Servion Mortgage Newsletter - July 2023

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In This Issue Partner Updates Update: Exciting Conversion to Servion Mortgage’s New Servicing Platform, Care HMDA Reporting Reminder Education’s Role in Building Mortgage Business Unlocking Mortgage Opportunities Preventing and Detecting Bias in Appraisal Valuation Practices 2023 Lending Conference Registration OPEN The Buzz: Recent Feedback

PARTNER UPDATES

We are dedicated to empowering you to unlock your full potential. At Servion, every team member embraces a “Be The Solution” mindset, considering our connection with you not just as a customer or client, but as a true partnership.

We are thrilled to announce the addition of our latest partners this month, as well as recognize our existing partners who are expanding their mortgage channels to better cater to their borrowers’ needs.

New Partners Brightview Credit Union Ridgeland, MS MS National Guard Federal Credit Union Jackson, MS

Relationship Expansions Sierra Central Credit Union – Yuba City, CA * Added Wholesale Conventional, FHA, VA, & Contract Processing

LEARN ABOUT OUR PRODUCTS & PARTNERSHIP OPPORTUNITIES

e t a d p U

Exciting Conversion to Servion Mortgage’s New Servicing Platform, Care

We are thrilled to share an update regarding the upcoming conversion to Servion Mortgage’s new online mortgage servicing platform, Care. As previously mentioned, the conversion is scheduled for August, with a mock go-live on July 29. This upgrade aims to enhance the borrower experience while offering significant benefits to you as their lender.

STREAMLINING MORTGAGE MANAGEMENT: THE HIGHLIGHTS OF CARE FLEXIBLE PAYMENT OPTIONS Care offers a range of flexible payment options to empower borrowers to manage their finances effectively.

Care is also designed with you, the lender, in mind. The Care Enterprise platform offers a real-time dashboard view of recent borrower event history, enabling you to gain deeper insights into borrower needs and provide assistance promptly should they contact you with questions.

Care is an excellent service that empowers borrowers to manage their mortgages more efficiently, while also strengthening the connection between you, the lender, and your borrowers in real-time.

ACCESS TO CRITICAL INFORMATION Care provides borrowers with automated eventbased text and email notifications and gives realtime access to critical tax and insurance data and documents. Borrowers can also monitor and swiftly rectify escrow balances as necessary.

REAL-TIME ACCESS TO HUMAN HELP A significant advantage of Care is the realtime access to human assistance for borrowers, ensuring borrowers can easily obtain the support they need, precisely when they need it.

As our valued partners, we are actively preparing several opportunities for you to gain a comprehensive understanding of the benefits and implications of this conversion from both data and servicing perspectives.

HMDA Reporting

Reminder

Submitting a HMDA filing can be a daunting task. Luckily, the Federal Financial Institutions Examination Council (FFIEC) publishes an HMDA Reporting Guide each year to answer frequently asked questions about the filing and help financial institutions submit compliant HMDA data.

Servion specifically recommends that our partners review the reporting requirements for transactions involving multiple entities (located on page 27 of the 2023 HMDA Reporting Guide) to stay up to date on how loans submitted to Servion should be reported.

If any questions arise concerning whether you are required to submit a HMDA filing or whether certain loans should be included in your HMDA filing, you are encouraged to seek legal or other professional advice.

Your source for local Realtors®.

The Servion Group developed the Go2Source Realtor® Referral Network as a tool to help credit unions and community banks earn more mortgage business. If you have a borrower who does not have a Realtor®, now you can connect them with one by utilizing Go2Source.

Benefits for Both Retail and Correspondent Partners Go2Source agents help your borrowers search, buy, sell and save on their transactions.

Go2Source agents are local to your area and carefully vetted for professionalism and service attributes.

Go2Source agents never steer the borrower to any other financial institution.

For just $30/year, we can help you get the word out about Go2Source with customizable print and digital materials.

What To Do Next Want more information?

Contact your Servion Account Executive.

Ready to connect a lead with a Go2Source Realtor®?

Visit: myservion.com/Go2Source

The Go2Source Realtor® Referral Network is managed by The Servion Group, which locates, vets and recommends real estate agents in cities across the country who then become part of the Go2Source-branded network.

Educations ' Role in

BUILDING MORTGAGE BUSINESS

BY GREG SCHATZKE, VICE PRESIDENT OF MORTGAGE THE SERVION GROUP

In the dynamic world of mortgage lending, even though the purchase market is slow due to limited inventory, it remains an extremely competitive market to acquire and retain borrowers. This is where educating your borrower sets you apart and establishes you as a trusted advisor. At Servion Mortgage, we understand the importance of education and strive to assist your borrowers throughout the entire process.

