Vaultedge newsletter: How BSI Financial automated loan/MSR boarding

July 05, 2021

Dear Friends, Colleagues & Customers:

  • First of all, Happy Independence Day. Last year it was a subdued affair. Now with about 150 Mn Americans vaccinated, the holiday looks more like it used to: fireworks, family gatherings, barbecues and more. Hope you all had a great time with your family & friends.

  • We are happy to share a wonderful success story. We released a case study on how BSI Financial, one of the fastest growing mortgage servicers in the country automated loan boarding using Vaultedge Mortgage Automation software.

  • It is not often that a customer comes out in the open and says that a piece of software is helping them board loans with more than 99% accuracy, while boarding at a pace of more than 1000 loans per day. Read the full story here.

  • At Vaultedge, we are fortunate to work with many customers like BSI Financial in helping them figure out how they can use technology to not only improve their operations but also to make life easy for their loan processors, underwriters, closers etc. We summarised our learnings from our work in this MBA NewsLink article here. Would love to hear your take on it.

  • We have been talking about the mortgages coming out of forbearance and the implications for lenders and servicers for many weeks now. CFPB has released the COVID-19 mortgage servicing final rule with an effective date of August 31, 2021, effective date. If you are a lender or a service, you will ignore this at your own risk. The final rule contains four components: a) Moratorium on new foreclosure actions through December 31, 2021; b) Exception to the anti-evasion clause for certain COVID-19 modification options; c) New early intervention communication requirements; and d) Clarification on the reasonable diligence standard for borrowers in forbearance. It is important to understand the full rule and ensure compliance.

  • 2021 is sure turning out to be very different for the mortgage industry compared to 2020. If you needed any more evidence that you already had, you got it now. Mortgage application volume neared a 18-month low last week. High time for you to look at your operation / cost metrics more closely.

  • Banks have been losing market share to nonbanks for a long time. Nonbanks issued more than two-thirds of mortgages in 2020, their highest market share on record. If you are in the mortgage division of a bank and this doesn't worry you, then well.. :)

  • Blend Labs filed for a $100M placeholder IPO with Goldman Sachs leading the offering. It is a placeholder IPO, which means the actual money raised could be much higher than $100 Mn. Blend raised private money in January this year at a $3.3 Bn valuation and the IPO is expected to value the company at 2X to 3X that value i.e. $6.6 to $10 Bn. To put that in perspective, Blackknight is valued at $12.4 Bn and Rocket (Quicken) is valued at $37 Bn.

  • Finally, in this week's episode of Mortgage Vault Podcast, we spoke to Patty Arvielo, Co-Founder & President of New American Funding. Patty's inspiring journey in the mortgage industry started when she was just sixteen. She worked in various capacities from underwriting to processing before co-founding & growing New American Funding. Being a Latina herself, Patty took a hands-on, bottom up approach in understanding & solving the homeownership problems for the Hispanic community members in the country. Listen to the full podcast here.

Happy Independence Day!

Irving, Texas (PRWEB) June 21, 2021 -- BSI Financial Services announced a partnership with Vaultedge Software to automate its MSR boarding process.

Download the case study to see how BSI Financial used Vaultedge Mortgage Automation to board 1000+ loans daily with 99% accuracy.

In this article, we will analyze the bottlenecks due to a manual & paper intensive process that lead to loan defects. Based on this understanding, we will investigate the key business risks from such loan defects and how automation can play a role in mitigating these risks.

Consumer Financial Protection Bureau’s COVID-19 mortgage servicing final rule effective August 31, 2021; Moratorium on new foreclosure actions through Dec. 31, 2021; Exception to anti-evasion clause for certain COVID-19 modification options; reasonable diligence standard for borrowers in forbearance.

New rules require mortgage lenders to contact the borrowers to assess if they qualify for lower rates or new loan terms.

The nation's mortgage servicers are gearing up for the biggest wave of delinquent loans since the subprime mortgage crisis, but they say they are ready.

Mortgage applications fell sharply last week, affecting both refinance and purchase components of the Mortgage Banker Association's (MBA's) Market Composite Index. The index, a measure of mortgage loan application volume, was down 6.9 percent on a seasonally...

The lenders, which don’t take deposits or offer other banking services, issued more than two-thirds of all mortgages originated in 2020, their highest market share on record.

Blend Labs filed for a $100M placeholder IPO with Goldman Sachs leading the offering. It is a placeholder IPO, which means the actual money raised could be much higher than $100 Mn. Blend raised private money in January this year at a $3.3 Bn valuation and the IPO is expected to value the company at 2X to 3X that value i.e. $6.6 to $10 Bn. To put that in perspective, Blackknight is valued at $12.4 Bn and Rocket (Quicken) is valued at $37 Bn.

‎In this episode we are in conversation with Patricia Arvielo, Co-founder & President at New American Funding. 

Patty's inspiring journey in the mortgage industry started when she was just sixteen,

functioned in various capacities from underwriting to processing before co-founding & growing New Am…

Now that more than 150 million American adults are fully vaccinated against Covid-19, the Fourth of July holiday looks more like it used to: family gatherings, parades, barbecues and, of course, lots of fireworks.