DECEMBER 2009
MICHIGAN MORTGAGE PROFESSIONAL MAGAZINE
www.NationalMortgageProfessional.com
new to market
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new disclosures are required and whether the timing of the disclosures meets statutory requirements. PredProtect compares the annual percentage rate (APR) at application to the most recently disclosed APR, applying a tolerance of one-eighth of one percent. The system then provides an “earliest closing date” calculation to ensure that the timing for initial or re-disclosure follows the new requirements. Users are automatically notified when a loan is out of compliance. This new feature, although optional, is being provided at no additional cost to Interthinx clients. “MDIA compliance presents one of the biggest challenges of 2009 for many lenders, especially those with dated origination platforms that lack the elasticity to adapt quickly,” said Roger Fendelman, vice president of compliance for Interthinx. “PredProtect offers lenders an easy way to comply with MDIA. It provides instant protection from additional scrutiny with written proof of compliance placed right in the loan file.” MDIA is a federal law that is part of the Housing and Economic Recovery Act of 2008 (HERA). MDIA requires that lenders wait seven days after the initial disclosure is provided before closing a home loan and an additional period any time the APR changes by more than one-eighth of one percent and re-disclosure is required. The law then requires an additional cooling-off period before the loan can be closed. This sequence is frequently referred to as the 3-7-3 Rule. “The time is right for lenders to deploy new, practical technology and ready themselves for more regulation to come,” said Mike Zwerner, senior vice president of business development for Interthinx. “It seems like there’s never a good time to implement change, but now it’s a matter of keep-
When You THINK Of...
ing up with tough new regulation and survival. Another way to look at the current environment is to recognize the industry is in a state of rebuilding consumer trust and brand confidence. Hidden costs or errors add up to lost opportunity. The new MDIA test in PredProtect provides lenders with a simple approach to compliance, helps avoid costly errors, and mitigates reputational risk with inexpensive, fast automation.” For more information, visit www.interthinx.com.
Experian launches consumer income assessment tool Experian has announced its suite of leading “ability to pay” products—Income Insight and Income View—designed to determine a consumer’s ability to pay. Income Insight was designed to support recent legislation by providing an estimate of a borrower’s individual income utilizing verified income data and proprietary credit bureau attributes. Income View is a Web-based tax verification service that provides clients with reliable IRS 4506-T processing and prompt access to applicants’ verified income via the Internal Revenue Service (IRS). “With a number of new or proposed lending regulations, there is an increasing emphasis being placed on more diligent and more informed lending,” said Steven Wagner, president of Experian Consumer Information Services. “Our new ‘ability to pay’ products are an important part of this continuously changing picture. The capability to accurately estimate or verify a borrower’s income provides a key
insight into that consumer’s ability to repay a loan.” Some of the features of Income Insight include: Support of a lenders’ ability to comply with recent legislation; assistance to lenders with responsible provision of credit through considering a borrowers’ ability to pay; compliance with the Fair Credit Reporting Act (FCRA) and the Equal Credit Opportunity Act (ECOA); the targeting of customers while considering the complete financial picture; an improvement on risk management efforts by including modeled debt-to-income ratios; accuracy in segments defaulted borrowers to maximize collection processes; and streamlined results online or in batch. Some of the key benefits of Income View include: Income tax return summaries and detailed transcripts for individuals and businesses, including IRS 1040, W-2, 1099 and 1065, the secure delivery of IRS transcripts within 24 to 48 hours; identification of potential fraud through discrepancies in stated-income, Social Security Number, filing status, name or address; and no rush fees. For more information, visit www.experianplc.com.
Byte integrates LoanSifter into BytePro Byte Software, a provider of loan origination software for banks, credit unions, mortgage bankers and mortgage brokers, has partnered with LoanSifter Inc. to offer a product and pricing engine. LoanSifter’s best-ofbreed solutions include an intuitive point-of-sale loan eligibility and pricing engine, lock desk and rate sheet generator satisfying the most demanding loan officer. “LoanSifter’s streamlined, easy-toread format means originators don’t have to waste time searching through unnecessary numbers and suggestions to get the information they need,” said
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Copyright © 2009 Emigrant Mortgage Company, Incorporated (Emigrant). All rights reserved. Emigrant is a subsidiary of Emigrant Bank, Member FDIC and is an Equal Opportunity Lender. All product names, company names and logotypes are servicemarks or trademarks of Emigrant in the United States and other countries. The information, products and services contained in this advertisement are believed to be correct but may include inaccuracies, typographical errors and/or omissions. Emigrant does not guarantee the accuracy of the data contained herein. This information is intended for mortgage and/or real estate professional use only and should not be distributed or presented to consumers or any other third parties. This is not an offer or guarantee to extend consumer credit. Program guidelines, terms and/or conditions are subject to change by Emigrant without notice. All loans are subject to submission of a complete application, underwriting review and credit and property approval by Emigrant. Not all products and/or programs are available in all states and/or localities and/or for all loan amounts. Certain products / program are offered through third parties. Other restrictions and limitations may apply. New York Licensed Residential Mortgage Lender: Exempt. Emigrant is registered or licensed with the Banking Departments or Divisions in CT, DE, FL, MA, NH, NJ, NY and PA.
Bruce Backer, president of LoanSifter. “Secondary managers and originators tell us that they are looking for ways to manage risk and efficiently secure more transactions. They understand that integration translates to increased control and immediate answers—two factors that can make the difference in growing your business in a challenging market.” LoanSifter provides pricing, automated underwriting systems and lock desk features. Secondary departments utilize the thorough, real-time streamlining and maintenance of the entire mortgage pricing process (margins, adjustments, incentives, service release premiums [SRPs] and underwriting guidelines), no matter if servicing is retained or if correspondent and wholesale investors are used. The partnership between Byte Software and LoanSifter reduces data input and errors by giving customers the ability to submit existing loan data from within BytePro, instantly accessing pricing and product information. For more information, visit www.bytesoftware.com or www.loansifter.com.
Avista announces Web portal launch and FHA integration Avista Solutions, developer of Avista Agile loan origination software (LOS), has unveiled its completely redesigned consumer Web site capability that puts much greater functionality into the hands of borrowers. The extensive makeover improves the borrower experience and helps lenders meet the growing desire of consumers to obtain more information and functionality independently when visiting lender Web sites. The new Web portals are private labeled by Avista and branded to be consistent with the lender’s own Web site. Visitors can submit applications online, obtain automated approvals, receive online disclosures, and if “just looking,” can receive notification when the rates they want are available. Payment calculators, loan type scenarios and other tools are available, with customer-input information feeding directly into the lender’s Avista Agile loan originator software (LOS). Borrowers stay abreast of their loan’s progress with automated email updates and online status, saving expensive and time-consuming phone calls back and forth with the lender’s staff. Avista has also announced that its automated underwriting system (AUS) has been interfaced with the Federal Housing Administration’s (FHA) “Technology Open to Approved Lenders” (TOTAL) Scorecard. This interface allows lenders who are underwriting FHA loans to submit borrower information to the TOTAL Scorecard, which combines the capabilities of Avista’s AUS to determine whether a loan is elicontinued on page 34