MReport June 2021

TheMReport — News and strategies for the evolving mortgage marketplace.

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M R EP O RT | 5 MTECH type—including ink, hybrid, or full eClose. "While there has been a lot of innovation in the mortgage indus- try, the path for a lender to de- liver a truly end-to-end electronic closing experience remains highly fragmented and costly. We are changing the way mortgage loans are closed in the U.S. for the bet- ter," said Joe Tyrrell, President of ICE Mortgage Technology. "With Encompass eClose, we're eliminat- ing the time and cost to move and manage data in multiple sys- tems, we're eliminating the confu- sion the borrower experiences when a different signing experi- ence is introduced at closing, and we're eliminating the frustration and inefficiencies that lenders face when having to maintain separate closing processes. We are provid- ing lenders with a game-changing solution that helps them decrease operational costs, while increasing loan quality and greatly improv- ing the borrower's experience." Encompass eClose improves the quality of loans by making document execution and collec- tion processes more accurate, thus reducing costly errors associated with paper closings. By provid- ing one platform across multiple eClose platforms, use and adop- tion are simplified for settlement agents, offering real-time trans- parency into the loan closing process, as well as a highly secure audit trail. Encompass eClose also enables lenders to deliver a better borrower experience by giving them a single portal to use from application to close, as well as simplifying and shortening the closing process. For inves- tors, Encompass eClose reduces acquisition cycle time for investors by increasing the future adop- tion of eNotes and shortening the time required to sell loans on the secondary market. "The ultimate goal is for eClose to be the standard in the industry, and to drive adoption by building an ecosystem that users are com- fortable with, but one that's better than what is currently available in the market," said Nancy Alley, VP of Product Strategy of ICE Mortgage Technology. "With Encompass eClose, we're able to bring borrowers, lenders, and agents closer to that reality." A New Flag Is Raised NYCB ACQUIRES FLAGSTAR BANCORP. N ew York Community Bancorp Inc. (NYCB) and Flagstar Bancorp have entered into a merger agreement under which the two companies will combine in an all-stock merger. The implied total transaction value based on closing prices as of April 23, 2021, is approximately $2.6 bil- lion. The transaction is expected to close by the end of 2021. The new company will have in excess of $87 billion in assets, and operate nearly 400 traditional branches in nine states, and 87 loan production offices across 28 states. The company's headquar- ters will be based on Long Island, N.Y., with regional headquar- ters in Troy, Michigan, which will house Flagstar's mortgage operations. The combined com- pany will maintain the Flagstar Bank brand in the Midwest, as Flagstar's mortgage division will also maintain the Flagstar brand. Other states will retain their cur- rent branding. Thomas R. Cangemi will serve as President and CEO of the com- bined company, and Alessandro (Sandro) P. DiNello, Flagstar's current President and CEO, will become Non-Executive Chairman, with John Pinto serving as Senior EVP and CFO of the combined company. Lee M. Smith will con- tinue to lead the mortgage divi- sion as Senior EVP and President of Mortgage, and Reginald Davis will head up consumer and commercial banking, and serve as Senior EVP and President of Banking. The remaining key roles will combine the best talent from both companies. The Board of Directors will be comprised of 12 directors—eight from NYCB and four from Flagstar. "The combination of our two companies will allow each of us to continue our transformation to a full-service commercial bank by broadening our product offerings while expanding our geographic reach with no branch overlap," Cangemi said. "Over the past several months, I have gotten to know the board and management team of Flagstar and found that we share the same values and commitment to our employees, customers, and the communities which we serve." Flagstar produced mortgage revenue of $227 million in the first quarter of 2021, as fallout adjusted locks remained strong. "Our mortgage team delivered another strong quarter, posting mortgage revenues of $227 mil- lion," DiNello said. "The team lev- eraged our multichannel mortgage platform to grow fallout adjusted locks by 3%. We were pleased with how well our margins held up, averaging 1.84% for the quarter. Our results demonstrate the team's ability to remain oppor- tunistic and execute skillfully in an operating environment that is ever-changing." Flagstar closed Q1 servicing and subservicing more than 1.1 mil- lion loans, up 6% from the prior quarter. "Tom is a young, dynamic CEO who shares my vision," DiNello said. "Together, his team and the Flagstar team will grow our combined businesses smartly and safely. I'm immensely proud of what we have achieved at Flagstar and can't wait to see all we will accomplish as we super- charge our respective businesses through this transaction." Mortgage Career Training AXIS LENDING ACADEMY LAUNCHES TO BOLSTER INDUSTRY WORKFORCE. A XIS Lending Academy, a nonprofit education program that offers free hybrid education training to people seeking a career in the mortgage industry while helping home lenders diversify their workforce and lower costs, has announced the formal launch of its operations. AXIS Lending Academy provides a 90-day education program in which students are taught and mentored by a team of experienced leaders for a career in "While there has been a lot of innovation in the mortgage industry, the path for a lender to deliver a truly end-to- end electronic closing experience remains highly fragmented and costly. —Joe Tyrrell, President of ICE Mortgage Technology.

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