has developed a solution that goes beyond basic optical character recognition (OCR), which can rely on slower manual and repetitive processes. Instead, DocMagic has leveraged critical document meta-data and applied artificial intelligence and machine learning identification logic to develop its AutoPrep technology. “We believe mortgage technology innovation should focus on reducing operational friction while improving the standardization between disparate systems,” said Dominic Iannitti, president and CEO at DocMagic. “This underlying interoperability underscores innovation across our entire technology stack, with the goal of simplifying each step of the loan process.” DocMagic’s AutoPrep technology leverages the organization’s deep stores of document meta-data and is capable of testing and automation, employing intelligent document recognition as well as pattern and trend detection for continuously improved decisions over time. As a result, the new technology can quickly and easily identify any document from any source and then categorize, tag, barcode, recognize signature and initial regions and en-

able documents for eSignature, eNotary and eClosing processes. AutoPrep allows any lender, utilizing any documents, to access DocMagic’s premiere eClosing solution. From a strategic perspective, the technology positions lenders for successful digital eClosings and allows them to leverage an eNote process on a platform with centralized mortgage underwriting and processing augmented by automation. “If your documents are not e-Enabled for eSign, eDelivery, eNotary or eClosing, this technology gives you instant access to those capabilities,” Iannitti said. AutoPrep opens the door for lenders to transition more quickly to an eClosing workflow — bringing efficiency, consistency and user experience enhancements. Users can successfully adopt advanced automation, streamlined workflows and process standardization. “This is a key tool for lenders to facilitate eClosings,” Iannitti said. “The technology automates a fundamentally labor-intensive process, accelerates data transfer, improves accuracy and streamlines a quick and simple path to the digital eClosing process and eNotes.”

FINTECH PRODUCT SHOWCASE Sponsored Content

DocuSign’s Rooms for Mortgage offers a secure, digital workspace DOCUSIGN.COM/MORTGAGE PRODUCT: u DocuSign Rooms for Mortgage DESCRIPTION: u D ocuSign Rooms for Mortgage accelerates closing times and improves the borrower experience with a secure, digital workspace for everyone involved in a mortgage.

It’s intuitive, user-friendly and flexible enough to support traditional closings, fully digital closings with eNotary, eNotes and eVaults, or anything in between.”

uilding a mortgage is more difficult than it should be. It’s expensive for lenders, frustrating for homebuyers and remaining compliant across multiple areas of business can feel like a constant moving target. Fintech provider DocuSign developed Rooms for Mortgage after clients reported that, while industry advancements have been made to automate parts of the mortgage process, some parts remain disconnected, incompletely digitized and dependent on manual coordination for the majority of the closing process. DocuSign developed Rooms for Mortgage to make the closing process seamless for all parties involved. Lenders can use Rooms for Mortgage to collect borrower documents, assemble closing packages with external participants and keep the process moving with configurable checklists and reminders. “Rooms for Mortgage allows lenders to pull all the necessary resources together for a drama-free closing day,” said Georg Gerstenfeld, general manager of global real estate solutions at DocuSign. “It’s intuitive, user-friendly and flexible enough to support traditional closings, fully digital closings with eNotary, eNotes and eVaults, or anything in between.” With configurable workflows, lenders can create processes that allow title and settlement to send documents out for electronic signature while maintaining visibility and control. Rooms for Mortgage is powered by an enterprise-ready API, allowing lenders to integrate into their existing infrastructure to create the modern mortgage homebuyers expect. Rooms for Mortgage was built to bring all of the people, documents and systems involved in the mortgage process together in order to reduce closing times and improve the experience. The system features: u S EC U R E , DIGI TA L WOR K SPAC E: Mortgages come together faster as each

person involved works from a common digital workspace. u C LOSING PACKAGE ASSEMBLY, PREVIEW AND SIGNING: Closings are faster and smoother when packages are assembled digitally. Borrowers have a better experience, as they can review closing documents in advance, online, prior to closing. u OPEN APIS: Lenders can embed Rooms directly into customer banking portals and connect data from LOSs and other systems for a seamless digital experience. u F LEXIBLE WORKFLOW: Implementation time is reduced with configurable workflows that don’t require custom coding. u C USTOM TASK LISTS AND REMINDERS: Participants stay on track and managers can quickly identify delays to keep things moving. u TAILORED VIEW FOR BORROWERS: Improved borrower experience that is easy for lenders to set up. u B UILT-IN COMMUNICATION TOOLS: Borrowers can ask questions or resolve mistakes within a Room – improving the experience and accelerating closing time. u P RE-INTEGRATED WITH DOCUSIGN ESIGNATURE: Lenders gain visibility into the process history and status of all loan documents. “Users appreciate how intuitive DocuSign Rooms for Mortgage is. DocuSign eSignature is used by hundreds of millions of users around the world,” said Gerstenfeld. “This expertise in user experience has been leveraged to make Rooms easy to understand for borrowers, loan officers, or title and settlement agents from their first use.”

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FINTECH PRODUCT SHOWCASE Sponsored Content

FICS’ Mortgage Servicer improves workflow and borrower experience FICS.COM PRODUCT: u Mortgage Servicer DESCRIPTION: u F ICS’ Mortgage Servicer software automates servicing operations, including payment processing, escrow administration, investor reporting, custodial accounting, imaging, report writing, workflow and more. Mortgage Servicer customers can also offer their borrowers and investors consumer-facing web applications, allowing online access to loan information and documents.

By using the Mortgage Servicer API to process the end of day, it’s cut down from a process that usually took 1-1.5 hours to running in about 15-20 minutes.” 76 HOUSINGWIRE ❱ SEPTEMBER 2019

ost mortgage lenders are looking for ways to automate their mortgage servicing operations in order to cut costs, maintain profitability and effectively manage their compliance and reporting to various agencies (i.e., investors, credit reporting agencies and regulators.) With Mortgage Servicer, FICS provides clients with the necessary software to accomplish these goals while simultaneously improving the borrower experience. FICS’ Mortgage Servicer focuses on improving the user experience by building in more automation to make users’ work more efficient and to allow them to adapt a going-green effort appreciated by younger consumers and users. While some of the automation is driven by regulatory changes to help servicers, FICS’ primary objective is to facilitate day-to-day operations and workflow. The features that make Mortgage Servicer stand out: u U SER-FRIENDLY: According to one happy customer, “It’s not complicated, there aren’t eight screens for one action. It’s the ease of use for both managerial and the end user.” u E XCEPTIONAL SYSTEM SUPPORT: When users call FICS, a receptionist directs them to the appropriate support person. They won’t lose valuable production time waiting for someone to return calls or answer emails. u O PEN DATABASE: Mortgage Servicer provides the freedom to extract all data for any reason. u E XTRAORDINARY VALUE: Mortgage Servicer is a full servicing system, from loan boarding to payoff and secondary marketing. u T IME-SAVING: One satisfied customer

said, “By using the Mortgage Servicer API to process the end-of-day, it’s cut down from a process that usually took 1-1.5 hours to running in about 15-20 minutes.” u C LOUD HOSTING: Mortgage Servicer provides the flexibility to choose an inhouse or cloud-hosting solution. Either option is an open database with access to extract all the data. u S ECURITY: Control and customize security levels by providing access rights as responsibilities dictate, and users can easily monitor access to the system via built-in security reports. The license fee for Mortgage Servicer isn’t volume-based. Customers don’t pay per loan or by asset size, so organizations can grow, without the fear that their growth may come at a high cost. The functionality and value of the system remain at a stable cost as they grow. Mortgage Servicer supports agency investor reporting, including Fannie Mae, Freddie Mac, Ginnie Mae and Federal Home Loan Bank, as well as other industry standard and private reporting methods. Used in conjunction with any third-party scheduling tool, the Mortgage Servicer API lets servicers schedule and automate virtually every program, report and interface in the system, such as end-of-day and end-of-month reports, investor reporting and monthly loan statements. The API saves staff time and resources, eliminates after-hours and weekend work and reduces mistakes caused by human error.

FINTECH PRODUCT SHOWCASE Sponsored Content

Finicity provides high-quality consumer-permissioned data FINICITY.COM PRODUCT: u Digital Verifications DESCRIPTION: u F inicity delivers fast and accurate digital verification of assets and income using consumer-permissioned data. Enhanced data accuracy. Improved borrower experience. Reduced repurchase risk. From start to finish, this process can take as little as a few minutes. Simple for borrowers, streamlined for lenders.

