Quality, Cost-Effective FHA Origination

Transcription

1 How to Use Technology to Drive Quality, Cost-Effective FHA Origination December 10, 2008 Dial In No.: 1 (712) Access Code: Help Desk No.: 1 (866) option 3 LogicEase Solutions Inc. TOTAL Compliance Webinar Series

2 Welcome to Today s s Webinar Moderator: Jason Roth Senior Vice President ComplianceEase Speakers: Darlin McRoyal Senior Advisor ComplianceEase Jeff Benjamin Vice President Ellie Mae, Inc. Don Currie President HighTechLending, Inc. 2

3 Why technology? Why FHA? Est. growth of FHA market share of loan originations: ~5% in 2007 to ~22% by Q4 2008* Do FHA-focused originators leverage technology? 52% of recent ComplianceAnalyzer audits were FHA loans, more than twice the market share** FHA-focused originators focus on technology * ComplianceEase Research References MBA Single family Data; FHA Outlook, Single family, non-hecm **ComplianceEase Research ComplianceAnalyzer audits performed week of 11/17/2008 3

4 Discussion Topics How to use technology provided by HUD Origination platforms for FHA lending A paperless lending process Q & A - Send questions to the speakers by entering them on the Question and Answer box on the right panel 4

5 Darlin McRoyal More than thirty years in the financial services industry Focus on risk management, credit and compliance, systems and product development, mortgage banking operations, project management and systems analysis Extensive experience in Federal and State laws and regulations Particular expertise in Government/Agency guidelines and regulation: FHA, VA, Ginnie Mae, Fannie Mae, Freddie Mac 5

6 Jeff Benjamin 24 years of experience in mortgage industry Specialized in mortgage technology for 16 years Vice President, Sales: Ellie Mae Banking Division Has driven adoption of Ellie Mae s Encompass Banker Edition among mortgage bankers Formerly EVP Sales for Desert Document Services Industry background includes wholesale lending at Bank of America 6

7 Don Currie Mortgage professional for more than 25 years President of HighTechLending in Newport Beach Helped pioneer paperless mortgage banking Focus on FHA and Reverse mortgage lending Current Vice President of the Orange County California Association of Mortgage Brokers (OC- CAMB) Previously Senior Vice President, National Director, Impac Lending Group from

8 The FHA Internet Tool Box Darlin McRoyal 8

9 The FHA Connection What Is It? A web-based, interactive Origination and Servicing application that provides real-time secure access to FHA mainframe systems to complete transactions and update files. It s a Requirement - Using the Connection you may: Order, update & transfer FHA case numbers Input borrower information, change borrowers Assign and reassign appraisers Record appraisal and lender information Perform mortgage insurance applications, track mortgage insurance premiums, request duplicate mortgage insurance premium (mip) certificates Insure loans under the Lender Insurance program Report servicing status and delinquent loans 9

10 Connecting to FHA Where Do I Find It - Home, Main Menu, ID Maintenance, and Contact FHA Getting Started About this Site, Registering a New User, Hours of Operation, Contact FHA References Frequently Asked Questions, FHA Connection & Quick Start Guides The FHA Connection Guide origination & servicing instructions Offers training modules with detailed, illustrated information on using the Connection & contains FHA loan-processing related information 10

11 Getting Started Using the Guide Users FHA Connection Registration, Signing on/off, Using the FHA Connection FHA Connection Training Resources Administrators User Administration, Service Bureau Administration Origination Case Processing and Insuring Case Processing Overview, Case Number Assignment, Holds Tracking*, Logging an Appraisal Endorsing a Case, Endorsing a HECM Case Case Processing Support Functions Approval Lists, Underwriter Registry, Origination Reports, Upfront Premium Payments, Upfront Premium Case Information, Upfront Premium Reports 11

