TheMReport — News and strategies for the evolving mortgage marketplace.
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TH E M R EP O RT | 63 THE LATEST O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T LOCAL EDITION Securing Borrower Data MCT UNVEILS GEOCODING TECH TO SHIELD BORROWER ADDRESSES. CALIFORNIA // Mortgage Capital Trading, Inc. (MCT), a San Diego- based mortgage hedge advisory and secondary marketing software firm, announced that it is incor- porating the company's patent- pending geocoding technology into its Bid Auction Manager (BAM) whole loan trading platform in order to shield borrower addresses from being shared with non-buy- ing entities throughout the whole loan bidding process. "Concealing borrower addresses for whole loan bids is the most recent step that MCT is taking to heighten data security while protecting borrowers and lenders," said Phil Rasori, COO and Head Trader at MCT. "We estimate that upwards of 90 percent of all secondary marketing transactions expose borrower addresses to non- buying bidders. The only investor that should eventually see the property address is the one that wins the loan. MCT's proprietary BAM Geocoder enables inves- tors to price LMI-CRA incentives without the address." Historically, only a handful of non-identifying data points were used to determine loan pricing in the secondary market. However, the advent of Community Reinvestment Act requirements and spec pay-ups combined with the rapid adoption of delivery via bid tapes resulted in the full property address being disclosed to bidders in the majority of transac- tions executed over the last several years. While clear contract terms typically govern borrower data us- age for the whole loan buyer and seller, they generally fail to address the non-buying bidders, accord- ing to a review of MCT's lender clients. This can be a sensitive area for some parties, in particular for EPO (early pay off) and servic- ing pre-payments, as refinancing terms do not take into account safeguards for borrower loan data during the bidding process. Rasori added, "Ensuring that our systems and processes are as secure as possible is always of the highest importance. We are confident that this new level of protection will become the stan- dard in the near future, and we're proud to lead the industry in this direction." Notable is that MCT recently implemented multi-factor authen- tication security protocols into its MCTlive! capital markets software, requiring multiple methods to verify a user's identity for log- ins and transactions. In July of 2017, MCT officially rolled out its award-winning BAM platform, in part, to migrate sensitive borrower data contained in bid tapes off of email to a centralized, secure platform. Company officials at MCT say that the geocode-enabled conver- sion process has already begun with investors; addresses will be completely removed from all MCT bid tapes by 2019. Broadening Portfolio CARRINGTON MORTGAGE SERVICES ANNOUNCED THAT IT IS EXPANDING IN THE SECONDARY MARKET. TEXAS // Texas-based Carrington Mortgage Services (CMS) an- nounced that it is expanding in the secondary market with the launch of its new correspondent lending division. According to Carrington, this new channel is intended to complement CMS's full portfolio of loan origination channels, which includes wholesale and retail. "We have diligently built the correspondent division for suc- cess, and we're now ready to hit the ground running," said Ray Brousseau, President of CMS. "We're committed to delivering a high level of transparency and timeliness to the non-delegated correspondent lending process. We understand that it's all about providing our originators with the ability for further growth and profitability." Products offered by CMS correspondent lending include government and conventional loans. Government loans are of- fered through the FHA and VA loan programs, while CMS offers a variety of conventional conform- ing and high-value loans through Fannie Mae and Freddie Mac. Additionally, Carrington offers loans through the "Carrington Advantage Series," which are Non- QM, loan products for purchase, refinance and cash-out refinance with loan amounts up to $2 mil- lion, up to 90 percent LTV and no MI. According to CMS, Carrington Correspondent offers turn times of 48 hours on conventional and government loan purchase reviews, as well as 48-hour underwriting, conditions review, and closed loan purchase review. Turn time for Carrington Advantage Series loan purchase review is expected to be around five days. "CMS has a proven track record of customer-centric service, combined with quick turn-times for underwriting and purchasing closed loans," said Greg Austin, EVP of Lending for CMS. "Our non-delegated channel is com- mitted to helping correspondent lenders increase their business by delivering products that allow them to work with borrowers in the underserved and non-QM markets. We also provide excep- tional support for borrowers after the sale, and currently service over $60 billion in loans." SECONDARY MARKET