29Jul

Constellation Mortgage Solutions Appoints Technology Innovator Kendrew Peacey as CTO

July 29, 2022 California MBA

Constellation Mortgage Solutions (CMS), provider of enterprise mortgage loan origination and servicing technology, recently appointed Tech Industry Veteran Kendrew Peacey as CTO. As a member of the executive team, Peacey will lead CMS in evolving and innovating lending technology to grow the product line and increase sales. Peacey and team will deliver the next generation of LOS in late 2022, equipping CMS clients with enhanced functionality and a single application suite that will elevate job performance and user experience.

“Kendrew was originally engaged as a consultant and proved himself an invaluable member of the team, with his global experience in implementing, and evolving enterprise technology, he is a great fit for CMS,” said Stephen Ryczek, CMS President and General Manager. “We’re excited to have him lead the team as we deliver the next generation of lending technology to the mortgage industry.”

Peacey brings with him over 30 years of experience developing, integrating, and implementing technology tools and software for various enterprise level companies. He has a proven record orchestrating IT and software engineering operations while managing global teams across multi-million-dollar projects. Peacey founded Ascension Technologies, a global software development company and leader of digital transformation, and previously served as CTO of U2 Logic, The Media Services Group, and in consultant roles at various companies including IBM.

“I’m excited to join Constellation Mortgage Solutions as CTO and help fill technology gaps the mortgage industry experiences today,” said Peacey. “Bringing a product to market that has not yet been seen, and doing it successfully, is fulfilling. New technology not only adds to the growth of CMS but also the lenders we support by providing a single point of entry and complete functionality for them to efficiently perform their job.”

Peacey’s contributions to CMS will continue to drive the unprecedented growth the company has experienced in the last two years.

About Constellation Mortgage Solutions
Constellation Mortgage Solutions provides industry-leading lending technology solutions through its products: Mortgage Builder LOS, Mortgage Builder LSS, and ReverseVision LOS. As the Gold Standard for mortgage solutions, CMS offers Lenders of all sizes enterprise technology empowering Lenders on the front lines with innovative solutions designed to deliver exceptional loan quality, regulatory compliance, and drive profitability. CMS has been working for more than two decades to help mortgage professionals streamline operations and close more loans faster to increase ROI. https://constellationmortgagesolutions.com/

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29Jun

Where is eClosing with Remote Online Notarization Available?

June 29, 2022 California MBA

Blog originally posted on Spruce’s Blog

A classic real estate closing can have upwards of 100 pages of documents to sign, and the ability to do this both remotely and electronically is alluring to everyone involved in the transaction––particularly busy homeowners. But, RON (remote online notarization) isn’t available everywhere, so understanding when and where you can utilize it is incredibly important. Check out our 3 steps to determine when and where you can use RON.

First, let’s start with the basics: what is RON (Remote Online Notarization?)

RON is a form of eClosing, which is the act of closing a mortgage or real estate transaction electronically. All or some of the closing documents are viewed and/or signed online through a secure digital environment. Depending on the state you live in, you can take advantage of three main types of eClosing options: RON, hybrid eClosing, or in-person eClosing. ‍A RON closing is a digital online closing that occurs where the signers and the notary meet via an audio and video application. The documents will contain an electronic signature and electronic notarization. ‍

3 Steps to Determine When and Where You Can Use RON

There are three methods that most title companies use to figure out where they can offer remote online notary services to clients: state legislation, underwriter requirements, and eVault capabilities.

Step 1. Check Which States Have Passed RON Laws

The first step to determining if RON can be offered on a transaction is to see if the state has passed legislation. To date, 38 states have passed laws allowing remote online notarization. The states that have enacted RON laws are: Virginia, Montana, Texas, Nevada, Indiana, Tennessee, Minnesota, Vermont, Michigan, Ohio, North Dakota, Idaho, Utah, Kentucky, Arizona, Washington, Iowa, Oklahoma, Maryland, Nebraska, Florida, Wisconsin, Pennsylvania, Alaska, Louisiana, Colorado, Oregon, Missouri, Hawaii, Wyoming, West Virginia, Kansas, New Hampshire, Arkansas, New Jersey, New Mexico, Illinois, and New York.

