Category Archives: Servicing

Do home equity loans affect your credit score?

Despite record amounts of home equity, fewer homeowners are tapping into this source of wealth. While a number of factors contribute to this fact – including tightening lending standards – could concerns about a home equity loan’s effect on credit score play a role?

To determine the impact a home equity loan could have on a borrower’s credit profile, LendingTree analyzed data from 2,500 consumers to see how their credit scores changed in the months after they took out a loan.

The report found that borrowers saw their credit scores decline by an average of just 13 points. According to LendingTree, because the average credit score of borrowers was 735 to start, such a decline would have a negligible impact on access to credit and would only marginally increase the cost of credit.

LendingTree also noted that it took about 60 days after closing or longer for the loan to show up on a borrower’s credit report.

The decline in credit score took an average 158 days to reach its lowest point, and then about 163 days to recover completely, meaning that the complete cycle to return to the original credit score was 321 days, or less than 11 months, the survey found.

Why is a borrower’s credit score affected at all?

LendingTree says scoring agencies take into account the total amount of money a consumer owes, and the presence of a large line of credit drags down that score, although with less weight than a large increase in outstanding debt.

But, over time, the impact is lessened, LendingTree says.

“Making on-time payments helps a borrower improve their credit score as they demonstrate they are managing their new home equity loan account well. If it is a home equity line of credit and the borrower does not use the full credit line, their credit utilization ratio falls – which also boosts their credit score,” LendingTree notes. “Having a home equity loan also increases the diversity of accounts in the credit file, which boosts the score as well. Eventually, the score returns to its pre-loan level, and in most cases surpasses it.”

Here is a chart ranking cities by average decline in credit score as a result of a home equity loan:

Article source: https://www.housingwire.com/articles/48460-do-home-equity-loans-affect-your-credit-score

Goldman Sachs is going to hire more women

Goldman Sachs announced it is expanding its year-old program to add more diverse employees to the company worldwide, according to an article from CNBC.

CNBC’s Hugh Son reports the big bank says that half of its new analysts and entry-level associates must be women. The bank also, for the first time, issued goals for it to meet in hiring black and Latino employees.

From the article:

The firm has set “aspirational goals” of having half of all new analysts and entry-level associates hired in the U.S. be women, 11 percent black, and 14 percent Latino, according to a staff memo sent Monday. The firm set a lower goal for black hires in the U.K., where it is seeking 9 percent level.

By increasing the ranks of women and minorities at entry-level positions — analysts and associates are the two most junior job titles in Wall Street’s hierarchy — Goldman is hoping to improve diversity across the firm over time. More than 70 percent of new hires are at the analyst and associate level, the bank said.

Goldman, like Wall Street overall, is dominated by white males, particularly at senior levels. About 60 percent of the bank’s U.S. employees are white, while 38 percent are female, 5.4 percent are black and 8.5 percent Latino, according to the firm’s most recent disclosure. When it comes to top managers, 80 percent are white, 22 percent are female, 2.9 percent are black and 4.3 percent are Latino.

According to CNBC’s reporting, the memo sent to staff on Monday outlines some very ambitious goals for the bank, but they are not unattainable, according to the bank’s senior leaders. According to the article, CEO David Solomon and two deputies said in the memo that the targets “are aspirational, we have access to an incredible talent pool and believe they can be achieved.”

According to the memo, the bank is also looking at new ways to further representation of LGBT, disabled and veterans communities across the company’s workforce.

Article source: https://www.housingwire.com/articles/48461-goldman-sachs-is-going-to-hire-more-women

Here’s the tech you need for a proactive customer retention strategy

Intelligence is the difference between facts and knowledge, between information and understanding. Although artificial intelligence and machine learning are popular buzzwords in the mortgage industry today, truly machine intelligence based solutions are still a rarity in our space. Fortunately for lenders and servicers, Quantarium is bucking that trend.

