eMagic is marketing a product called the eMagic Message Center, and the customer response is keeping me pretty busy these days. Coupled with our electronic loan folder called eMagic Trio, it helps originators address two of the most important issues they face in 2009 and beyond: going paperless and ensuring borrowers' sensitive information is kept secure. And it doesn't hurt that both products reduce operational expenses as well.
Those that are interested (and that should include pretty much everyone) can check out our latest edition of ETC (our online newsletter) for some great info on these products and why they are so important. Just click here to go to the front page.
If you want to learn more about how to fight identity theft, click here.
If you'd like to try eMagic Message Center and Trio FOR FREE, click here.
Monday, December 15, 2008
Wednesday, September 24, 2008
Big Step Forward for eMagic Trio
No one can dispute that 'going paperless' saves money, saves time, and makes your document storage safer and more secure. And eMagic Trio is the undisputed low-cost leader. Still, some have held off making the move because of a perception that it's too time-consuming to index each document in a file one at a time. Well, that obstacle has now been removed as well.
eMagic Trio now lets you scan your entire loan package into one bulk PDF, then quickly break it down into individual conditions once it's in the electronic loan folder. Current Trio users can click this link to see how it works: http://thecenter.emagic.com/trio/orig_separatedocs.html. If you haven't yet made the move to a paperless office, you can check it out by signing up for the eMagic Message Center free trial. Here is the link: http://thecenter.emagic.com/admin/freetrial.html. If you like the idea of going paperless but think it'll be "too technical" for you to tackle, we have a great support hotline open from 5AM-5PM Pacific Time, and my assistant Brent and I are also available to help. You can reach me at 800-440-1625 extension 7550, and Brent at extension 6387.
eMagic Trio now lets you scan your entire loan package into one bulk PDF, then quickly break it down into individual conditions once it's in the electronic loan folder. Current Trio users can click this link to see how it works: http://thecenter.emagic.com/trio/orig_separatedocs.html. If you haven't yet made the move to a paperless office, you can check it out by signing up for the eMagic Message Center free trial. Here is the link: http://thecenter.emagic.com/admin/freetrial.html. If you like the idea of going paperless but think it'll be "too technical" for you to tackle, we have a great support hotline open from 5AM-5PM Pacific Time, and my assistant Brent and I are also available to help. You can reach me at 800-440-1625 extension 7550, and Brent at extension 6387.
Wednesday, August 20, 2008
Important Info on the New CA MLDS
For those of you who are originators in California but not active members of CAMB, I'm posting the contents of an e-mail I received this morning regarding the new required MLDS. You can read the details below, but the gist is that the new forms are required for all loans originated after August 15th, 2008. In other words, now. Most loan origination systems, including Calyx Point, do not yet have the new forms (there are different versions required based on loan type), but you can access them for free at the DRE website. Use this link: http://www.dre.ca.gov/frm_mlb.html.
Here is the complete e-mail from CAMB:
Important Notice:
Finally, all the comments have been reviewed and the final versions of the new MLDS forms were approved late Thursday, August 14, 2008 by the Office of Administrative Law (OAL). Approval from OAL was the last step necessary for formal approval and release of the new forms. That’s the good news, the “not so good news”, is that use of the new MLDS Disclosures are required effective Friday, August 15, 2008.. Each of the Disclosures has been revised to reflect expanded language about the proposed loan, loan documentation, prepayment and tax/insurance impounds. Shown below is a summary of the Disclosures.
Please check your Loan Processing System to determine whether or not you have the most recent version of the Disclosure (more than likely you do not). The MLDS versions you should be using will show (Rev. 8/08). The good news is that if you go to the DRE website, the disclosures in the Forms Section will allow you to enter the appropriate data and print out the disclosure. Even better news, the RE 885 Disclosure is in a format that will allow you to enter the data and print the disclosure. The more difficult data that is required for the RE 885 MLDS Disclosure (disclosure for Non-Traditional loans) can be obtained from the existing loan processing system; no manual calculations will be necessary. Run the disclosure in your loan processing system, and manually input the necessary the data into the disclosure on DRE’s website. The forms can be found at: http://www.dre.ca.gov/frm_mlb.html .
Just keep in mind that DRE has provided you with the disclosures, use of the Rev. 8/08 MLDS Disclosures are mandatory effective with any loans taken on or after Friday, 8/15/08. Just because you do not have the up to date disclosure in your loan processing system, does not relieve you of the responsibility of using the correct disclosure. For those of you who process your loans in different languages, DRE has informed me that the translated versions of the Disclosures will not be available until funds are released with the new Budget. Until that time, you are responsible for translating the disclosures into the appropriate language.
Copies of the revised MLDS Disclosures have been attached for your reference.
Summary of Disclosures
RE 883 Traditional Loans
1. This disclosure is to be used when the loan product DOES NOTallow the Borrower to defer repayment of principal or interest; and
2. Each payment is to include the full amount of principal and interest due for that installment.
3. The disclosure can be used when the loan is secured by real property (1-4 unit residential, raw or unimproved land or parcels, commercial, multi-family, or any other interest in real property.
4. Other than the non-applicable boxes in Section II, you are not to leave any spaces or lines blank.
5. The Broker or Broker’s Representative must sign and provide a completed MLDS Disclosure to the Borrower within three (3) business days of receiving the Borrower’s completed written loan application.
6. A copy of the Disclosure signed by all parties must be retained by the Broker for three (3) years.
7. If any other form other than the required RE 883 is used by a Real Estate Broker, prior written approval from DRE is required.
8. Completion of Disclosure Tips:
A. Page 1 – Compensation to Broker (not paid out of loan proceeds) – This is where any compensation received by the Broker for YSP, SRP or any other rebate or compensation is noted.
B. Page 2 – Section II – General Information About Loan – One of the four (4) boxes indicating the loan program and terms must be chosen. Real Estate Law requires that all material terms of the loan be disclosed. When the proposed loan terms cannot be accommodated in one of the four (4) boxes, an addendum that is signed and dated by the Borrower(s) and the Broker (or Broker’s Representative) should be attached to the disclosure.
C. Page 2 Section IV - Complete all applicable information. (Note: when there is no impound account being established, it is still necessary to provide an approximate amount for both Taxes and Insurance.)
************************************
RE 885 Non-Traditional Loans*
1. This disclosure is to be used when the loan product allows the Borrower to defer repayment of principal OR interest; and
2. Loan is secured by a 1-4 unit residential property (it can be Owner Occupied or Non-Owner Occupied).
3. If property is NOT a 1-4 unit residential property, the RE 883 or RE 882 may be used.
4. Blank spaces or lines are not allowed.
5. The Broker or Broker’s representative must sign and provide to the Borrower within three (3) business days of receiving the Borrower’s completed written loan application.
6. A copy of the Disclosure signed by all parties must be retained by the Broker for three (3) years.
7. Completion of Disclosure Tips:
A. Page 1 – Compensation to Broker (not paid out of loan proceeds) – This is where any compensation received by the Broker for YSP, SRP or any other rebate or compensation is noted.
B. Page 2 – Section III – If the “Initial Adjustable Rate” box is selected, complete section IV – XI.
C. Page 2 – Section III – If “Fixed Rate” box is selected and loan is an Interest Only or has a Negative Amortization feature, skip section IV – IX and complete section X and XI.
D. Page 2 Section XIV - Complete all applicable information. (Note: when there is no impound account being established, it is still necessary to provide an approximate amount for both Taxes and Insurance.)
E. Page 3 – Certification – THIS ONE IS IMPORTANT – SO PLEASE READ!!…. If any or all of the columns on page 4, section XIX is incomplete (except last column “proposed loan”, in the Typical Mortgage Transactions portion), the Broker MUST read and complete the Certification on Page 3. This certification can only be signed by the BROKER OF RECORD; and should only be signed after proper due diligence has taken place. By signing the Certification, the Broker of Record is certifying UNDER PENALTY OF PERJURY that:
1. Only after a diligent search, the product specified in the column not completed is NOT available.
2. The Borrower to whom the disclosure applies does not qualify for that particular product.
F. Page 4 - Comparison of Sample Mortgage Features - If a Broker does not offer one or more comparison loan products, the box "not offered" should be selected for that particular product. The Broker must provide the required information in all columns except those for which the Broker has executed the Certification on Page 3.
************************************
RE 882 Traditional
1. This disclosure is to be used when the loan product DOES NOTallow the Borrower to defer repayment of principal or interest; and
2. Each payment is to include the full amount of principal and interest due for that installment.
3. Disclosure has typically been used for Private Money loans not coming under RESPA.
4. The disclosure can be used when the loan is secured by real property (1-4 unit residential, raw or unimproved land or parcels, commercial, multi-family, or any other interest in real property.)
5. Other than the non-applicable boxes in Section II, you are not to leave any spaces or lines blank.
6. The Broker or Broker’s representative must sign and provide to the Borrower within three (3) business days of receiving the Borrower’s completed written loan application.