Step 2. Check Underwriter Requirements

Even if a state has passed RON legislation, title insurance underwriters often have their own requirements for where remote online notarization is available. For example, underwriters have different requirements based on whether the transaction is a refinance or a purchase.

There are also counties in states that have passed legislation who won’t accept RON documents––making underwriters wary of insuring RON transactions.

Step 3. Check on eNote and eVault Capabilities

Lenders who want to offer RON closings to their borrowers will need to facilitate an eNote, which is the digital equivalent of a promissory note. It’s not as simple as just merely scanning a document into a computer and having it signed. To ensure the security of the electronic note, eNotes are created in a special file format and must be stored in an eVault.

An eVault is a repository for managing and transferring electronic documents. If a lender doesn’t have a relationship with an approved vendor, such as Notarize, the closing cannot be done via remote online notarization.

eClosing via RON is the Future of Real Estate Transactions

Despite some of the logistical hurdles, eClosing via RON is a winner for everyone involved in the real estate transaction process. We’ve heard from real estate agents and homebuyer’s alike that the use of RON is moving beyond a benefit to an expectation.

For lenders and large-scale investors, it creates a higher level of operational efficiency. For homeowners, it provides much needed flexibility in what can be an extremely stressful process. Rather than having to show up at a specific location at a certain time, consumers can sign documents at a place and time that’s convenient for them. Offering RON closings can be a key differentiator for lenders and can sharpen their competitive edge in an evolving market.

Interested in learning more about how Spruce’s RON closing process? Get in touch with our team here.

29Jun

2021 MERS QA Findings Report

June 29, 2022 MetaSource

Staff shortages, office closings, and high volumes created ongoing disruption for the mortgage industry in 2021.

And, based on MetaSource’s annual analysis of third-party QA reviews, some MERS processes suffered as a result.

Overall, our analysis showed that the top three areas of MERS compliance challenges fell along familiar themes. We also discovered that while the overall exception rate increased from 11% in 2020 to 19% in 2021, some notable improvements were made.

This report discusses why these improvements occurred, details surrounding what MERS Members struggled with the most, and best practices for overcoming these struggles in the future.

Top MERS QA Audit Findings for 2021

Here are the MERS QA challenges that Members struggled with most in 2021:

Rank

Finding

1. Written internal policies and procedures were missing or did not contain enough detail to ensure compliance with the most recent MERS requirements

2. Failure to conduct monthly or quarterly data reconciliation based on requirements and volume

3. Failure to properly manage/monitor internal audits, subservicer, or third-party vendor through reporting of QC reviews to confirm MERS standards are met

The Challenges of Maintaining Detailed, Up-to-Date Policies & Procedures

Ensuring that internal policies are thorough and up-to-date is a perennial struggle for many MERS Members. But it was heightened in 2021 when additional difficulties, including staffing shortages, left some servicers without the MERS support they needed. Many servicers were left to rely on staff members who were unfamiliar with MERS requirements and the level of detail necessary to meet current policy and procedure expectations.

Other servicers fell short of MERS requirements for written policies and procedures as their monthly volumes swelled and, for the first time ever, pushed them over the 1,000-mortgage identification number (MIN) mark. MERS Members over this MIN mark as of March 31 are required to obtain a third-party review, which includes a thorough review of MERS Members’ operational policies and procedures in preparation for the MERS eAnnual report due each year by December 31. Those new to this MIN volume level last year were left subject to monthly reconciliation requirements and third-party reviews for the first time. Similar to those experiencing staffing shortages, these servicers were unfamiliar with the requirements and failed to provide adequate written internal policies and procedures.