The company approaches real estate from a distinctly scientific perspective, reflecting its founders’ backgrounds in high-end technology, quantum physics and computational genetics. As co-founder and Quantarium CEO Clement Ifrim explained, the company’s understanding of the market and its development of solutions is different from other companies not just in degree, but in kind.

“The word quanta describes the smallest entity involved in any physical interaction. Similarly, our initiative from the first days of our company was to use all this data — the smallest pieces of information — meshed with machine intelligence to provide the most accurate solutions on the market,” Ifrim said.

Quantarium’s robust artificial intelligence is a result of the methods the company leveraged from the beginning, applying machine learning solutions, such as neural networks, evolutionary programming and genetic  algorithms to understand both individual assets and local market dynamics within  the housing market. The company’s ambitious goal was to discover the DNA of real estate by mapping out its chromosomes — the up to hundreds of property characteristics of each asset — and determining how their proportional usefulness, along with the local market environment defined its expressed phenotype, impacting the estimated value..

Using this approach, Quantarium can credibly claim true AI, as its models behave like living systems.

“Our valuation system is constantly evolving and learning. Combined with our unparalleled data lake, our valuations get more accurate with each new run. Similarly, with our portfolio services, we are generating predictive models that get better every single day,” Ifrim said.

Quantarium’s offerings include its automated valuation model, QVM, valuation services, portfolio services, and a data and search platform, which was developed by mathematicians, scientists and computer architects — many of whom formerly worked on Microsoft’s enterprise services.

Romi Mahajan, the commercial head of the company, said, “Quantarium is a ‘meaningful AI’ company — we use AI not for some abstruse solution in search of a problem but instead to create markets and enhancements in the world’s largest asset class, namely residential real estate.”  

For servicers in this low-volume purchase market, Quantarium’s portfolio services are especially critical as part of a proactive strategy to retain customers. For the last several years, servicers could count on moving borrowers into refinance loans and having enough new customers that they weren’t concerned about retention. Today, servicers need portfolio solutions that identify ongoing opportunities to engage homeowners as they contemplate selling, refinancing or taking cash out — before they start looking.

With Quantarium, servicers can leverage automated vigilance to see market activity on any loan in their portfolio, giving them the ability to contact borrowers with new offers. They can also gain insight into a borrower’s current status — such as whether they have paid off a loan and still live in the house, sold the property or refinanced with another lender. It also surfaces new lien activities.

Additionally, Quantarium’s best-in-class portfolio services can identify borrowers who are likely to list their property, or refinance.

“We can look at a borrower and say, ‘Do we think this person because of age, job, age of children, etc. is a good cash-out candidate? Or maybe a consolidation candidate?’ Servicers can take a segment of their portfolio and send a very specific message to that group,” Ifrim said.

Brian Mushaney, Quantarium’s business development vice president commented further, “Leveraging AI models, allows us to move loan loss beyond simple analysis, so our customers can further understand attrition from their lost customers’ loan purpose perspective and respond accordingly.”

Servicers and investors can also use Quantarium’s geocentric property reports to spot neighborhood trends in sales prices and demography, view comprehensive transaction history and get sales comps.

“We provide servicers with a statistical analysis of what’s happening in a borrower’s neighborhood, so they can stay in meaningful contact with the borrower, edified to both their individual and market context, all the time. They might see that homes in a particular micro market have increased beyond certain thresholds  and now they can let the borrower know that, current transforming asset and market circumstance  have made them candidates for products within the servicers portfolio that can optimize the borrower’s position,” said Malcolm Cannon, Quantarium’s chief operating officer.

Quantarium leverages data from more than a dozen data services, but it also creates new data all the time, using machine learning methods, such as computer vision to add property characteristics and then understand how they impact quality and value, expanding the reach of its intelligent systems.

“We begin by sitting down with our customers to find out where their pain points are, then we get our AI scientists together to figure out the solution. If you have a question, we have the data to answer it,” Ifrim said.

