TheMReport — News and strategies for the evolving mortgage marketplace.
Issue link: http://digital.themreport.com/i/106030
local edition s e c on da r y m a r k e t a na ly t ic s Se r v ic i ng Or ig i nat ion SERVICING dispute any negative information on their reports." Nonetheless, information provided by the collections or debt buying industry is much more likely to be questioned by a consumer. In prepared remarks, Richard Cordray, CFPB's director, noted the important role of credit reports. "Credit reports on a consumer's financial history and behavior can determine eligibility for credit cards, car loans, and home mortgage loans—and they often affect how much a consumer is going to pay for that loan. The industry is critical in our economy. Without credit reporting, many consumers would likely be unable to get credit," he stated. As for obtaining a mortgage, Ellie Mae's most recent origination insight report, which represents 20 percent of all U.S. mortgage originations, found the average FICO score for a closed loan back in October was 750, while the average denied loan had a score of 706. While requirements from the Federal Housing Administration (FHA) may be more lax, a report from DBRS stated the average score for an FHA closed loan was 700 and the average denied application had a score of 670. A loan savings calculator provided by myFICO, the consumer division of FICO, showed how credit scores can impact the interest rate one would receive on a mortgage. As of December 14, 2012, a person with an average FICO score of 760–850 would receive a 2.975 percent rate on a 30-year fixed-rate mortgage. However, if one had a score of 620–639, the rate would be 4.564 percent. When complaints about credit information are handled, the CFPB reported 85 percent are forwarded to the furnishers who originally provided the information, while the remaining 15 percent are resolved by the credit reporting companies. The CFPB also found that "the documentation consumers mail in to support their cases may not be getting passed on to the data 56 | The M Report furnishers for them to properly investigate and report back to the credit reporting company." Class Appraisal, a la mode Partner for Plugin Launching a customized tool targeting reduced turn times for appraisals, the companies have teamed up to debut MercuryDirect. Michigan/Florida // Class Appraisal and a la mode announced the launch of a customized MercuryDirect plugin designed to reduce appraisal turn times and ensure the highest appraisal quality for Class' lender clients. Class' new plugin will enhance the company's connection to a la mode's Mercury Network, creating a direct connection to appraisers to streamline compliant appraisal ordering and delivery, automate order status updates, and run customized review rules on reports pre-delivery. The comprehensive appraisal review takes place on the appraiser's desktop before the appraiser delivers the report to Class. The plugin also includes proprietary rules (based on Class' expertise), applied business rules, investor requirements, current compliance guidelines, and more, providing an effective quality screen and cutting down on the rework rate. "This innovative plugin with Mercury Network, combined with our 91-hours-a-week accessi- bility for client support, translates to the industry's best appraisal management experience," said Mark Backonen, CEO of the Michigan-based Class Appraisal. "In 2013, we will be launching even more tools based on our extensive experience that provide our clients the industry's best workflow tools for underwriters." "With this plugin, Class Appraisal has gone the extra mile in providing the highest-quality appraisals in the fastest time to their clients", said Jennifer Miller, president of a la mode's Mortgage Solutions Division. "The plugin gives Class distinct advantages, both in streamlining their own operations and in providing the highest quality collateral value review and due diligence documentation for their clients." NREIS Initiates Layoffs, Office Closure Announcing plans to close its Pittsburgh-based office, the company is laying off 215 employees this month. Pennsylvania // National Real Estate Information Services (NREIS) is shuttering the doors to its Pittsburgh office this month, according to a Worker Adjustment Retraining Notification (WARN) Act notice posted on the Pennsylvania Department of Labor and Industry's website. The closing will begin February 15 and will affect 215 employees. NREIS employs more than 1,200 people, according to the company's website. The address listed on the NREIS' notice is the same as that of another real estate services provider, Secured Lending Services. An MReport reader forwarded an email exchange allegedly between a Realtor and a manager at IREP, an NREIS subsidiary. The exchange was posted to an online message board for agents and brokers. In the email, the manager said that "National Real Estate gave notice that they will close in 60 days so March 1 they will no longer be in business. Secured Lending is working business as usual right now." According to another WARN Act notice on the Texas Workforce Commission's (TWC) website, the company is laying off an additional five employees in its Dallas office. The WARN letter issued to the TWC says the layoffs are a result of the "dissolution and windup of NREIS of Texas, LLC." It goes on to say the "separation of employment with the company is expected to be permanent and there will not be any bumping rights."