MReport January 2018

TheMReport — News and strategies for the evolving mortgage marketplace.

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36 | TH E M R EP O RT O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST ORIGINATION Topping Charts: Lenders Who Are Leading Originations A NEW REPORT IS RANKING THE TOP 25 LENDERS IN CENTRAL OHIO BASED ON MORTGAGES CLOSED. OHIO // According to Columbus Business First, these lenders represent a combined 22,609 first mortgage loans for all of 2016. Cumulatively, the loans are worth $4.2 billion dollars, averaging $183, 847 per loan. Leading the way is Union Savings bank (4,783 loans closed), Fifth Third Bank (2,919 loans closed), and Concord Mortgage Group (2,289 loans closed). The ranking was determined by self-reported information submitted via an online survey. According to, Ohio has been a hot market for home sales—with three locales recently being included in the organiza- tion's 50 Hottest ZIP Codes list (one Dayton ZIP code and two Cincinnati ZIP codes). Earlier this month J.D. Power released its own ranking of mortgage originators—stacking up national lenders by customer satisfaction. The 2017 U.S. Primary Mortgage Origination Satisfaction Study used six factors to track customer satis- faction: application/approval pro- cess; interaction; loan closing; loan offerings; onboarding; and problem resolution. This year's study was conducted in July-August 2017, fielding responses from 5,893 customers who originated a new mortgage or refinanced within the past 12 months. Based on a 1,000 point scale, Guild Mortgage Company and Quicken Loans both tied for first with a mortgage origination satis- faction score of 878. PrimeLending was close behind with a score of 859. Overall, J.D. Power found that customer satisfaction with mort- gage originators declined by 8 basis points in 2017. Craig Martin, Director of the Mortgage Practice at J.D. Power, said: "We're at a critical inflection point in the mortgage industry where new technology and the growing use of digital mortgage application channels has made it possible for the origination process to move more quickly; however, the customer is still the final judge of speed and quality. A critical element of satisfaction is setting expectations, and this tends to be a weakness of technology, which is demonstrated by substantially lower satisfaction among customers who do not work with a human to complete their application." Credit Unions Survey Cybersecurity Concerns A NEW REPORT EXAMINES CYBERSECURITY CONCERNS AMONG CREDIT UNIONS— FINDING THAT MAJORITY FEAR ANOTHER EQUIFAX-LIKE BREACH IN THE FUTURE. VIRGINIA // The National Association of Federally-Insured Credit Unions (NAFCU), headquartered in Arlington, Virginia, recently released its latest 2017 Economic & CU Monitor. The Monitor surveys credit unions each month on key in - dustry concerns—this month the special topic is cybersecurity. The majority of credit unions fear another Equifax-like breach in the future, the survey found, with 20 percent of respondents reporting they have reissued cards in order to protect members' financial information following the breach. In light of the Equifax data breach, 63 percent of credit union respondents reported they are "very concerned" about a similar crisis occurring in the near future. Additionally, 58 percent of credit union survey respondents an - swered "very concerned" about the threat of a merchant data breach. The report notes that, "In efforts to address the growing threats of cyber intrusions, over 9 percent of respondents' overall op- erating budget is currently devot- ed to IT/cybersecurity, while all respondents expect an additional 'moderate increase' or 'significant increase' in their IT/cybersecurity over the next five years." Meanwhile, 64 percent of respondents say they have hired a Chief Information Security Officer to manage cybersecurity-related activities at their institutions. The Monitor also incorporates the results from the November Credit Union Sentiment Index, which is based on NAFCU mem- ber responses to eight questions on growth and earnings outlook, lending conditions and regulatory burden. "Credit unions continue to en- joy robust growth as an industry," the report notes. "Loan growth exceeds 10 percent despite slow- downs in the housing and auto markets." LOCAL EDITION ORIGINATION Majority of credit unions fear another Equifax-like breach in the future, with 20 percent of respondents reporting they have reissued cards in order to protect members' financial information following the breach.

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