Vaultedge Newsletter - Vaultedge announces integration with Encompass®

July 26, 2022

It’s official! We have partnered up with one of the leading loan origination software in the nation, Encompass which is available through ICE Mortgage Technology.

Vaultedge integrates seamlessly with Encompass to simplify document processing through its AI-powered document recognition and data extraction software. Using Vaultedge, Encompass users can now automatically index loan documents, extract data, and cross-validate data across documents in minutes - making loan processing less cumbersome. The processing teams can get underwrite-ready loan files within Encompass without manually sifting through innumerable documents. Vaultedge Encompass integration reduces the loan processing time by 80% improving an underwriter's productivity.

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In other industry news, amidst the record inflation and higher interest rates, Fannie Mae Economic and Strategic Research Group’s 2023 Economic and Housing Outlook predicts the onset of the recession in the 1Q of 2023. The trade association expects inflation, which is currently at a record high of 9.1%, to end 2022 at around 6% before falling to a 2%-2.5% range in 2023 and 2024. The Federal Reserve will also likely continue tightening its fund rate at a range of 3.25% to 3.5% at the end of the year and a range of 3.75% to 4% in 2023. According to Dough Duncan, Chief Economist at Fannie Ma, the recession could induce a sharp depreciation in home prices but not an outright decline.

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Is it the calm before the storm? We can only anticipate. However this week the housing market was a little lull. The mortgage rates inch up for a second consecutive week. Meanwhile, the average five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) edged down four basis points to 4.31%. As rising rates and affordability issues continue to take their toll, many lenders use ARMs as a tool to address these challenges and originate more loans.

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Rohit Chopra, Dir. CFPB said that a nonbank registration system needs so spots potential scammers and law violators need to be introduced This idea of such a system has been on the CFPB’s radar for quite some time and there was a request for information in 2016 to build such a tool in place. When asked about the prospect of a nonbank registration system, the CFPB pointed to a section of the Dodd-Frank Act that said “authorizes the bureau to impose registration requirements on any non-depository covered person, regardless of whether the covered person is subject to supervision.”

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We also released a brief event summary report on the 3rd Annual Non-QM Forum held last month in California. The report covers a few panel discussions that talk about the future of Non-QMs, technology and its adaptability in the sector, the aftermath of the pandemic and so, on. Do take a look.

Well, my week was fantastic with our announced official partnership with Encompass. A few pats on the back from our esteemed clients for doing a great job with addressing their loan automation challenges and reducing the underwriter’s production time by 80%.

Happy reading!

"It is a coin flip at this point," says MBA. The trade association expects inflation, which is currently at a record high of 9.1%, to end 2022 at around 6% before falling to a 2%-2.5% range in 2023 and 2024.

US mortgage rates managed to hold steady this week as the country waits for the Federal Reserve’s big announcement on whether it will stick with its planned quarter-point hike or go with a full-percentage-point increase.

In a recent blog outlining his plans for the Consumer Financial Protection Bureau, Director Rohit Chopra said he was looking at Congressional authorities that had gone underused. While mentioned in just one sentence with little detail, one project he said the bureau is considering is a nonbank registration system that would “identify potential scammers and others that repeatedly violate the law.”

Planet Financial Group, LLC, parent of national mortgage lender and servicer Planet Home Lending, LLC and Planet Management Group, LLC, gained market share in the second quarter in mortgage originations, servicing and asset management...

Four new mortgage-servicing rights (MSR) offerings for agency loan portfolios valued at some $3.7 billion hit the market as Q3 kicked off.

The non-QM lending world is in disarray, turned upside down in recent months as originators battle an unassailable force over which they have no control: fast-rising interest rates. It’s an ongoing battle, which already has been lost by at least two lenders, FGMC and Sprout. Others in the sector are navigating the fallout.

"The mortgage market is expected to remain challenging in the near term," Mike Santomassimo, Wells Fargo's chief financial officer, said Friday. "We are making adjustments to reduce expenses in response to lower origination volumes, and we expect these adjustments will continue over the next couple of quarters."