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Th e M Rep o RT | 3 Co nte nts 16 The Psychology Behind The RecoveRy The initial impact may be over, but the aftershocks of the crisis still linger. 21 ReveRsing The ReveRse MoRTgage MyTh Once a scary notion for seniors, now a viable tool to fund retirements, if used correctly. 25 MaxiMizing MaRkeTing The days of the holiday card are long gone. Now lenders are turning their attention to surefire ways to maximize ROI and ensure repeat customers and referrals. sPecial secTion 27 coMPliance coMPany guide This month's issue highlights the best and the brightest in the compliance space. dePaRTMenTs 5 The Pulse Practice What You Preach 6 fRoM The souRce Unspinning the Spin 7 social life Spring Fever 8 on The weB Tech talk 10 Mdwell Moving Toward Recovery 12 Take 5 Conquering Compliance: Angela Cheek of Mavent Inc. 13 McRowd See Who's Moving On and Moving Up in the Industry 30 | TH E M REP O RT Special Advertorial Section COMPLIANCE COMPANY GUIDE COMPANY DESCRIPTION Clayton Holdings provides information and services that financial institutions, investors, and government entities use to evaluate, acquire, securitize, service, and monitor loans and asset-backed securities. Clayton conducts its business with uncompromising honesty and integrity, and its employees are committed to upholding solid principles of corporate governance. As part of the overall governance, Clayton's system of internal controls includes organizational design, written policies and procedures, operating practices, and controls to protect people and assets. This integration of key activities helps identify irregularities and reduce risk to a reasonable level as quickly as possible. Of key importance to most government agencies, Clayton is a certified federal contractor and, as part of that commitment, it operates under the guidelines of the Office of Federal Contract Compliance Programs (OFCCP). COMPANY HISTORY Founded in 1989, Clayton pioneered both the residential due diligence and servicer surveillance industries. Since that time, Clayton has performed due diligence file reviews on more than 10 million loans; has performed surveillance/oversight on more than $2 trillion in original balance; and, over the past three years alone, has conducted more than 125 residential mortgage servicer operational assessments. BUSINESS LINES, SERVICES AND PRODUCTS Clayton offerings include risk-based analytics, residential, and commercial loan due diligence, consulting, surveillance, and staffing solutions. The company provides customized special servicing solutions, REO management, BPOs, and a short sale program through its Green River Capital subsidiary. A global reach in the financial services industry is provided by the company's European subsidiary, Clayton EuroRisk. COMPETITIVE ADVANTAGE For more than two decades, Clayton has been the go-to provider of residential and commercial real estate advisory services, analysis, and support services. Clayton offers unparalleled breadth and depth and is uniquely positioned to bring impartial, effective solutions to current market challenges and provide the most robust experience to its clients. Clayton is confident that its clients will realize great benefits from the company's team's experience, advice, customized services, and objectivity. Clayton's differentiators include: PIONEERING THE RESIDENTIAL LOAN DUE DILIGENCE INDUSTRY • Largest and longest-standing due diligence firm in the industry. • Due diligence workforce of more than 500 underwriters and team leads. • Exceptional reputation for quality, unbiased advice. • Clayton is an approved S&P and DBRS RMBS third-party review (TPR) provider and meets the standards of Moody's, Fitch Ratings, and Kroll Bond Ratings for pre-securitization due diligence. PIONEERING CREDIT RISK MANAGEMENT/ LOAN SURVEILLANCE • Possess a broad and vast array of historical transaction data. • Support and oversight of more than $1 trillion of loans. • Depth of experience includes providing advisory services, asset management services, and loan review/due diligence for all property and credit types. • Clayton's independence allows for an unbiased approach, and the company always endeavors as a fiduciary in good faith to provide an objective review and recommendations. REGULATORY KNOWLEDGE • Clayton is an expert in all of the latest regulatory compliance guidelines including FACTA, HMDA, RESPA, TILA, and the new ATR/QM rules. • Clayton was recently selected by Weiner Brodsky Kider to provide loan review expertise in their CFPB examination readiness program. TEAM OF INDUSTRY EXPERTS • Beyond tools and technology, Clayton's most essential asset is its team of motivated, hard- working industry experts. The company is convinced that its employees are outstanding at what they do, and it believes that clients will agree. • Clayton's subject-matter experts have held significant positions in the banking, residential, and commercial real estate industries and bring years of lending and operating experience to Clayton. The company's project teams possess best-practices knowledge of banking, finance, and residential/commercial real estate operations, from origination through special servicing, workouts, and REO. They perform in-depth analyses of both the quantitative and qualitative aspects of all forms of residential/CRE management, loan file reviews, and