Decoding Compliance

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social life M // Conversely, what facets of the marketplace will face the greatest challenges near-term? Imura // The market will face a significant challenge in moving towards a purchase market orientation but will find it even more challenging to capture the consumer. Many of our clients have gotten so used to a refinance flow that the operational switch to purchases may be tough to transition. Link It, Learn It What mortgage industry headlines set off a media blitz this month? Twitter trends revealed that executives and armchair economists alike were captivated by links promising prescient housing market news. M // What risk-management initiatives are working successfully for ISGN, and what new tools and methods for compliance are the company planning to deploy in 2013? the mortgage market. The latest FHFA move could tamp down those worries." Link: Imura // Targeted quality assur- ance processes continue to be the choice of most clients to manage risk. Our 2013 plans will focus on continuing to provide automation around these processes. In addition, we recently launched Tempo, a web-based default management platform. With Tempo, we're not only keeping servicers compliant, but enabling significant cost savings. For a midsized servicer, that could translate into nearly $8 million in the product lifecycle. We anticipate this platform to be a real game-changer. Furthermore, we have several new solutions and product enhancements scheduled throughout 2013 to support market changes. We will announce these launches soon. M // What leadership methods are you utilizing to help your team remain future-focused while operating in an unpredictable marketplace? Imura // At ISGN, we have created a culture of focused execution. Ritesh Idnani, CEO of ISGN, believes a clear vision and talented associates coupled with clear roadmaps will drive our success in the industry. In order to make sure we are on the right track, we have dashboards and metrics throughout our organization. After six short months, we are starting to see the returns on our investments on many levels. We completely understand the unpredictable nature of our market, and flexibility and adaptability will definitely be part of our journey. Learn: Weighing in on Link: Learn: Highlighting "a turnaround in the labor market" driven by the nation's recovering real estate environment, author Chris Isidore credited February's solid employment report to "48,000 new jobs in the construction industry" and another 151,000 jobs among builders. Speaking to Isidore for the article "Construction Jobs Soar on Housing Recovery," Paul Emrath, the National Association of Home Builders' economist, stated, "Our members are hiring so much that they're starting to get worried about finding enough labor out there. Most are talking about adding people." Link: Learn: Broadcast personality Diana Olick showed support for states still struggling mightily in the post-crisis era in her recent piece, "Housing Recovery Leaves Some Behind." Citing special challenges faced by "'non-judicial' states," Olick explained, "New York, New Jersey, Massachusetts, and Maryland are still sitting on a ticking time bomb of troubled loans. Meanwhile, other states, such as hard-hit Arizona, California, and Michigan, are recovering far more quickly. The difference? They do not require a judge in the foreclosure process." Link: Learn: Nick Timiraos' loyal Twitter following was eager to review his position on the Federal Housing Finance Agency's (FHFAs) 2013 objectives, as presented in his recent piece, "Fannie, Freddie to Create Joint Firm." Concluding that the FHFA's plans may have some merits, the Wall Street Journal author noted, "In recent months, some industry executives have voiced concerns that the new mortgage-bond infrastructure might allow Fannie and Freddie to extend their dominance of impending budget decisions, writer Kathleen M. Howley expressed concern, stating that proposed cuts would "constrain the availability of Federal Housing Administration (FHA) mortgages that account for about a quarter of originations, threatening its role in the yearlong housing recovery." Howley's article, "FHA Hits Brakes on Housing with Budget Cuts: Mortgages," also quoted affirmative statements made to Bloomberg by New York University professor Mark Willis, who noted, "Any decrease in the rate the FHA is able to ensure mortgages will clearly hurt housing." Link: Learn: Nancy Anderson's recent article, "With Housing Rebound, Home Equity Could Be Part of Your Retirement Plan," raised an important issue for baby boomers and presented strategic options for tapping into available solutions. Advising soon-to-be-retirees to avoid reverse mortgages, Anderson addressed homeowners in buyer's markets, noting, "If a homeowner isn't able to sell right away, they can always rent out the property for a few years until a sale is feasible . . . tax-free gain[s] would still apply as long as the ownership and use test are met." The M Report | 15

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