We wanted to give mortgage lenders, loan officers and other players in the credit decisioning space everything they needed to make the best decisions, simply and rapidly.”

intech company Finicity was founded on the idea that when borrowers have access to their personal financial data, they are empowered to make the best financial decisions. Finicity puts the borrower at the center of its product development and design, understanding that access to data can positively impact one’s financial health. “We are setting the data standard for the mortgage industry,” said Steve Smith, Finicity CEO and co-founder. “We believe in high quality data and full access to that data.” Finicity is creating the standard for the verification process, a workflow that is traditionally slow and burdened with paperwork. The company saw an opportunity to digitize verifications and now provides verification solutions to some of the largest lenders in the industry. Digitizing asset verification alone can save up to six days in the origination process, which dramatically transforms a lender’s workflow and improves the bottom line. Digital verifications eliminate the traditional pain points of chasing down documents, going back and forth with borrowers and underwriters, and trying to make sense of numbers strewn across multiple documents. Finicity’s digital verifications provide a winwin solution for both lenders and borrowers. Lenders save time and money and have the most accurate data available to make the best decisions, while borrowers — who expect clear and simple processes — no longer have to suffer through the traditional paper chase. GSEs provide programs for reps and warrant relief based on digital solutions, meaning significantly reduced risk for lenders. “As a financial data company, we believe data is at the heart of good decision-making. This is especially important when it comes to decisioning in mortgage lending,” Smith said. “We wanted to give mortgage lenders,

loan officers and other players in the credit decisioning space everything they needed to make the best decisions, simply and rapidly.” Finicity’s key differentiators include: u B ROAD ACCESS: Finicity owns, maintains and supports all of its connections in-house and has developed over 15,000 integrations. This enables the company to deliver exceptional service and support — since there is no third-party aggregator providing it with the connection — and it fuels the ability to innovate on data-driven solutions. u DATA QUALITY: 95% of Finicity’s data is formatted, ensuring exceptional accuracy. Finicity certifies connected institutions for credit decisioning based on delivery of the core data elements required for verifications. This provides the best data for all applications and experiences and across use cases, which results in the best verification reports. u DATA INTELLIGENCE: This is central to the company’s verification products. The consumer permissions their data and then Finicity’s access and analytics platform seamlessly categorizes, organizes and cleanses the data so that it’s simple to understand and simple to use. “Today’s consumers have come to expect simple and rapid experiences enabled by digitization,” Smith said. “For us it’s more than endpoints and data, it’s about a better experience for both loan officers and consumers, and a stronger bottom line for lenders.”

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FINTECH PRODUCT SHOWCASE Sponsored Content

Homebot’s dashboard curates trusted client relationships HOMEBOT.AI PRODUCT: u Homebot DESCRIPTION: u H omebot is a dynamic financial dashboard for the home that empowers homeowners to build wealth with the largest asset they may ever own. As a client engagement tool for loan officers and real estate agents, Homebot keeps past clients engaged, driving client retention and more transactions in the future.

It has been instrumental in giving us better, more personalized opportunity for conversation.” 78 HOUSINGWIRE ❱ SEPTEMBER 2019

t the average age for retirement, 83% of wealth comes from real estate; however, many homeowners don’t consider their home an asset, much less a retirement strategy. In fact, homeowners leave billions of dollars in unrealized wealth on the table every year due to a lack of knowledge and guidance. Homebot’s dynamic financial dashboard aims to change the traditional mindset behind real estate wealth. “Homebot was founded to revolutionize the way loan officers and real estate agents grow their businesses by empowering consumers to build wealth with the largest asset they will ever own, their home,” said Ernie Graham, CEO at Homebot. Homebot delivers a “financial dashboard for the home” that tracks home equity and presents a personalized finance strategy for each client, that changes dynamically over time. Loan officers and real estate agents utilize this experience for instant engagement with their database and to maintain trusted-advisor-for-life client relationships. With millions of homeowners already on the platform and high open rates averaging over 75%, Homebot is quickly taking charge in the lender marketing space. Homebot can be used to better communicate what industry professionals want their clients to better understand. Top agents and lenders use Homebot to empower homeowners and in turn, generate more repeat and referral business. Homebot is unlike any other marketing solutions for lenders. It’s a mobile-responsive web application and an immersive user experience filled with what-if scenarios and deeper engagement, which dynamically change with each homeowner that receives the digest. “Homebot gives me more conversations. Conversations equal transactions... It has been instrumental in giving us better, more personalized opportunity for conversation,”

said Nicole Reuth, branch manager at Fairway Independent Mortgage and Homebot user. Homebot is purpose-built to help loan officers and independent mortgage brokers keep their customers for life, no matter if they are a current homeowner and want to better manage their personal home equity, or if they are currently in the market to purchase. Homebot for Buyers is an industry first, unique set of “investor-grade” features that allow loan officers to market directly to buyers and nurture pre-qual leads. Buyers can engage with a real-time heatmap of inventory supply and demand for every ZIP code in the U.S., filtering by market temperature, average time to buy and average square foot. Perhaps the most powerful part of Homebot for Buyers is the personalized purchasing power monitor that converts interest rate changes into the effect on purchasing power. The platform can also be co-sponsored/ co-branded for Realtor partners and their clients, offering a great way for lenders to expand their sphere while giving Realtors the home finance content and support to supercharge their client-for-life strategy. “Homebot changes the game for lenders and real estate agents by keeping their clients engaged with them, as trusted advisors for building wealth with real estate,” Graham said. “It’s not just a marketing ploy to warm up past clients with a friendly ‘happy anniversary’ message, but rather a deeply personalized dashboard on how, as a homeowner, they can save money and build wealth with the largest asset they will ever own.”

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Land Gorilla streamlines the construction lending process LANDGORILLA.COM PRODUCT: u Construction Loan Manager DESCRIPTION: u Land Gorilla is the No. 1 financial technology provider of construction loan management software creating a fast, safe, and efficient process. Trusted by top lenders, Land Gorilla’s Construction Loan Manager drives loan profitability, improves digital workflow and provides a best-in-class client experience.

All stakeholders involved are able to stay connected around milestones, change orders and draw requests and payments.”

onstruction lending is a complex process that once lacked the consistency, controls and best practices necessary for lenders to drive successful and profitable programs. There was no technology available that brought construction lending and oversight into a single management platform and lenders’ portfolios were created from multiple spreadsheets prone to errors, which hampered the ability to profitably manage loans and mitigate risk. Since 2010, Land Gorilla has pioneered a new way of managing construction loans with its Construction Loan Manager, a cloud-based solution that makes lending faster, safer and more efficient. This technology allows more lenders to participate as they reduce construction non-completion, monitor contractor performance, proactively manage potential portfolio risks and radically improve the borrower and builder experience. The Construction Loan Manager is the only construction loan management solution engineered by construction lending experts to protect a lender’s physical, financial and legal interests — providing the tools and reporting necessary for post-close management. Construction Loan Manager provides lenders full visibility into their loan portfolio, with detailed insight into pipeline health, loan-level performance and payment risk analysis. All stakeholders involved are able to stay connected around milestones, change orders and draw requests and payments. Land Gorilla recently implemented new software enhancements, such as integrated e-signatures, a digitized lien waiver and title update process, a templated document creation tool, automated project management and native integrations with LOS solutions.

requests are submitted electronically and administrators can schedule and track inspections, request e-signatures, electronically generate lien waivers, and order/receive title updates. u O RDER MANAGEMENT: Place orders for vendor services when orders are scheduled or completed. u R ISK TRACKING: Risk-tracking tools include alerts when loans are approaching important milestones or falling outside of best practices. u C ONTRACTOR MANAGEMENT: Key contractor and HUD consultant tools to gain visibility into contractor status, activity and project concentration. u C ONTACT DATABASE: Maintain contractor documents, profiles and acceptance status in one place. u CONFIGURABLE TEMPLATES: Build a workflow based on document templates that support any loan programs. u ACCOUNTING SYSTEM: Native accounting tools increase visibility and ease in managing loan transactions. u R EPORTING: Access to real-time data to help maintain the construction loan pipeline down to loan-level performance. With Land Gorilla, lenders can feel confident that every step of the process is based on best practices to drive profitability, mitigate risk, maximize efficiency and provide a bestin-class client experience.

Features include: u DIGITAL DRAW MANAGEMENT: Draw HOUSINGWIRE ❱ SEPTEMBER 2019 79

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ListHub hosts 90% of the nation’s MLS-sourced listings LISTHUB.COM PRODUCT: u ListHub DESCRIPTION: u Attract home shoppers early in their home search with ListHub. With the largest source of active MLS-sourced real estate listings nationwide, ListHub is trusted by more than 200 real estate portals and products from newspapers to national banks. ListHub is your single source for accessing real estate listing data – effortlessly.

Our clients appreciate the fact that they can access real listing data from hundreds of data sources, whether they are a regional or national publisher.” 80 HOUSINGWIRE ❱ SEPTEMBER 2019

t’s easy to get overwhelmed by data management when trying to advertise real estate listings in as many places as possible. The constant churn of websites and the difficulty of ingesting data from different sources are just a few of the pain points publishers and others face when trying to deliver accurate, timely listings data. ListHub helps publishers and technology companies eliminate the headache of managing multiple data feeds and contracts with a single-source solution that does all the heavy lifting. With ListHub, publishers can easily access real estate listing data from nearly 600 MLSs with one contract, one data feed and one implementation. ListHub offers listing coverage no other company can match, hosting 90% of the nation’s MLS-sourced listings. “Our clients appreciate the fact that they can access real listing data from hundreds of data sources, whether they are a regional or national publisher,” said Celeste Starchild, ListHub senior vice president of property data strategy. “Because they aren’t mired in the details of data management they have been able to scale their business and focus on innovation.” ListHub’s platform enables publishers and brokerages of all sizes, brands and business models to deliver accurate, MLS-sourced list-

ings with little effort. Critically, ListHub frees publishers from having to manually manage listings changes — a continuous process that can eat up valuable IT man hours. ListHub updates listings directly from the MLS source every one to two hours, normalizing and standardizing the data across all MLS sources, which ensures a faster and more accurate data feed with consistent fields. Brokers are able to choose the publisher sites, lead management settings and where to drive customer traffic according to their company’s business rules, all from one platform. ListHub then pulls the most up-to-date listing information, distributing it according to the registered broker’s settings. As new listings are added to the MLS or as existing listings are updated, ListHub distributes that new and updated information automatically to ensure a broker’s online marketing is MLS-accurate. ListHub clients are seeing significant lift from all the support. “Since we have a national reach, we don’t have the bandwidth to manage some 600 feeds —ListHub takes care of all of that for us. “Plus, ListHub provides a normalized data feed so all the fields are consistent and we don’t have to worry about any of that. ListHub is the gasoline that fuels everything,” said CEO and Founder of Keyboom!/Listing Booster Kevin Bilberry.