servicing. KEY PERSONNEL Paul Bossidy CEO Joseph D'Urso President and COO Tom Donatacci EVP, Business Development Ron Castro Managing Director Scott Mowry SVP, Operations STAFFING 500 employees CONTACT INFORMATION 100 Beard Sawmill Road Suite 200 Shelton, Connecticut, 06484 Phone: 877.291.5301 Fax: 203.926.5757 Email: sales@clayton.com Web: clayton.com Clayton Holdings TH E M REP O RT | 31 Special Advertorial Section COMPLIANCE COMPANY GUIDE COMPANY DESCRIPTION ClosingCorp is the leading provider of residential closing cost data, intelligence, and technologies for lenders, real estate professionals, and consumers. It is the only source for actual closing cost data that includes verified rates from more than 12,000 service providers, as well as current recording fee and transfer tax data for every residential property in the nation. ClosingCorp's proprietary database is the foundation of its groundbreaking technologies, which include SmartGFE, SmartGFE Calculator, SmartOrder, and DART. With these solutions, ClosingCorp has proven to help clients dramatically improve productivity and transparency, reduce expenses, stay in compliance, and expedite the closing process. REGULATORY COMPLIANCE Ensuring regulatory compliance is easy with SmartGFE because every loan file comes with the industry's best Compliance Guarantee Certificate, which includes a comprehensive audit trail. The Compliance Guarantee will virtually eliminate any RESPA-related tolerance vio- lations and allow a lender to produce highly competitive GFEs upon first contact with a prospective borrower. In addition, the audit trail captures exactly what happened with each loan file from who requested changes, date of changes, parameters that changed, and any new fee data related to every change. For auditing purposes, this provides a clear accounting of every change in circumstance from initial GFE to HUD-1. BUSINESS LINES, SERVICES AND PRODUCTS SmartGFE Service—Instant access to guaranteed compliant GFE data that's easily integrated with cur- rent workflows and popular loan origination software (LOS) platforms such as Ellie Mae Encompass360, FIS Loan Origination Studio, LPS Empower, Calyx Point, and others. SmartGFE Calculator—Online pricing tool for title and settlement services, recording fees, and transfer taxes. SmartOrder—Automated, online ordering technol- ogy with verified and documented pricing that is fully integrated into the SmartGFE Service. This integration provides consistency of price from initial disclosure to final order and allows for a seamless workflow of data and documents within the LOS platform. Professional Services—Bulk data, analytics, and services to access the richest resource of closing cost and service provider intelligence available today. KEY FEATURES/BENEFITS • The most comprehensive, accurate closing cost data available including verified rates from more than 12,000 service providers • Precise recording fee and transfer tax data for every residence in the nation • Fast, easy, online access to RESPA-compliant GFE data. • Streamlined pricing process for residential real estate transactions • Data and technology solutions that help lenders improve productivity, reduce expenses, maintain regulatory compliance, and expedite the closing process COMPETITIVE ADVANTAGE ClosingCorp is the only company in the industry that: • Manages current rate and fee data from a vast network of real estate service providers; • Provides precise recording fee and transfer tax data down to the tax jurisdiction level for every residential property in America; • Eliminates the time-consuming need to manage templates and tables; • Uses detailed, localized data to address the most obscure regulatory issues imaginable; • Seamlessly integrates with nearly all popular LOS platforms for an undisrupted workflow; • Backs the accuracy of its data with the industry's most trustworthy Compliance Guarantee to pro- tect lenders from RESPA tolerance violations; and • Designs products so that they can easily accommo- date current and upcoming regulatory changes from the Consumer Financial Protection Bureau (CFPB). ADDED VALUE TO CLIENTS With the CFPB's new rules in place, lenders must focus more than ever on consumer satisfaction and compliance. ClosingCorp's data, services, and products are updated to meet all of the new require- ments, giving its clients one less area of which to be concerned. The breadth and depth of its information also offers lenders an invaluable tool for benchmarking and measuring their service providers. KEYS TO SUCCESS ClosingCorp has a well-defined focus on providing lenders the most accurate and comprehensive clos- ing cost data, intelligence, and technologies to make closing real estate transactions more efficient and transparent. The company provides a more produc- tive, cost-effective way for lenders to obtain current costs from real estate service providers for accurate good faith estimates that ensure RESPA compliance. INDUSTRY AWARDS, ACCOLADES AND MILESTONES • Mortgage Executive Magazine Top 50 Mortgage Service Providers in America—2013 • Mortgage Technology Top 50 Service Provider—2013 • Mortgage Technology Fix-It Award (Finalist)—2013 • Mortgage Technology Top Service Provider—2011 KEY PERSONNEL Brian Benson CEO Mike Reynolds CFO and SVP Tim Armbruster CTO and SVP Mark Nogaki SVP, Sales Christie Huff SVP, Marketing STAFFING 50 employees