Despite the challenges posed by a slowed purchase market, community financial institutions can leverage education as a powerful tool to build their mortgage business. By focusing on providing valuable educational resources and guidance to potential homebuyers, you can position yourself as trusted advisors and attract new borrowers. Here are some strategies for utilizing education during a slower purchasing phase:

WEBINARS AND WORKSHOPS

specific situations, and gain clarity on the mortgage process. This personalized approach demonstrates your Organize webinars and workshops focused on various commitment to understanding and meeting the unique aspects of the home buying needs of each borrower. process. Topics can include understanding mortgage PARTNERSHIPS WITH options, budgeting for homeownership, improving LOCAL REAL ESTATE credit scores, or navigating PROFESSIONALS the closing process. By offering these educational Collaborating with local events, you engage with real estate professionals, potential borrowers, such as Realtors and demonstrate your expertise, housing counselors, can be and establish yourself as a mutually beneficial. Host reliable source of information. joint educational seminars or webinars, where real estate PERSONALIZED professionals share their insights on the current market CONSULTATIONS conditions and trends, while you provide mortgage-related Offering personalized information. By working consultations with mortgage together, both parties can experts can be a valuable expand their networks, way to educate potential enhance their credibility, and borrowers. Allocate attract potential borrowers. resources to provide one(We have real estate on-one sessions where professionals who can align borrowers can have their with your strategies! Just questions answered, receive ask your Servion Account advice tailored to their Executive.)

FIRST-TIME HOMEBUYER PROGRAMS Developing first-time homebuyer programs or initiatives can help community financial institutions target a specific market segment.

These programs can include educational components, such as pre-purchase counseling, financial literacy workshops, or down payment assistance resources. By offering comprehensive support and education to first-time buyers, institutions can position themselves as advocates for this group and establish longterm relationships.

COMMUNITY OUTREACH Engaging in community outreach activities can demonstrate your commitment to local residents and potential homebuyers. Participate in homeownership fairs, sponsor educational events, or collaborate with community organizations to provide

resources and support to individuals interested in purchasing a home. These efforts not only educate potential borrowers but also enhance your reputation as an active and caring member of the community.

ONLINE PRESENCE AND SOCIAL MEDIA Offering personalized consultations with mortgage experts can be a valuable way to educate potential borrowers. Allocate resources to provide one-on-one sessions where borrowers can have their questions answered, receive advice tailored to their specific situations, and gain clarity on the mortgage process. This personalized approach demonstrates your commitment to understanding and meeting the unique needs of each borrower.

ONLINE GUIDES AND RESOURCES Creating and sharing online guides, articles, and blog

posts that address common questions and concerns related to mortgages can be highly beneficial. Cover topics such as mortgage terminology, calculating affordability, comparing loan options, or understanding the impact of interest rates.

By offering valuable, easy-tounderstand resources, you position yourself as a helpful guide to potential homebuyers, fostering trust and loyalty.

PRIORITIZING EDUCATION By prioritizing education during a slower purchasing phase, you can differentiate yourself in the market, attract potential borrowers, and build long-lasting relationships.

These educational initiatives not only serve as a valueadded service but also position your institution as a trusted partner and increase the likelihood of future business when the market picks up again.

Unlocking

MORTGAGE OPPORTUNITIES Watch Servion Mortgage's Informative Webinar Recording Servion Mortgage recently conducted a highly informative webinar on LoanLevel Price Adjustment (LLPA) waivers and the HomeReady program. The webinar, now available as a recorded session , is a valuable resource that can empower you with practical knowledge and debunk myths surrounding these topics.

Here’s what you’ll find in the webinar hosted by Rachel Mengelkoch, Training and Product Development Manager with Servion Mortgage:

LLPA Waivers: Enhancing Borrower Rates and Access

HomeReady Program: Debunking Myths and Maximizing Potential

ELIGIBILITY AND BENEFITS: Discover the specific criteria for qualifying for LLPA waivers. Understand how these waivers can positively impact borrower rates, making homeownership more affordable and accessible.

TAILORED SOLUTIONS FOR FIRST-TIME HOMEBUYERS: Learn about LLPA waivers designed exclusively for first-time homebuyers. Find out how these waivers can help borrowers secure more competitive rates, making their dream of homeownership a reality.

