TheMReport — News and strategies for the evolving mortgage marketplace.
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May 2023 » thefivestar.com 23 May 2023 I N D U S T R Y U P D A T E founder & CEO of Valligent. "Support for our program has been encouraging since a number of lenders have expressed interest in sponsoring a trainee." This program closely aligns with the Appraiser Diversity Initiative (ADI), in which Veros and Valligent are also involved, working with the National Urban League's regional Entrepreneurship Centers, the Appraisal Institute, Fannie Mae, and Freddie Mac. The ADI is designed to find diverse candidates and educate them about the appraiser profession. The VATP provides a natural next step for any candidates looking to start an appraiser career. Once certified, the appraiser can continue as a Valligent employee, be employed by the sponsoring lender, or establish their own business as an independent fee appraiser. "We aren't aware of any existing programs or initiatives like this, so we are excited to set a new standard for the profession," says Jeff Ho- gan, VP of Collateral Valuation at Veros Real Estate Solutions. "The goal of the Valligent Appraiser Training Program is to not only pro- vide an opportunity for minorities to become experienced professionals in this space but to also provide the industry an effective solution to address potential appraisal bias." PHH MORTGAGE ANNOUNCES INITIAL RESULTS OF NEW SUBSERVICING RELATIONSHIP WITH SIERRA PACIFIC P HH Mortgage Corporation (PHH), a subsidiary of Ocwen Financial Corporation and a leading nonbank mortgage servicer and originator, announced key servicing performance results of its subservicing relationship with Sierra Pacific Mortgage Company (Sierra Pacific), a nation- wide direct lender. In the third quarter of 2021, Sierra Pacific selected PHH as its mortgage subservicer, following a rigorous selection process, and transferred a portfolio of approximately 54,000 loans with a UPB of $15 billion to PHH in December of 2021. Through the first six months following the transfer, Sierra Pacific realized significant gains across the board, including: » 75% reduction in customer complaint volume » 70% reduction in the number of calls requiring customer service escalation (average calls are being answered by PHH in less than 18 seconds) » 18% decline in one-time payments and a 22% increase in scheduled ACH FIRST FEDERAL BANK ANNOUNCES AGREEMENT TO ACQUIRE MORTGAGE DIVISION FROM BNC NATIONAL BANK F irst Federal Bank and BNC National Bank announced that they have signed a definitive agreement for First Federal to acquire certain assets and liabilities of BNC National Bank's mortgage division. The purchase is expected to close in the second quarter of 2023; the terms of the transaction were not disclosed. First Federal Bank will continue to originate loans out of existing locations in Georgia, Wisconsin, and Florida. As a result of the transaction, First Federal will purchase BNC National Bank's mortgage business assets and will continue to serve BNC National Bank's mortgage customers from its existing locations in Overland Park, Kansas; Moline, Illinois; and Bismarck, North Dakota, locations and in the Phoenix, Arizona, market. As a community-based mutual institution headquartered in Lake City, Florida, the bank is owned by its customers rather than stockholders and has 25 branches in the Southeast and operations in the Midwest. With the acquisition, First Federal will gain a nationwide consumer direct mortgage platform and will extend the benefits of community banking, customer service, and stability to the expanded customer base in new markets. John Medina, President and CEO of First Federal, commented, "Our mission is to provide solutions from a financially stable institution that is a great place to work and bank. This acquisition underscores our commitment to our customers and the residential mortgage sector. We look forward to serving the BNC mortgage customers with the same excellence they came to expect from the BNC team." BNC National Bank's Chairman Michael Vekich said, "The Board of Directors made the decision to exit our nationwide residential mortgage origination business after extensive deliberations and concluding that this change in strategy is in the best long- term interests of the BNC, its shareholders, and the communities we serve." The acquisition of BNC National Bank's mortgage division will enable First Federal to better serve the customers of both organizations by offering additional technology tools and an expanded product offering. First Federal anticipates retention of substantially all employees of the BNC National Bank's mortgage division team. "We look forward to welcoming the new employees to our Residential Lending Team," says Paul Ottendorf, Division President. It is anticipated the BNC platform will transition to the First Federal brand within a few months of closing. Since 2020, customers have increased their use of digital tools and First Federal's ongoing investment in cutting-edge digital solutions for customers is coupled with personal service. "BNC National Bank's mortgage division team will continue to excel at our core strengths while adding to our product offerings and joining an already amazing First Federal mortgage business," says Doug Brendel, President of Mortgage Banking. With steady, forward-thinking leadership, First Federal will continue to be lauded as one of the best small banks in Florida.