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MetLife Choice simplifies the home insurance process for borrowers METLIFE.COM PRODUCT: u MetLife Choice DESCRIPTION: u M etLife Choice is a digital insurance choice solution that helps simplify the insurance process for homebuyers and mortgage lenders. By integrating easily with lenders’ mortgage platforms, it provides a seamless insurance experience for the borrowers. With just a few clicks, borrowers can receive multiple insurance quotes to choose the one that’s right for their needs.

oday’s customers expect a seamless experience when making any purchasing decisions, whether it’s online or offline. The savvy shopper also wants to compare prices before choosing what’s right for them — why offer homebuyers anything less? Buying a home is a major decision, but it doesn’t have to be a complex one. Choosing home insurance is a critical step in the process. Integrating homeowners insurance with the mortgage process makes it simple for both lenders and borrowers. That’s exactly what MetLife Auto & Home provides with MetLife Choice. MetLife Choice offers customers a one-stop shopping experience when looking for the right homeowners insurance to fit their needs. Instead of randomly calling around to multiple agents to shop, customers can get multiple quotes from highly-rated national carriers with just a few clicks using MetLife Choice. By seamlessly integrating into the mortgage process, MetLife Choice can help get to closing more easily and efficiently, offering the best available insurance products to the customer at the same time. MetLife Choice uses API technology that can integrate directly with any loan platform, syncing property-level data from multiple sources — from loan applications and third-party data providers.

This can reduce the insurance process from days to just minutes, and prepopulating forms with stored information can also reduce mistakes that can happen when humans have to use the “stare and compare” method. As soon as a customer’s loan is approved, MetLife Choice can provide homeowners with multiple quotes from highly rated national carriers. MetLife Auto & Home has partnered with multiple home insurance carriers to offer a wide range of solutions to the customer. Borrowers also have access to licensed call center agents to guide them through the entire process and help in the purchase. As a smart digital choice solution, MetLife Choice eliminates paperwork, reduces delays and offers easy-to-track proof of insurance. It’s also able to integrate with a lender’s platform. Integrating home insurance into the digital mortgage process can help lenders provide a more meaningful, high-value service to borrowers while streamlining the loan process. “MetLife Choice makes it simple. With just a couple of clicks, MetLife Choice gathers a range of home insurance coverage options from MetLife Auto & Home and other highly rated carriers. Within minutes, customers can choose what’s right for them,” said MetLife Auto & Home’s Vice President of Agency Sales and Distribution Kevin Chean.

MetLife Choice makes it simple. With just a couple of clicks, MetLife Choice gathers a range of home insurance coverage options from MetLife Auto & Home and other highly rated carriers.” HOUSINGWIRE ❱ SEPTEMBER 2019 81

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Collaboration Center brings lenders and settlement together MORTGAGECADENCE.COM PRODUCT: u Collaboration Center DESCRIPTION: u C ollaboration Center is a web-based industry utility that acts as the secure private cloud to connect the people and systems in the real estate and home finance industries. Once a connection is established, data and documents flow to any person or system with a verified connection to the cloud.

Collaboration Center drives more revenue and more profit for clients. With less time spent on manual processes, that time can be spent focusing on the next loan.” 82 HOUSINGWIRE ❱ SEPTEMBER 2019

losing on a mortgage loan is not a linear process — it’s a collaborative one. The ability to share data, information and ideas between all parties involved in the closing transaction needs to evolve beyond the 20th century status quo. Collaboration Center by Mortgage Cadence offers a better way. Collaboration Center reinvents the way in which lending professionals and settlement service firms share documents, provide updates and communicate to deliver a timely, cost-effective closing. Frontline professionals who were once required to scour endless e-mail chains, wrestle with proprietary and siloed tech or even come up with on-the-fly hacks and workarounds to get the job done can now go to a single place to share information and communicate. “Collaboration Center is the first product that doesn’t force everyone to change the way they do business in order to cross-collaborate; it can work in any platform, while still keeping everything seamless and secure,” said Bryan Ireton, Accenture’s managing director for Mortgage Cadence. “A few other systems promoted themselves as the answer to the often-siloed closing process. Those systems, however, required time-sucking integrations as well as massive data-uploads just to get started,” Ireton said. In contrast, Collaboration Center requires no integrations, no new hardware and no massive data entry. And title firms don’t have to be using the “right” production system to use it. Collaboration Center is unique in the marketplace thanks to its simplicity, scalability, efficiency, security, data quality, and ease of integration. u S IMPLICITY: Collaboration Center works with all existing transaction man-

agement and loan origination systems, seamlessly. No more jumping between tabs or applications. u S CALABILITY: Collaboration Center is built on a scalable architecture that can handle every loan the industry originates. u EFFICIENCY: Collaboration Center quickly determines what documents must be reviewed and instantly identifies changes between versions so there’s no more digging for the latest version or comparing the wrong documents, ultimately reducing labor costs. u S ECURITY: Collaboration Center provides interactive user role configuration, ensuring that the only parties that see the consumer’s PII are authorized to do so. Our hardened infrastructure and emailfree process protects all parties from cybersecurity threats. u DATA QUALITY: Fast, easy data mapping with no rekeying increases data quality and produces higher quality loans. u E ASE OF INTEGRATION: Collaboration Center includes the industry’s best API developer’s portal and support. Even better, it’s built into Mortgage Cadence loan origination technology, giving access to all current business partners. “Collaboration Center drives more revenue and more profit for clients. With less time spent on manual processes, that time can be spent focusing on the next loan. All while reducing costs, increasing efficiency, mitigating risk and ensuring a far better borrower experience than the industry offers today,” Ireton said.

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Optimal Blue expands BI suite with Competitive Analytics OPTIMALBLUE.COM PRODUCT: u Competitive Analytics DESCRIPTION: u C ompetitive Analytics allows lenders to see how they rank against their peers in market share, as well as how they measure up against other lenders in volume, lending profile, and pricing strategies.

Our clients are really delighted with their sudden ability to have full visibility into what’s happening elsewhere in the market and with their peers.”

ptimal Blue’s position as the largest provider of secondary marketing automation gives it unique visibility into $750 billion of loan transactions across its Mortgage Marketplace Platform. The company is using that data to create business intelligence solutions that provide benchmarking at an unprecedented scale. Optimal Blue started with Enterprise Analytics, released two years ago to shed light on lenders’ margins and profitability through dynamic visualizations of their internal locks and change requests. This summer, the company launched another powerful BI tool: Competitive Analytics. This game-changing innovation enables Optimal Blue clients to gauge performance through granular illustrations of their market position, compare margins and profitability and assess the effectiveness of current pricing strategies. Competitive Analytics provides three types of sophisticated industry benchmarking capabilities, including: u VOLUME BENCHMARKING: Allows the user to compare their loan production to the overall market and chart volume trends across specific time periods – by week, month, or year. In addition, volume benchmarking provides a trended production percentile market rank by business channel, institution type, state, MSA, loan type and other parameters, as well as the ability to compare the percentage of their locks that observed change requests or lock extensions to the overall market.

u L ENDING PROFILE BENCHMARKING:Enables clients to compare characteristics of their loan production by charting loan level parameters such as FICO, LTV, loan amount, property type, occupancy, loan type and loan purpose against the overall market. u PRICING STRATEGIES BENCHMARKING: Provides a market comparison for a variety of secondary marketing metrics that impact profitability. Clients can compare margins, concessions, price and note rate to the market, and filter by business channel, institution type, state, MSA and more. Future offerings will measure market share by origination volume, providing unrivaled transparency into the mortgage market through widgets available to lenders and other interested parties, like MI companies or investors, through a subscription. Competitive Analytics is updated with new transactional data daily, which is a sharp contrast to historical HMDA data or survey data that lenders had to depend on in the past. “Lenders are hungry for this kind of information because it puts the power in their hands,” said Scott Happ, CEO of Optimal Blue. “Our clients are really delighted with their sudden ability to have full visibility into what’s happening elsewhere in the market and with their peers.”

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Origence platform increases pullthrough and lender profitability ORIGENCE.COM PRODUCT: u O rigence Mortgage LOS Platform DESCRIPTION: u T he Origence Mortgage LOS Platform is designed to help lenders close more loans with an unprecedented level of efficiency and lower cost — through smart automation. The end-to-end LOS includes point-of-sale and fulfilment systems focused on reducing friction in the mortgage process while simultaneously increasing pull-through rates.