This unfamiliarity undoubtedly led to an increase in policy and procedure-related challenges and a rise in the overall exception rate. “About 90% of the Members I reviewed last year did not have detailed procedures,” said Rachel Pylant, MetaSource Director of MERS Services.

The Areas that Showed Improvement

While more Members struggled to meet written internal policy and procedure requirements last year, there were signs of improvement in other areas.

Download the full report to learn what these areas of improvement were, the main reasons for the improvements, and the best practices for ensuring MERS compliance in 2022.

Download Full Report

20May

3 Ways for Lenders to Boost Efficiency in Appraisal Operations

May 20, 2022 California MBA

As the mortgage industry shifts more of its traditional workflows to digital operations – such as with eSigning, eNotes, eVaults, and more – the appraisal process cannot be an afterthought. There are numerous inefficiencies associated with the “old world” of appraisals that are slowing mortgage lenders’ turn times, keeping production costs high, and negatively impacting the borrower’s experience – all of which ultimately affect the bottom line.

This guide highlights three key areas where efficiency gains have been proven to generate measurable ROI: appraisal ordering and vendor allocation, appraisal payments, and communication and visibility. These lender-appraiser touchpoints are riddled with manual, error-prone tasks that are better executed by technology. Automation will not only expand employee bandwidth, but it will also do the work faster, more effectively and with greater accuracy.

Click above to open and download the guide ^^ (there’s no form!)

By focusing on modernizing operations in the three aforementioned areas, lenders have reported increasing efficiency by 213% and reducing their appraisal desk staff by 75%, among other quantifiable benefits.

Want to achieve similar results? Download this free guide to better understand where inefficiencies exist in your appraisal operations and the steps your organization can take to improve its appraisal-related processes and maximize impact.

If you would like to learn more about how Reggora can help, reach out to schedule a conversation with our team.

Learn More About Reggora

20May

5 Things to Know About Desktop Appraisals

May 20, 2022 California MBA

Beginning in March 2022, Fannie Mae and Freddie Mac will begin to accept desktop appraisals. This means that a licensed appraiser will be allowed to complete the home appraisal without physically visiting the property. Instead, they will leverage data that can be made available to via third parties (homeowner, realtor, builder, etc.) and through public sources.

While desktop appraisals should enable faster (and potentially cheaper) approaches compared to the traditional appraisal, there are many caveats that lenders and appraisers should be aware of.

This guide from Fannie Mae provides initial details and guidelines for how desktop appraisals will work. There’s quite a bit to unpack here, as well as a few things that we’re awaiting clarity on, but we’ve summarized the key takeaways below, and in this LinkedIn video from our CEO. To dive even further into the topic, be sure to register for our upcoming webinar with Fannie Mae and Freddie Mac on desktop appraisals.

Here are 5 things lenders and appraisers should know:

1. Eligibility

Not all loans are eligible for desktop appraisals. The loan must be for a purchase transaction, one-unit principal residence, where the loan-to-value (LTV) ratio is less than or equal to 90%. On top of this, the loan file must also be approved by Fannie Mae’s Desktop Underwriter (DU).

2. Floor plans

A floor plan with interior walls is required. These floorplans typically don’t exist out in the wild, so an onsite inspection will often still need to occur. This inspection might be able to be done by someone other than an appraiser, such as the homeowner, realtor, builder, etc.,

NOTE: These floor plans and measurements may need to abide by ANSI standards starting April 1, 2022. This is something that we are awaiting further clarification on.

3. Appraiser discretion

The appraiser must have sufficient information to develop a credible report. The appraiser has the discretion to reject the order if they don’t feel comfortable with the data available to them. This means that getting high quality data to the appraiser for the floor plan and other property characteristics will be very important.