EMPOWERING SMALL FINANCIAL INSTITUTIONS: Discover how LLPA waivers can level the playing field for smaller financial institutions.

The recorded webinar delves into the advantages these waivers bring, enabling lenders to offer competitive rates to borrowers.

The webinar recording also dispels myths surrounding the HomeReady program, which expands homeownership opportunities. By watching the session, you’ll gain a better understanding of:

PROGRAM BASICS: Get a comprehensive overview of the HomeReady program, including its eligibility requirements and benefits. Explore how this program offers flexibility and enhances access to mortgage financing for a wider range of borrowers. Don’t miss the chance to discover a program that can open doors to homeownership.

MYTH-BUSTING: Addressing common misconceptions, the webinar recording sets the record straight on the HomeReady program. Uncover accurate information about income limits, down payment requirements, and the program’s applicability to different borrower profiles.

DON’T MISS OUT on the opportunity to unlock a world of mortgage possibilities! Watch the recorded webinar by Servion Mortgage on LLPA waivers and the HomeReady program. Gain a deeper understanding of how LLPA waivers can optimize borrower rates and explore tailored solutions for first-time homebuyers and small financial institutions. The recorded webinar is a valuable resource that can help you navigate the everchanging landscape of mortgage lending. Watch it today and unlock the door to mortgage success.

UNLOCK MORTGAGE SUCCESS Looking to enhance your mortgage offerings and empower your team with expert knowledge? Discover a treasure trove of mortgage insights through our previously recorded webinars!

GAIN COMPETITIVE EDGE Our recorded webinars provide valuable guidance on a range of mortgage topics, equipping your team with the tools to excel in the industry. From government loan programs to title insurance and quality control, our comprehensive sessions cover it all.

STAY INFORMED With our recorded webinars, you have the flexibility to learn at your own pace. No need to rearrange schedules or travel for training. Access the webinars anytime, anywhere, and empower your team whenever it suits you.

ON-DEMAND LEARNING Keep up-to-date with the latest trends, regulations, and strategies that drive success in the mortgage landscape. Our recorded webinars are filled with practical knowledge and actionable tips, ensuring you never miss out on critical opportunities.

Visit our website today to explore our library of recorded webinars and start your journey towards mortgage success!

QUALITY CONTROL. Simplified.

Manage your repurchase and compliance risk with confidence. We have worked with financial institutions to deliver mortgages for over 30 years. Now we are sharing our compliance expertise with you.

The Answer: The Question:

How do you manage the regulations and guidelines that come with mortgage lending and servicing?

By taking advantage of Servion’s Quality Control Services.

Review Types Offered: f Servicing f Post-Closing f Pre-Funding f Non-Originated

We understand your need to focus on quality, not quantity, while still having a quick turnaround time. You can count on that kind of personalized and detailed service with us. Visit myservion.com/qualitycontrol or contact our dedicated QC Manager, Brock Miller, at bmiller@myservion.com.

f Early Payment Default f Targeted f Appraisal

PREVENTING +BiasDETECTING in Appraisal Valuation Practices

By Brock Miller Quality Control Manager The Servion Group

Discrimination and bias in residential mortgage lending appraisal valuation practices undermine fairness and equal opportunity in the housing market. Appraisal bias can lead to unfair lending practices, resulting in disparities in access to homeownership and perpetuating socioeconomic inequalities. To combat this issue, lenders must take proactive measures to prevent and detect such bias. That’s why we’ve compiled actionable recommendations for you that can make a real difference in preventing and detecting bias in residential mortgage lending appraisal valuation practices.

BY IMPLEMENTING THESE R E C O M M E N DAT I O N S , lenders can support a fair and unbiased lending environment, ensuring peace of mind regarding their a p p r a i s a l q u a l i t y. T h e s e recommendations provide actionable steps for lenders to eliminate discrimination and bias and ensure that appraisals are conducted in a fair a n d c o m p l i a n t m a n n e r.

With a commitment to implementing these measures, lenders can play a pivotal role in promoting equitable access to homeownership.

ESTABLISH A RECONSIDERATION OF VALUE (ROV) POLICY AND PROCEDURE Establish a robust ROV policy and procedure if one is not already in place. The ROV process allows borrowers and other relevant stakeholders to challenge an appraisal value if they believe it is unjust. Clear guidelines and a streamlined process should be established to facilitate thorough and impartial reviews of appraisal valuations.

