MReport August 2022

TheMReport — News and strategies for the evolving mortgage marketplace.

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6 | M R EP O RT MTECH solution is 100% free to the whole- sale broker community and it's one less cost that a Broker has to worry about right now." With Marketplace 2.0, mortgage brokers can now: Pull in pric- ing from their existing wholesale lender relationships without wait- ing; add comp and rate sheets and receive accurate pricing without a monthly fee moving forward; invite borrowers to see tailored products and scenarios from inside the system; create custom rate alerts and be alerted when new opportunities arise; find and isolate specific non-QM, nona- gency, and home equity products; get more control and freedom and run pricing from anywhere; find loans that compete with all-cash offers and share with Realtors; and discover products they were previously unaware of and might not know are available. Advantages for wholesale lend- ers participating in Marketplace 2.0 include: the ability to offer product and pricing to additional Brokers outside of their current network; easy access for Brokers to find their specific programs and conduct business with them; detailed analytics on Broker pricing behavior; quick notifica- tions on when Brokers choose their products; and the ability to showcase non-QM, nonagency, and home equity products. Onboarding is automated, extremely simple, and brokers are up and running in minutes. Brokers only need to upload their rate sheets once and the system automatically updates product and pricing moving forward. Users will be able to see accurate pricing without manual updates. With rates on the rise, Marketplace 2.0 can help Brokers keep costs under control, stay competitive in a challenging market, and get wider access to additional products that they might not know exist. The solu- tion also gives Brokers access to non-QM, nonagency, and home equity programs at no additional cost. Lenders can also gain access to thousands of wholesale Brokers quickly and easily, helping them maintain volume during a chal- lenging market. Time-Saving Tech Advances VAULTEDGE PARTNERS WITH ENCOMPASS BY ICE MORTGAGE TECHNOLOGY TO OFFER OCR CAPABILITIES V aultedge, an Optical Character Recognition (OCR) platform, has announced that its integration is now built on the latest En- compass Partner Connect API Platform, available through ICE Mortgage Technology, part of Intercontinental Exchange Inc. Using Vaultedge, Encompass users can now automatically index loan documents, extract data, and cross-validate data across docu- ments in minutes, while processing teams can get underwrite-ready loan files within Encompass without manually sifting through innumerable documents. "ICE Mortgage Technology is an industry leader in shap- ing the digitization journeys of mortgage lenders," said Murali Tirupati, CEO and Co-Founder of Vaultedge. "Vaultedge is a purpose-built OCR software to provide a seamless loan process- ing experience to Encompass users. The partnership between Vaultedge and ICE Mortgage Technology is a logical step towards our shared commitment to driving maximum efficiency & value for our end customers." Vaultedge was launched in 2015 to automate the loan boarding and closing process that aims to help mortgage lenders, servicers, investors board loans five times faster. Boosting Homeown- ership Opportunities NEW OFFERING FROM GUILD MORTGAGE FACTORS RENT AND OTHER PAYMENT HISTORY G uild Mortgage has intro- duced Complete Rate, a new program that provides a more inclusive path to homeown- ership based on residual income analysis and rent payment history. Powered by FormFree, Guild's Complete Rate program offers an al- ternative method to measure credit risk for borrowers. Those with no credit score or credit history can opt-in to the program for a free assessment. If the borrowers' Form- Free report shows consistent rent payment history and good residual income history, the borrowers may qualify to receive a lower interest rate, lower fees, or both. "A lack of credit history is a major obstacle faced by some first-time homebuyers, particularly minority homebuyers who are almost twice as likely not to have a credit score," said David Battany, EVP of Capital Markets for Guild Mortgage. "Guild's Complete Rate program fills a mortgage lender's credit score blind spot by bringing in additional data to provide a more complete picture of a bor- rower's creditworthiness, poten- tially resulting in a lower interest rate, which can be the difference between qualifying for a home loan or not for some buyers." In the United States, 19% of adults do not have a traditional credit score, according to the Consumer Financial Protection Bureau's "Data Point: Credit Invisibles" report. Of those, 8% have a "thin or stale" score file, making it impossible to generate a current, valid credit score for them. An additional 11% are considered "credit invisible" because they don't have a credit file with any of the three major credit bureaus–Equifax, Experian, and TransUnion. Further, the CFPB reports that people who are Black or Hispanic are more likely than people who are white or Asian to be credit invisible or to have unscored credit records. About 15% of Black and Hispanic people are credit invisible (compared to 9% "A lack of credit history is a major obstacle faced by some first- time homebuyers, particularly minority homebuyers who are almost twice as likely not to have a credit score." —David Battany, EVP of Capital Markets, Guild Mortgage

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