4. Verification

Any data (including potentially the floor plans mentioned above) that is provided by third parties with a financial interest in the sale or financing of the property (homeowner, realtor, builder, etc.) MUST be verified by a disinterested source. This could include maps, assessor data, or virtual inspection technologies. It will be important to accomodate any validation and verification processes that will be required by the appraiser, the lender, or both,

5. It’s optional

When permissible, ordering a desktop appraisal is optional for the lender. The lender or borrower always has the option to request that a traditional appraisal is obtained, regardless if a desktop or some other form of appraisal relief is offered.

As this initiative moves forward, it will be of interest to see the frequency of eligibility for desktop appraisals, and, when eligibility is offered, how often requests for desktop appraisal are actually fulfilled. Either way, this is important progress in the industry that will pave the way for further modernization and alternative products. For more insight on desktop appraisals, view our March 2022 webinar with Fannie Mae and Freddie Mac on the subject.

How can Reggora help? Our goal is to make it easy for lenders and appraisers to adopt desktop appraisals, and we’re currently working closely with Fannie Mae, Freddie Mac, and our appraiser and AMC partners to understand the nuances and provide guidance to the industry. If you have questions about leveraging desktop appraisals and what you should do to prepare, please contact your Reggora customer success team or reach out to our sales team here.

Learn More About Reggora

19May

Constellation Mortgage Solutions and Entrinsik Announce Partnership to Drive Data Insights

May 19, 2022 California MBA

The partnership between Constellation Mortgage Solutions and Entrinsik enables CMS users to maximize the value of their data through visualizations and self-service analytics.

Constellation Mortgage Solutions (CMS), provider of enterprise mortgage loan origination and servicing software systems, today announced a new partnership with Entrinsik, a leader in embedded business intelligence. This partnership will utilize the Informer Embedded platform, enabling CMS users to maximize the value of their data through visualizations and self-service analytics.

From origination to post-closing to servicing, CMS provides all the tools and integrations lenders need to keep operations streamlined. Every step in the mortgage process generates data, which can be analyzed and interpreted to provide users with the insights necessary to make better business decisions.

“Constellation Mortgage Solutions strives to help our clients become more efficient, productive, and collaborative through our technology,” said Stephen Ryczek, President and General Manager at CMS. “Our partnership with Entrinsik provides our clients with metrics that far exceed the reporting available in a traditional LOS or Loan Servicing platform. By using the Informer solution, clients will leverage dynamic reporting insights from our solutions alongside data that can be aggregated from other technologies to provide real-time meaningful insights to their entire business operations.”

CMS customers will better manage and measure their performance in real-time using Entrinsik Informer through the CMS enterprise LOS platform. Easy adoption of the technology and user-friendly and visually pleasing reporting relevant to all levels of an organization further enhances productivity and communication throughout the loan origination process.

“We’re excited to partner with Constellation Mortgage to bring advanced analytics to their lender platform,” said Chris Reeves, Vice President of Partnerships at Entrinsik. “The collaboration unlocks the power of data to further extend Constellation Mortgage Solutions’ promise to help lenders drive efficiency, close more loans faster, and reduce costly errors that can lead to problems with compliance.”

About Constellation Mortgage Solutions Inc.
Constellation Mortgage Solutions provides industry-leading lending technology solutions through its products: Mortgage Builder LOS, Mortgage Builder LSS, and ReverseVision LOS. As the Gold Standard for mortgage solutions, CMS offers Lenders of all sizes enterprise technology empowering Lenders on the front lines with innovative solutions designed to deliver exceptional loan quality, regulatory compliance, and drive profitability. CMS has been working for more than two decades to help mortgage professionals streamline operations and close more loans faster to increase ROI. https://constellationmortgagesolutions.com/

About Entrinsik
Entrinsik develops, implements, and supports software solutions that enable organizations to maximize performance and improve bottom lines. For six consecutive years, Entrinsik has been selected as a member of the DBTA 100, highlighting the 100 Companies that Matter Most in Data. Entrinsik Informer is an innovative, award-winning agile reporting and business intelligence solution used by tens of thousands around the world. Over 3000 organizations around the world use Entrinsik’s software every day. For a demonstration or a free trial, call 888-703-0016 or email sales@entrinsik.com. Visit https://entrinsik.com/.

