new to market
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properties that are well-located but have not yet reached stabilized occupancy levels. Prudential Mortgage Capital is the commercial mortgage lending business of Prudential Financial Inc. “We are excited to offer this new source of financing for multifamily properties which addresses a clear need of multifamily owners and investors in today’s market,” said David Durning, senior managing director of Prudential Mortgage Capital Company. “In addition to offering our multifamily borrowers more flexibility for financing higher-quality properties, we believe this program compliments Prudential’s existing Fannie Mae DUS Lending Program, as well as our Freddie Mac Program Plus program offered through Prudential Johnson Apartment Capital Express.” Prudential Mortgage Capital has provided more than $16.4 billion in multifamily mortgages over the last five years, originating more than $2.4 billion in 2009. For more information, visit www.prumortgagecapital.com.
Del Mar DataTrac adds new options to its ExTrac product
GMAC Mortgage announces launch of its Virtual Sales Network
GMAC Mortgage LLC has announced that it has launched a Virtual Sales Network (VSN) to market its suite of mortgage products. This innovative new sales channel is expected to attract more home buyers to GMAC’s mortgage lending services by offering a more flexible alternative to traditional branches. The VSN will consist of a team of seasoned sales managers and loan officers operating on a remote, mobile basis in order to quickly enter markets and adapt to shifting industry conditions, while keeping occupancy costs low. The team will cultivate and leverage existing relationships with realtors within their regions to generate originations. “We are excited to introduce this innovative new platform, which is the first of its kind among larger lenders,” said Steve Abreu, president of GMAC Mortgage Operations. “With the Virtual Sales Network, we are able to better accommodate how customers chose to do business with us. We see the network as a catalyst to diversifying our mortgage lending revenues and introducing more prospective home buyers to GMAC.” GMAC will initially launch the VSN in California, North Carolina, South Carolina, Pennsylvania and Arizona. The company is exploring expansion opportunities in other states across the country with a goal of building the team to 200 associates by the end of 2010. For more information, visit www.gmacmortgage.com.
Valligent and Global DMS join forces for new valuation service
So far in 2010, we are seeing exactly what we expected to see. The big numbers are with violations with the final Truth-in-Lending and annual percentage rates (APRs). In 2009, this category did not register in the top 10. In 2010, it ranks number three with a 183 percent increase from 2009 which includes all loan types and loan purposes.
Federal Housing Administration (FHA) In the FHA loans department, Truth-in-Lending/APR violations rank fourth with a 138 percent increase from 2009. It appears the problem with FHA is coming from loan purchases and not from refinances. The FHA refinance does not register any final Truth-in-Lending violations in the 10 category yet.
Conventional Conventional loans rank higher. Truth-in-Lending/APR violations ranked third with a 270 percent increase from 2009. It appears the conventional purchases are not sharing with refinances because it is not registering within the top 10 categories with conventional loan refinances.
Non-supervised mortgagee vs. supervised mortgagee (non-bank lenders vs. bank lenders) Violations by non-bank lenders ranked sixth in its top 10 categories with a 69 percent increase from 2009. Bank lenders jumped to 154 percent in the same category.
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Non-supervised loan correspondents vs. supervised loan correspondents (brokers vs. bank brokers) Brokers have the largest numbers of all. Brokers have a 413 percent increase in final Truth-in-Lending violations since 2009. Bank brokers have a 160 percent increase since 2009. This means that violations with the final Truth-in-Lending/APR calculations will continue to grow for all mortgage entities. This category did not register in the top 10 for anyone and has spiked considerably. Also, we are only seeing part of the story. There are many who have not performed their post-closing quality control checks for the first quarter of 2010. The mortgage professional may see steep fines from the state and other oversight agencies if these issues are not resolved quickly. Quality Mortgage Services is only auditing 10 percent of the FHA files and 10 percent of the conventional loans of seller/servicers. The problem could be a lot worse based on the small sampling that is has viewed in quality control. The FHA has announced a grace period for the first quarter in order for its correspondents and mortgagees to get used to the new regulatory reform. The first quarter is over and those who have not performed their post-closing QC checks will be overcome by events due to APR miscalculations and steep fines from the state. I recommend that principals or QC managers take control of this problem very quickly. Those who are current on the post-closing QC checks are putting policies and procedures in place based on the Q1 of 2010 quality control reports and will weather the storm and come out stronger. Those who have a weak QC program will be surprised when they are hit by the state or other agencies audits.
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
JUNE 2010
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What is the biggest trend you see in quality control audits for 2010?
MONTANA MORTGAGE PROFESSIONAL MAGAZINE
Valligent, a provider of collateral valuation and risk management solutions, and Global DMS, a provider of appraisal process management solutions, have jointly announced an end-to-end valuation service for ordering, managing and delivering a full range of valuation products in MISMO-sanctioned XML data format— all in full compliance with the Home Valuation Code of Conduct (HVCC), Federal Housing Administration’s (FHA) appraisal guidelines, and Fannie Mae and Freddie Mac’s Collateral Data Delivery (CDD) program that is scheduled to be in effect as of July 1, 2010. This collaborative service, called MISMO-Connect, provides companies with the valuation services of Valligent and additional select valuation providers,
By Tommy A. Duncan, CMT
NationalMortgageProfessional.com
Del Mar DataTrac Inc. (DMD), a provider of affordable end-to-end mortgage lending automation solutions, business intelligence, document imaging and management, and loan process workflow tools, has added four new DataTrac ExTrac options. These ExTracs facilitate the extraction, quality control and exchange of mortgage loan data between mortgage bankers and warehouse lenders or servicing vendors. In Q1 2010, the DataTrac ExTrac was developed by DMD to streamline the funding process with Comerica, Texas Capital Bank and FiservWireXchange; and to support the servicing process with Dovenmuehle Mortgage Inc. The funding ExTracs are designed to send data from the DataTrac central database to the warehouse lenders before funds can be disbursed. For servicing, ExTracs are designed to transfer loan data to a servicing system used to manage the servicing of loans. DataTrac ExTracs perform many functions: capture required DataTrac data; perform a quality control check against defined vendor requirements; and translate the data in a required format to the other system. This results in a seamless transfer of information eliminating data integrity issues. “Avoiding data errors is the single most important component to the risk management strategy for a mortgage banker,” said DMD Vice President for Client Services Sue Sroka. “DMD always strives to share information with other
services to eliminate rekeying of data and streamline the process.” For more information, visit www.dmdinc.com.