Tag Archive for Mortgage

Vintage Strategies for a Prosperous 2014

Originally posted on cuinsight.com.

Guest post written by Dan Green, Executive Vice President, Marketing, Mortgage Cadence, LLC

Mortgage Cadence, LLC is the NAFCU Services Preferred Partner for Mortgage Processing and Fulfillment Services.

Last month we introduced part one of vintage strategies with the idea of providing mortgage lenders five ideas for a successful new year. Part one provided the first two strategies. Part two presents the remaining three.

In January’s article, we discussed the importance of recognizing market differences. There are many, and they are varied. From rising rates to complex regulatory oversight to increased purchase activity, one thing is clear: times have changed. When first-timers decide to purchase a home, they will think first about the lender who took the time to educate them about home ownership. This means that lenders need to implement strategies to foster those relationships now for continued success in the years ahead. This brought us to our second strategy: adapt to borrower behavior. If borrower allegiance was in question prior to 2007, no doubt today’s fickle borrower is likely to be even less. Thriving lenders will have to adapt, aggressively converting applications to closed loans at much higher rates through better borrower nurturing and increased transparency throughout the mortgage origination cycle. Read more

The Dreaded Question, Part II

Originally posted on cuinsight.com.

Guest post written by Dan Green, Executive Vice President, Marketing, Mortgage Cadence, LLC

Mortgage Cadence, LLC is the NAFCU Services Preferred Partner for Mortgage Processing and Fulfillment Services.

In a recent blog post, I posed the “dreaded question”: Where do homebuyers come from? Quick review. They come from three places: non-owner/non-renters (NONRs), renters, and current homeowners. First-time homebuyers emerge from the first two categories while those interested in buying a different or another home come from the third. Pretty obvious, really, though the “dreaded question” is worth contemplating. We have been so focused on refinancing existing loans for the past several years, and now that it is coming to an end, it’s time to make way for those who should, for many reasons, be buying homes. The market has shifted its focus, and it’s time for us to shift our thinking.

They are not, however, buying homes—not first-timers or repeaters—though they should be. While the reasons the housing market has not yet rebounded since the end of the refinance boom are the same for both first-timers and repeaters, we’ll concentrate on the first-timers. Read more

The Dreaded Question

Originally posted on cuinsight.com.

Guest post written by Dan Green, Executive Vice President, Marketing, Mortgage Cadence, LLC  

Mortgage Cadence, LLC is the NAFCU Services Preferred Partner for Mortgage Processing and Fulfillment Services.

It’s not hyperbole to say every parent of children between the ages of three and six dread THE QUESTION. You know which question I am talking about. It’s so anxiety-provoking that I can’t even write it down. The typical parent cringes, preferring a root canal over providing an answer, any answer, reliably offering an apocryphally obtuse response, hoping either little Emma or Ethan will be satisfied. And they are, for a while. Until they are not.

The Dreaded Question à la Credit Union Mortgage Lending

We’ve been satisfied with obtuse answers and strategies for decades to our own dreaded question: Where do homebuyers come from? Over the past 30 years, roughly as long as credit unions have been making mortgage loans, we have not had to confront the brutal reality that homeowners are not delivered by the stork. Serial refinance booms every 12 or 24 months have kept pipelines full and balance sheets happy and growing. It has been a great run. We learned a lot about the real estate finance business. We got efficient, more efficient than many of our counterparts, and we provide a better financing experience for members. We’ve been satisfied not confronting the dreaded question. Like little Ethan and Emma, however, our satisfaction with obtuse answers has reached its end. Read more

Groundhog Day

Originally posted on CUInsight.com.

Guest post written by Dan Green, Executive Vice President, Marketing, Mortgage Cadence, LLC.

Mortgage Cadence, LLC, is the NAFCU Services Preferred Partner for Mortgage Processing and Fulfillment Services.

Where I am from in the frozen northern Midwest, winter is always coming. Even in the middle of summer when temperatures are in the middle 90s and humidity is as high, Frosty the Snowman’s seemingly endless visit is on our minds. Not negative thoughts, not really. People who inhabit the frost lands tend to think practically.

One of our favorite winter holidays should come as no surprise: Groundhog Day. Everyone knows the story. If Punxsutawney Phil sees his shadow and returns to his burrow, we’re popsicles for another six weeks. If, on the other hand, P. Phil does not see his shadow, an early spring is in the offing. We’ll take every sunny winter day we can get. Except on February 2— when dark and dreary is best. A blizzard is even better. Means it’s time to break out the board shorts and head to the beach. Read more

The Five C’s of Lending

Originally posted on CUInsight.com.

Guest post written by John Levonick, Chief Legal & Compliance Officer, Mortgage Cadence LLC.

Mortgage Cadence is the NAFCU Services Preferred Partner for Mortgage Processing and Fulfillment Services.

If you were lending in the early 80s into the mid-90s you were taught the four-Cs: capacity, credit, collateral, character.  Rules to live by, rules to lend by.  And remarkably proscriptive. Underwrite, close, repeat. Follow these, make good loans. Even way back then, though, there was an unofficial fifth C.  Its situation was rather like Pluto in reverse, which of course used to be a planet though now it’s not.  Compliance is now the official fifth C where it was not before.  Compliance is a full-fledged member of the club, supplanting almighty capacity as the first of the order.

Truth be told compliance has always been an underwriting factor.  Rules, regulations, GSE requirements. Each weighed on every loan decision.  Today’s rules heighten the obligation.  January’s Qualified Mortgage (QM) and Ability to Repay (ATR) Rules only serve to place greater emphasis on their importance. Underwriters of several decades ago could keep the rules of the era straight and apply them consistently. No longer.  Think of the sheer number underwriters must consider:

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