7. A copy of the Disclosure signed by all parties must be retained by the Broker for three (3) years.
8. If any other form other than the required RE 882 is used by a Real Estate Broker, prior written approval from DRE is required.
9. Completion of Disclosure Tips:
A. Page 1 Section I (B) (4) – Compensation to Broker (not paid out of loan proceeds) – This is where any compensation received by the Broker for YSP, SRP or any other rebate or compensation is noted.
B. Page 1 Section II (A) – General Information about Loan – One of the four (4) boxes indicating the loan program and terms must be chosen. Real Estate Law requires that all material terms of the loan be disclosed.
C. When the proposed loan terms cannot be accommodated in one of the four (4) boxes, an addendum that is signed and dated by the Borrower(s) and the Broker (or Broker’s Representative) should be attached to the disclosure.
D. Page 2 Section II (E) - Complete all applicable information. (Note: when there is no impound account being established, it is still necessary to provide an approximate amount for both Taxes and Insurance.)
Here is the complete e-mail from CAMB:
Important Notice:
Effectively IMMEDIATELY and MANDATORY!!
Revised MLDS Disclosures
MLDS 883, MLDS 885 and MLDS 882
Finally, all the comments have been reviewed and the final versions of the new MLDS forms were approved late Thursday, August 14, 2008 by the Office of Administrative Law (OAL). Approval from OAL was the last step necessary for formal approval and release of the new forms. That’s the good news, the “not so good news”, is that use of the new MLDS Disclosures are required effective Friday, August 15, 2008.. Each of the Disclosures has been revised to reflect expanded language about the proposed loan, loan documentation, prepayment and tax/insurance impounds. Shown below is a summary of the Disclosures.
Please check your Loan Processing System to determine whether or not you have the most recent version of the Disclosure (more than likely you do not). The MLDS versions you should be using will show (Rev. 8/08). The good news is that if you go to the DRE website, the disclosures in the Forms Section will allow you to enter the appropriate data and print out the disclosure. Even better news, the RE 885 Disclosure is in a format that will allow you to enter the data and print the disclosure. The more difficult data that is required for the RE 885 MLDS Disclosure (disclosure for Non-Traditional loans) can be obtained from the existing loan processing system; no manual calculations will be necessary. Run the disclosure in your loan processing system, and manually input the necessary the data into the disclosure on DRE’s website. The forms can be found at: http://www.dre.ca.gov/frm_
Just keep in mind that DRE has provided you with the disclosures, use of the Rev. 8/08 MLDS Disclosures are mandatory effective with any loans taken on or after Friday, 8/15/08. Just because you do not have the up to date disclosure in your loan processing system, does not relieve you of the responsibility of using the correct disclosure. For those of you who process your loans in different languages, DRE has informed me that the translated versions of the Disclosures will not be available until funds are released with the new Budget. Until that time, you are responsible for translating the disclosures into the appropriate language.
Copies of the revised MLDS Disclosures have been attached for your reference.
Summary of Disclosures
RE 883 Traditional Loans
1. This disclosure is to be used when the loan product DOES NOTallow the Borrower to defer repayment of principal or interest; and
2. Each payment is to include the full amount of principal and interest due for that installment.
3. The disclosure can be used when the loan is secured by real property (1-4 unit residential, raw or unimproved land or parcels, commercial, multi-family, or any other interest in real property.
4. Other than the non-applicable boxes in Section II, you are not to leave any spaces or lines blank.
5. The Broker or Broker’s Representative must sign and provide a completed MLDS Disclosure to the Borrower within three (3) business days of receiving the Borrower’s completed written loan application.
6. A copy of the Disclosure signed by all parties must be retained by the Broker for three (3) years.
7. If any other form other than the required RE 883 is used by a Real Estate Broker, prior written approval from DRE is required.
8. Completion of Disclosure Tips:
A. Page 1 – Compensation to Broker (not paid out of loan proceeds) – This is where any compensation received by the Broker for YSP, SRP or any other rebate or compensation is noted.
B. Page 2 – Section II – General Information About Loan – One of the four (4) boxes indicating the loan program and terms must be chosen. Real Estate Law requires that all material terms of the loan be disclosed. When the proposed loan terms cannot be accommodated in one of the four (4) boxes, an addendum that is signed and dated by the Borrower(s) and the Broker (or Broker’s Representative) should be attached to the disclosure.
C. Page 2 Section IV - Complete all applicable information. (Note: when there is no impound account being established, it is still necessary to provide an approximate amount for both Taxes and Insurance.)
******************************
RE 885 Non-Traditional Loans*
1. This disclosure is to be used when the loan product allows the Borrower to defer repayment of principal OR interest; and
2. Loan is secured by a 1-4 unit residential property (it can be Owner Occupied or Non-Owner Occupied).
3. If property is NOT a 1-4 unit residential property, the RE 883 or RE 882 may be used.
4. Blank spaces or lines are not allowed.
5. The Broker or Broker’s representative must sign and provide to the Borrower within three (3) business days of receiving the Borrower’s completed written loan application.
6. A copy of the Disclosure signed by all parties must be retained by the Broker for three (3) years.
7. Completion of Disclosure Tips:
A. Page 1 – Compensation to Broker (not paid out of loan proceeds) – This is where any compensation received by the Broker for YSP, SRP or any other rebate or compensation is noted.
B. Page 2 – Section III – If the “Initial Adjustable Rate” box is selected, complete section IV – XI.
C. Page 2 – Section III – If “Fixed Rate” box is selected and loan is an Interest Only or has a Negative Amortization feature, skip section IV – IX and complete section X and XI.
D. Page 2 Section XIV - Complete all applicable information. (Note: when there is no impound account being established, it is still necessary to provide an approximate amount for both Taxes and Insurance.)
E. Page 3 – Certification – THIS ONE IS IMPORTANT – SO PLEASE READ!!…. If any or all of the columns on page 4, section XIX is incomplete (except last column “proposed loan”, in the Typical Mortgage Transactions portion), the Broker MUST read and complete the Certification on Page 3. This certification can only be signed by the BROKER OF RECORD; and should only be signed after proper due diligence has taken place. By signing the Certification, the Broker of Record is certifying UNDER PENALTY OF PERJURY that:
1. Only after a diligent search, the product specified in the column not completed is NOT available.
2. The Borrower to whom the disclosure applies does not qualify for that particular product.
F. Page 4 - Comparison of Sample Mortgage Features - If a Broker does not offer one or more comparison loan products, the box "not offered" should be selected for that particular product. The Broker must provide the required information in all columns except those for which the Broker has executed the Certification on Page 3.
******************************
RE 882 Traditional
1. This disclosure is to be used when the loan product DOES NOTallow the Borrower to defer repayment of principal or interest; and
2. Each payment is to include the full amount of principal and interest due for that installment.
3. Disclosure has typically been used for Private Money loans not coming under RESPA.
4. The disclosure can be used when the loan is secured by real property (1-4 unit residential, raw or unimproved land or parcels, commercial, multi-family, or any other interest in real property.)
5. Other than the non-applicable boxes in Section II, you are not to leave any spaces or lines blank.
6. The Broker or Broker’s representative must sign and provide to the Borrower within three (3) business days of receiving the Borrower’s completed written loan application.
7. A copy of the Disclosure signed by all parties must be retained by the Broker for three (3) years.
8. If any other form other than the required RE 882 is used by a Real Estate Broker, prior written approval from DRE is required.
9. Completion of Disclosure Tips:
A. Page 1 Section I (B) (4) – Compensation to Broker (not paid out of loan proceeds) – This is where any compensation received by the Broker for YSP, SRP or any other rebate or compensation is noted.
B. Page 1 Section II (A) – General Information about Loan – One of the four (4) boxes indicating the loan program and terms must be chosen. Real Estate Law requires that all material terms of the loan be disclosed.
C. When the proposed loan terms cannot be accommodated in one of the four (4) boxes, an addendum that is signed and dated by the Borrower(s) and the Broker (or Broker’s Representative) should be attached to the disclosure.
D. Page 2 Section II (E) - Complete all applicable information. (Note: when there is no impound account being established, it is still necessary to provide an approximate amount for both Taxes and Insurance.)
Sunday, August 10, 2008
Annual CAMB Show, Housing BIll, eMagic News
In the past week, I traveled to eMagic headquarters in Milwaukee for meetings, and then to the annual CAMB Convention in Sacramento. By the time I drove home yesterday afternoon, I felt quite deserving of the week of vacation I have coming up next week. Before I check out, however, I thought I'd recap both trips, and leave you with a good story I found online about the new housing bill's tighter restrictions on originators.
eMagic Meetings
Two or three times each year the eMagic sales managers (there are eight of us) travel to the home office to get updates on product development, share experiences, and participate in sales exercises of questionable usefulness (ha-ha, just kiddin' boss!). This time we had a get-together with all the other people that work hard at building the cool eMagic tools, and I was impressed. It takes a big room full of folks to make what just a few of us in the field get to tell you about, so please- give our stuff a try. You don't want to let 'em down, do you?