CONDUCT FIRST-LEVEL AND SECOND-LEVEL APPRAISAL REVIEWS Implement a comprehensive appraisal review process, consisting of both first-level and second-level reviews.

These reviews should be conducted during qualification and underwriting processes as well as in the quality control space. Undervaluation and overvaluation risk flags as well as CU / LCA risk scores equal to or above 4 should be thoroughly investigated, preferably with a second level review by a more senior appraisal reviewer.

ESTABLISH AN APPRAISER SCORECARD AND MONITOR THE AQM LIST Develop an appraiser scorecard that assesses appraiser performance and tracks key metrics related to quality and unbiased valuation. The scorecard can include factors such as accuracy, consistency, timeliness, and appraisal language. You should review for prohibited and subjective language within the appraisal that could indicate potential bias. Additionally, monitor the Appraisal Quality Management (AQM) list to identify appraisers with potential performance or quality issues.

CHECK FOR DISCIPLINARY ACTIONS FOR ASSIGNED APPRAISERS Perform thorough due diligence by checking for any disciplinary actions or complaints against any assigned appraisers. This verification process can be conducted through state regulatory agencies, professional appraiser associations, or other relevant industry bodies. Appraisers with a history of disciplinary action should be excluded from consideration.

AGGREGATE APPRAISAL-RELATED DATA Establish mechanisms to aggregate and analyze appraisal-related data and findings to identify potential trends and patterns indicative of discrimination or bias. By reviewing the data collected from appraisal reviews, ROV requests, and other relevant sources, you can identify any systemic issues or patterns of biased valuation that need to be addressed.

Preventing and detecting bias in appraisal valuation practices requires a proactive and vigilant approach from mortgage lenders. By implementing the recommendations outlined above, lenders can foster fairness, equality, and unbiased lending practices. This entails establishing robust policies, conducting thorough appraisal reviews, monitoring appraiser performance, and analyzing appraisalrelated data.

Eliminating bias in appraisal valuation practices is both morally imperative and essential for the long-term sustainability of the mortgage lending industry. Through increased transparency and a commitment to fairness and integrity, lenders can enhance their reputation, attract diverse borrowers, and contribute to the stability and growth of the housing market.

If you have additional questions about QC or appraisal valuation practices, contact Brock at bmiller@myservion.com.

M A R K YO U R C A L E N D A R S F O R T H E M O S T A N T I C I PAT E D E V E N T O F T H E Y E A R : T H E S E R V I O N G RO U P ’ S A N N UA L L E N D I N G CO N F E R E N C E .

Join us as we unveil a transformative journey, guided by our theme: “Evolve, Adapt, Thrive: Navigating the Lending Transformation.”

Discover strategies and industry insights that will empower you to conquer the lending landscape of tomorrow.

Connect with industry leaders, esteemed experts, and forward-thinking minds who are dedicated to driving innovation in the lending sphere.

Unlock the keys to success, stay ahead of the curve, and propel your institution to new heights.

MORTGAGE SESSIONS: SEPTEMBER 18 AND 19

BUSINESS/ COMMERCIAL LENDING SESSIONS: SEPTEMBER 20

Don’t miss this opportunity to reshape your lending practices and maximize your potential. Save the date and secure your spot now! The future of lending awaits. Let’s Evolve, Adapt, Thrive together! Register yourself and your team now.

Location: The St Paul Hotel, 350 Market Street, St. Paul, MN *Hotel reservations are to be made separate from conference registration. To reserve a room, call The Saint Paul Hotel at 800-292-9292 and reference the Servion 2023 Lending Conference OR visit saintpaulhotel.com select your dates and use code 91823SERV with the GROUP/BLOCK drop down

In a world where everything can be so rushed, seeing your team care about and communicate with our members in the same way we would is something I am so grateful for.

We have switched over to Quality Control with Servion and Brock Miller (Quality Control Manager) is so on top of everything! He reviewed our policy and has been very helpful with any question. He’s super organized and fun and friendly too. Hard to come by in the QC world!

THE

BUZZ

Hear what our partners are saying about us!

We value our relationship with Servion, and your service is always 110%+. Thank you all!

Thank you for being very flexible with us on this file and working with us back and forth on it multiple times. We cannot thank you enough for the time and effort that you put into this file and prioritizing it.

SERVICE SOLUTIONS SUCESS 651-631-3111 • myservion.com Servion Mortgage is a DBA of Servion, Inc. NMLS #1037. Equal Housing Lender.