We are taking the lead to provide a new type of experience for both lenders and borrowers alike.” 84 HOUSINGWIRE ❱ SEPTEMBER 2019

any mortgage professionals today utilize software solutions to streamline processes and increase profitability. However, Origence, an end-to-end mortgage loan platform, discovered the majority of market leaders were utilizing outdated software at least a decade old, if not older. While the mortgage industry is often the last industry to adopt new technologies, Origence found these outdated solutions were hurting the market in the following four areas: u Lenders not meeting customer experience expectations u Decreased efficiencies in the mortgage process u R ising origination costs u Sub-optimal pull-through “We wanted to bridge the gap between what we knew we could deliver from an automation standpoint and what was currently holding back the marketplace,” said Roger Hull, chief product officer at Origence. In efforts to bring automation to the front and center of the lending process, the Origence Mortgage LOS Platform provides an end-toend mortgage loan solution that significantly increases loan pull-through, productivity and lender profitability while improving the borrower experience. With the Origence Mortgage LOS Platform, a lender will have access to a mortgage lending platform that includes lead management, POS and LOS to increase pull-through and throughput, while reducing cost and cycle time. Origence Mortgage LOS Platform users will see an increase in productivity and throughput. One lender utilizing the platform found an increase in throughput at 8x the rate (from 1,000 fundings per month to 8,000) and 4x an increase in productivity over a 14-month period. “We are taking the lead to provide a new

type of experience for both lenders and borrowers alike,” said Tony Boutelle, president and CEO of Origence. The company was able to solve the following four pain-points they found held the industry back: u O rigence reimagined the borrower experience from point-of-sale to closing by streamlining and automating the entire lending journey, connecting lenders and borrowers in new and unexpected ways. u O rigence has increased efficiency through automation, focusing on cycle time reduction, staff productivity and unified systems. u The Origence Mortgage LOS Platform has opened up new opportunities for profitability by replacing manual steps in the origination process with an automated enterprise solution. u Origence integrated a lead management solution into its POS and LOS. This keeps borrowers on track, increasing purchase close rate and throughput. Origence injects automation at every turn, with workplan automation, automated file assignments, automated third-party order outs, compliance automation and easy lender configurations. On the borrower side, it offers autonomous origination capabilities. “It’s rewarding to see the level of efficiency and profitability Origence brings to the table for our lending partners,” Boutelle said. “The entire Origence team has been committed to helping redefine the origination experience, and we’re excited to see this new solution make its way onto the desks of mortgage professionals, and in the hands of consumers.”

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Roostify’s solution allows LOs to respond to new leads instantly ROOSTIFY.COM PRODUCT: u R oostify Product Selector for Lenders DESCRIPTION: u P roduct Selector allows lenders to connect their existing Product and Pricing Engine (PPE) with the Roostify digital lending platform. Loan officers can search and select a product based on the applicant’s requested loan scenario.

As we reinvent lending, our platform provides loan officers with access to core capabilities in one system , wherever they choose to work.”

oan officers operate on a flexible yet demanding schedule that requires 24/7 availability to communicate with applicants at any point of the day, including evenings, nights and while they’re on the road. In order to perform tasks such as product and pricing searches, loan officers leverage their Loan Origination System (LOS). However, these systems are often dated and not mobile-friendly, requiring the LO to be in front of their computer at all times. Additionally, in instances where loan officers must perform a product and pricing search directly with their PPE provider, they are required to re-enter data to get results while on-the-go. These frustrations lead to unnecessary inefficiencies in the loan process, including slowing down the process even as the industry is actively working to streamline it. To solve this, Roostify has combined the numerous tasks required of a loan officer into one single system, Roostify Product Selector for lenders. The Product Selector platform enables loan officers to quickly and easily provide product and rate options to borrowers at any point in the process, without having to move between systems or re-enter data. An exciting benefit is that product options can be discussed with the customer when and wherever they choose to meet. As the platform is completely mobile-optimized, the right product can be selected and saved to the loan application for future reference.

This is another major milestone to liberate loan officers and a significant step to advance a customer-centric lending model. Once loan officers have discussed product options with the customer, they can select the best-fit product and save it to the loan application for future reference. “As we reinvent lending, our platform provides loan officers with access to core capabilities in one system, wherever they choose to work,” said Roostify’s Senior Director of Product Management Gareth Lloyd-Owen. Through Product Selector, loan officers have the ability to take new leads and respond at a faster rate to new loan applicants who require product and rate quotes, as well as estimated monthly payment options. This provides loan officers the flexibility to leave their desks without slowing down the loan process. Product Selector is designed to increase loan officer satisfaction as well as customer application conversion. The platform makes it easier for loan officers to quickly respond to applications and provide the available product terms their customers need to make informed decisions about moving forward. “We continue to transform the consumer lending architecture and focus on the intersection where customers and loan officers mutually benefit. Essentially, we deliver an experience where everyone wins,” said Roostify’s Chief Marketing Officer Courtney Chakarun.

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SimpleNexus frees lenders to work on loans from anywhere SIMPLENEXUS.COM PRODUCT: u SimpleNexus DESCRIPTION: u S impleNexus is the digital mortgage platform that enables lenders to originate and process loans from anywhere. The company’s best-inclass, easy-to-use app connects loan officers to their borrowers and real estate agents to easily communicate and exchange data in a single location throughout the entire loan life cycle. Loan officers can manage their loan pipelines, order credit, run pricing, send pre-approvals and sign disclosures — all on the go.

In a recent study, SimpleNexus was able to show that loan applications passing through the platform close 20% faster than the industry average.” 86 HOUSINGWIRE ❱ SEPTEMBER 2019

he genesis of the SimpleNexus platform began when Founder and CEO Matt Hansen agreed to a favor for a loan officer family member. Hansen built a simple app over the weekend for his brother-in-law to run loan calculations and include contact info. Within weeks, other originators saw the product and requested their own version of the app to share with borrowers. It quickly became obvious Hansen’s product had true potential to fill a void in the market. Today, the company is a 100-person organization, signed with 15 of the top 25 lenders. Over 220 mortgage companies and more than 20,000 loan originators nationwide use SimpleNexus. The platform has enabled these lenders to connect with 1.1 million borrowers and 65,000 real estate partners to produce 5 million loans totaling over $100 billion in volume. “The enthusiastic adoption by loan originators, real estate agents and loan applicants shows how SimpleNexus is delivering on a market need for a mobile origination toolset that gets more loans to the finish line, faster,” Hansen said. “We are proud to be setting the bar for what a digital mortgage platform should be.” Cultivating human-to-human interaction between lender and borrower remains a core focus at SimpleNexus. The platform empowers loan officers to get out of the office and focus on building these relationships, giving them a mobile toolset to take action on a loan anytime, anywhere. Loan officers can view their pipeline, order credit, run pricing, send pre-approvals, and sign disclosures, all on the go. SimpleNexus is driving real results for lenders in the form of increased loan pullthrough, cost savings, and stronger referral partnerships. In a recent study, SimpleNexus was able to

show that loan applications passing through the platform close 20% faster than the industry average. In addition, 800 loan originators who had recently switched to SimpleNexus increased their Realtor connections by an average of 300%, with some LOs increasing these connections by as much as 2000%. Borrowers using SimpleNexus can begin their home search, run loan calculations, contact their loan officer and Realtor, submit a loan application, securely scan/upload documents, receive loan status updates and sign disclosures — all from their mobile device. SimpleNexus also provides a unique component for the borrower’s real estate agent. Realtors can easily check on the status of a loan through their SimpleNexus mobile app and receive automatic updates when milestones are reached. Agents can customize the app to share with their clients. The custom app includes their photo/contact info, home search listings, and other custom links such as reviews or their social media profiles. With SimpleNexus, traditional mortgage companies can combine the efficiency of technology with the high-touch benefits borrowers receive through working with a loan officer. This combination is a real differentiator for mortgage companies searching for a strategy to compete with online lenders. The platform delivers a proven digital mortgage strategy to address the needs of all three stakeholders in the loan transaction.

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Snapdocs’ digital closing platform is a win-win for all parties SNAPDOCS.COM PRODUCT: u S napdocs Digital Closing Platform DESCRIPTION: u S napdocs is a digital closing platform that empowers lenders and settlement to modernize, streamline, and improve the mortgage closing process. With advanced technology and a unique platform connecting all closing participants, Snapdocs is the only solution with a proven track record of creating a single, scalable process for every closing, whether wet, hybrid, or fully digital.

When a lender or settlement company chooses to implement Snapdocs, their customers and partners benefit from a more efficient, modern and simple closing experience.”

or consumers, closing on a house is the most-anticipated part of the entire home-buying process, but until recently, it remained one of the most painful. For lenders and their settlement partners, the mortgage closing is equally as tedious, opaque, and inefficient. Today, lenders can leverage technology to improve the closing process for themselves, their borrowers, and their settlement partners. Compared to other eClosing technologies, Snapdocs’ digital closing platform stands out by providing lenders and settlement with a standardized and streamlined process for managing all of their closings, whether wet, hybrid, or digital. From day one, lenders and settlement see very real benefits, a measurable ROI, and a better experience for their customers. It’s a true win-win for all parties. This is crucial to a lender’s success with digital closings, as it reduces common adoption challenges. Lenders often have a difficult time rolling out eClosing technology to their settlement partners. It’s impossible to force new technology upon hundreds or thousands of settlement agents, especially when it provides little to no value to settlement. Most eClosing solutions on the market today only cater to lenders or settlement, but not both. Because Snapdocs provides value to all closing participants, it only takes an average of four months for lenders to roll out Snapdocs across all their settlement partners and 99% of their loans. When lenders use Snapdocs, they get massive efficiency gains that result in faster closings and lower costs. They can turn their warehouse lines quicker and close more loans. They can also increase their full-time employees’ capacities, reducing the need to hire temporary staff during the busy seasons. Lastly, lenders have complete control over

digitizing their closings. They can easily add on digital components like eNote and remote online notarization across all or some of their closings. As digital closings become more widely accepted, lenders have a clear path for doing digital closings at scale with Snapdocs. Because lenders and settlement are connected on a single platform, there are also many shared benefits for both. On Snapdocs, closing information is consolidated in one place. A modern and intuitive interface provides clear visibility into the status of the closing for all parties. The amount of emails and phone calls is reduced, and the closing process can be shortened by two days or more. For borrowers, lenders can offer the ability to preview documents and eSign some of the documents prior to the in-person closing appointment. Borrowers can also ask questions and communicate with their loan officer and escrow officer in one place. With these tools, the closing appointment is transformed from an hour-long arduous and rushed meeting to a stress-free celebratory occasion that can be as short as 15 minutes. Even if it’s a wet closing, borrowers are less anxious because they’ve had time, prior to the closing, to become familiar with the documents they’re going to sign. By drastically improving the closing for all parties, Snapdocs makes it possible for lenders to overcome eClosing adoption challenges and successfully scale digital closings. “Snapdocs truly brings value to lenders, settlement, and borrowers,” said Snapdocs CEO Aaron King. “When a lender or settlement company chooses to implement Snapdocs, their customers and partners benefit from a more efficient, modern and simple closing experience.”

