Residential Briefs

MBA (4/14/2008 ) Palaparty, Vijay
FDIC to Conduct Survey of Banks
The FDIC will conduct a nationwide survey of FDIC-insured depository institutions to assess their efforts to serve unbanked and under-banked individuals and families. Survey questionnaires will be sent to a probability sample of FDIC-insured institutions this quarter. Questions will focus on banks' financial education and outreach strategies; deposit, payment and credit products offered to entry-level consumers; and other related topics. The survey will also identify challenges insured institutions may face serving unbanked and under-banked customers.
Freddie Mac to Expand Disclosure on PC Securities
Freddie Mac expects to provide nine new loan-level disclosures and expand two existing disclosures on its single-family fixed-rate and adjustable-rate mortgage Participation Certificate securities. It will expand its Loan Purpose disclosure for all newly issued PC securities and for PC securities issued on or after December 1, 2005. Beginning no later than August, Freddie Mac will also expand its Third Party Origination disclosure on all newly issued PC securities.

Geographic Maps of Subprime/Alt-a Loan Conditions Released
The Federal Reserve System announced the availability of dynamic maps and data that illustrate subprime and alt-A mortgage loan conditions across the U.S. The maps, which are maintained by the Federal Reserve Bank of New York, display regional variation in the condition of securitized, owner-occupied subprime and alt-A mortgage loans.

PMI Releases Spring 2008 Risk Index
PMI Mortgage Insurance Co., Walnut Creek Calif., released its Spring 2008 U.S. Market Risk Index, which ranks the nation's 50 largest metropolitan statistical areas according to the likelihood that home prices will be lower in two years. The Spring 2008 Risk Index is based on fourth-quarter OFHEO data. Thirteen of the nation's Top 50 MSAs are in PMI's highest risk rank, with a greater than 60 percent chance that home prices will be lower in two years. Risk remains largely concentrated in a number of MSAs in California and Florida, as well as in Las Vegas and Phoenix. Risk scores translate directly into an estimated percentage risk that home prices will be lower in two years. The MSAs with the highest risk scores were Riverside/San Bernardino/Ontario, Calif., (93 percent), Las Vegas (91 percent) and Orlando (85 percent).

Credit Plus PRBC Reports Include FICO Expansion Score
Credit Plus Inc., Salisbury, Md., will include FICO Expansion Score from Fair Isaac Corp., Minneapolis, in its PRBC reports. The report combines PRBC’s trade line information to meet or exceed secondary market requirements with FICO Expansion Score.

PRBC reports generated through Credit Plus with the FICO Expansion Score include bill paying information that is verified by an FCRA-certified third party; verification procedures that are acceptable to Fannie Mae, Freddie Mac and other lenders; a FICO Expansion Score that uses the traditional FICO 300-850 score range; and trade line data.

Credit Plus also announced that through its scoring tool, ScoreWizard, borrowers can raise their credit score. The program provides recommendations on how to improve borrowers’ scores including a “What If Simulator” wherein certain actions such as removing accounts and correcting errors can be explored.

Wells Fargo Purchases Loans Originated Using Fiserv Technology
Wells Fargo Funding, Des Moines, Iowa, will begin to accept purchase loans from correspondents and brokers that have electronic disclosures and 1003s delivered, tracked and electronically signed using the eLending technology platform from Fiserv Inc., Brookfield, Wis.

To initiate an electronic disclosure process, the Fiserv eLending platform sends an e-mail from the lender to the borrower when disclosure documents are ready online. When borrowers visit the loan document web site, they authenticate their identity and consent to do business electronically. After agreeing that they understand the legally binding nature of electronic signatures, the borrowers execute the documents by clicking through steps in which they sign the documents with a personal identification number. Each time the PIN is affixed and accepted, the document is date and time stamped.

For additional security, the platform places tamper-evident seals on executed documents, attaches audit data within the document and facilitates electronic vault storage. The Fiserv eLending platform also enables the lender to export the electronic documents for delivery to secondary market partners.

FNC Strategic Alliance with Visre
FNC Inc., Oxford, Miss., introduced a service for appraisal and other valuation reports that offers access to photographs and video of subject properties and their neighborhoods. FNC developed the service in partnership with Visre Inc., Jacksonville, Fla., which will be offered through FNC’s Collateral Management System and also through its suite of analysis products.

FNC clients can zoom in at street level on subject properties and comparables in photo and video formats. Images are tagged with the date and time of capture, latitude and longitude coordinates and the corresponding street address. The service also allows clients to place orders for images not currently in the database.

eMASON Launches Clarifire 3.0
eMASON Inc., Clearwater, Fla., released a new version of Clarifire, a web-based process management application. New features include a user portal, discussion board and automated document assembly. Through Microsoft .NET 3.0 and service-oriented architecture, Clarifire also provides automated mapping and integration interfaces.

eMASON Clarifire provides workflow views in a web-based dashboard as well as a meeting place to exchange information, documents, ideas and training. Clarifire users log in directly to gain access to their dashboards and process automation. Its business rule engine also enables document automation based on user actions. Documents are created by selection of data collected in customizable data collectors.

Nations Direct Mortgage Signs with Loan-Score to Automate FHA Lending Process
Nations Direct Mortgage LLC, Irvine, Calif., a national mortgage lender dedicated primarily to originating FHA loans, signed with Loan Score Decisioning Systems, Irvine, Calif., to integrate Loan Score’s FHA TOTAL Scorecard and to use its product and pricing engine, automated underwriting system and broker portal.

The integration with TOTAL Scorecard returns and incorporates FHA findings into Loan-Score’s AUS for the full underwriting of loans. The partnership will also integrate with Nations Direct’s loan origination system, Encompass Banker Edition from EllieMae, Pleasanton, Calif.

Walzak Risk Analysis Offers Data Clean-Up Tool
Walzak Risk Analysis, Boca Raton, Fla., a risk management services provider, released its CleanData tool to help mortgage companies clean up missing and improperly formatted loan data. To use the tool, Walzak Risk Analysis sends an IT professional to the client’s office to create a data file for downloading. Files can be downloaded in either a bulk or loan-by-loan format. The company then returns the data files, highlighting missing, illogical or improperly formatted data.

LSSI, Loan-Score Form Alliance
Lender Support Systems Inc., Poway, Calif., a provider of eMortgage-enabled lending and loan servicing technology software, formed an alliance with Loan Score Decisioning Systems, Irvine, Calif., a provider of automated underwriting solutions. The partnership leverages complimentary technologies, common relationships and joint resources.

Under the agreement, LSSI and Loan-Score plan to couple products. LSSI provides initial disclosures, document preparation, loan servicing software and compliance services. Loan-Score engineers decisioning and automated underwriting that can be extended to the point-of-sale for all lending channels and product types.

Mortgagebot, Open Solutions Establish Referral Partnership
Mortgagebot LLC, Mequon, Wis., and Open Solutions, Glastonbury, Conn., a provider of enabling technologies for financial services providers, established a referral partnership. Open Solutions will recommend Mortgagebot’s consumer-direct, web-based loan origination systems to its clients and prospects. The alliance between Mortgagebot and Open Solutions’ existing LOS product suite expands online business opportunities.