“We’re so excited about the potency of what Quantarium does — it’s unparalleled,” Cannon said. “We are working with the best tech companies in the world to stay on top of innovation and provide the best possible services for our clients.”

 

 

Article source: https://www.housingwire.com/articles/48440-heres-the-tech-you-need-for-a-proactive-customer-retention-strategy

Rent control back on the table in California

The fight for rent control in the state of California is far from over.

Months after the state’s voters wholeheartedly defeated a rent control initiative in last November’s election, the issue of expanding rent control in California has returned to the state’s legislature this week after a group of Democratic lawmakers unveiled a series of bills designed to tackle the issue another way.  

The bills aim to cap annual rent increases across the state to prevent unjust evictions and to return to cities the authority to adopt their own rent control policies, according to a report in the San Francisco Chronicle.

From the article:

A group of Democratic legislators introduced bills to cap annual rent increases statewide, prevent evictions without just cause and return to cities the authority to adopt rent control ordinances for newer homes and apartments.

Supporters said urgent action is needed to address what has become a statewide emergency, as families face soaring housing prices and the prospect of homelessness. About half of California renter households spend more than 30 percent of their income on shelter, which experts consider to be a cost burden, according to U.S. census estimates. More than a quarter spend at least half their income on housing.

Back in 1995, the state limited the use of rent control when it passed the Costa-Hawkins Rental Housing Act, which prohibits local governments from imposing caps on single-family homes and condos, as well as rental rates for apartments built after the law went into effect.

As the Chronicle’s Alexei Koseff reports, despite the measure’s defeat in November, California Governor Gavin Newsom said he would still sign a rent control bill if presented to him.

“Get me a good package on rent stability this year and I will sign it,” Newsom said in his State of the State address in February.

According to the report, the series of bills that the Democrats unveiled this week would roll back parts of Costa-Hawkins but leave it in place, with details to be hashed out in the legislature.

Here are details on each bill:

AB36, if passed, would allow Californian cities to enact rent control on buildings built after 1995 that are more than 10 years old and would clear the way for cities to limit rent raises on single-family homes and condos that are more than 10 years old.

AB1481, if passed, would prevent landlords from evicting tenants without a valid reason.

AB1482, if passed, would prevent California landlords from increasing rents by more than an unspecified percentage above inflation each year. According to the Chronicle, the author of the bill, Assemblyman David Chiu (D-San Francisco) said he is figuring out a cap that would help a broad swath of renters while still allowing landlords to earn a return on their investments.

Article source: https://www.housingwire.com/articles/48443-rent-control-back-on-the-table-in-california

Rent control back on the table in California

The fight for rent control in the state of California is far from over.

Months after the state’s voters wholeheartedly defeated a rent control initiative in last November’s election, the issue of expanding rent control in California has returned to the state’s legislature this week after a group of Democratic lawmakers unveiled a series of bills designed to tackle the issue another way.  

The bills aim to cap annual rent increases across the state to prevent unjust evictions and to return to cities the authority to adopt their own rent control policies, according to a report in the San Francisco Chronicle.

From the article:

A group of Democratic legislators introduced bills to cap annual rent increases statewide, prevent evictions without just cause and return to cities the authority to adopt rent control ordinances for newer homes and apartments.

Supporters said urgent action is needed to address what has become a statewide emergency, as families face soaring housing prices and the prospect of homelessness. About half of California renter households spend more than 30 percent of their income on shelter, which experts consider to be a cost burden, according to U.S. census estimates. More than a quarter spend at least half their income on housing.

Back in 1995, the state limited the use of rent control when it passed the Costa-Hawkins Rental Housing Act, which prohibits local governments from imposing caps on single-family homes and condos, as well as rental rates for apartments built after the law went into effect.

As the Chronicle’s Alexei Koseff reports, despite the measure’s defeat in November, California Governor Gavin Newsom said he would still sign a rent control bill if presented to him.