CONTACT INFORMATION 7817 Ivanhoe Ave. Suite 302 La Jolla, California 92037 Phone: 866.256.7464 Email: support@closing.com Web: closing.com ClosingCorp 34 | TH E M REP O RT Special Advertorial Section COMPLIANCE COMPANY GUIDE COMPANY DESCRIPTION Hope LoanPort (HLP) is a neutral, national, and 501(c)(3) nonprofit utility providing technology-based solutions that facilitate transparency, accessibility, consistency of treatment, and a superior experi- ence to consumers and their advocates in pursuit of foreclosure alternatives and affordable home loans in underserved markets. COMPANY HISTORY HLP evolved out of the HOPE NOW technology committee's goal of establishing a more robust communication strategy to better serve homeown- ers at risk of foreclosure. Established in 2009, HLP provided a user-friendly Web portal for nonprofit housing counselors representing borrowers applying for a foreclosure alternative to complete an online application to be submitted to their servicer. REGULATORY COMPLIANCE HLP's technology provides a platform between counselors and servicers for the exchange of data, documents, and case communications. In 2012 HLP was chosen as a model Web-based portal in the landmark National Mortgage Settlement, in which the five largest mortgages servicers are required to use portals "such as Hope LoanPort." HLP was the preferred platform for processing applications for HUD's Emergency Homeowner's Loan Program (EHLP), and in 2013 was named in the Treasury's Supplemental Directive 13-01 as the communication platform to facilitate the MHA Borrower Outreach and Intake Project. Proper use of HLP also facilitates compliance with servicer requirements through its functionality; tracking turn times, status updates, and time- stamped records of all case activities and communications. As an example, the Office of Mortgage Settlement Oversight published servicing findings in 2013 that reported testing fails to NMS servicing rules including those related to loan modification timeline compliance for document collection (Metric #19) and decision/notification (Metric #20). These items are transparently tracked within HLP. HLP also facilitates servicing transfers by provid- ing a platform for all parties to continue assisting homeowners in a seamless, transparent manner consistent with the CFPB Bulletin 2013-01: Mortgage Servicing Transfers (2/11/2013). BUSINESS LINES, SERVICES, AND PRODUCTS Hope LoanPort's primary line of business is the Web-based portal providing multi-party processing on a centralized system for all stakeholders to a foreclosure alternative application. HLP's Homeowner Connect allows homeowners looking to self-engage in a workout solution to do so directly with their servicer through a neutral platform. KEY FEATURES/BENEFITS • Foreclosure alternative portal: facilitates compli- ance with industry guidelines and regulations • Free for HUD-approved nonprofit counselors, legal aid representatives, and homeowners COMPETITIVE ADVANTAGE HLP has no competitor strictly providing a neu- tral, nonprofit technology to the servicing industry dedicated to assisting struggling homeowners. The organization's greatest asset is its willingness to be collaborative with its partners and stakeholders in achieving a viable technology solutions. Hope LoanPort has a natural alignment with nonprofit advocates and also has more than 1,400 nationwide registered counseling agencies. HLP's leadership has extensive mortgage industry experience and has adapted its technology to servicing's operational and regulatory needs. Just as importantly, it has a close working relationship with IndiSoft, HLP's technology provider, and works closely with them on system developments and enhancements. ADDED VALUE TO CLIENTS The hub-and-spoke business model provides quick onboarding for all new registrants and access to all other users of the portal. HLP provides a robust training platform to aid new users learning to use the portal. KEYS TO SUCCESS Reflecting its nonprofit mission, as a technology the organization is dedicated solely to the foreclosure alternative industry. The organization is able to adapt quickly to new regulatory guidelines and swiftly implement them into its platform. Hope LoanPort collaborates with other companies to ensure that it continues to fill needs within the industry.This con- tinues in 2014 with initiatives to include foreclosure mediation processing, post-modification counseling as required through MHA Supplemental Directive 13-08, and the development of a National Registry for third-party advocates. INDUSTRY AWARDS, ACCOLADES, AND MILESTONES HLP was named a 2013 ComputerWorld Honors Laureate along with its technology provider, IndiSoft, in the category of Economic Development, which recognizes technology projects that influence busi- ness. It was also named with IndiSoft as a finalist for the 2013 Mortgage Technology Awards in the category of Synergy. KEY PERSONNEL Camillo Melchiorre CEO and President Mark Cole Executive Vice President & Chief Strategy Officer Nick Figlo SVP of Solutions Design and Analytics Samantha Friedman SVP of Product Development and Client Services Brian DiMarco Director, Industry Communications STAFFING 12 employees CONTACT INFORMATION 100 International Drive, 23rd Floor Baltimore, Maryland 21202 Phone: 410.942.6464 Email: information@hopeloanportal.org Web: hopeloanportal.org Hope LoanPort