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States Title transforms closings with machine intelligence STATESTITLE.COM SERVICE: u States Title DESCRIPTION: u S tates Title is intelligently transforming closings by applying machine intelligence to make residential real estate simple and efficient, allowing you to close more loans, faster.

For 80% of properties, States Title can instantly underwrite and is able to issue a clear-to-close ALTA policy within a few minutes.” 88 HOUSINGWIRE ❱ SEPTEMBER 2019

hen States Title CEO Max Simkoff purchased his first home in 2011, he noted the inefficiencies and outdated structure of the current title and escrow process and set out to improve it. Simkoff’s frustration with the process as a homebuyer led to the founding of States Title, which aims to transform those processes and improve the experience for both borrowers and lenders. As one of the nation’s largest title and settlement providers, the States Title Solution enables lenders to provide their customers with a differentiated, efficient and more cost-effective solution. Instead of following the traditional title and escrow process or automating it, the company revolutionized the process by leveraging machine intelligence and predictive analytics to understand the risk on any given property. States Title allows lenders to issue a clearto-close in minutes instead of weeks by replacing the time- and labor-intensive title search process with a predictive analytics algorithm that utilizes a forward-thinking, risk-based insurance model to clear title commitments instantaneously. This model means transactions are processed faster with less back-and-forth between the parties, their agents and financial institutions — improving the certainty and pull-through rate of closings without introducing risk. In addition, States Title ensures that focused customer support is kept at a high bar. The Customer Success team partners with clients from before the first order, ensuring all required technology and procedures are captured and implemented. The Customer Success team also trains the client’s operations teams on the States Title system. This team is designed to ensure States Titles’ high standards for service are met and each team member on the client’s side has visibility.

States Title’s clients benefit in four key ways: u A FFORDABILITY: It enables the reduction in cost per loan. On average, users experience a 35% increase in profit margin on loan origination. u E FFICIENCY: Loans that use the States Title process close up to 20% faster, which means the clients’ team is able to handle more volume, increasing their total revenue. u C ERTAINTY: States Title provides an increase in speed for both the discoverability of an issue with a loan and the loan-closing process itself. This increases the overall certainty that a loan will close, growing overall revenues. u T RANSFORMATIVE: The States Title process is a future-proof solution that will scale with a client’s operations, empowering them with a robust modern platform to support their customers’ needs. By applying machine intelligence, the States Title Predictive Underwriting solution analyzes millions of data points about a property to see if it can be underwritten instantly. For 80% of properties, States Title can instantly underwrite and is able to issue a clear-to-close ALTA policy within a few minutes. States Title is currently serving refinance transactions for national lenders in Arizona, California, Colorado, Illinois, Maryland, Michigan, Minnesota, Ohio and Virginia, and their territory is rapidly expanding.

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Tavant VELOX is AI-powered to solve complex challenges TAVANTVELOX.COM PRODUCT u Tavant VELOX DESCRIPTION: u T avant VELOX is the leading AI-powered digital lending product suite. Maximizing data-driven processes, the platform automates the loan origination lifecycle and seamlessly integrates with the existing loan origination solution. With VELOX, lenders provide a superior borrower experience, digitally transforming the home-buying process from the initial home discovery search to the final loan funding phase.

What sets us apart from other fintech providers is our ongoing commitment to strategically reinvest 15% of our annual revenues to enhance the VELOX platform...”

rtificial intelligence tends to be a buzzword in the mortgage industry, making it difficult to decipher which fintech providers truly maximize the power of AI. Tavant’s suite of AI-powered digital lending products optimizes the back-office, simplifies the mid-office and transforms the front-end consumer experience into an efficient digital data flow — unleashing the true capabilities of AI and reducing origination costs by 35%. “What sets us apart from other fintech providers is our ongoing commitment to strategically reinvest 15% of our annual revenues to enhance the VELOX platform, ensuring that it continues to meet evolving customer marketplace expectations and demands while delivering the highest impact and business value,” said Tavant CRO Hassan Rashid. Recently, Tavant launched an enhanced version of its FinSight Retention Intelligence product. FinSight, a component of the Tavant VELOX platform, is a suite of predictive insights engines powered by AI and machine learning capabilities. FinSight Retention Intelligence allows lenders and servicers to predict and manage portfolio churn and focus on customer retention, reducing the amount of marketing touches by 50%. Additionally, the company expanded the VELOX platform to address the home equity line of business. The VELOX suite of products for home equity enables a seamless digital experience across the application process that cuts down the time to decision and the time to fund significantly. Overall, VELOX optimizes the digital engagement to deliver a fluid experience to customers and maximizes the use of data-driven processes. It further enhances the loan application intake through the retail, broker and correspondent channels, improving operations productivity and reducing loan cycle times while increasing overall profitability.

The platform delivers a cohesive solution that enables customer acquisition, predicts conversion, helps borrowers with self-service pre-approvals and enables straight through processing leading to initial underwriting. Tavant VELOX features these modules: u FINXPERIENCE: POS solution that provides a simplified digital experience u FINLEADS: A Salesforce-based customer engagement and acquisition platform u FINCONNECT: An enterprise service bus and an intelligent lending data and services network that integrates with more than 120 ecosystem partners u FINSIGHT: A suite of predictive engines that deliver actionable insights based on deep learning models u FINRULES: A single-click AUS platform that provides a side-by-side comparison of the GSE guidelines and recommends a path for best execution “The lack of visibility into the sales pipeline, multiple lead providers and disparate data sources constrain the organization. We have increased our operational efficiencies and improved our loan officers’ productivity with Tavant FinLeads’ omnichannel customer engagement functionality coupled with powerful Salesforce capabilities,” said VELOX user and NewRez Chief Marketing Officer David Haggert. “Onboarding to FinLeads helped us gain an integrated view of pipelines across our office locations nationwide, enabling us to improve sales productivity and increase per LO application rate by 30% in the first three months.”

HOUSINGWIRE ❱ SEPTEMBER 2019 89

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Cyndi Danko

Justin Duff

VP OF SINGLE-FAMILY CREDIT RISK POLICY

DIRECTOR OF CORPORATE FINANCE

Congratulations to our HousingWire Insiders! We are proud of Cyndi and Justin for their work in driving our industry forward and celebrate their innovation.

They set the standard for our teams, who are committed to solving housingâ&#x20AC;&#x2122;s biggest challenges.

Together, we are advancing mortgage financing to create a faster, better, cheaper, safer mortgage system.

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DID YOU KNOW RentWire is HousingWire’s news coverage of the multifamily housing market. Go to HousingWire.com to sign up and stay informed!

RentWire

America’s rental market heats up as its housing market takes a breather RENTAL PRICES HIT A MEDIAN OF $1,465 IN JUNE BY ALCYNNA LLOYD

According to the company’s Mid-Year Rent Report, the national ALTHOUGH the housing market continues to experience a slowdown in home price appreciation, new data from Zillow suggests average rent in June totaled $1,465. Not only is this a 0.8% increase from the previous month, but it is also 2.6% higher than the nation’s rental market is thriving. According to the company’s Real Estate Market Report, U.S. rent the same period in 2018. RentCafé’s data shows that 88% of the cities analyzed in its prices accelerated for the ninth-straight month in June. As of now, the average apartment costs the typical renter $1,483 report experienced a rent increase in the first half of the year. per month. This translates to a 3% annual increase, as rent is now In June alone, 35% of the country’s largest 260 cities had rents that exceeded the national average, whereas only 5% of rents fell up in 49 of the nation’s top 50 rental markets. “As much as record numbers of new apartments led many to below this median. Once again, expensive coastal cities maintained the reputation believe that rental markets might have become over saturated with new supply, the reality is that demographics and general eco- of hosting the nation’s least affordable rental markets. To no surnomic health continue to keep the pressure on,” Zillow Director prise, Manhattan lead the charge as America’s most expensive rental market with rent reaching a high of $4,190, according to of Economic Research Skylar Olsen said. And another report showed similar increases to rental prices RentCafé. “The most expensive renter hubs in the United States are still in June. RentCafé indicates that the nation’s mid-year average rent popular cities with strong local economies,” RentCafé writes. “Manhattan keeps the title of most expensive in the U.S. with rents spiked $37 from the previous year. HOUSINGWIRE ❱ SEPTEMBER 2019 93

“As much as record numbers of new apartments led many to believe that rental markets might have become over saturated with new supply, the reality is that demographics and general economic health continue to keep the pressure on.” -Zillow Director of Economic Research Skylar Olsen

in the $4,000s while renting in Los Angeles, Washington, DC, and Seattle, WA range between the $2,000s and $2,500s.” “Notably, Chicago, IL ($1,990) and Denver, CO ($1,670) are the last 2 large renter hubs among the 20 analyzed with apartment rents above the $1,465 national average,” the report states. “Renting in Chicago is 4.8% more expensive in June compared to the beginning of the year, while in Denver it is 3.6%.” And although rental prices are ticking up in the majority of the nation’s rental markets, RentCafé indicates that rent in Wichita, Kansas continues to be the most affordable in the country at $656 per month. This is followed by Tulsa, Oklahoma where rent sits at a low of $696 and Toledo, Ohio with $721.