CAMB Show
The tradeshow was as expected- that is to say poorly attended compare to past years, with less exhibitors, and a sense of camaraderie amongst the industry 'survivors'. The highlight for me, however, was my participation on a panel discussion on technology. The other two panelists were from Ellie Mae and Calyx, both past employers of mine, and makers of the two traditional LOS's used by most third-party originators. The discussion ended up focusing on three areas where eMagic excels- cost, security, and the paperless office, so I felt we fared quite well. An attendee recorded the session and gave me a copy, so I'll have a quasi-transcript up here soon (after my vacation!).
Finally, for your reading pleasure, here is a story re-cap (and link to the full story) about the housing bill, and how it will mean increased scrutiny of originators. As long as the new regulations apply to retail as well as wholesale originators I'm okay with the changes, but I fear thatTPO's will continue to be unfairly singled out.
Housing Law Cracks Down on Loan Originators
Investment News (08/04/08); Morrissey, Janet
The housing bill that President Bush signed into law last week includes a provision that requires licensing and other strict standards for all loan originators, including background checks, fingerprinting, continuing-education courses and listing on a national registry. The new rules are long overdue, according to the Mortgage Bankers Association in Washington. "As house prices appreciated and mortgage originations jumped to record levels, a lot of people got into the business who didn't have a lot of experience with it or a lot of formal training," says Josh Denney, an associate vice president at the organization. Education and qualification will serve as barriers of entry for the industry, and the fingerprinting and tracking system will help prevent bad actors from moving to other states and committing fraud there, Denney adds.
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20080804/REG/708271615
eMagic Meetings
Two or three times each year the eMagic sales managers (there are eight of us) travel to the home office to get updates on product development, share experiences, and participate in sales exercises of questionable usefulness (ha-ha, just kiddin' boss!). This time we had a get-together with all the other people that work hard at building the cool eMagic tools, and I was impressed. It takes a big room full of folks to make what just a few of us in the field get to tell you about, so please- give our stuff a try. You don't want to let 'em down, do you?
CAMB Show
The tradeshow was as expected- that is to say poorly attended compare to past years, with less exhibitors, and a sense of camaraderie amongst the industry 'survivors'. The highlight for me, however, was my participation on a panel discussion on technology. The other two panelists were from Ellie Mae and Calyx, both past employers of mine, and makers of the two traditional LOS's used by most third-party originators. The discussion ended up focusing on three areas where eMagic excels- cost, security, and the paperless office, so I felt we fared quite well. An attendee recorded the session and gave me a copy, so I'll have a quasi-transcript up here soon (after my vacation!).
Finally, for your reading pleasure, here is a story re-cap (and link to the full story) about the housing bill, and how it will mean increased scrutiny of originators. As long as the new regulations apply to retail as well as wholesale originators I'm okay with the changes, but I fear thatTPO's will continue to be unfairly singled out.
Housing Law Cracks Down on Loan Originators
Investment News (08/04/08); Morrissey, Janet
The housing bill that President Bush signed into law last week includes a provision that requires licensing and other strict standards for all loan originators, including background checks, fingerprinting, continuing-education courses and listing on a national registry. The new rules are long overdue, according to the Mortgage Bankers Association in Washington. "As house prices appreciated and mortgage originations jumped to record levels, a lot of people got into the business who didn't have a lot of experience with it or a lot of formal training," says Josh Denney, an associate vice president at the organization. Education and qualification will serve as barriers of entry for the industry, and the fingerprinting and tracking system will help prevent bad actors from moving to other states and committing fraud there, Denney adds.
http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20080804/REG/708271615
Wednesday, July 30, 2008
On the Road Again
All About Me
After a respite of a couple weeks, I'm back on the road again next Monday. This time, however, I won't have a typical agenda of meeting with lenders and brokers. For most of next week (Aug 4-7) I'll be back in Milwaukee for meetings at MGIC (eMagic's parent company) headquarters, where we will discuss and plan for the next 12-18 months of new development on the eMagic platform. These meetings are much more interesting now that eMagic is much more than a way to access DU and LP. And it doesn't hurt that I actually like downtown Milwaukee. It's a perfect taste of city life for a country (or mountain) mouse like me.
But I won't even have time to unpack my suitcase before heading to Sacramento for the annual CAMB convention (Aug 8th and 9th), where I'll participate in a panel discussion on technology at 2:30 on Friday. If you're at the show please come and join me. I'll be up there with representatives from Ellie Mae and Calyx Software, and it should be an interesting session. After that I get a welcome respite, as I'm on vacation for the following week (Aug 10th-16th).
One by-product of all this time away from my normal routine is that my weekly e-mail, the eMagic-Zine, won't be going out for a few weeks. Look for it to start up again the week I return. And remember, if you are planning to attend the CAMB show, drop by my Friday panel discussion or our booth on Saturday and say hello. I'll tell you anything about my trip to company HQ that isn't top-secret, classified information. It promises to be an interesting next couple weeks.
After a respite of a couple weeks, I'm back on the road again next Monday. This time, however, I won't have a typical agenda of meeting with lenders and brokers. For most of next week (Aug 4-7) I'll be back in Milwaukee for meetings at MGIC (eMagic's parent company) headquarters, where we will discuss and plan for the next 12-18 months of new development on the eMagic platform. These meetings are much more interesting now that eMagic is much more than a way to access DU and LP. And it doesn't hurt that I actually like downtown Milwaukee. It's a perfect taste of city life for a country (or mountain) mouse like me.
But I won't even have time to unpack my suitcase before heading to Sacramento for the annual CAMB convention (Aug 8th and 9th), where I'll participate in a panel discussion on technology at 2:30 on Friday. If you're at the show please come and join me. I'll be up there with representatives from Ellie Mae and Calyx Software, and it should be an interesting session. After that I get a welcome respite, as I'm on vacation for the following week (Aug 10th-16th).
One by-product of all this time away from my normal routine is that my weekly e-mail, the eMagic-Zine, won't be going out for a few weeks. Look for it to start up again the week I return. And remember, if you are planning to attend the CAMB show, drop by my Friday panel discussion or our booth on Saturday and say hello. I'll tell you anything about my trip to company HQ that isn't top-secret, classified information. It promises to be an interesting next couple weeks.
Tuesday, July 22, 2008
The New (and not just improved) eMagic
This blog is dedicated to providing news and insights to mortgage originators that they might not be getting elsewhere. I try hard to cover many topics and events that have little or nothing to do with my company (eMagic) and it's parent company (MGIC), and if you look back at the archive of this blog, you'll see that to be the case. But once in a while I'll have something about my company to share that is legitimate news, and that is the case today.
eMagic released an upgrade over the past weekend, and it goes far beyond the realm of 'New and Improved'. Most people know eMagic as a popular option for getting DU and LP approvals, and while that will always be a part of what we do, it'll soon be only one part of a much bigger picture. As a comparison think about cellphones. At first (and not that many years ago) merely having a phone you could actually keep with you and use from any location seemed revolutionary. But now we have Blackberrys and iPhones and Treos that have so many features that the phone feature is almost an afterthought. And so it shall soon be with eMagic. Loan officers will be logging on to eMagic from any number of different computers to originate files, complete loan apps, generate disclosures, calculate loan scenarios, collaborate on paperless loan files, and . . . . oh yeah- run files through DU and LP! So forget what you know about eMagic today, and keep an open mind about a whole new way of doing things.
Although we've been piloting new functionality in eMagic for months, we've just recently made some of those features available to anyone who wants to use them. In fact, you can sign your company up for a free 180-day trial of a couple of these new features- eMagic Trio (paperless file storage and collaboration) and our new web-based contact and lead management system. To go directly to the free trial signup page, click here. Here's a quick overall summary of our recent release:
eMagic released an upgrade over the past weekend, and it goes far beyond the realm of 'New and Improved'. Most people know eMagic as a popular option for getting DU and LP approvals, and while that will always be a part of what we do, it'll soon be only one part of a much bigger picture. As a comparison think about cellphones. At first (and not that many years ago) merely having a phone you could actually keep with you and use from any location seemed revolutionary. But now we have Blackberrys and iPhones and Treos that have so many features that the phone feature is almost an afterthought. And so it shall soon be with eMagic. Loan officers will be logging on to eMagic from any number of different computers to originate files, complete loan apps, generate disclosures, calculate loan scenarios, collaborate on paperless loan files, and . . . . oh yeah- run files through DU and LP! So forget what you know about eMagic today, and keep an open mind about a whole new way of doing things.
Although we've been piloting new functionality in eMagic for months, we've just recently made some of those features available to anyone who wants to use them. In fact, you can sign your company up for a free 180-day trial of a couple of these new features- eMagic Trio (paperless file storage and collaboration) and our new web-based contact and lead management system. To go directly to the free trial signup page, click here. Here's a quick overall summary of our recent release:
- Loan Folder screen- This new screen is designed to be your electronic web-based loan file, giving you access to your loan data, imaged documents, calculators, data entry forms (1003, GFE, TIL, disclosures) and DU/LP ordering through your eMagic lenders, all from one location. When you import FNM files from your LOS like Calyx Point you now land on this screen, but most of our other new features give you even more reason to key your loan in from scratch at eMagic anyway, rather than starting the process in your old LOS.
