MReport May 2018

TheMReport — News and strategies for the evolving mortgage marketplace.

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TH E M R EP O RT | 5 MTECH PennyMac by the end of 2018. "We are focused on helping com- panies like PennyMac enhance their customer communications with innovative technology-enabled solu- tions," Ronnie Selinger, Founder, CEO, and President of Nordis Technologies said. "We've col- laborated to develop a solution that can easily handle the volume of PennyMac's customer documents." Nordis offers state-of-the-art production and distribution ser- vices for print and electronic com- munications, including variable, print on demand, full-color digital printing, and data processing. The company operates fully redundant and secure operations in Florida and Nevada, serving leading companies in financial services, healthcare, and hospitality. "With its industry-leading technology, print capabilities, and customer service focus, Nordis Technologies has worked closely with PennyMac to meet our spe - cial printing requirements," Kevin Meyers, PennyMac's Managing Director for Performing Loans said. "Nordis is enabling us to streamline the process for produc- ing and delivering important customer communications." Citadel Announces Product Platform Update THE COMPANY HAS ROLLED OUT PROGRAM ENHANCEMENTS FOR ITS NON- PRIME CREDIT BORROWERS. C alifornia-based non-prime wholesale residential lender Citadel Servicing Corpora- tion (CSC) has announced a major update to their product platform, and will begin offering a 5/1 Hybrid Adjustable Rate Mortgage (ARM) and 5/25 Interest Only (IO) term. This now allows borrow- ers to qualify for the IO program without as big of a recast, which normally would increase the DTI that is used to qualify. CSC has also introduced their easiest qualification program for full doc income to date by allow- ing a single year's Returns or W-2 as documentation. This will allow brokers and borrowers to move faster through the process. The company has also expanded their 12-month bank statement program to 90 percent loan-to-value (LTV) with no mortgage insurance requirement. CSC has eliminated the need for 24 months of bank statements on the Maggi program, again adding speed and efficiency to the process. The lender fee on the Maggi (Alt-A) product has been decreased from $1,195 to $995. Furthermore, all rates on all products have been decreased by as much as .25 percent. "We believe the time is right for these product updates, and con - sidering our last five years of loan performance, these changes war- rant incorporation", Will Fisher, SVP of Sales and Marketing for CSC, said. Citadel Servicing Corporation, the first Lender to reenter the mortgage lending space formally known as subprime, and now renamed by CSC as "non-prime," provides financing for both own - er-occupied and non-owner oc- cupied residential properties. CSC services all loans originated by its efforts and currently works with mortgage professionals exclusively via a wholesale or correspondent relationship. Veros to Assist Lender Compliance THE NEW PROGRAM WILL HELP LENDERS SPECIALIZING IN PACE LOANS. V eros Real Estate Solu- tions (Veros), a Santa Ana, California-based provider of data, analytics, and technology for the mortgage banking industry, has developed a solution for lenders specializ - ing in PACE (Property Assessed Clean Energy) loans in the state of California, where new compliance requirements went into effect on January 1, 2018. VeroPACE, available through the VeroSELECT ordering platform, will generate, analyze, rank, and report the multiple Automated Valuation Models (AVMs) now required for PACE lending by California State Assembly Bill 1284 and the companion State Senate Bill 242. "The passage of this legisla- tion significantly changed the valuation process for PACE loans, which are used to finance greater energy efficiency in homes," Veros VP of Sales Rob Walker said. "Historically, lenders could process a PACE loan in California using the results of a single AVM, but they now need three AVMs and must use a new method of calculating the final value." AB 1284 intends to enhance PACE underwriting by requiring lenders to obtain the three AVMs from a third-party vendor, then choose the one with the highest confidence score and calculate the midpoint of that AVM's high-low value range. The resulting value, combined in a report with data from the three AVMs, becomes the valuation submitted with the PACE loan application. "Ordering three AVMs on the same property can be difficult," Walker added. "And because different AVM providers have different methods of producing confidence scores and values, the mid-range requirement has pre - sented some significant challenges for many PACE lenders. Also, if lenders cannot get three AVMs, they have to get an appraisal, which will add time and cost to the loan application process. To combat this, lenders need to achieve high AVM hit rates." "The good news for PACE lenders who are struggling with this new compliance requirement is that VeroPACE handles the en - tire process for them," said Luke Ziegenmeyer, Director of Product Management at Veros. "And, if need be, we have an optional add- on for VeroPACE users that can facilitate the request and delivery of appraisals as well." RE/MAX Acquires Technology Firm booj COMPANY TO LEVERAGE THE CAPABILITIES OFSTRATEGIC PARTNERSHIP TO DELIVER CORE TECHNOLOGY SOLUTIONS DESIGNED FOR RE/ MAX AFFILIATES. R eal estate brokerage firm RE/MAX acquired booj, an award-winning Colorado-based web design and technology company as part of its technology strategy. Moving forward, RE/MAX will "Because different AVM providers have different methods of producing confidence scores and values, the mid-range requirement has presented some significant challenges for many PACE lenders." —Rob Walker, VP of Sales, Veros

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