TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/106030
on the web technology programs were in place before hiring staff, making it easier to manage costs and maximize productivity for new employees. "We wanted a single platform that had the flexibility to adapt and scale with our lending practice as we expanded the business and brought on more employees," said Mike Stoffer, VP of mortgage services at CNB. "It almost seems implausible that we can do everything we need to operate our business from cradle to grave through a simple web browser . . . I've been in this business a long time and LendingQB has radically changed the way mortgage lenders are able to manage their business," Stoffer added. Noting that CNB is now a 100 percent paperless operation, Stoffer touted LendingQB's streamlined support model. Stoffer elaborated on CNB's technological advantage, emphasizing the resulting increase in employee productivity and communication, greater visibility through detailed reporting, and lower origination costs. "This is the most responsive technical team I have worked with in my career and that's really made a difference. My employees continue to be amazed at the power of the LendingQB system, how intuitive it is to use, and how much easier it makes their jobs," concluded Stoffer. WEB AT WORK CFPB to Test New Consumer Disclosure Practices Hoping to improve the bureau's rules, disclosure forms, and delivery processes, the government organization proposed the Project Catalyst initiative. A newly proposed policy from the Consumer Financial Protection Bureau (CFPB) would allow companies to test new consumer disclosures on a caseby-case basis. The CFPB announced its proposal as part of its Project Catalyst initiative, which is designed to encourage "consumer-friendly innovation in markets for consumer financial products and services." Under the proposed policy, the CFPB would allow limited-time exemptions from current federal disclosure laws for approved companies. Those companies would use that time to research and test informative, costeffective disclosures and share the results of their trial with the bureau, which would use the information to improve its own rules and model forms. The public will have input through the rulemaking process, the CFPB says. Approval to conduct trial disclosure programs would be granted on a case-by-case basis. When deciding whether or not to grant a company a waiver from federal disclosure requirements, the CFPB's proposed policy would evaluate several factors, including improvements to consumer understanding, cost effectiveness, and mitigation of consumer risk. The proposed policy represents the CFPB's ongoing efforts to improve disclosures for consumers. It also builds on the Bureau's initiative to update, modify, or eliminate outdated or unnecessary provisions in inherited regulations. "As part of our efforts to foster innovation in consumer financial markets, the proposed policy will allow companies to conduct real world trials of disclosure alternatives," said Richard Cordray, director of the CFPB. "That will help the Bureau identify what works and does not work to provide consumers with the clear information they need to make financial decisions in a marketplace of evolving programs and products." Trulia Analyzes the 'American Dream' The online platform reported the results of its most recent consumer survey, revealing that homeownership continues to be a priority for younger demographics. C onsumers are becoming more positive toward the idea of homeownership as home prices rise and the threat of delinquencies and foreclosures subsides, Trulia reported. Confidence in future ownership is especially prevalent among young renters. According to Trulia's American Dream survey, 93 percent of renters between the ages of 18 and 34 plan to purchase a home someday. For 31 percent of renters, that "someday" is actually within the next two years, an increase from 28 percent in May 2012 and 22 percent in January 2011. In addition, 27 percent of consumers feel more positive about homeownership compared with six months ago. However, a downward trend was seen among consumers who say homeownership is part of their own personal American dream. Seventy-two percent said it is part of their own dream, a decrease from February 2009 and January 2010, when 76 percent and 77 percent, respectively, said homeownership was part of their dream. Also, desire to own was not seen among older renters, with only 39 percent in the 55-plus age group stating they plan to buy, compared with 75 percent of those between ages 35 and 44 who say they plan to buy. Even though nearly all renters in the Millennials category (those between 18 and 34) say they plan to buy, the age group tended to be less optimistic about future home prices compared with older age groups. When asked about the housing market in 2013, 37 percent of Millennials said prices will rise, compared with 55 percent for the 55-plus age group and 49 percent for those between ages 45 and 54, according to Trulia. Millennials though were more likely to believe mortgage rates would continue to decline this year, with 20 percent stating rates will go down, compared with 12 percent among 35- to 44-year-olds and 13 percent for the 55-plus group. "Millennials have been shaken, not scarred, by the housing bust," said Jed Kolko, Trulia's chief economist. "Nearly all of them want to own a home someday, if they're not homeowners already. But many of them think today's low prices and low mortgage rates will last. They may be in for sticker shock if the cost of homeownership has returned to normal levels by the time they're ready to buy." Rising prices are also encouraging homeowners to consider selling this year, which could lead to an increase in inventory, Trulia explained. Among homeowners, 22 percent say they're at least somewhat likely to sell their home in 2013. "2013 could be the year that inventory turns around, just as 2012 was the year that prices started recovering," Kolko added. "Homebuyers need inventory to choose from, and with fewer foreclosures on the market, new inventory will come from new construction or homeowners wanting to sell. Rising prices will bring out more sellers, especially if price increases lift them back above water." Harris Interactive conducted the online survey on behalf of Trulia among 2,083 adults. The M Report | 11