“Get me a good package on rent stability this year and I will sign it,” Newsom said in his State of the State address in February.

According to the report, the series of bills that the Democrats unveiled this week would roll back parts of Costa-Hawkins but leave it in place, with details to be hashed out in the legislature.

Here are details on each bill:

AB36, if passed, would allow Californian cities to enact rent control on buildings built after 1995 that are more than 10 years old and would clear the way for cities to limit rent raises on single-family homes and condos that are more than 10 years old.

AB1481, if passed, would prevent landlords from evicting tenants without a valid reason.

AB1482, if passed, would prevent California landlords from increasing rents by more than an unspecified percentage above inflation each year. According to the Chronicle, the author of the bill, Assemblyman David Chiu (D-San Francisco) said he is figuring out a cap that would help a broad swath of renters while still allowing landlords to earn a return on their investments.

Article source: https://www.housingwire.com/articles/48443-rent-control-back-on-the-table-in-california

Don’t wait — only 90 days until engage.marketing

We have only 90 days until we kick off our second annual engage.marketing event in Charlotte, North Carolina, on June 13-14. We’ve been hard at work developing an agenda that will help mortgage originators Play to Win in this purchase market.

We’ll reveal our whole agenda on Monday, but check out some of the sessions we already have lined up:

—Personal Branding Super Session

Creating a personal brand within a larger corporate brand is essential for LO success, but they face significant obstacles, including time constraints and a lack of knowledge about branding/social channels. In this super session we’ll have experts covering everything the marketing team needs to know to effectively educate, support and help grow LOs’ personal brand. You’ll learn:

  • How to perfect social in the most important channels
  • The importance of personalization and the tools to make it happen
  • How to use video, podcasts, and voice effectively
  • How to navigate compliance issues

—How I Built This: A Marketing Tech Stack Discussion

Marketers are inundated with new solutions and new vendors looking to improve their processes, but how do you choose? Two experts will walk us through their decision-making process on choosing and integrating marketing technology and what they learned along the way. This session is for everyone in the marketing organization: the decision-makers as well as the in-the-weeds marketers seeing so many different choices.

—The Originator and Marketer Relationship: A Conversation with Top Producers

Your job is to help your origination shop grow their business, but first you need to know where they need marketing support and what would make the most impact. We’re bringing in four of the most successful producers in the country from a variety of different lending shops to give you the insight you need. Hear straight from these top producers what they wish marketers knew and how top-performing teams work together.

Killing it With Content

The modern marketer has to be a genie, pulling rabbits out of multiple hats when it comes to content: creating for different social channels, thought leadership pieces, internal blogs, stories that inspire, move to action and get leads. And this has to be done with a budget that might have gotten smaller this year. We hear you! That’s why we are bringing in some of the best in the B2C, B2B and B2B2C worlds to talk about what works and what doesn’t, and how to do more with less.  

Each of these sessions are designed to give you practical information that will help your bottom line — and these only part of the first day! We are very excited to reveal our entire agenda on Monday, so check back to find out what the rest of the lineup looks like.

In the meantime, don’t miss out on our early bird pricing, which expires at the end of this month! Reserve your seat.  

Article source: https://www.housingwire.com/articles/48445-dont-wait-only-90-days-until-engagemarketing

Don’t wait — only 90 days until engage.marketing

We have only 90 days until we kick off our second annual engage.marketing event in Charlotte, North Carolina, on June 13-14. We’ve been hard at work developing an agenda that will help mortgage originators Play to Win in this purchase market.