- More credit providers- We're adding credit vendors as quickly as we can, and have just added 50 more through a partnership with MeridianLink. To see the complete list, click here.
- Loan Comparison Calculator- This new calculator in eMagic gives you a convenient way to run loan scenarios for prospects anywhere you can get online, and leave your borrower with a very professional and easy-to-understand printout
- Contact and Lead Manager- Use eMagic to manage your contacts and leads, and you'll have access to your lead and loan pipeline in one location on the web, anywhere you can get online. Owners and managers have the ability to run lead pipeline reports and track progress. Click here to sign up for your free trial of this premium feature.
- Pipeline Segregation- If, like most companies I talk to these days, your office is encouraging the LO's as well as the processors to use eMagic, you should definitely take advantage of this simple but important feature. It basically lets you give certain employees access to only their own files in the eMagic pipeline, and others access to all files. To learn more, click here.
Monday, July 14, 2008
Mortgage Originator Magazine's New Columnist- Me!
When I headed up the marketing and business development efforts for Calyx Software, I frequently wrote articles industry publications. I'm at it once again, writing an every-other-month column for Mortgage Originator magazine (MOM) called Tech Consultant. Per our agreement, I'm allowed to publish these articles on my own after they've appeared in MOM, so here is the first one. I hope you find it useful:
Technology Consultant: Exporting Fannie Mae Files
By Jack Trageser
I'm excited to be a new contributing author of the Technology Consultant column. Having worked for mortgage technology companies for the past 13 years, my intention is to focus on what I know best—technologies specific to our industry. Nevertheless, I look forward to answering all types of questions submitted by readers as well as some I come across in my daily interactions with mortgage originators.
Question: What can I do to make my Web site appear higher in the list of search results when someone in my area uses Google to search for a home loan provider?
Technology Consultant: Exporting Fannie Mae Files
By Jack Trageser
I'm excited to be a new contributing author of the Technology Consultant column. Having worked for mortgage technology companies for the past 13 years, my intention is to focus on what I know best—technologies specific to our industry. Nevertheless, I look forward to answering all types of questions submitted by readers as well as some I come across in my daily interactions with mortgage originators.
Question: When I export a Fannie Mae file out of my LOS so I can import it into a lender or vendor's Web site, do I need to keep that file on my computer?
The short answer is no, because that Fannie Mae formatted file (*.FNM) is a temporary file used to get loan data from a Windows application (like Calyx Point) to a Web application, or vice-versa. Once the data is uploaded into its new location, the Fannie Mae file can be deleted. If you want a simple way to keep your hard drive free of these temporary files, here is a simple suggestion: When you export the file out of your LOS, name it the same thing every time. For instance, Calyx Point defaults this file name as “POINT,” and I just leave it as is and hit the “Save” button. When Point tells me that a file of that name already exists, and asks if I want to replace the existing file, I select “Yes.” That way I've always got only one Fannie Mae formatted file saved, and it's always the most recent one—the one I want. When I browse for the file to upload into my Web application, it's easy to find because it's the only one there.
Another question I hear often is 'Can I use a Fannie Mae formatted file even if I'm uploading it to a Web site to run LP (Freddie Mac's automated underwriting system)? The answer is yes. The Fannie Mae format has become the ubiquitous format for originators who need to get loan data between Windows and Web applications. It works for running loans through DU, LP, lender Web sites for locking and registration, and any other lender and vendor Web sites you use.
Question: What can I do to make my Web site appear higher in the list of search results when someone in my area uses Google to search for a home loan provider?
Search Engine Optimization (SEO) is the combined science and art of achieving a high ranking in Internet search engines' results through a variety of tasks involving your Web site and those of your referral partners'. All Web site hosting companies provide their own versions of software tools to help you maximize your site's potential in this regard and some also provide extensive tutorials and training material as well. Like I said, SEO is art as well as science, and it helps to understand why it works as well as how it works. For a great general overview, go to www.google.com/webmasters. Here are a couple of things to consider:
* Search Engine Optimization can be broken down into “On-Page Optimization,” (or that involving your own site), and “Off-Page Optimization,” (which involves the sites of others—mostly your referral partners).
*On-Page Optimization is all about making sure your site has content that includes the words or phrases that prospects you are targeting will likely key in at Google or another search engine. But you need to accomplish this while still writing natural, readable sentences, and you can't overload on your use of these keywords, or your site may get banned from Google. That's why I believe SEO is an art as much as a science.
*Off-Page Optimization basically means getting other Web site owners in and around your industry to add links to your site in their sites. Doing this not only increases traffic to your site, but it improves your standing in the search results as well.
Create many single-topics pages on your site, rather than a few pages loaded with too many topics. This makes it easier to incorporate relevant keywords. Sites with more content generally rank higher compared to those with less content. Consider adding one new consumer-oriented content page every week. The added benefit is that this will also make others want to link to your site, which is the other part of SEO.
If this all seems like something you are unlikely to want to tackle, you can hire someone else to do it. There are actually professional 'Search Engine Optimizers' (just do a Google search to find one), and students are always a good budget option.
The format of this column does not allow anywhere near enough space to cover this topic properly, so check out the Web sites (list courtesy of Myers Internet trainers) below for more info:
Tuesday, July 8, 2008
Flipping Out Over Misinformation
We all know that the mortgage industry receives more attention in the press than ever before, and often that results in the spread of misinformation. Take, for example, the recent announcement by the Department of Housing and Urban Development that they have suspended the property-flipping 90-day holding period for forclosed properties only. With news organizations constantly recycling news items researched on the internet, it doesn't take long for the news to get warped into something that isn't true, and if you are an originator the last thing you need is to lose your status as a trusted adviser by passing on false info to your clients.
In this case the announcement has been passed on and on, and many people now believe that the rule suspension applies to all FHA mortgages, which isn't true. And it didn't help that FHA commissioner Brian Montgomery said in a big press release that the new policy "will allow homebuyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes."
My purpose of this blog entry is to set the record straight and save originators from spreading this inaccuracy further, and also to remind you that we live in the information age, a time when supposed facts come flying at you from all angles. Don't take everything you hear or read (even on this blog) for granted. Go to the source, do your research, and make sure you know the full story.
In this case the announcement has been passed on and on, and many people now believe that the rule suspension applies to all FHA mortgages, which isn't true. And it didn't help that FHA commissioner Brian Montgomery said in a big press release that the new policy "will allow homebuyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes."
My purpose of this blog entry is to set the record straight and save originators from spreading this inaccuracy further, and also to remind you that we live in the information age, a time when supposed facts come flying at you from all angles. Don't take everything you hear or read (even on this blog) for granted. Go to the source, do your research, and make sure you know the full story.
Thursday, June 26, 2008
Harvard University Study on 2008 Housing Industry
Another day, another 50 brokers trained. With the unprecedented state of our industry, helping originators better educate themselves about technology, or full doc loans, mortgage insurance, and other stuff makes me feel like I'm doing something to help. And I'll admit, it's not just about being a good guy. Originators are my customers, and I want as many customers as possible, heh-heh. So make sure to keep watching the training area of this blog. I've got many new topics planned in the near future, like understanding FICO scores and how to optimize your website so it's comes up higher on the Google search list.
Joint Center for Housing Studies of Harvard University
I came across this study recently, and while the news isn't great it's obvious that the folks at Harvard (or maybe I should say the 'scholars' at Harvard) did their research. Part of the purpose of this blog is to pass along informative news items, and this is packed with good info. Click here to see the Executive Summary of their research.
Joint Center for Housing Studies of Harvard University
I came across this study recently, and while the news isn't great it's obvious that the folks at Harvard (or maybe I should say the 'scholars' at Harvard) did their research. Part of the purpose of this blog is to pass along informative news items, and this is packed with good info. Click here to see the Executive Summary of their research.
Wednesday, June 18, 2008
Mobile Origination, Mobile Man
Web Origination
When I first accepted a position with Calyx Software in 1995, most brokers didn't even use a computer yet to originate loans. It seems like not so long ago, but loan origination changed quite a bit in the 1990's. So how did they fill out all those forms in the loan package? You got it- a typewriter. Can you believe that? The amazing thing is that many shops, when shown a better, more efficient way of doing things using a computer, said 'Nah- I'd prefer to keep using my typewriter and bottle of White-Out.' But the more tech savvy and the early adopters bought computers and their first copy of Point software, and eventually the masses followed.