And while the pressure may be on for America’s renters, Zillow’s data indicates its homeowners are seeing the market stabilize as home prices moderately rose to $227,700 in June. All in all, this represents a 5.2% year-over-year increase, which is a decline from last year’s 7.6% annual growth. “The typical U.S. home is worth $227,700, up slightly from May after month-over-month values dropped for the first time in seven years this spring,” Zillow writes. “That’s a stronger confirmation that housing markets are stabilizing as opposed to on the brink of an imminent downturn.” Despite this reading, a survey from CoreLogic indicated that home prices are set to increase by 5.6% by May next year. And although this increase may be beneficial to homeowners, CoreLogic highlights this could have a negative impact on many potential homebuyers. “The recent and forecasted acceleration in home prices is a good and bad thing at the same time,” CoreLogic President and CEO Frank Martell said. “Higher prices and a lack of affordable homes are two of the most challenging issues in housing today, and every buyer, seller and industry participant is being impacted. The long-term solution lies in expanding supply, which will require aggressive and effective collaboration between policy makers, state and local government entities and home builders.”

National Average Rent: (Source: RENTCafé, Yardi Matrix)

January 2017:

$1,348

June 2017:

$1,379

94 HOUSINGWIRE ❱ SEPTEMBER 2019

January 2018:

$1,383

June 2018:

$1,420

January 2019:

$1,428

June 2019:

$1,465

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96 HOUSINGWIRE ❱ SEPTEMBER 2019

DID YOU KNOW Ben Lane sends LendingLife updates twice a week by email? Go to HousingWire.com to sign up and stay informed!

Quicken Loans, State Farm mortgage partnership shakes the housing industry to its core J.D. POWER SAYS THE MOVE COULD PAY “HUGE” DIVIDENDS BY BEN LANE

FOR years, State Farm agents could offer mortgages to their customers through State Farm Bank, the company’s banking arm that offers home loans, auto loans, checking accounts, savings accounts, credit cards and other traditional banking services to State Farm customers. But that won’t be the case for much longer. Soon, State Farm will begin using Quicken Loans to originate mortgages for its customers thanks to a significant new partnership between the two companies. According to the companies, State Farm agents who are licensed loan originators will actually be able to originate a mortgage for their customers using Quicken’s Rocket Mortgage platform. Quicken launched Rocket Mortgage more than three years ago,

offering mortgage pre-approvals in minutes and jumpstarting a digital mortgage revolution. Since then, Rocket Mortgage has grown substantially. According to Quicken, 98% of all mortgages originated by Quicken make use of Rocket Mortgage technology. And within the next few months, Quicken Loans will make new Rocket Mortgage technology available to State Farm agents that will allow the agents to offer a Rocket Mortgage loan as a licensed loan originator. According to the companies, State Farm agents will be able to help their customers get conventional mortgages backed by Fannie Mae or Freddie Mac, Federal Housing Administration mortgages, Department of Veterans Affairs mortgages, Department of HOUSINGWIRE ❱ SEPTEMBER 2019 97

“This partnership could be huge for State Farm, which has smaller proportion of younger customers than many of their competitors. Quicken Loans, for its part, performs at the top when it comes to customer satisfaction, so adding this digital gem to the State Farm portfolio of services is compelling for insurance customers. Also, Quicken Loans has a more centralized national distribution model, so this more local distribution channel could be powerful for the mortgage giant.” - J.D. Power Agriculture loans and jumbo mortgages. The companies state that the rollout of this program will take place over the next several months with all new mortgages originated by State Farm agents through Rocket Mortgage. It’s unclear how many of State Farm’s nearly 19,000 agents are licensed loan originators (which they’d need to be to originate a mortgage, whether that’s through Quicken Loans or State Farm Bank), but the potential of the relationship with Quicken Loans is massive for all parties involved, according to analysis of the deal from J.D. Power. “This partnership could be huge for State Farm, which has smaller proportion of younger customers than many of their competitors,” J.D. Power wrote in a report on the deal. “Quicken Loans, for its part, performs at the top when it comes to customer satisfaction, so adding this digital gem to the State Farm portfolio of services is compelling for insurance customers,” J.D. Power continued. “Also, Quicken Loans has a more centralized national distribution model, so this more local distribution channel could be powerful for the mortgage giant.” According to J.D. Power, the deal offers State Farm customers

The action or process of investing money for profit or material result.

98 HOUSINGWIRE ❱ SEPTEMBER 2019

the “best of both worlds” as it brings together the technology of Rocket Mortgage, which enables much of the mortgage process to be completed electronically, with the “high touch” of a State Farm agent. “Customers increasingly prefer and rely on digital tools for servicing and transactions, but mortgage and insurance customers have struggled with these tools when it comes to more handling more complex transactions,” J.D. Power wrote. “Quicken Loans Rocket Mortgage application, paired with the in-person guidance of a State Farm agent can be an optimal outcome for customers who want the streamlines process offered by Rocket Mortgage but with access to professional guidance,” J.D. Power continued. J.D. Power also sees this relationship as a potential “boon” for first-time homebuyers, who often need some help through the buying process. “Streamlining the digital and non-digital customer service ends is important for all customers, but can be a particular boon to younger, first-time buyers, who prefer digital but also want some handholding through the mortgage process since they have no

Wealth in the form of money or other assets owned by a person or organization or available or contributed for a particular purpose such as starting a company or investing.

The exchange of a commodity for money; the action of selling something.

State Farm and Quicken Loans are also two of the most prolific prior experience and it’s the largest purchase they will ever make,” J.D. Power wrote. “The need for guidance among first-time buyers advertisers in the country, with both companies blanketing the benefits State Farm with the opportunity to in essence ‘bundle’ media landscape with ads on TV, radio, and the internet. Imagine, a policy with that mortgage and capture a segment of customers for a moment, a State Farm and Quicken co-branded mortgage ad showing up during the Super Bowl. It’s not too far-fetched considwith whom they currently have lower overall appeal.” But the deal isn’t without its challenges, both from the consum- ering the money both companies already spend on advertising. In the first few days after the deal’s announcement, mortgage er perspective and for the companies themselves. “Many borrowers do not qualify for the streamlined Rocket originators were already expressing concern about how much Mortgage process, so State Farm might also have to contend with more business Quicken Loans could swallow up as the result of customers who require more manual mortgage origination chan- this partnership. In the end, the impact of this deal will likely come down to how nels, which would take more time,” J.D. Power wrote. “Also, this move raises a question about the pricing that insur- many State Farm agents want to pursue mortgages as an arm of ance customers will receive if they also originate a mortgage loan their business. If the adoption of this program is high, look out. “Our goal is to help people live life confidently. An important through State Farm,” J.D. Power continued. “How will State Farm handle customers wanting to shop for low rates on their home- component of that is helping people achieve their dream of homeowner, and, and would there be restrictions? Conversely, would ownership,” said Joe Monk, senior vice president, financial serthey also receive the best pricing on rates from Quicken Loans, vices for State Farm. “As the nation’s largest mortgage lender, Rocket Mortgage or would there be bundled pricing required?” Beyond that, J.D. Power wonders about the education process brings a proven track record of strong product offerings, consisthat will be necessary for the State Farm agents who are not cur- tent financial strength, and award-winning service,” Monk added. “We are excited about this opportunity to help even more people rently licensed loan originators. But with almost 19,000 State Farm agents in the fold, there is through the power of this alliance.” Current State Farm Bank mortgage customers will not be imvery serious potential for this to be a huge deal. Quicken Loans may be about to bring on one of the largest mortgage sales forces pacted, the company said. “We aim to provide the best mortgage experience possible, no in the nation, in addition to its already massive in-house team. matter where the client is or how they connect with us,” said Jay And, State Farm’s customer base is substantial. State Farm’s approximately 58,000 employees service approx- Farner, CEO of Quicken Loans. “Through this alliance, we will be imately 83 million policies and accounts, approximately 81 mil- able to combine Rocket Mortgage’s powerful mortgage processing lion of which are auto, fire, life, health and commercial policies, and underwriting technology with the advice and strong relationships built from the power of the State Farm agent network.” with approximately 2 million bank accounts.

A sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits.

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Program costs required beyond the development phase to introduce into operational use a new capability, to procure initial, additional, or replacement equipment for operational forces or to provide for major modifications of an existing capability. HOUSINGWIRE ❱ SEPTEMBER 2019 99

100 HOUSINGWIRE ❱ SEPTEMBER 2019

DID YOU KNOW KK Howley sends OpenHouse twice a week by email? Go to HousingWire.com to sign up and stay informed!