We’ll reveal our whole agenda on Monday, but check out some of the sessions we already have lined up:

—Personal Branding Super Session

Creating a personal brand within a larger corporate brand is essential for LO success, but they face significant obstacles, including time constraints and a lack of knowledge about branding/social channels. In this super session we’ll have experts covering everything the marketing team needs to know to effectively educate, support and help grow LOs’ personal brand. You’ll learn:

  • How to perfect social in the most important channels
  • The importance of personalization and the tools to make it happen
  • How to use video, podcasts, and voice effectively
  • How to navigate compliance issues

—How I Built This: A Marketing Tech Stack Discussion

Marketers are inundated with new solutions and new vendors looking to improve their processes, but how do you choose? Two experts will walk us through their decision-making process on choosing and integrating marketing technology and what they learned along the way. This session is for everyone in the marketing organization: the decision-makers as well as the in-the-weeds marketers seeing so many different choices.

—The Originator and Marketer Relationship: A Conversation with Top Producers

Your job is to help your origination shop grow their business, but first you need to know where they need marketing support and what would make the most impact. We’re bringing in four of the most successful producers in the country from a variety of different lending shops to give you the insight you need. Hear straight from these top producers what they wish marketers knew and how top-performing teams work together.

Killing it With Content

The modern marketer has to be a genie, pulling rabbits out of multiple hats when it comes to content: creating for different social channels, thought leadership pieces, internal blogs, stories that inspire, move to action and get leads. And this has to be done with a budget that might have gotten smaller this year. We hear you! That’s why we are bringing in some of the best in the B2C, B2B and B2B2C worlds to talk about what works and what doesn’t, and how to do more with less.  

Each of these sessions are designed to give you practical information that will help your bottom line — and these only part of the first day! We are very excited to reveal our entire agenda on Monday, so check back to find out what the rest of the lineup looks like.

In the meantime, don’t miss out on our early bird pricing, which expires at the end of this month! Reserve your seat.  

Article source: https://www.housingwire.com/articles/48445-dont-wait-only-90-days-until-engagemarketing

New bill aims to implement safeguards for military housing

Members of the U.S. military risk their lives every day to ensure our safety, so you would think their privatized housing would at least be suitable, right?

Well, not exactly, as a recent survey conducted by the Military Family Advisory Network revealed that more than 50% of military respondents claimed to have a negative experience with privatized housing.

In fact, many servicemembers cited poor living conditions as some homes contained mold, rodents and even severe health risks.

These claims, which have rocked the military community, have sparked outrage and now a new bill aims to tackle these alarming issues, according to an article from Military Times.

The act, Ensuring Safe Housing for our Military Act, was introduced in the House on Thursday and in the Senate on March 7, would require installation commanders to withhold the service member’s rent from the landlord after officials have been notified of potential health, safety or environmental hazard, until steps are taken to remedy the problem — and the military housing official and the service member agree that it has been fixed.

Furthermore, the bill, if passed, would also create standards for safety, environmental and health inspectors and contractors involved with military housing, according to the article.

“It is unacceptable that some military families around the country have little or no recourse when private contractors provide substandard housing,” said Rep. Mike Levin, D-Calif., who introduced the bill in the House Thursday.

Notably, the article also highlights that service secretaries are currently working to finalize a tenant’s bill of rights that would increase accountability from privatized housing companies.

Among other things, this would mean privatization companies would be required to not only pay the relocation costs of service members and their families, but also any temporary lodging fees charged If they are forced to leave their homes due to poor conditions.

“This bipartisan legislation is an important step in holding private housing companies accountable and empowering military families, and I will continue to work with members of both parties to support America’s service members,” Levin said in a statement.

Article source: https://www.housingwire.com/articles/48449-new-bill-aims-to-implement-safeguards-for-military-housing

Pamela Hughes Patenaude lands at disaster management firm IEM

Pamela Hughes Patenaude, former deputy secretary of the Department of Housing and Urban Development, has joined global homeland security and disaster management consulting firm IEM.

Patenaude – who resigned from HUD in December after 35 years in the housing sector – will assume a new role as senior community liaison for the tech-forward consulting firm.

In her new role, Patenaude will serve as senior advisor for the firm’s housing and disaster recovery projects. The company said she will work with client stakeholders, elected officials, state agency representatives, and disaster victims to help create housing solutions that integrate their varied needs.

