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Issue link: http://digital.themreport.com/i/806370
TH E M R EP O RT | 9 M // What market trends are you noticing have an impact this year? VELLA // 2017 is a continuance of 2016. On the servicing side, most of the banks are currently out of their consent orders and are looking at ways to lower their cost to service, continue to improve their compliance capabilities, and focus on innovative ways to mitigate loss and risk. Most of those efforts have been put towards FHA servicing portfolios; therefore, we are seeing lots of innovative solu- tions to help lower the risk of convey- ing assets to the FHA by developing more streamlined methods to sell properties for more net proceeds and managing the assets more effectively from property and field manage- ment standpoints. The FHA bundled services are a significant component of 2017, and it is imperative to find more suitable ways to mitigate risk for those services. M // What else will be of importance to you this year? VELLA // Our attention is focused on the property preservation field as servicers are partnering with neighborhoods who want to improve the conditions of properties within their communities. The last pertinent component is vendor management. Servicers are doing a more effective and thorough job of managing their vendor networks and ensuring they have the proper technology and solid processes to manage those vendors and their performance. M // How do you feel about President Trump's progress thus far and what can we expect from the new administration moving forward? VELLA // With the focus on regulations over the last several years, servicers and originators have spent most of their time, money, and effort in upgrading their compliance and embedding current regulations into their technology and processes, as well as spending a lot of time and effort training their employees to follow the rules and regulations. Any regulatory changes will cause servicers to spend more time and effort on the embedding of these changes while making sure the new regulations are effectively communicated. I believe that would be the biggest impact. If there is any change in regulations from the new administration, institutions will have to refocus their infrastructure around compliance and regulation. M // What advice can you give millennials who are struggling with understanding the homebuying process? VELLA // Millennials think that the process of purchasing a home is very labor and paper intensive. Because of this, the industry is attempting to make the process more efficient and effective. First-time buyer millennials don't understand how to work with a title company or broker and the complexity of the paperwork. Since the industry is being driven by millennial influence, I advise them to continue challenging the process and developing creative ideas that will strengthen and streamline the homebuying experience. Also, renting is a great way to test the market instead of jumping in head first. First-time homebuyers need to understand their prospective market and the housing market as a whole. The difference between renting and owning is that purchasing a home will be the biggest investment of your life, if you do it correctly. If you do the proper research, find a good broker or agent, and utilize all the online one-stop shop sites that make it easy to buy and service your home, you can find great investment opportunities that will benefit you down the road. There's no time like the present. "With the focus on regulations over the last several years, servicers and originators have spent most of their time, money, and effort in upgrading their compliance and embedding current regulations into their technology and processes, as well as spending a lot of time and effort training their employees to follow the rules and regulations." FROM THE SOURCE SHARE THIS: FITCH RATINGS U.S. HOME PRICE HEAT MAP FitchRatings.com Learn which housing markets are considered to be overvalued or undervalued. The Home Price Heat Map, curated by Fitch Ratings, examines home price growth movement across the country on a quarterly basis through its U.S. sustainable home price model. Florida, California, Nevada, and Colorado were listed as some of the nation's overvalued states, whereas Maine, New York, and Michigan were deemed as a few of the undervalued states. WATCH THIS FEDERAL HOUSING FINANCE AGENCY (FHFA): DUTY TO SERVE PROGRAM Youtube.com @ FHFA Channel The FHFA posted a YouTube video detailing its Duty to Serve program, which is specified in the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008. According to the FHFA, the statute requires Fannie Mae and Freddie Mac to provide leadership to facilitate a secondary market for mortgages on housing for very low-, low-, and moderate-income families in three underserved markets, which include manufactured housing, affordable housing preservation, and rural housing. In the video, Jim Gray, Duty to Serve Program Manager, gives an overview of what the program entails. TWEET THIS @STEVENMNUCHIN1 Follow Treasury Secretary Steven Mnuchin's progress via Twitter as he chronicles his journey in his new role. As told on Twitter, Mnuchin has met with German Finance Minister Schauble; Philip Hammond, Chancellor of the Exchequer; and Gov. Agustin Carstens of Banco de México to discuss financial policies that will advance the country's infrastructure and restore confidence into the economy. READ THIS ROGUES OF WALL STREET: HOW TO MANAGE RISK IN THE DIGITAL ERA By Andrew Waxman The digital space poses the biggest threat to Wall Street, and Rogues of Wall Street delves into the operational risk incidents that have shaken the financial industry and uncovers ways that technology can assist firms to avoid losses. The first half of the book discusses various risk events and operational risk type along with its causative and contributing factors, while the second portion of the book gives tools and solutions that can better prepare financial institutions from risk concerns in the future.