Learn More About The Partnership

02May

Mortgage Innovators Conference 2022

May 2, 2022 lionfiregroup

The Mortgage Innovators Conference will be back, live and in-person May 2-4, 2022! The conference is an industry event that invites you to experience cutting-edge speakers, interactive technical demonstrations, one-to-one virtual networking opportunities, and the “Innovation Lab” – an open concept, 100% immersive experience designed to foster idea-sharing and build a better mortgage market.

Learn More

May 2 @ 8:00 am – May 4 @ 5:00 pm

02Mar

Top 15 Mortgage QC Findings for 2021

March 2, 2022 MetaSource

In a year in which record mortgage volumes collided with staffing shortages and ongoing economic volatility, mortgage quality control difficulties remained mostly the same as years prior. However, there were some new challenges in 2021.

This findings report digs into those new challenges, provides MetaSource’s top 15 findings for the year, and offers advice on how you can avoid findings in 2022.

Top QC Findings for 2021

Here is the complete list of our top 15 mortgage QC findings for 2021, including all loan types and both regulatory and agency findings:

Rank

Finding

Closing Disclosure – Defective – Tolerance

Closing Disclosure – Defective

Income Documentation – Aged

Closing Disclosure – Defective – Calculating Cash to Close

Other Application/Processing Documentation – Intent to Proceed

Product Parameter – Points & Fees

Other Application/Processing Documentation – Loan Estimate – Timing Violation

Income Not Documented – Other

Closing Disclosure – Timing Violation

Insufficient Assets to Close

DU or AUS Findings Report – Missing or Defective

Incorrect Income Calculation – Other

Property Insurance Policy Not Documented – Missing or Defective

Other

Other Application/Processing Documentation – Case Number Assignment – Missing or Defective

#1 Finding: Still a Continuous Trend

The finding “closing disclosure tolerance defects” tops the list, as it has in five of the last six years. Even so, there were signs of a worsening trend in 2021, claiming over 15% of all MetaSource significant findings, compared to around 13% in 2020.

Why is this the case?

MetaSource Senior Director of Mortgage Services, Brady Meadows provided some insight: “As best we can tell, this is because lenders were so busy trying to keep up in 2021, that documentation took a back seat.” Meadows explained that many lenders did not fail to adhere to tolerance regulations, but rather failed to provide MetaSource with the required documentation.

Documentation issues were also prevalent in MetaSource’s analysis of top findings by Fannie Mae category. Loan package documentation was by far the largest Fannie Mae category of defects, accounting for more than 60% of the findings.

MetaSource 2021 Mortgage QC Findings

Income Documentation: A Source of Difficulty for Lenders in 2021

There was a steep increase in the number of income documentation aged defects, with 43% more significant findings related to documenting borrower incomes than in the previous year – pushing income documentation defects to 3rd in ranking in 2021, up from 10th on our 2020 list.

Download the full report to learn why this increase occurred, what other findings moved up the list in 2021, and how you can minimize findings in 2022.

Download Full Report

05May

Technology Innovations in Private Lending

May 5, 2021 Civic Financial Services

One of the greatest benefits of private money loans is speed. However, with that faster processing window comes the increased demand for real-time information. Enter: Origin8® — the cornerstone of innovation for Civic Financial Services, delivering an exceptional, private-labeled experience for today’s broker and your customers.

Origin8 is one of the first secure cloud-based online portals for private residential lending, designed for ease, flexibility, and transparency – but also designed with your wholesale business in mind. Bells and whistles aside (we’ll get to those shortly), what makes this truly unique is the power it gives you to brand your client’s experience to your business instead of the lender’s. Because, let’s be honest, you want your hard-earned clientele to be constantly reminded of the white-glove service you’re providing, and not the financial transaction alone.