Patenaude is likely to be well-suited to her new job.

Pamela Hughes PatenaudeDuring her time at HUD, she served as chair of HUD’s Disaster Management Group, overseeing $37 billion in funding for disaster recovery efforts.

Patenaude was also assistant secretary for the Office of Community Planning and Development, managing $8 billion in housing and community development programs and $17 billion in long-term disaster recovery.

Prior to HUD, she was president of the J. Ronald Terwilliger Foundation for Housing America’s Families and the former director of housing policy at the Bipartisan Policy Center.

In 2013, she was named a HousingWire Woman of Influence.

“As disasters and emergencies evolve, our response and recovery to these events must evolve as well. We know that a one-size-fits-all solution does not work and that collaborative relationships must be forged to ensure that no one is left behind,” said IEM President and CEO Madhu Beriwal.

“Pam has the diverse and well-rounded expertise to help us craft recovery and housing solutions that work best for each individual community,” Beriwal continued. “This, paired with her intimate understanding of the complex policies that guide our work, will help communities rebuild safer and stronger.”

Article source: https://www.housingwire.com/articles/48450-pamela-hughes-patenaude-lands-at-disaster-management-firm-iem

Lawmakers hit standstill on flood insurance reform

Both Democrats and Republicans agree the National Flood Insurance Program is in need of reform, however, they disagree on how exactly to accomplish it.

The House Financial Services Committee held a hearing Wednesday entitled Preparing for the Storm: Reauthorization of the National Flood Insurance Program, in order to discuss the issue and hear from subject experts.

The witnesses for the hearing included:

  • Maria Cox Lamm of South Carolina Department of Natural Resources
  • Christopher Heidrick of Heidrick Company Insurance and Risk Management Services
  • Velma Smith of The Pew Charitable Trusts
  • Mabél Guzmán of the National Association of Realtors
  • Collin O’Mara of National Wildlife Federation
  • Raymond J. Lehmann of Street Institute

“I have long advocated for a long-term reauthorization of the NFIP in order to provide certainty in the housing market,” Committee Chair Maxine Waters, D-CA, said in her opening statement. “Unfortunately, the NFIP has been carried along through 10 short-term extensions since Fiscal Year 2017, and has even experienced brief lapses during that time.”

“This haphazard approach to legislating puts communities at risk and undermines the health of our housing market,” Waters said. “The NFIP’s authorization is currently set to expire on May 31, 2019, and I believe that we will break this cycle.”

And one witness in the hearing pointed out the importance of reforming the NFIP, saying it is not sustainable in its current form.

“The embattled National Flood Insurance Program is central to U.S. disaster preparedness efforts,” Guzmán said in her testimony. “According to NAR research, the program is also essential to completing half-a-million home sales per year, each of which contributes two jobs and $80,000 to America’s economy.”

“However, the NFIP was not designed nor intended to address the catastrophic loss years we have seen since 2005, meaning the program is not sustainable as currently structured,” she said.

The NFIP was established in 1968, and authorization for the program is administered by Federal Emergency Management Agency.

According to FEMA’s website, “The National Flood Insurance Program aims to reduce the impact of flooding on private and public structures. It does so by providing affordable insurance to property owners and by encouraging communities to adopt and enforce floodplain management regulations.”

For several years now, the program has been given short-term reauthorization as Congress has yet to agree on a path for reform.

And while members of Congress seem ready to work together, conflicting views from both parties could get in the way.

While Republicans support more private involvement in the flood insurance market, which they say will give citizens more options and lowered costs amid increased competition, Democrats want to expand the government’s role in NFIP.

But can they push their differences aside and push out sustainable reform to protect Americans in flood zones?

The clock is ticking. The current short-term extension for the program expires May 31, 2019.

Article source: https://www.housingwire.com/articles/48431-lawmakers-hit-standstill-on-flood-insurance-reform

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