I mentioned that little bit of trivia so you'll know I've had a bird's eye view of mortgage broker technology basically since computers were first used on a broad scale to originate loans. And in all that time, in the vast majority of all cases I saw, loan officers still collected a handwritten 1003 and let a processor take it from there. I'm seeing that finally change as again the more tech savvy originators realize that they can use eMagic to do many of the things that they either do today with pen and paper, or rely on a processor to do. And that is really our mission: To give loan officers and processors a web-based origination tool that is available anywhere they can get online. When you originate in eMagic, not only do you have a secure environment in which to collect loan data, collect and share loan documents, generate loan apps and disclosures and manage contacts and leads . . . You also have the ability to export the loan data out of eMagic at any time and import it into a new file in Point, to handle the rest of the processing. Using this method, originators have greatly increased potential in terms of what they can accomplish at the point of sale, and the processor has immediate access to any data or documents collected!
I'll be hosting a WebEx in July that covers this exciting new function of eMagic in detail, so simply find the link at the left and click on it to sign up.
In the News
The White House has threatened to veto a Senate bill designed to prevent foreclosures amid a scandal involving key Senators gets VIP treatment by Countrywide. Here is a quote from the story, by Julie Hirschfeld Davis that ran today:
When I first accepted a position with Calyx Software in 1995, most brokers didn't even use a computer yet to originate loans. It seems like not so long ago, but loan origination changed quite a bit in the 1990's. So how did they fill out all those forms in the loan package? You got it- a typewriter. Can you believe that? The amazing thing is that many shops, when shown a better, more efficient way of doing things using a computer, said 'Nah- I'd prefer to keep using my typewriter and bottle of White-Out.' But the more tech savvy and the early adopters bought computers and their first copy of Point software, and eventually the masses followed.
I mentioned that little bit of trivia so you'll know I've had a bird's eye view of mortgage broker technology basically since computers were first used on a broad scale to originate loans. And in all that time, in the vast majority of all cases I saw, loan officers still collected a handwritten 1003 and let a processor take it from there. I'm seeing that finally change as again the more tech savvy originators realize that they can use eMagic to do many of the things that they either do today with pen and paper, or rely on a processor to do. And that is really our mission: To give loan officers and processors a web-based origination tool that is available anywhere they can get online. When you originate in eMagic, not only do you have a secure environment in which to collect loan data, collect and share loan documents, generate loan apps and disclosures and manage contacts and leads . . . You also have the ability to export the loan data out of eMagic at any time and import it into a new file in Point, to handle the rest of the processing. Using this method, originators have greatly increased potential in terms of what they can accomplish at the point of sale, and the processor has immediate access to any data or documents collected!
I'll be hosting a WebEx in July that covers this exciting new function of eMagic in detail, so simply find the link at the left and click on it to sign up.
In the News
The White House has threatened to veto a Senate bill designed to prevent foreclosures amid a scandal involving key Senators gets VIP treatment by Countrywide. Here is a quote from the story, by Julie Hirschfeld Davis that ran today:
"The centerpiece of the package is a foreclosure rescue program in which the Federal Housing Administration would provide $300 billion in new, cheaper mortgages for distressed homeowners who otherwise would be considered too financially risky to qualify for government-insured, fixed-rate loans.
Borrowers would be eligible if their mortgage holders were willing to take a substantial loss and allow them to refinance, and would ultimately have to share with the government a portion of any profits they made from selling or refinancing their properties.
The measure is designed to help hundreds of thousands of borrowers in danger of losing their homes, but it also would benefit mortgage holders by allowing them to avoid costly foreclosures and reclaim some of what they're owed by people facing financial ruin.
The bill would tighten controls on Fannie Mae and Freddie Mac -- which provide huge amounts of cash flow to the mortgage market by buying home loans from banks -- creating a new regulator for the firms.
It also would provide a $14.5 billion array of housing and other tax breaks, including a credit of up to $8,000 for first-time homebuyers who buy a home in the next year and boosts in low-income tax credits and mortgage revenue bonds.
A group of 28 House Republicans wrote to Speaker Nancy Pelosi, D-Calif., on Thursday demanding an investigation -- with open hearings -- on the Countrywide allegations.
"At a time when millions of Americans are struggling to repay their mortgage debts while coping with $4/per gallon gasoline and soaring foods prices, they will be outraged to learn that some members of Congress may have personally profited from their official positions through secret sweetheart deals on their mortgages," said the letter, signed by House leaders. "Although there is no evidence that has arisen to suggest direct quid pro quo dealings, it is extremely troubling that these revelations of preferential treatment have emerged at a time when Congress is considering multiple legislative proposals affecting the mortgage lending industry.""
Tuesday, June 3, 2008
The 'Flight to Quality' Continues . . .
Good afternoon fellow mortgage industry stalwarts (or good morning, if that's when you're reading this). I hosted a web seminar this morning on the subject of Full Doc Loans (presented by MGIC corporate trainer Sheryl Yu), and I want to thank the attendees for making it a very productive session by asking so many great questions. I know this topic will remain popular, so watch the space to the left to see when the next Full Doc Loans session will be and sign up quickly. After all, it's free training!!
A couple of news items that I thought were definitely relevant to this blog came across the wire recently. First, an informal newletter I receive regularly included an item that indicates that conforming loan limits will almost definitely be raised on a permanent basis, and they will be determined on a regional basis like the temporary arrangement we're using now. Further, the story states that "Political observers suggest that legislators will end up agreeing on a new conforming loan limit at $600,000-plus. That’s a level between the "temporary" $729,750 loan ceiling in place now and the $550,000 limit approved by the Senate Banking Committee last week." Note: The newsletter normally includes the source of the quote, but this time it didn't.
Desktop Underwriter(TM) 7.0
The other news item is the fact that Fannie Mae(R) upgraded the Desktop Underwriter decision engine over the holiday weekend/ It reminds me of an anricle I read recently that said France waits until holiday periods to enact unpopluar legislation. It should come as no suprise that most of the changes result in tougher automated underwriting guidlines. And since GSE-saleable loans are going to be a big part of the wholesale product mix for the foreseeable future, I think it means that originators more than ever need to be intimately familiar with the finer points of DU (TM) and LP (TM). Below you'll find a few links to pages on Fannie Mae's website that you can use to educate yourself on the specific changes you can expect to see with DU 7.0:
https://www.efanniemae.com/sf/technology/ou/du/pdf/du70_flyer.pdf
https://www.efanniemae.com/sf/technology/ou/du/aboutdu70.jsp
https://www.efanniemae.com/sf/guides/duguides/pdf/current/rndodu70.pdf
Let me know if you have any specific scenarios to share as you begin to runs loans through DU with the new automated guidelines. Thanks!
A couple of news items that I thought were definitely relevant to this blog came across the wire recently. First, an informal newletter I receive regularly included an item that indicates that conforming loan limits will almost definitely be raised on a permanent basis, and they will be determined on a regional basis like the temporary arrangement we're using now. Further, the story states that "Political observers suggest that legislators will end up agreeing on a new conforming loan limit at $600,000-plus. That’s a level between the "temporary" $729,750 loan ceiling in place now and the $550,000 limit approved by the Senate Banking Committee last week." Note: The newsletter normally includes the source of the quote, but this time it didn't.
Desktop Underwriter(TM) 7.0
The other news item is the fact that Fannie Mae(R) upgraded the Desktop Underwriter decision engine over the holiday weekend/ It reminds me of an anricle I read recently that said France waits until holiday periods to enact unpopluar legislation. It should come as no suprise that most of the changes result in tougher automated underwriting guidlines. And since GSE-saleable loans are going to be a big part of the wholesale product mix for the foreseeable future, I think it means that originators more than ever need to be intimately familiar with the finer points of DU (TM) and LP (TM). Below you'll find a few links to pages on Fannie Mae's website that you can use to educate yourself on the specific changes you can expect to see with DU 7.0:
https://www.efanniemae.com/sf/technology/ou/du/pdf/du70_flyer.pdf
https://www.efanniemae.com/sf/technology/ou/du/aboutdu70.jsp
https://www.efanniemae.com/sf/guides/duguides/pdf/current/rndodu70.pdf
Let me know if you have any specific scenarios to share as you begin to runs loans through DU with the new automated guidelines. Thanks!
Tuesday, May 20, 2008
DRE's List of Top Ten Violations During TPO Audits
Good Morning Everyone!
Well, it may not be morning when you're reading this, but right now it's the start of a beautiful (and thankfully cooler) day here in Roseville, CA. I'm meeting with a few brokers to discuss Trio on this trip, and a couple of the newer lenders in eMagic as well. I received a question from a broker who just signed up for Trio, and in researching the answer I discovered a list I think every TPO in California should see. It is the Department of Real Estate's list of the top 10 most common violations that are discovered during audits. Number one on the list is a violation of B & P Code Section 10148 - Retention of Records. I'm happy to inform you that you can easily ensure you are compliant with this section of the code by using Trio- while saving money and greatly improving efficiency at the same time.
To check out the entire 'Top 10' list, click here
To learn more about Trio, click here. Or better yet, call me at 831-809-0247 to discuss how Trio can make your file retention cheaper, more secure, more efficient . . . and yes, DRE compliant.
