By KIMBERLEY HAAS
Cloud-based technology is transforming warehouse lending by eliminating the need for internal system updates and ensuring new functions are available immediately.
This fall, leaders at SitusAMC announced that their warehouse lending system ProMerit is now accessible through a cloud-hosted, software-as-a-service platform that can install monthly release packages to deliver bug fixes and functional enhancements. This over-the-air delivery benefits clients by reducing costs and reliance on internal resources, they said.
ProMerit has been used by lenders for more than 35 years. Measured by volume, it has a 75% share of the warehouse lending market, company leaders say.
Rich Berg, SitusAMC senior director of warehouse and custodial technology, said in a statement that the updated platform was created and…
By KIMBERLEY HAAS
Rocket Pro TPO is kicking off its annual December to Remember event and the executive vice president says it will mean more for mortgage professionals this year than ever before.
Mike Fawaz and his team announced on Nov. 20 that they will again be spreading holiday cheer this month with wins focused on helping the broker community. He said during an interview with The Mortgage Note this week that due to the state of the market in 2023, brokers and loan officers are hustling to finish the year strong.
“To me, this year December to Remember becomes a lot more special than any other year because, for one, December to Remember came to life to help mortgage…
By ERIN FLYNN JAY
Though it has existed since the early 1900s, the rent-to-own concept has gained popularity again and for people who want to buy a home but lack the funds, it can be an alternative route to homeownership despite the costs and risks.
Ritika Asrani, founder and head broker at St Maarten Real Estate, said with tightening lending standards many potential homebuyers are turning to rent-to-own as a way to overcome credit hurdles. She said it offers them a pathway to homeownership without the immediate need for perfect credit.
And while traditional renters typically do not build equity, rent-to-own tenants often accumulate a portion of their monthly payments as equity, which can be used toward the purchase.
What…
By KIMBERLEY HAAS
The second largest bank in the country will pay a $12 million penalty after it was found that hundreds of loan officers falsified forms about mortgage applicants in violation of federal law.
Officials at the Consumer Financial Protection Bureau say that for at least four years, loan officers at Bank of America did not ask mortgage applicants required demographic questions and then falsely reported that the applicants chose not to respond.
They say this violates the Home Mortgage Disclosure Act, enacted in 1975, which requires mortgage lenders to report information about loan applications and originations to the CFPB and other federal regulators. Data collected under the act is used to monitor whether financial institutions serve their communities’…
By NICOLE MURRAY
The goal with any holiday marketing plan is to create connections and remain top of mind with the hopes of gaining future business, but how can professionals do that during one of the most chaotic times of the year?
Industry leaders say it’s important to start by realizing that one of the most predictable marketing tactics seen amongst real estate agents and loan officers is to send gifts to previous and current clients.
While Rob Jensen, broker/owner of the Rob Jensen Company, has seen many successful agents utilize this tactic, he warns that the time and money spent may go unnoticed and offer no return on investment. “Gifting during the holidays is the least memorable time for…
By ERIN FLYNN JAY
Buyers who are sensitive to high mortgage rates have developed an interest in assumable mortgages, betting they are the ticket to avoiding excessive costs, but are they worth the hype?
An assumable mortgage lets a homebuyer take over the seller’s existing mortgage, including its terms and interest rate. It’s like adopting a well-behaved financial pet instead of getting a new, potentially unruly one, said Ritika Asrani, founder and head broker at St Maarten Real Estate.
“While you can’t literally time travel to snag a rate from a decade ago, assumable mortgages allow you to benefit from historically low rates,” said Asrani. “If the seller locked in a killer rate back then, and rates have risen since,…
Mortgage lenders who pivoted to borrower-centric approaches in the last year saw customer satisfaction soar despite high rates.
That’s according to the J.D. Power 2023 U.S. Mortgage Origination Satisfaction Study, which found overall customer satisfaction with mortgage lenders rose 14 points YOY, even as the average mortgage rate has climbed to its highest level in 23 years and lending volume tanked.
The reason? Increased focus on the borrowing experience, leading to happier customers.
While nearly a third of customers said they chose the lender with the lowest rate, 69% cited other reasons like personalized service and helpfulness.
“The value equation for mortgage originators has shifted from instant approvals and lightning-fast processing to helpful advice and creative problem solving,” said Bruce…
By KIMBERLEY HAAS
Distressed homeowners who get behind on their mortgage bills are avoiding foreclosure.
The Mortgage Bankers Association’s National Delinquency Survey was released last week and it showed that delinquencies increased in the third quarter to a rate of 3.62%, up 25 basis points from the second quarter and 17 basis points from a year ago.
Marina Walsh, MBA’s vice president of industry analysis, said that despite the increase, later-stage delinquencies – those 90 days or more past due – declined to the lowest level since the first quarter of 2020.
“The decline in later-stage delinquencies, along with a foreclosure starts rate of 0.14% – which is well below the historical quarterly average of 0.40% – suggest that distressed…
Rocket is embracing artificial intelligence and leaders there say it will be a game changer in the lending industry.
Varun Krishna, CEO of Rocket Companies, emphasized their focus on AI in a statement accompanying the third quarter’s financial results.
“In today’s climate, innovation is essential. With the incredible amount of data in our ecosystem, paired with the transformative power of AI, Rocket is uniquely positioned to disrupt the industry. We’re just getting started and can’t wait to show you what we are building to revolutionize homeownership,” Krishna said.
Last month, continued advancements to the company’s Pathfinder tool were announced. Pathfinder is an AI and machine learning-powered search engine used by more than 40,000 housing professionals, according to a press release.…