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Housing affordability drops as wages rise at sluggish pace ECONOMIC EXPANSION IS DOUBLE-EDGED SWORD BY KATHLEEN HOWLEY AND ALCYNNA LLOYD

EVEN as mortgage rates tumbled this spring, homes became more unaffordable for buyers. Blame stagnant wages that aren’t keeping up with home-price gains. The National Association of Realtors’ Housing Affordability Index dropped in each of the three months ended in May while the share of monthly income going toward paying for homes rose to a five-month high. U.S. household income has been rising, albeit at a sluggish pace even as the nation’s unemployment rate remained near the five-decade low it reached in April and May. Median household income was $64,430 in June, up almost 1% from the prior month, according to a July report from Sentier Research. “Median household income has continued to display an upward trend over the past 12 months,” said Gordon Green of Sentier, a former U.S. Census Bureau official. But, when measured over a longer period that includes the retrenchment seen in the wake of the financial crisis, the numbers

are a bit more depressing. “Household income is 4.7% higher than January 2000, the beginning of this statistical series,” said Green, citing inflation-adjusted data. “Not an impressive performance by any means over a period spanning almost two decades, but the overall trend line has been positive for about seven years.” In the same period, from 2000 through this year, home prices have risen about 30%, based on inflation-adjusted Census data. In recent months, home-price gains have moderated, but remain above the reach of many young families. “Home prices were up 3.4% in June, a modest growth rate compared to the 7% to 9% price jumps regularly seen in early 2018, and mortgage interest rates are lower than they’ve been in nearly two years,” stated a Redfin report in July. “But the rampant home-price growth in the most affordable segment of the housing market is problematic for working- and middle-class buyers, the group of people who would have the most trouble affording any HOUSINGWIRE ❱ SEPTEMBER 2019 101

“Median household income has continued to display an upward trend over the past 12 months.” - Gordon Green of Sentiera

home.” Part of the problem is a shortage of entry-level homes, Redfin Chief Economist Daryl Fairweather said. “Now that the economic expansion is in its 10th year, some working- and middle-class Americans are finally starting to see wage increases significant enough to ready them to buy their first homes,” Fairweather said. “But economic growth is a double-edged sword for the housing market. The increase in demand for low- and moderately-priced starter homes is pushing up prices

102 HOUSINGWIRE ❱ SEPTEMBER 2019

for the most affordable segment of the market.” Fairweather explained that within the next few years, prices for the most affordable homes are likely to continue growing rapidly. This will eventually push homeownership further out of reach for America’s low-income population. This could be said for homeowners in Camden, New Jersey and Detroit, which were home to the biggest home-price gains for the most affordable homes. In these usually affordable housing markets, home prices rose by 28% and 22.7% year over year in June. Redfin Agent Adam Rasor said there are is now an imbalance of demand and affordability in Detroit, which has led to an increase in competition. “There are simply more homebuyers than homes for sale at the more affordable price point here in Detroit, which makes that part of the market more competitive and eventually drives up prices,” Rasor said. “The other piece of the puzzle is that we get quite a few people moving into Michigan from more expensive places like Chicago, Seattle and California specifically for the affordability.” “And those people aren’t selling a million-dollar home in California to buy another million-dollar home in Detroit,” he added. “They tend to want to cut their housing payments substantially while still getting something larger for a growing family.” Millennials, people born between 1981 and 1996, made up 42% of this spring’s home-shoppers, according data from a survey conducted by realtor.com “Based on our user responses, just under half

OpenHouse

of all home shoppers this spring were searching for their first “Home prices were up 3.4% in June, home, and many of them were aging Millennials likely driven by a modest growth rate compared to life events such as moving in with a partner, getting married or the 7% to 9% price jumps regularly starting a family,” realtor.com wrote. “It may come as a surprise to some people that Millennials are looking to small towns or seen in early 2018, and mortgage suburbs, but when it comes to buying a home, Millennials aren’t interest rates are lower than they’ve that different than other generations.” been in nearly two year. But the ramAnd they really aren’t that different, as the company noted the vast majority of these young shoppers indicated housing affordpant home-price growth in the most ability was their top concern when purchasing a new home. affordable segment of the housing In fact, 42% of first-time buyers said they haven’t closed on market is problematic for workinga home yet because they can’t and middle-class buyers, the group find a good house of people who would have the most within their budget trouble affording any home.” range, according to the survey. - Redfin, July 2019 In April, NAR and realtor.com released a survey that showed housing affordability is now down from 2018 levels, and fewer the U.S. economic expansion turned 10 years old in July, the U.S. households can afford the Census Bureau announced construction spending in the prior prices of homes for sale based month was estimated at a seasonally adjusted annual rate of $1.29 trillion. on their income. Although June’s rate is similar to May’s, the organization indiAccording to their findings, first-time homebuyers can afford cated June’s spending is 1.3% below the June 2018 estimate of only 20% of housing stock in some $1.31 trillion. This means June’s level now represents the largest decline since November of last year. of the nation’s housing markets. Spending on private construction was at a seasonally adjusted “The survey confirms that the lack of entry-level supply is putting affordability pressures on too many annual rate of $962.9 billion, 0.4% below the revised May estibuyers – especially those at the lower end of the market, where mate of $967 billion. Of that, residential construction spending was at a seasonaldemand is the strongest,” NAR Chief Economist Lawrence Yun said. “This is why first-time buyers continue to struggle finding ly adjusted annual rate of $507.2 billion in June, which is 0.5% affordable properties to buy and are making up less than a third below the revised May estimate of $509.7 billion. June’s Housing Market Index revealed that as cost and labor of home sales so far this year.” At the end of July, the 30-year, fixed-rate mortgage averaged concerns continue to grow, homebuilder confidence has begun 3.75%, near a three-year low. A year earlier, the rate averaged to diminish. According to the National Association of Home Builders and 4.6%, according to the Freddie Mac Primary Mortgage Market Wells Fargo, the index measuring current sales conditions reSurvey. “Mortgage rates have essentially stabilized over the last two treated to 71 points and expectations for the next six months months, which reflects the recovery and improvement in the dropped to 70. “Despite lower mortgage rates, home prices remain somewhat economy from the malaise earlier in the year,” Freddie Mac Chief Economist Sam Khater said in a July report. “Going forward, the high relative to incomes, which is particularly challenging for combination of low mortgage rates, tight labor market and high entry-level buyers,” NAHB Chief Economist Robert Dietz said. consumer confidence should set up the housing market for con- “And while new-home sales picked up in March and April, buildtinued improvement in home sales heading into the late summer ers continue to grapple with excessive regulations, a shortage of lots and a lack of skilled labor that are hurting affordability and and early fall.” Part of the affordability problem is the lack of new supply. As depressing supply.” HOUSINGWIRE ❱ SEPTEMBER 2019 103

Inside Baseball

104 HOUSINGWIRE ❱ SEPTEMBER 2019

Inside Baseball

HUD suspends down payment assistance rule change “until further notice” RESPONDS TO JUDGE’S RULING IN LAWSUIT WITH NATIVE AMERICAN TRIBE BY BEN LANE, JESSICA GUERIN

THE U.S. Department of Housing and Urban Development issued a notice to lenders announcing the formal suspension of its rule change to down payment assistance guidelines. According to the bulletin, HUD is halting the effective date of the mortgagee letter, suspending the guidance “until further notice.” HUD announced it is halting its expected changes after a federal judge in Utah said at a hearing that he would be granting a motion to delay the implementation of changes to the Federal Housing Administration’s down payment assistance rule as a debate over the new guidance rages on in federal court. While HUD labeled the new rules as merely “informal guidance” intended to bring more clarity, a group of Utah-based Native Americans took issue with the mandate, which claimed that the rules effectively put its down payment assistance program out of business. That led to a lawsuit filed against HUD on behalf of the Cedar

Band of Paiutes, a federally recognized American Indian band that operates the Cedar Band Corp. and the CBC Mortgage Agency. The debate began when, earlier this year, HUD announced that it is issuing new rules for down payment assistance on mortgages insured by the FHA. The FHA currently requires borrowers to provide a minimum down payment (or Minimum Required Investment, referred to by HUD as MRI) of 3.5% of the home’s purchase price. FHA rules allow family members, employers, and “governmental entities” to contribute to a borrower’s minimum down payment. And “governmental entities” are apparently the issue at hand. According to HUD, the FHA will now require certain additional documentation for borrowers who are using funds from another person or entity to “satisfy any portion of the MRI,” including specific documentation for when a “governmental entity provides down payment assistance to qualified borrowers within the governmental entity’s jurisdiction.” HOUSINGWIRE ❱ SEPTEMBER 2019 105

Inside Baseball The new rules are laid out in an FHA mortgagee letter titled “Downpayment Assistance and Operating in a Governmental Capacity.” According to HUD, this “clarification” of the current documentation rules “should assist mortgagees in determining whether governmental entities providing gifts or secondary financing, or both, towards borrowers’ MRI are doing so consistent with FHA requirements.” As the FHA states in its mortgagee letter, the current FHA handbook requires mortgagees to confirm that a “governmental entity is operating in its governmental capacity but, except for requiring a source of funds letter, does not specify the necessary documentation that demonstrates support for such a conclusion.” “FHA’s current handbook requires Mortgagees to confirm that a Governmental Entity is operating in its governmental capacity but, except for requiring a source HUD has long sought to strik of funds letter, does not specify the nece the approp sured mortgag riate balance es available to essary documentation that demonstrates between mak qualified borro In addition, th ing FHA inwers and redu e National Hou support for such a conclusion,” the letter cing program sing Act has in mitigate risk matic risk. cluded specifi by requiring th c provisions de e borrower to states. purchase a pr signed to provide a min operty with FH imum cash in A-insured fin According to HUD, that lack of “necescertain source vestment to ancing and, si s from provid nce 2008, by ing funds to th Required Inve sary documentation” is leading to some pr ohibiting e bo rro stment (MRI wer to satisfy ). On Decembe this Minimum an Interpretiv unnamed “entities” skirting the rules. r 5, 2012 at 77 e Rule “Prohi F.R.72219, HU bited Sources National Hou D published “It has come to FHA’s attention that of Minimum Ca sing Act” (Int sh Investmen er pr et ive Rule) to ex MRI requirem t Under the certain Governmental Entities may be ents when fu plain how HU nds are being D interprets th namely Fede provided by Go ese ral, State, loca acting beyond the scope of any inhervernmental En l governments ities. As explai tities, and their agen ned in the Inte ent or granted governmental authorcies or instrum rpretive Rule, various servic entalHousing Fina es to assist ci ity in providing funds towards the nc e Agencies pr tiz en s housing optio within their ju ov ide ns. This ML cl risdictions in Borrower’s MRI in circumstances that attaining affor arifies docum provision of do en dable ta tio wnpayment n requiremen would violate Handbook 4000.1, the assistance w ts regarding th entities by pr ithin the juris e oviding clarifi dictions of go cation of docu National Housing Act, and is contrary strate compl vernmental mentation re iance. FHA’s cu quirements to rrent handbo to established law,” the FHA said in a Governmen demonok requires M tal Entity is op ortgagees to erating in its for requiring a confirm that the mortgagee letter. go ve rn source of fund mental capa city but, exce s letter, does tation that de In order to remedy this situation, pt not specify th monstrates su e necessary do pp ort for such a attention that cumenthe FHA is stating that its current docconclusion. It certain Govern has come to mental Entit of any inhere FHA’s ies may be ac umentation requirements need to be nt or granted ting beyond th governmenta the Borrower e scope l authority in ’s MRI in circum “clarified to provide Mortgagees with providing fund stances that National Hou s towards would violate sing Act, and specific guidance regarding docuHandbook 40 is co ntrary to esta documentatio 00.1, the blished law. In n requiremen mentation that will give greater reviewing its ts for Mortgag requirements current ee s, FHA has dete should be clar assurances that the standards for rmined that th ified to provid regarding docu ose e M or tg m agees with sp entation that providing the MRI have been satecific guidance will give grea for providing ter assurances the MRI have that the stan been satisfie isfied by the Governmental Entity.” d by the Gove dards rnmental Entit According to HUD and the FHA, y. the new rules took effect on April 18, 2019. 106 HOUSINGWIRE ❱ SEPTEMBER 2019

