heard on the street
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www.LoanSCORECARD.com Web portal as a standalone solution. For more information, visit www.loanscore.com.
Mortgage finance and investment vets launch RMBS loan level data company, BlackBox Logic LLC By Tommy A. Duncan, CMT
MARCH 2010 O
CONNECTICUT MORTGAGE PROFESSIONAL MAGAZINE
O www.NationalMortgageProfessional.com
What can loan officers learn from the 2009 Year-End Review for Quality Control?
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For starters, loan officers can learn to be responsible for the items in the loan process that reflect directly to loan officer’s work. The Application 1003 initial and final is a good place to start. When comparing non-supervised mortgagees (non-bank lenders) and supervised mortgagees (bank lenders), the initial Application 1003 ranks number one in problems with non-bank lenders at 11.14 percent in 2008 and 14.48 percent in 2009, a 3.34 percent jump. Bank lenders showed a 13.42 percent reading in 2008 and a 23.89 percent reading in 2009, a jump of 10.47 percent. Across the board, loan officers have performed poorly in meeting the standards on completing the initial 1003. However, bank lenders had a significant increase from 2008 to 2009 as compared to non-bank lenders. I must congratulate both loan officers who originate for non-bank entities and bank lenders for their good work in reducing errors on the initial Truth-inLending (TIL) and Good Faith Estimate (GFE). The initial TIL and GFE placed eighth for non-bank lenders and seventh for bank lenders. The non-bank lenders won that race in ranking; however, they went from 12.06 percent in 2008 to 7.19 percent in 2009, with a 4.87 percent improvement. The bank lenders went from 10.28 percent in 2008 to 6.91 percent, a 3.37 percent decrease. Bank lenders won the ranking as per the lease amount of problems by less than one percent, but non-bank lenders showed the greatest improvement on issues with the TIL and GFE for 2009. Non-bank lenders did better than bank lenders on the final 1003 Application. Non-banks placed sixth, with a 7.75 percent reading in 2008 and 9.19 percent in 2009 with an increase of problems by 1.44 percent, and bank lenders placed third with 13.16 percent in 2008 and 12.43 percent in 2009, a 0.73 percent improvement. Even though bank lenders improved their percentages in problems, their percentages with problems were higher than non-bank lenders. When comparing the same documents from non-supervised loan correspondents (brokers) to supervised loan correspondents (bank brokers), the number are just as surprising. Both the broker and bank broker had the initial 1003 Application rank as the number one problem area. Brokers went from 11.77 percent in 2008, to 18.91 percent in 2009, a 7.14 percent increase in problems. But the bank broker went from 15.13 percent in 2008 to 23.5 percent in 2009, an 8.37 percent increase. The bank broker maintains the highest problems with the initial 1003 Application. Both the broker and bank broker initial TIL and GFEs ranked sixth, and the percentiles remained somewhat consistent. However, brokers made slight improvements by 1.35 percent and bank brokers showed a slight increase in problems by 0.26 percent. Even though the brokers made improvements, they had a slightly higher percentile than the bank brokers. Brokers ranked seventh on the final 1003 Application, coming in at 10.98 percent in 2008 and 7.35 percent in 2009, an improvement by 3.36 percent, where bank brokers final 1003 Application ranked second for having highest quality control problems. Bank brokers went from 11.84 percent in 2008 to 14.29 percent in 2009 with a 2.45 percent increase in problems. As the numbers speak, there is room for improvement, as loan officers and management need to take steps in improving the quality of the loan process. This can be done by requiring excellence in what one does and in training. Quality Mortgage Services offers full mortgage compliance solutions and releases The 2009 Year-End Review. You may obtain a copy of this report by visiting www.qcmortgage.com.
Tommy A. Duncan, CMT is executive vice president of Quality Mortgage Services LLC. For answers to your QC and FHA questions, please contact Tommy at (615) 591-2528 or e-mail taduncan@qcmortgage.com. You may also visit Quality Mortgage Services LLC on the Web at www.qualitymortgageservices.com.
Sponsored by
A team of mortgage finance and investment management veterans have announced the formal launch of a new company, BlackBox Logic LLC, providing a database of loan level collateral underlying non-agency residential mortgagebacked securities (MBS) for investors, broker/dealers and researchers. BlackBox Logic also announced the availability of its loan level data aggregation service, called BBx Data, which covers the jumbo A, sub-prime and Alt-A mortgage markets. It includes more than 7,200 residential MBS, 21 million loans and nearly 600 million remittance records, dating back to 1999. Headquartered in Denver, BlackBox Logic has offices in New York and Bethesda, Md. The company is majority-owned by Braddock Holdings Company, the private equity affiliate of Denver-based Braddock Financial Corporation. Braddock is a Security & Exchange Commission (SEC)-registered investment advisor. The BlackBox Logic management team has more than 50 years of experience in designing, building and managing information technology systems for the securitized mortgage market. The team is led by Larry Barnett, chief executive officer; Wyck Brown, director of marketing and new business development; Bill Pugh, chief technology officer; Marty Schwartz, lead data modeler; and Dmitri Raskes, director of e-commerce solutions. “BlackBox Logic’s BBx Data offers the highest-quality payment data available on non-agency residential mortgagebacked securities,” said Barnett. “We use proprietary data cleansing logic to clean and verify each origination and payment record. The result is more complete, more accurate data, to meet even the most demanding user’s needs.” For more information, visit www.bbxlogic.com.
Cobalt Mortgage acquires Coulombe and Evered LLC Cobalt Mortgage has acquired the mortgage brokerage firm, Coulombe and Evered LLC . With this acquisition, Cobalt Mortgage
becomes the third largest retail mortgage lender in King County, Wash., behind Wells Fargo and Bank of America. “Coulombe and Evered has been a high quality mortgage company in the Seattle area for over a decade and has established a solid reputation for great service and integrity in lending,” said Keith Tibbles, president of Cobalt Mortgage. “This acquisition is part of Cobalt’s strategic plan to expand its market presence in Washington state. At a time when many mortgage lenders have decreased their loan availability, Cobalt has sustained and grown its customer base. It’s this business strategy that has led Cobalt to become the state’s largest independent lender. The mortgage industry now has more opportunity for well-run, well-capitalized companies than anytime in the past 10 years. Most of the national companies are simply not focused on providing great service to their customers and communities, which is our focus everyday.” “We are ecstatic to be joining the Cobalt family,” said Brad Evered, principal of Coulombe and Evered. “Cobalt has fantastic operations, support structure and cutting edge technology that will greatly improve our efficiencies and service to our clients.” For more information, visit www.cobaltmortgage.com.
OpenClose collaborates with Google on new Comparison Ads
OpenClose Mortgage Software, developers of Web-based, end-to-end mortgage loan origination software, is working with Google to provide loan rate and fee data feeds for Google’s AdWords Comparison Ads for mortgages. The new advertising feature will change the way borrowers search for loan product and pricing information and how mortgage lenders currently generate quality leads via the Internet. Users searching for “mortgage” on Google.com may see Comparison Ads that prompt them to select the type of loan to compare various rates. OpenClose will be providing lender data through its loan product and pricing engine, DecisionAssist. They can choose directly from the offers listed or further refine their search by providing additional information like income, home value or other parameters. They can also call the lender directly or request a quote. By using the direct feed from OpenClose, borrowers receive accurate, up-to-date rates empowering them to make informed decisions. continued on page 24