Well, it may not be morning when you're reading this, but right now it's the start of a beautiful (and thankfully cooler) day here in Roseville, CA. I'm meeting with a few brokers to discuss Trio on this trip, and a couple of the newer lenders in eMagic as well. I received a question from a broker who just signed up for Trio, and in researching the answer I discovered a list I think every TPO in California should see. It is the Department of Real Estate's list of the top 10 most common violations that are discovered during audits. Number one on the list is a violation of B & P Code Section 10148 - Retention of Records. I'm happy to inform you that you can easily ensure you are compliant with this section of the code by using Trio- while saving money and greatly improving efficiency at the same time.
To check out the entire 'Top 10' list, click here
To learn more about Trio, click here. Or better yet, call me at 831-809-0247 to discuss how Trio can make your file retention cheaper, more secure, more efficient . . . and yes, DRE compliant.
Tuesday, May 13, 2008
Higher Loan Limits Permanent?
Looks like the temporary conforming loan limit raises may end up not so temporary after all. Check out the CMBA press release that came across my desk:
Congress Passes Housing Bill, Including Permanent Increase in GSE/FHA Loan Limits!
Loan Limit Provision Represents Major CMBA Legislative Accomplishment
Courtesy Rep. Jerry McNerney (D-11) Press Release
Washington, D.C. - Today, the House passed a major legislative package to address the housing and foreclosure crisis that is gripping the country and having a negative impact effect on our nation's economy. The package included a provision authored by Congressman Jerry McNerney (CA-11) to permanently raise the loan limits for Fannie Mae, Freddie Mac, and the Federal Housing Administration.
"There were nearly 170,000 foreclosure filings in California in the first quarter of this year and over 7,500 in Stockton alone. Those are staggering numbers," said Rep. McNerney. "Families are losing their homes, neighborhoods are becoming destabilized and the impact of the foreclosure crisis is rippling throughout all sectors of the economy. We've got to do more to help families in financial difficulty and to stabilize the market. Today we made an important step in that direction."
Rep. McNerney's provision, introduced this past Monday as H.R. 5958, the Homeowner Opportunity Act of 2008, makes permanent the loan limit increases for Fannie Mae, Freddie Mac and the Federal Housing Administration that were raised temporarily through the Economic Stimulus Act signed into law in February.
The provision will ensure that the maximum limits of $729,750 are maintained, creating responsible opportunities for families to obtain fixed-rate mortgages and helping to alleviate the current market difficulties by increasing the availability of credit in the market. The provision would mean increased access to stable mortgage products in all four counties in the 11th district: Alameda, Contra Costa, San Joaquin and Santa Clara.
"When we considered the Economic Stimulus Act I personally discussed the importance of raising the loan limits with Speaker Pelosi. Increasing loan limits that were too low to be of use in California helped inject stability into a turbulent market - but only temporarily," Rep. McNerney said. "Fortunately, my provision to make that increase permanent was incorporated into the package the House voted on and passed today."
The housing crisis has significantly affected California, particularly Stockton and surrounding San Joaquin County, which have found themselves at the top of the national foreclosure list. Statewide in California, according to the Pew Charitable Trusts, one in 20 homeowners is projected to lose his or her home to foreclosure over the next two years.
Homeowners who do not lose their homes have also been hurt by the crisis. Pew also estimates that 64 percent of all California homeowners will feel the ripple effects of the housing crisis and that the collective statewide loss in state and local taxes will reach $107 billion as a result of declining property values. According to Senate Banking Committee Chairman Chris Dodd, the foreclosure of a home on a typical city block generates two immediate related outcomes: the value of every other home on that block declines by one percent and the crime rate climbs two percent.
The bill voted on today, the American Housing Rescue and Foreclosure Prevention Act of 2008 will provide mortgage refinancing assistance, which will help keep families from losing their homes and protect neighboring home values.
This plan requires both homeowners and lenders to take responsibility. In order to qualify for refinancing and new government backed mortgages, lenders and mortgage investors will be required to take a loss and borrowers must share any profit from the resale of a refinanced home with the government. Additionally, the new plan is open only to owner-occupied homes. Speculators, investors and vacation/second-home owners are not eligible to participate.
Other provisions of the legislation include an increase in the loan limit for VA-backed originating loans and increased oversight for Fannie Mae and Freddie Mac.
The House also passed the Neighborhood Stabilization Act of 2008, which provides $15 billion in loans and grants to states to acquire vacant, foreclosed homes. The legislation will allow local communities to rehabilitate foreclosed properties, which currently drive down surrounding home prices, and place these homes back on the market.
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Congress Passes Housing Bill, Including Permanent Increase in GSE/FHA Loan Limits!
Loan Limit Provision Represents Major CMBA Legislative Accomplishment
Courtesy Rep. Jerry McNerney (D-11) Press Release
Washington, D.C. - Today, the House passed a major legislative package to address the housing and foreclosure crisis that is gripping the country and having a negative impact effect on our nation's economy. The package included a provision authored by Congressman Jerry McNerney (CA-11) to permanently raise the loan limits for Fannie Mae, Freddie Mac, and the Federal Housing Administration.
"There were nearly 170,000 foreclosure filings in California in the first quarter of this year and over 7,500 in Stockton alone. Those are staggering numbers," said Rep. McNerney. "Families are losing their homes, neighborhoods are becoming destabilized and the impact of the foreclosure crisis is rippling throughout all sectors of the economy. We've got to do more to help families in financial difficulty and to stabilize the market. Today we made an important step in that direction."
Rep. McNerney's provision, introduced this past Monday as H.R. 5958, the Homeowner Opportunity Act of 2008, makes permanent the loan limit increases for Fannie Mae, Freddie Mac and the Federal Housing Administration that were raised temporarily through the Economic Stimulus Act signed into law in February.
The provision will ensure that the maximum limits of $729,750 are maintained, creating responsible opportunities for families to obtain fixed-rate mortgages and helping to alleviate the current market difficulties by increasing the availability of credit in the market. The provision would mean increased access to stable mortgage products in all four counties in the 11th district: Alameda, Contra Costa, San Joaquin and Santa Clara.
"When we considered the Economic Stimulus Act I personally discussed the importance of raising the loan limits with Speaker Pelosi. Increasing loan limits that were too low to be of use in California helped inject stability into a turbulent market - but only temporarily," Rep. McNerney said. "Fortunately, my provision to make that increase permanent was incorporated into the package the House voted on and passed today."
The housing crisis has significantly affected California, particularly Stockton and surrounding San Joaquin County, which have found themselves at the top of the national foreclosure list. Statewide in California, according to the Pew Charitable Trusts, one in 20 homeowners is projected to lose his or her home to foreclosure over the next two years.
Homeowners who do not lose their homes have also been hurt by the crisis. Pew also estimates that 64 percent of all California homeowners will feel the ripple effects of the housing crisis and that the collective statewide loss in state and local taxes will reach $107 billion as a result of declining property values. According to Senate Banking Committee Chairman Chris Dodd, the foreclosure of a home on a typical city block generates two immediate related outcomes: the value of every other home on that block declines by one percent and the crime rate climbs two percent.
The bill voted on today, the American Housing Rescue and Foreclosure Prevention Act of 2008 will provide mortgage refinancing assistance, which will help keep families from losing their homes and protect neighboring home values.
This plan requires both homeowners and lenders to take responsibility. In order to qualify for refinancing and new government backed mortgages, lenders and mortgage investors will be required to take a loss and borrowers must share any profit from the resale of a refinanced home with the government. Additionally, the new plan is open only to owner-occupied homes. Speculators, investors and vacation/second-home owners are not eligible to participate.
Other provisions of the legislation include an increase in the loan limit for VA-backed originating loans and increased oversight for Fannie Mae and Freddie Mac.
The House also passed the Neighborhood Stabilization Act of 2008, which provides $15 billion in loans and grants to states to acquire vacant, foreclosed homes. The legislation will allow local communities to rehabilitate foreclosed properties, which currently drive down surrounding home prices, and place these homes back on the market.
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Wednesday, May 7, 2008
Good News for A U !
Another trip, another 70 mortgage originators trained. I'm sitting in the San Diego airport after a three-day trip, during which I conducted two small technology seminars with Wells Fargo, and visited a few broker shops that are implementing eMagic technology. It seems like training is most of what I do now, but I don't mind. There is a curiosity about eMagic that reminds me of the early Calyx Software (R) days, and it's pretty exciting.
Speaking of training, check the list on the left for some new sessions soon, like one on FHA. As always, click on one you'd like to join and register online.
Good News of the Day:
Check out this link to read a story about Fannie Mae relaxing some underwriting guidelines. Me being the optimist I am, I think this will hopefully result in changes in Desktop Underwriter (TM) that make automated approvals easier to approve. Stay tuned . . . .
Speaking of training, check the list on the left for some new sessions soon, like one on FHA. As always, click on one you'd like to join and register online.
Good News of the Day:
Check out this link to read a story about Fannie Mae relaxing some underwriting guidelines. Me being the optimist I am, I think this will hopefully result in changes in Desktop Underwriter (TM) that make automated approvals easier to approve. Stay tuned . . . .