Today’s real estate investor wants to conduct their business just as any other customer does — fast, simple and at their convenience. For some brokers, depending on the systems and resources available, streamlining a process with numerous moving parts can be quite challenging — especially with multiple clients and properties. As the relationship manager and main point of contact for your clients throughout the lending process, Origin8 is completely customized to you and your business.

The technology delivers a seamless digital lending experience that can be white labeled to your business, starting with a personalized website to direct borrowers to, enabling your customers to request a “quick quote”, check rates, submit an online application, upload documents and check loan status online, from any device, 24/7. It is packed with features that include real-time pipeline views which display loan status and outstanding underwriting conditions, and a document management interface to allow uploaded documents to satisfy conditions immediately. But wait – it gets better…

Emails generated throughout the process display your logo with no mention of CIVIC, you can choose from six different color themes for your personalized website, and you can quickly generate an LOI with your logo on it. Have a support team? No problem. With its seamless digital broker approval process you’re granted the ability to independently manage your users and your customers, making it easy to add internal team members to access the platform, such as LOs and processors.

Ordinarily, customers would have to get in touch with you during business hours to run through a scenario to even get an idea of pricing. Now, with Origin8, they have pricing available at their fingertips 24/7, and you keep control of the process. Hundreds of quotes are being run through broker Origin8 websites by customers who have no human interaction with anyone, and that is a key indicator of the success and demand for a fast, easy, digital resource. Consider this:

Sales Superpower: Origin8 is the Superpower sidekick you’ve been waiting for. It allows you to focus more time on finding new clients and nurturing your existing ones.

Smooth Operations: Automate manual steps, eliminate redundancies, consolidate documentation, and streamline communication to expedite the loan process and ensure an on-time closing.

The Need for Speed: Time is money. Origin8 dramatically reduces closing time, getting your customers from quote to closing with speed and simplicity.

Increased Accuracy: With no need for handwritten applications, documentation accuracy is improved and human errors are reduced in the process.

A True Digital Package: More than just an online application, Origin8 is the most robust lending platform in the private lending industry. It enables you to conduct business with your clients at the speed and transparency they desire and enables white labeling so the innovative closing process can be done digitally under your own brand.

Juggling multiple loans simultaneously just got easier, and the customer experience for your savvy real estate investor clients just got better. As an institutional private lender, CIVIC developed Origin8 not only to simplify and expedite the lending process, but to help you provide borrowers with the level of transparency they demand. The platform, personalized with your name and branding, has improved conversion from quick quote to application, and from application through funding. CIVIC understands the needs of our broker partners and is committed to investing in innovations and technology that enhances the efficiency and transparency of our broker platform.

10Feb

What’s the Difference? Mortgage Application Versus Mortgage POS

February 10, 2021 BeSmartee

BeSmartee examines the difference between a mortgage application and a mortgage point-of-sale (POS) platform, and uncovers how a POS platform is a lender’s all-in-one solution.

The modern mortgage experience is so much more than a mortgage application.

As millennials continue to dominate the housing market, it’s evident that today’s borrowers want to get a home mortgage just about as easily as you can order a pizza from your smartphone. Having a digital lending platform is no longer a choice, it’s a must-have for lenders to stay relevant, especially in the COVID-19 era.

How does a mortgage application compare to a mortgage POS?

Let’s talk about what a mortgage POS can do for your lending business and how a mortgage application can’t compete.

What is a Mortgage Application?

A mortgage application is a document filled out and submitted by one or multiple individuals applying for a mortgage loan to purchase real estate.

Most lenders use the Uniform Residential Loan Application, or Form 1003, to determine if potential borrowers qualify. The application is lengthy and provides lenders with the necessary information to determine whether or not the potential borrower is financially stable enough to pay back the loan.