As increased refinance business tests the limits of mortgage origination firms, service providers are promoting offerings that promise relief. One has a call center for new incoming loans prospects, while another promises to reduce the number compliance service providers involved in the production process.
KB Home said last month that its operational transition to Nationstar Mortgage LLC announced in March as its preferred mortgage lender is progressing as planned. Nationstar began taking applications from KB customers on May 1.
“The company expects its alliance with Nationstar to result in improved mortgage origination execution for its homebuyers and, in turn, a more predictable business flow as the transition gains momentum,” KB stated. “Nationstar is one of the country’s leading non-bank mortgage servicers and a lender that will offer a wide array of financing options and mortgage loan products to the company’s homebuyers at all of the company’s communities nationwide.”
CU Members Mortgage reported that 11 new credit union clients signed on during the first quarter and started doing business in the second quarter. The Dallas-based subsidiary of Colonial Savings provides services to more than a thousand credit unions, credit union service organizations and credit union leagues. Its servicing portfolio is $15 billion, while projected 2012 originations are $2.6 billion.
Another credit union service provider, AnyHour Solutions, touted Summit Credit Union of Greensboro, N.C., as a new client.
AnyHour supplements internal call centers by taking overflow member consumer loan application calls through its own call center during the week and providing full service backup after-hours and on weekends. While it has its own proprietary lending system for taking consumer loan applications over the phone, AnyHour also inputs loan applications into any credit union’s web-based loan application system.
By automating loan file audits in the entire production workflow, originators can reduce their repurchase liability and cut down on the number of compliance vendors needed, according to DocMagic Inc. The compliance solutions are automatically available through the Torrance, Calif.-based company’s loan documentation services. DocMagic’s president and chief executive officer, Dominic Iannitti, says that the traditional approach of waiting until the conclusion of the loan process to perform an audit is no longer adequate.
“Only by monitoring compliance at every stage of the loan production process — from the time a borrower submits an application, to the time documents are prepared and packaged for investors, to every stage in between — can we be assured that the loans we originate are going to meet investor guidelines and compliance requirements so that down the road, lenders won’t be plagued by repurchase demands,” Iannitti stated.
Titan Lenders Corp. added mortgage processing and underwriting to its outsourcing services in February. Jan Conner was recruited to manage the offering.
National Credit-reporting System Inc. said it is assisting the Internal Revenue Service in the development of digital signature and electronic transcripts initiatives. The project involves the creation of a digital process that eliminates the need for the paper form 4506-T when requesting IRS tax transcripts. Proof of concept trials have been completed for the e-signature initiative, and proof of concept will begin later this year for e-transcripts.