Wednesday, April 23, 2008
If technology can cook a frozen burrito faster . . .
Have you ever finally tried some type of new technology product, immediately loved it, then wondered why you didn't try it sooner? Like Tivo, maybe, or Google's search engine? I can still remember my family's first microwave oven, and the wonder of being able to cook a frozen burrito in two minutes. The feeling of 'this is so cool!' is quickly replaced by a desire to kick oneself for living for so long in ignorance of what amounts to a 'better mousetrap'.
I can think of two excellent mortgage industry-specific examples. One is from the past and the other is quite current. In 1995, I took a job with Calyx Software when most brokers still didn't use a computer in any way. We had to 'sell' brokers on the idea of using a software program to generate forms and calculate payments, ratios, etc. People were used to typing (yes, with a rat-a-tat typewriter) the property address and loan amount on 40 different pieces of paper and just figured that was the way things would be forever. Hard to imagine working that way today though, eh? We look back on that time, and ask "Why would anyone resist a change that is so obviously beneficial in every way?'
I feel the same way about my second mortgage industry example now as I did back in 1995 about loan origination software. The example is electronic file storage, otherwise know as imaging. Originators can now store loan documents and files as digital images on secure web servers, and in doing so reduce costs, increase efficiency, and protect their borrowers from identity theft. It's such a win-win-win that I can only assume that those that haven't made the switch are either unaware of this new advancement, or are creatures of habit that wait for everyone else to try something first. For those that are interested in learning more about this 'no-brainer', however, here are some more details:
When you create an image of a document, you've now got a computerized version of that doc that can be viewed or printed at any time. If you image an entire loan file, you can save those images instead of the paper file, and still meet DRE requirements to retain files (three years in CA). So right there you're saving money by not having to store boxes and boxes of paper. If you're storing files off-site, these savings can be significant. But if you're simply scanning loan documents and saving them as PDF's on your computer's hard drive or even on a portable drive, you still don't have an imaging system.
Part of the beauty of the solution I'm talking about is the fact that loan files get stored securely on servers you can access from anywhere you can get on the internet. So when a past client calls and needs to refi ASAP, you'll be able to have the exact document you need in that file from two years ago in front of you in seconds. No matter where you are. That's efficiency. Or if your office gets broken into or flooded, or your computer crashes, your loan documents are all still safe. That's security. Even if you're already scanning documents but storing them yourself, you're missing out on these key benefits.
It's my guess - especially since originators need to cut costs now more than ever - that electronic file storage will be commonplace before too long. The sooner you check it out, the sooner you'll make the switch. After all, storing paper files these days makes as much sense as waiting 30 minutes to cook a frozen burrito!
If you're interested in learning more about my company's imaging system, called Trio, click here. You get to use it for the first two months for free, and I'll be happy to provide free training. And Trio is by far the lowest priced imaging system available, by the way. Check it out.
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See the list of upcoming training dates and time in the upper left of this blog- click on the session you want to register online, and if it's full contact me directly at jack_trageser@emagic.com to get in anyway.
I can think of two excellent mortgage industry-specific examples. One is from the past and the other is quite current. In 1995, I took a job with Calyx Software when most brokers still didn't use a computer in any way. We had to 'sell' brokers on the idea of using a software program to generate forms and calculate payments, ratios, etc. People were used to typing (yes, with a rat-a-tat typewriter) the property address and loan amount on 40 different pieces of paper and just figured that was the way things would be forever. Hard to imagine working that way today though, eh? We look back on that time, and ask "Why would anyone resist a change that is so obviously beneficial in every way?'
I feel the same way about my second mortgage industry example now as I did back in 1995 about loan origination software. The example is electronic file storage, otherwise know as imaging. Originators can now store loan documents and files as digital images on secure web servers, and in doing so reduce costs, increase efficiency, and protect their borrowers from identity theft. It's such a win-win-win that I can only assume that those that haven't made the switch are either unaware of this new advancement, or are creatures of habit that wait for everyone else to try something first. For those that are interested in learning more about this 'no-brainer', however, here are some more details:
When you create an image of a document, you've now got a computerized version of that doc that can be viewed or printed at any time. If you image an entire loan file, you can save those images instead of the paper file, and still meet DRE requirements to retain files (three years in CA). So right there you're saving money by not having to store boxes and boxes of paper. If you're storing files off-site, these savings can be significant. But if you're simply scanning loan documents and saving them as PDF's on your computer's hard drive or even on a portable drive, you still don't have an imaging system.
Part of the beauty of the solution I'm talking about is the fact that loan files get stored securely on servers you can access from anywhere you can get on the internet. So when a past client calls and needs to refi ASAP, you'll be able to have the exact document you need in that file from two years ago in front of you in seconds. No matter where you are. That's efficiency. Or if your office gets broken into or flooded, or your computer crashes, your loan documents are all still safe. That's security. Even if you're already scanning documents but storing them yourself, you're missing out on these key benefits.
It's my guess - especially since originators need to cut costs now more than ever - that electronic file storage will be commonplace before too long. The sooner you check it out, the sooner you'll make the switch. After all, storing paper files these days makes as much sense as waiting 30 minutes to cook a frozen burrito!
If you're interested in learning more about my company's imaging system, called Trio, click here. You get to use it for the first two months for free, and I'll be happy to provide free training. And Trio is by far the lowest priced imaging system available, by the way. Check it out.
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See the list of upcoming training dates and time in the upper left of this blog- click on the session you want to register online, and if it's full contact me directly at jack_trageser@emagic.com to get in anyway.
Friday, April 11, 2008
Big things afoot at eMagic
Like anyone else working in the mortgage industry right now, I'm plenty happy just to be working in the mortgage industry right now. If you know what I mean. With the mortgage business down in so many ways, technology vendors that support mortgage companies are hurting as well. It's my good fortune, however, to be working for eMagic, the exception to that rule.
Not only is eMagic more popular with mortgage originators than ever before because we provide access to free DU and LP for numerous lenders. That's keeping me pretty busy all by itself. I'm training brokers in record numbers, and signing up new lenders left and right. But eMagic has become so much more than a DU/LP 'One Trick Pony,' and that's why I decided to start this blog. For the first time since 1998, when I was the head of business development and marketing at Calyx Software and POINT really started taking off, I'm getting that feeling again. I think eMagic can be the next big thing in technology for mortgage originators, and I want to chronicle its development. But this blog will be about much more than that.
I'll also use this as a forum to announce upcoming free training sessions, and share news tidbits and links I think originators will consider 'good stuff'" (see below for a sample). Finally, I'd like to receive and answer good questions about eMagic or broker technology in general- so feel free to post here.
Upcoming Training Sessions
April 24th at 10:30 AM PST- DU, LP, and Imaging in eMagic- Learn insider tips
May 9th at 10:00 AM PST- The Weakest Link- The Six traits of a successful salesperson
May 24 at 2:00 PM PST- Success Signals- Secrets to effective communication
June 3rd at 10:30 AM PST- Full Doc Processing
Send an e-mail to jack_trageser@emagic.com or brent_conrad@emagic.com if you'd like to attend any of these sessions- and watch this blog for additional sessions to be added. We'll be adding two additional DU/LP sessions in May, and new sessions on running FHA and VA loans through DU and LP, and document imaging and electronic document transfer.
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NEWS: Quick summaries of Mortgage Industry Trade Publications Articles
According to an article in American Banker published on April 1, loan servicers are actively working on ways to retain borrowers in anticipation of an expected refi wave due to a reduction in interest rates of 25 to 50 basis points by the Federal Reserve in the coming months. It's possible that originators will face more competition than ever from the current servicers, because, as an industry expert says in the article, "The ones (servicers) want to keep are the ones they're about to lose".
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U.S. Mortgage Bond Issuance Plunged in 1st Quarter
Reuters (04/01/08); Haviv, Julie
A new Thomson Financial survey shows that U.S. mortgage-backed securities (MBS) issuance plunged by more than 75 percent in the first three months of this year from the first quarter of 2007 amid ongoing uncertainty in the housing market. According to the report, MBS issuance totaled $61 billion in this year's first quarter, down substantially from $273.9 billion a year earlier. Richard Peterson, Thomson Financial's director of capital markets, notes that the January-through-March stretch marked the slowest quarter for issuance of U.S. MBS since 2000's fourth quarter. Meanwhile, issuance of bonds backed by firms other than Fannie Mae and Freddie Mac has come to a virtual stand-still as investors opt not to buy securities backed by loans where payments are not guaranteed.
http://www.reuters.com/article/telecomm/idUSN3157215620080401
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Mortgage Meltdown Maps Offered
Central Valley Business Times (CA) (04/02/08)
The Federal Reserve System has posted a set of dynamic maps and data on the Internet that shows subprime and alt-A mortgage conditions nationwide, including such information as share of loans in foreclosure, median combined loan-to-value ratio at origination and share of adjustable-rate mortgages with interest re-sets scheduled for the coming 12 months. To be updated on a monthly basis, the color-coded maps display regional variations in the condition of securitized, owner-occupied subprime and alt-A loans, with color intensity correlating to severity of the problem. According to the Fed, the maps and data can be used to help pinpoint existing and future foreclosure hotspots.
http://www.centralvalleybusinesstimes.com/stories/001/?ID=8307
-------------------------------------------------------------------------------------------------
Please bookmark this blog (http://jacktrageser.blogspot.com/) and check back regularly for more Good Stuff for Mortgage Pros. Thanks!