Inside Baseball

But now HUD is delaying its changes in wake of Cedar Band’s charges, currently pending in federal court. According to the suit, HUD’s new guidance “unlawfully targets American Indian tribes and bands by prohibiting them from participating in home-purchasing assistance programs and thus threatens a critical source of revenue for the Cedar Band.” The lawsuit sought an order to immediately halt the policy’s enforcement on the grounds that it was adopted without issuing proper notice and opportunity for comment, and that it stands in violation of federal law. Immediately following the suit’s filing, HUD issued a 90-day stay to review the policy in light of the Cedar Band’s claims. Now, as the battle continues in court, a federal judge is formally halting the implementation of the new rule until the case can be decided. Helgi Walker, lead counsel for the group and a partner Gibson Dunn, said the Cedar Band was happy to see the mortgagee letter

delayed. “We are pleased with the district court’s attentive and thoughtful approach at the hearing on our motion for a preliminary injunction against the HUD Mortgagee Letter,” Walker said. “We are extremely gratified that the court orally indicated it would grant our motion, and we look forward to reviewing the forthcoming opinion.” “This relief is critically important to Chenoa, CBCMA, and the Cedar Band, as well as the borrowers who rely on CBCMA for down payment assistance,” Walker continued. The Cedar Band Corp. operates the CBC Mortgage Agency, which provides down payment assistance to borrowers nationwide through its Chenoa Fund. Through its programs, CBC Mortgage Agency earns money that goes to the Cedar Band, which uses the money to fund economic, cultural, and educational programs, and maintain the Cedar Band’s buildings on a reservation.

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REgi terN

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Kudos GIVING BACK • TRUIST BANK ANNOUNCES $60 BILLION COMMUNITY INVESTMENT PLAN BB&T and SunTrust Bank aligned forces earlier this year, emerging together as Truist Bank. Now, Truist partnered with the National Community Reinvestment Coalition to launch a three-year, $60 billion community benefits plan that will increase financial resources for low- and moderate-income communities. The plan will focus on affordable housing and small business development, economic stability and mobility, workforce development and public safety, the companies said. The bank also committed to opening at least 15 news branches in LMI and minority communities. “Many bank mergers proceed without any detail on how communities will benefit from the combination,” NCRC CEO Jesse Van Tol said. “However, BB&T and SunTrust showed tremendous leadership by participating in a collaborative process with NCRC and our community-based member organizations to establish the largest-to-date community benefits plan. This plan spells out a substantive and detailed commitment of loans, investments and services to LMI people and neighborhoods across 17 states and the District of Columbia.”

• THE GUARANTEED RATE FOUNDATION REACHES $3 MILLION GIVING MILESTONE The Guaranteed Rate Foundation has reached a new giveback milestone of more than $3 million to be donated to individuals across the U.S. The foundation helped more than 300 individuals thus far who have experienced unforeseen hardships and is on pace to grant over $1 million in 2019, a 68% increase from 2018, the foundation said. “We started the foundation five years ago with the focus of making a meaningful difference in someone’s life who is in desperate need of help,” said Victor Ciardelli, Guaranteed Rate founder and CEO. “Today, we feel blessed to have provided over $3 million of support for individuals in need.” With 100% of overhead expenses covered by Guaranteed Rate, every penny donated to the foundation goes directly to someone in desperate need of help. The average Guaranteed Rate recipient receives $20,428 in forms of grants for rent, car payments, groceries or additional assistance. 110 HOUSINGWIRE ❱ SEPTEMBER 2019

TOP WORKPLACE • FANNIE MAE RECOGNIZED AS TOP PLACE TO WORK FOR IT PROFESSIONALS Fannie Mae was named one of the 100 Best Places to Work in IT for 2019 by IDG’s Computerworld. This is the second year the company has been recognized for its workplace culture and mission, climbing to number 34 in the large organizations category. “The mortgage process is unnecessarily complex,” said Kimberly Johnson, Fannie Mae chief operating officer. “It is ripe for innovation and our technology team is helping drive positive change. We are delighted to be named one of the best places to work for IT professionals. We’ve made big improvements within our industry and there is much more underway. Being a great place to work that helps people access affordable homeownership is about as rewarding as it gets.”

other lenders. Their commitment to this service has led to tremendous growth where we can better assist communities nationwide in achieving their homebuying goals. We aim to continue that tradition.”

• GUILD MORTGAGE NAMED 2019

• CHURCHILL MORTGAGE NAMED

TOP WORKPLACE IN ST. LOUIS Guild Mortgage was named a 2019 Top Workplace by the St. Louis PostDispatch. Guild, which employs 162 people in the greater St. Louis area, was ranked No. 27 in the midsize company category in this year’s rankings. “We value the Top Workplace program because it puts the employee at the center of the process,” Guild president and CEO Mary Ann McGarry said. “Our culture is based on doing what’s right and a commitment to empowering our people. We’re very pleased that our employees feel we are providing the right tools they need to succeed.”

TOP WORKPLACE FOR 7TH CONSECUTIVE YEAR Churchill Mortgage has been recognized as a Top Workplace by The Tennessean for the seventh consecutive year. The Tennessean assesses companies based on positive employee feedback gathered through anonymous surveys. “Working for a company like Churchill Mortgage is inspiring,” said Stephanie Christian, Churchill Mortgage director of sales conversion. “They truly value people over profits, which is reflected across the entire organization and through the close relationships built with borrowers. The environment here has cultivated a culture and commitment to mentoring borrowers throughout their journey towards debt-free homeownership. At the end of the day, helping someone achieve financial freedom is truly rewarding.” “Recognition alone as a top workplace is an accomplishment, but to be named seven years in a row is a testament to our dedication to cultivating an outstanding team and environment,” Churchill President Mike Hardwick said. “Our employees are our most important assets and what allows us to deliver service unlike

• VETERANS UNITED HOME LOANS RECOGNIZED AS ONE OF THE TOP WORKPLACES IN THE COUNTRY FOR MILLENNIALS Veterans United Home Loans has been named one of the country’s 100 Best Workplaces for Millennials in 2019, coming in at No. 11 on a list compiled by Great Place to Work and FORTUNE. The full-service lender with corporate offices in Columbia, Missouri; Lenexa, Kansas; and Irving, Texas, specializes in helping veterans use their VA home loan benefit to achieve the dream of home ownership. It is the largest VA lender in the country and has nearly 2,700 employees nationwide, of which more than 1,800 are Millennials. “Our employees foster a work environment that promotes opportunities for friendship, growth and success across generations,” said Amanda Andrade, Veterans United chief people officer. “Having a collective mission to enhance lives provides us with unity and common goals that include serving our Veterans and their families, our communities and each other.”

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AWARDS • FREEDOM MORTGAGE’S MICHAEL MIDDLEMAN RECEIVES PHILANTHROPY AWARD Freedom Mortgage Executive Vice President Michael Middleman has been recognized by The Philadelphia Inquirer for his philanthropic contributions to the United Service Organizations in support of military families. Middleman, who founded Freedom Mortgage’s First Flyer recruitment and training program, received The Inquirer’s Leadership

Award at the newspaper’s Corporate Philanthropy Conference and Awards ceremony. The Leadership Award recognizes executives who are “champions of charity in the workplace,” by empowering employees to support charitable activities. “While I am honored to receive this recognition, philanthropy to me is not about winning awards – it’s a way of promoting positive changes in our communities,” Middleman said. “Our mission at Freedom Mortgage is to

foster homeownership, which means that our connection to our employees, our customers and the communities in which we serve does not end once a mortgage is complete.” “Whether it’s providing relief when natural disasters occur, filling the shelves of food shelters, providing children of military families with back to school supplies, or financing home builds for those who have served our country, we are here to help,” Middleman added. HOUSINGWIRE ❱ SEPTEMBER 2019 111