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Detours on the Road to Homeownership W elcome to the May 2022 issue of MReport. In addition to re- porting on the latest industry trends, products, mergers, and industry promotions, this month, we take aim at a new issue impacting today's American homebuyer as we examine the forces causing affordability issues for many. It is hard to believe that we are nearly halfway through 2022. Just one year ago, mortgage rates hovered near record lows, but now, they exceed the 5% mark, as the nation's housing stock continues to shrink, and prices rise to record levels, all resulting in a "Perfect Storm" of pricing many out of the market and returning to a rental market where prices, too, sit at all-time highs. This month, we spoke with a cross-section of industry experts, from economists to mortgage lenders, to down payment assistance providers, to gauge their perspective on the ever-growing affordability issue, and what changes the industry must implement to remedy this crisis in our cover story, "Game of Homes." This month, we also focus on advances in artificial intelligence (AI) and automation that have propelled both today's home buyer and the overall industry steps closer to an all-digital, paperless process. In her article "The Cost of Quality," Sara Knochel, CEO of Data & Analytics for Candor Technology, explains how lenders must embrace technology in order to survive, and how adapting AI into your processes will keep you competitive and reduces fallout. Also this month, we hear from Rajesh Bhat, CEO and Co-Founder of Roostify, on how the evolution of technology has increased the expectations of the customer in his article, "Keeping Up With Consumer Expectations." Bhat details how consumer expectations have grown exponentially in the age of the digital mortgage, as e-experiences have presented an increasingly friction-free and personalized process, and the industry must keep pace of changes in tech to keep their clients content. Finally, Greg Austin, EVP of Mortgage Lending for Carrington Mortgage Services, discusses how adding non-QM to your slate of offerings can open a new world of options for your customer base. A product designed for non-traditional borrowers, non-QM opens the doors for new segments including the self-employed, investors, foreign nationals, and gig economy workers, among others. We present all this and much more in the May 2022 issue of MReport. We thank you for your support of our publication, and always encourage you to visit theMReport.com for your Daily Dose of the industry's top news and trends. David Wharton Editor-in-Chief 2 | M R EP O RT MNOTES © 2011 First American Financial Corporation and/or its affiliates. All rights reserved. YOUR business is OUR business! First American Mortgage Services is laser focused on mitigating YOUR cost, risk and exposure by aligning our advanced solutions with YOUR strategic objectives and compliance needs. We are the New First American, over 120 years young, strong and financially secure. Insight | Innovation | Integrity First American Title Insurance Company and First American Mortgage Services make no express or implied warranty respecting the information presented and assume no responsibility for errors or omissions. FIRST AMERICAN and FIRST AMERICAN TITLE are trademarks owned by First American Financial Corporation. 2 | Th e M Rep o RT Publisher Jon Ball contributing editor Abby Gregory online editor theMrePort.coM Ryan Schuette coPy editors Alison Rich emily White Youree heather hill contributors phil Britt Bob Calandra eric Fox Jack Konyk Mark Lieberman creative director Jason Stone art director Jonathan Won associate art directors Bruce Sons Chanyanont Loha-Unchit design director Sean Walker advertising Dina Duncan (214.525.6740) Jason Myers (214.525.6760) Andi Zimmerman (214.525.6724) technology Toby Tull Brandon Shangraw social Media Leon McKenzie Ani Vera circulation/corresPondence Celina Avila corPorate officers chairMan & chief creative officer chief executive officer Mark hulme edward R. Delgado business develoPMent Andi Zimmerman chief financial officer John harrison director of huMan resources ernest Gillespie director of oPerations Toby Tull account executives senior account executive Donna Lott (214.525.6792) sPonsorshiPs Jason Myers (214.525.6760) account executives Renee Charles (214.525.6742) Thomas Griffin (214.525.6754) Kristin Larson (214.525.6713) Ryan McLemore (214.525.6706) Marketing Travis Bogdon Matt hulme Production Kyle Curtis Miguel Martinez Christian McCrossan concierge Celina Avila art direction Jason Stone Sean Walker Jonathan Won No part of this publication may be reproduced without written permission from the publisher. ©2011 Reo publishing LLC All Rights Reserved This publication is intended to provide accurate, authoritative, and detailed information in regard to the subject matter covered. All written materials are disseminated with the understanding that the publisher is not engaged in rendering legal advice or other professional services. Under no circumstance should the information contained herein be relied upon as legal advice as it is designed to be a source of information only. MReport strongly encourages the use of qualified attorneys or other qualified experts with regard to the subject matter covered. MReport does not guarantee the accuracy of the information and is not liable for any damages, losses, or other detriment that may result from the use of these materials. FORDEFAULTSERVICINGPROFESSIONALS THEFIVESTARINSTITUTE Follow us. EDITOR-IN-CHIEF David Wharton EXECUTIVE CREATIVE DIRECTOR Jonathon Won CREATIVE DIRECTOR Jason Stone MANAGING DIGITAL EDITOR Eric C. Peck REPORTER Kyle G. Horst Demetria Lester MAGAZINE CONTRIBUTORS Greg Austin Rajesh Bhat Sara Knochel COPY EDITOR Brandy Scott ADVERTISING 214.525.6700 EDITORIAL ADVISORY BOARD John Dunnery, VP, Government Loan Servicing, Community Loan Servicing, LLC Benjamin Gottheim, Director, Mortgage Servicing Policy, Freddie Mac Michele Kryczkowski, SVP Operations, Distributed Retail, Planet Home Lending Alex McGillis, Senior Director, Product Development, The Answer, Quicken Loans Erik Schmitt, Managing Director, Origination Division, Chase Home Lending Douglas Whittemore, Head of Default Servicing, US Bank Jacob Williamson, VP Single-Family Collateral Risk Management, Fannie Mae Kim Yowell, EVP of Servicing, Fairway Independent Mortgage Servicing Corporate Officers PRESIDENT & CFO Jonathan Hughes ART DIRECTION Jordan Funderburk, Jason Stone, Jonathon Won No part of this publication may be reproduced without written permission from the publisher. © 2022 Five Star Global, LLC. All Rights Reserved This publication is intended to provide accurate, authoritative, and detailed information in regard to the subject matter covered. All written materials are disseminated with the understanding that the publisher is not engaged in rendering legal advice or other professional services. Under no circumstance should the information contained herein be relied upon as legal advice as it is designed to be a source of information only. MReport strongly encourages the use of qualified attorneys or other qualified experts with regard to the subject matter covered. MReport does not guarantee the accuracy of the information and is not liable for any damages, losses, or other detriment that may result from the use of these materials.