How To Comply With Collateral Data Delivery. FNC, Inc. Web Conference March 16, 2010

Transcription

1 How To Comply With Collateral Data Delivery FNC, Inc. Web Conference March 16, 2010

2 Program FNC, Inc. History / Data Management Collateral Data Delivery Field Experience Data Standards Questions & Answers 2

3 Speakers FNC, Inc. Shawn Telford, Director, Product Management Mike Mitchell, Chief Strategy Officer JJ Neilson Assistant Vice President, Team Lead Loan Risk and Recovery, Collateral Management, SunTrust Mortgage Kirk Rzasa, Senior Business Consultant, Quicken Loans Carol Luitjens Chief Marketing Officer, FNC 3

4 Questions Chat box submission 4

5 Conference Web Page Today s PowerPoint Audio Questions 5

6 Shawn Telford Director, Product Manager

7 About FNC Focused on collateral since 1995 Collateral management platforms Collateral Management System (CMS )- Enterprise platform Collateral Headquarters (CHQ TM ) - Software-as-a Service AppraisalPort work portal for >58,000 appraisal vendors Generally Accepted Appraisal Rules (GAAR ) 7

8 About FNC Platforms are used to ensure: Appraiser independence Appraisal/Valuation compliance Market trends and tracking Data extraction Clients share data through our National Collateral Database Top US financial institutions use FNC platforms, GAAR and CDNA analytics to process, review and underwrite appraisals. 8

9 How is FNC Unique? FNC focuses on Regulatory compliance Data extraction and shared data/documents Collateral analytics Deployment of an enterprise application Process management and automation FNC focuses on data extraction, regulatory compliance and streamlining the collateral decision-making process for our clients in all areas including origination, servicing, and secondary/capital markets. 9

10 All About Data History of open XML for appraisals 1997/98 FNC Worked with Appraisal Institute to create open XML appraisal standard known as AI XML AI Ready TM FNC wrote objects and gave them to appraisal forms vendors who used them to create XML We can deliver any XML standard the client desires including MISMO All major appraisal forms companies support AI Ready 10

11 All About Data PDFs and paper to data Developed data extraction from PDFs First generation PDFs a term FNC coined Second generation PDFs essentially faxes we convert to data All services can be returned to institution as datastream including public record data, tax assessed values, AVMs, BPOs, appraisals, other inspections, and reviews. 11

12 Why is the Data Important? Process and Workflow automation Regulatory Compliance Standardized Review and Decisioning GAAR Compliance GAAR Risk Appraisal Score Objective, Enterprise-wide Quality Control Transparency at the loan level Vendor performance measurement & tracking Reporting and internal policy compliance 12

13 What is the CDD? Fannie Mae created a stir by announcing the CDD (Collateral Data Delivery) initiative May 2009 Requires lenders to deliver appraisal data prior to loan delivery Effective on a date to be announced, but no earlier than July 1, 2010 Appraisal must be delivered as XML or PDF (fees charged for PDF s) Lenders may integrate directly to CDD or use the CDD web portal to upload 13

14 Fannie is First Out of the Gate Fannie s CDD is the first secondary market initiative requiring appraisal data delivery. Freddie Mac has publicly indicated they also would expect appraisal data delivery for loans they purchase HUD has indicated a strong interest in accessing appraisal data as part of their insuring process Transparency of collateral valuation is becoming a focus, and having the appraisal data is key to creating that transparency 14

15 What is the Status of the Fannie CDD? Currently the CDD is in pilot with a limited number of lenders Fannie is actively engaging their customers, setting expectations and answering questions Quicken Loans working with FNC is currently piloting a direct integration(xis) to the CDD The FNC CMS system used at Quicken Loans will facilitate delivery to the CDD and the associated exception handling process Exception handling will include automated overrides, queue managed overrides, and appraiser edits/ resubmission 15

16 Mike Mitchell Chief Strategy Officer

17 Updates from the Market JJ Neilson, Assistant Vice President, Team Lead Loan Risk and Recovery, Collateral Management, SunTrust Mortgage, SunTrust Mortgage Importance of Appraisal Data Importance of Managing the Appraisal Data 17

18 Updates From The Market Kirk Rzasa Senior Business Consultant, Quicken Loans Appraisal Review Management Quality Control CDD Pilot AI Ready 18

19 Moving Forward with Data Complying with CDD and other appraisal data delivery initiatives to the secondary market needs a global approach Standard process for all channels & investors Leverage enterprise collateral platform for procurement, review, scoring and investor delivery Avoid custom process for each investor Data value to enterprise goes beyond CDD 19

20 Have a Single Standard Process Simplify a standard best practice process Expect new investor requirements, new XML data flavors, new appraisal requirements, new appraisal vendors or trading partners XML is like ice cream.. Cleanest data created by the appraiser FNC recommends AI Ready AI Ready is ALL the data in the appraisal. The data is validated by the appraiser before submission to the lender client 20

21 Data Delivery Via FNC Gateway TM 21

22 Four Simple Steps To Comply 1. Trigger: Which files will you send to CDD (Secondary Market) by specific loans or by status (e.g. clear to close) 2. XML Data Package: Creating the correct package of XML data MISMO 2.6 vs MISMO 3.0 vs Other with wrapper and other attachments 3. Managing the Exceptions: Front end scrubbing with GAAR and back end process of overrides, edits, revisions & resubmissions. 4. Storage and Management: Managing of the CDD (and other Secondary Market) receipts and approvals for inclusion in the loan delivery. 22

23 CDD TAKE AWAYS Create a standard, robust process All Channels All Investors All Vendors (current and future) Exception Management is Critical Path Automated Overrides Queue driven Overrides Revised Appraisals/Resubmission XML is like Ice-cream 23

24 Questions Today s Questions Chat Function education@fncinc.com sales@fncinc.com Collateral Vision.com On-going discussion (blog) 2010 FNC, Inc. 24

25 Thank You Questionnaire 25