A Momentous Occasion: First-time Homebuyers

Originally posted on CUInsight.com.

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

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

Last week remarked one of life’s momentous occasions. They occur for everyone, and in everyone’s life there are those we never forget. Mine? My daughter and her husband became first-time homebuyers.

“What’s the big deal”, you might be thinking.  Thousands of former renters become new homeowners every day. Millions every year. Moreover, her father, me, is a mortgage guy. Of course my daughter bought a home. What else would she do?

Ten years ago, I would have wholeheartedly agreed with you. Even seven years ago. Less than that, not so much. The truth is, as the housing crisis unfolded and the economy plunged deeply into recession, the American Dream became simply that for many people. The pundits thought, and there’s much been written over the past five years: we had seen the end of homeownership in the US. As the theory went, people would choose to rent instead, keeping their mobility and employment options open while incurring less financial risk.

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The Looming Impact of Dodd-Frank

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.

Dodd-Frank impacts lenders in many ways. In the span of less than two years there are now many new rules that will have material impact on the conduct of all mortgage originators and assignees. Consider the following impending rules:

  • Qualified Mortgage (QM) / Ability to Repay (ATR)
  • LO Comp Rule (Reg. Z)
  • Appraisal Rules:
    • Joint Rule (TILA / Reg.Z – HPML)
    • Copy Rule (ECOA)
  • Escrow Rule
  • Know Before You Owe / Integrated Disclosures (TILA / RESPA)

While all are important, the Ability to Repay (ATR) elements of the Qualified Mortgage (QM) rules is first on our list. That’s where we’ll turn our attention this month.

The Ability to Repay requirements with the Qualified Mortgage

A QM is a new loan classification that represents how the lender has made a thorough assessment of, and has fully documented, a borrower’s ability to repay their covered loan. Currently, Regulation Z, as amended by the Board of Governors of the Federal Reserve System in 2008, prohibits creditors from extending Higher-Priced Mortgage Loans (HPML) without regard for the consumer’s ability to repay. The ATR rule extends application of this requirement to all loans secured by dwellings, not just HPMLs. Also of note, this final rule establishes a Safe Harbor that contains a “presumption of compliance” with the ATR requirement for non-HPML QMs. While the ATR rule does not specify any particular underwriting model, lenders must consider and validate, at a minimum, 8 discrete underwriting factors:

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Engaging the Hearts and Minds of Your Service-Selling Team

Originally posted on CUInsight.com.

Guest post written by Julie ann Wessinger, National Director of Client Performance Strategies, Allied Solutions.

Allied Solutions is the NAFCU Services Preferred Partner for Insurance—Bond, Creditor Placed (CPI), Guaranteed Auto Protection (GAP), and Mechanical Breakdown (MBP); iSolutions; rateGenius.

Research on employee commitment to organizational goals indicates that only slightly more than 1 out of 4 employees (29%) are actively engaged. With less than one-third of all employees showing up “on purpose”— and willing to invest their discretionary efforts to make a difference in helping their organizations succeed, it is evident that this sobering statistic indicates establishing competitive advantage is a very real challenge.

When it comes to culture change there is no “work-around.” Without fully engaged employees it is difficult, if not impossible, to develop a service-selling team and execute a growth strategy. In our experience, lack of active engagement is often caused by issues such as a lack of organizational alignment or employee confidence and belief that they have the ability to contribute in a meaningful way to organizational goals.

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The Branch’s Love/Hate Relationship with Technology

Originally posted on NCR Corporation’s Blog.

Guest post written by Brian Bailey, Vice President and General Manager, NCR Corporation.

NCR Corporation is the NAFCU Services Preferred Partner for ATM Products and Services, Teller Cash Recyclers (TCRs).

Technology has killed the bank branch.

You’ve heard this refrain before. Online banking. Intelligent deposit ATMs. Mobile banking. The future of mobile wallets. These technologies that make our lives easier supposedly have made the bank branch irrelevant. A dinosaur from bygone days. The financial services equivalent of the movie rental store or disco. Tower Group estimates that global teller transactions have decreased by 31 percent in the past 10 years, and forecasts an additional 15 percent decline by 2015. Bloggers such as Bank 2.0’s Brett King have declared the branch dead because … hey … you’ve got a mobile phone.

What doesn’t kill you makes you stronger, right?

That’s true when it comes to branch’s love/hate relationship with technology. In fact, technology has not killed the bank branch. Technology is the future of the bank branch.

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Like Me and Let the Conversation Continue

Originally posted on NCR’s blog.

Guest post written by Sundeep Kapur, Director Strategic Marketing-Ecommerce, NCR Corporation.

NCR Corporation is the NAFCU Services Preferred Partner for ATM Products and Services, Teller Cash Recyclers (TCRs).

You buy a cup of coffee and the cashier hands you a receipt with an incentive to join the company’s Facebook page. You’re not completely sure if you should. What the cashier forgot was that your order was messed up, you waited for more than 10 minutes, and the manager was not in the store. So what do you do?

You like the brand on Facebook only to tell all your friends about your bad experience. Isn’t it ironic that you have to like them to tell them that you really do not like them!

A complete stranger walks up to you in the parking lot and hands you a flyer. It is a coupon to your favorite store, plus a chance to win a digital reader. Would you give this stranger your phone number? Would you introduce the stranger to your family and friends? Would you invite the stranger into your home?

Yet the same thing happens online and you willingly become friends via an unknown brand ambassador – perhaps a sponsored story via a friend of a friend.

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