Not only is eMagic more popular with mortgage originators than ever before because we provide access to free DU and LP for numerous lenders. That's keeping me pretty busy all by itself. I'm training brokers in record numbers, and signing up new lenders left and right. But eMagic has become so much more than a DU/LP 'One Trick Pony,' and that's why I decided to start this blog. For the first time since 1998, when I was the head of business development and marketing at Calyx Software and POINT really started taking off, I'm getting that feeling again. I think eMagic can be the next big thing in technology for mortgage originators, and I want to chronicle its development. But this blog will be about much more than that.
I'll also use this as a forum to announce upcoming free training sessions, and share news tidbits and links I think originators will consider 'good stuff'" (see below for a sample). Finally, I'd like to receive and answer good questions about eMagic or broker technology in general- so feel free to post here.
Upcoming Training Sessions
April 24th at 10:30 AM PST- DU, LP, and Imaging in eMagic- Learn insider tips
May 9th at 10:00 AM PST- The Weakest Link- The Six traits of a successful salesperson
May 24 at 2:00 PM PST- Success Signals- Secrets to effective communication
June 3rd at 10:30 AM PST- Full Doc Processing
Send an e-mail to jack_trageser@emagic.com or brent_conrad@emagic.com if you'd like to attend any of these sessions- and watch this blog for additional sessions to be added. We'll be adding two additional DU/LP sessions in May, and new sessions on running FHA and VA loans through DU and LP, and document imaging and electronic document transfer.
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
NEWS: Quick summaries of Mortgage Industry Trade Publications Articles
According to an article in American Banker published on April 1, loan servicers are actively working on ways to retain borrowers in anticipation of an expected refi wave due to a reduction in interest rates of 25 to 50 basis points by the Federal Reserve in the coming months. It's possible that originators will face more competition than ever from the current servicers, because, as an industry expert says in the article, "The ones (servicers) want to keep are the ones they're about to lose".
---------------------------------------------------------------------------------------------
U.S. Mortgage Bond Issuance Plunged in 1st Quarter
Reuters (04/01/08); Haviv, Julie
A new Thomson Financial survey shows that U.S. mortgage-backed securities (MBS) issuance plunged by more than 75 percent in the first three months of this year from the first quarter of 2007 amid ongoing uncertainty in the housing market. According to the report, MBS issuance totaled $61 billion in this year's first quarter, down substantially from $273.9 billion a year earlier. Richard Peterson, Thomson Financial's director of capital markets, notes that the January-through-March stretch marked the slowest quarter for issuance of U.S. MBS since 2000's fourth quarter. Meanwhile, issuance of bonds backed by firms other than Fannie Mae and Freddie Mac has come to a virtual stand-still as investors opt not to buy securities backed by loans where payments are not guaranteed.
http://www.reuters.com/article/telecomm/idUSN3157215620080401
-----------------------------------------------------------------------------------------------
Mortgage Meltdown Maps Offered
Central Valley Business Times (CA) (04/02/08)
The Federal Reserve System has posted a set of dynamic maps and data on the Internet that shows subprime and alt-A mortgage conditions nationwide, including such information as share of loans in foreclosure, median combined loan-to-value ratio at origination and share of adjustable-rate mortgages with interest re-sets scheduled for the coming 12 months. To be updated on a monthly basis, the color-coded maps display regional variations in the condition of securitized, owner-occupied subprime and alt-A loans, with color intensity correlating to severity of the problem. According to the Fed, the maps and data can be used to help pinpoint existing and future foreclosure hotspots.
http://www.centralvalleybusinesstimes.com/stories/001/?ID=8307
-------------------------------------------------------------------------------------------------
Please bookmark this blog (http://jacktrageser.blogspot.com/) and check back regularly for more Good Stuff for Mortgage Pros. Thanks!
Thursday, April 10, 2008
A good time to blog to mortgage originators
Today's insider news is very optimistic report about mortgage spreads and market reaction since the Feds avoided "financial disaster" by bailing out Bear Stearns. This is put out weekly by a reputable mortgage pipeline firm called Capital Markets Cooperative.
AN INSIDER'S VIEW FROM THE CAPITAL MARKETS COOPERATIVE TRADING DESK:
“Is the worst of the credit crisis behind us? Was Bear Stearns’ capitulation the last straw? It sure feels like it. The Fed has shown its willingness to prevent disaster. Voices from Merrill Lynch to S&P say that the worst losses have been taken. Credit spreads on everything from corporates to munis to mortgages are tightening. Banks are raising capital and the stock market is rallying. And if the mortgage-to-Treasury spread is any measure of the industry’s health, we’re on the way back in a big way.
Since March 6th, fixed mortgage rates have fallen a full 1.00% relative to Treasury yields. The spread between mortgage and Treasury yields, while still high at 2.55%, no longer reflects panic. In fact, we can almost say that current spreads are logical. They simply reflect high prepayment volatility, as we might expect with the Fed still slated to cut short-term rates by 0.50% over the next three months. Most traders think that spreads will not widen back to panic levels, but they will not collapse to 2004-2007 levels any time soon either.
So if there is at least a small chance that things are getting back to normal, where do we go from here? The National Bureau of Economic Research just published a paper that compares the current debt crisis with a long list of crises that have occurred around the world since World War II. The paper asks the age old question: Is this time different? As it turns out, this time is not so different after all. Similar banking crises have chopped 2% to 5% off of GDP, have produced mild inflation, have been resolved more quickly if the government gets involved, and have worked themselves out in two to four years. Sound familiar? The worst crises were all exacerbated by rigid government and banking policies. Japan had the scariest experience – the Japanese began their “lost decade” in 1992.
The Fed forecasts that Treasury yields will range between 3.50% and 5.00% over the next three years. If the Fed is correct, annual GDP growth will range from a low of 0% this year to a possible high of 3.2% next year. Inflation may surge to 2.8% this year, but is expected to drift lower over the next couple of years, with a low-end prediction of 1.5% in 2010. Fixed mortgage rates, therefore, should hover between 5.50% and 6.50% for the foreseeable future. That wouldn’t be so bad.
Amidst this talk of recovery, the yield curve has flattened, taking some of the enthusiasm out of the banking sector. The difference between two-year and ten-year Treasury yields peaked above 2.00% a few weeks ago. Last week it settled down at 1.60%.”
AN INSIDER'S VIEW FROM THE CAPITAL MARKETS COOPERATIVE TRADING DESK:
“Is the worst of the credit crisis behind us? Was Bear Stearns’ capitulation the last straw? It sure feels like it. The Fed has shown its willingness to prevent disaster. Voices from Merrill Lynch to S&P say that the worst losses have been taken. Credit spreads on everything from corporates to munis to mortgages are tightening. Banks are raising capital and the stock market is rallying. And if the mortgage-to-Treasury spread is any measure of the industry’s health, we’re on the way back in a big way.
Since March 6th, fixed mortgage rates have fallen a full 1.00% relative to Treasury yields. The spread between mortgage and Treasury yields, while still high at 2.55%, no longer reflects panic. In fact, we can almost say that current spreads are logical. They simply reflect high prepayment volatility, as we might expect with the Fed still slated to cut short-term rates by 0.50% over the next three months. Most traders think that spreads will not widen back to panic levels, but they will not collapse to 2004-2007 levels any time soon either.
So if there is at least a small chance that things are getting back to normal, where do we go from here? The National Bureau of Economic Research just published a paper that compares the current debt crisis with a long list of crises that have occurred around the world since World War II. The paper asks the age old question: Is this time different? As it turns out, this time is not so different after all. Similar banking crises have chopped 2% to 5% off of GDP, have produced mild inflation, have been resolved more quickly if the government gets involved, and have worked themselves out in two to four years. Sound familiar? The worst crises were all exacerbated by rigid government and banking policies. Japan had the scariest experience – the Japanese began their “lost decade” in 1992.
The Fed forecasts that Treasury yields will range between 3.50% and 5.00% over the next three years. If the Fed is correct, annual GDP growth will range from a low of 0% this year to a possible high of 3.2% next year. Inflation may surge to 2.8% this year, but is expected to drift lower over the next couple of years, with a low-end prediction of 1.5% in 2010. Fixed mortgage rates, therefore, should hover between 5.50% and 6.50% for the foreseeable future. That wouldn’t be so bad.
Amidst this talk of recovery, the yield curve has flattened, taking some of the enthusiasm out of the banking sector. The difference between two-year and ten-year Treasury yields peaked above 2.00% a few weeks ago. Last week it settled down at 1.60%.”
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