12 Other Functions - in the Guide Servicing Claims, Premium Payments and Changes Overview, Claims Input & Summary, Claim Status, Title Approval Status, Delinquent Loans, Lender Query by Case Number Monthly Premium Payments, Monthly Premium Reports, Mortgage Record Changes, Mortgage Calculator Mortgage Servicing Data Quality System Neighborhood Watch - Lender Functions Lender Approval, Lender Insurance History, Cash Flow Account Setup Lender Resources FHA Mortgagee Letters, Lender Resources, Lenders Page, Mortgagee Starter Kit 12

13 Quick Start The Quick Start Guide - fast facts & details Registration, Application Coordinator/User Administration, Password Procedures, Service Bureau Administration, Single Family Origination & Servicing, Property Improvement/Manufactured Housing, Lender Approval Navigation Tools & Assistance, How to Find Everything, FHA Connection Guide, Processing a Mortgage for FHA Insurance and Page Links WINK What I Need to Know Processing tool puts key information in your work space Modules located next to the function they support Open module by using the icon to the left of the loan processing option you are interested in learning more about. 13

14 The LASS- Maintaining Approval The Lender Assessment SubSystem Non-supervised mortgagee must use to renew and recertify approval by submitting annual audited financial statements prepared by CPA. Both lender and CPA use the system. LASS Technical Support (202) or Auditors need an Independent User ID to use LASS. Auditing firms need a Unique IPA Identifier (UII) Site provides LASS User Guide, Helpful Tools, Common Questions, Hot Links (AICPA, GAO Audit Standards, HUD IG Audit Standards, LASS ML s, etc) 14

15 Other Online Resources FHA Mortgage Limits Handbooks and Mortgagee Letters HUDCLIPS (searchable) FHA Resource Center faq.fha.gov (knowledge base) (800) CALLFHA or (800) HUD.GOV (Lenders) FHA.GOV FHA Outreach 15

16 Get It Right the First Time Outside the FHA Box Important Electronic Risk Mitigation Tools Automated Compliance Testing GFE, TIL, MIP, HUD-1, fees, escrow/impounds Loan Origination System (LOS) values LTV, Loan Amount, MIP calculations, concessions Automated Valuation Models FHA lender has liability for appraisal Fraud and Risk Database Resources Borrower identity, property flipping, originator issues Third Party Verification Services Check appraisers and (wholesale) FHA loan correspondents Social Security Number Verification Service Direct to SSA when borrower SS# does not pass FHA Cost is minimal when compared to Loss 16

17 GOTCHAs Be aware - prior to closing: FHA Holds Tracking SSA # verification/name mismatch, property flip timeframe, more than one FHA loan Insuring Data mismatch to FHA Scorecard or case processing/underwriter data input; data insuring FHA Scorecard AUS not run with case number or was run post-closing = invalid AUS (means no document waivers, manual underwriting required) Property address mismatch to documents, appraisal and/or system data Incorrect loan amount and/or MIP; down payment not met CAIVRS, LDP, GSA lists not checked for all parties Closing costs excessive or duplicative fees charged; incorrect escrow/impounds Loan not closed in compliance with underwriter approval (interest rate) Non-FHA approved originating entity 17

18 Using Technology to Streamline High Quality FHA Loan Production Jeff Benjamin

19 What to look for in an FHA-friendly LOS The obvious A good solution should provide all FHA forms. Do you have the LT? 19

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21 What to look for in an FHA-friendly LOS The obvious A good solution should provide all FHA forms. Do you have the LT HUD Addendum? 21

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23 What to look for in an FHA-friendly LOS The obvious A good solution should provide all FHA forms. Do you have the LT HUD Addendum? 203K worksheets? 23

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25 What to look for in an FHA-friendly LOS The obvious A good solution should provide all FHA forms. Do you have the LT HUD Addendum? 203K worksheets? Max mortgage worksheets, etc.? 25

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27 What to look for in an FHA-friendly LOS The obvious Any FHA-capable LOS should have all input fields for items unique to FHA. Do you have fields for your case number? 27

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29 What to look for in an FHA-friendly LOS The obvious Any FHA-capable LOS should have all input fields for items unique to FHA. Do you have fields for your case number? SOA? 29

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31 What to look for in an FHA-friendly LOS The obvious Any FHA-capable LOS should have all input fields for items unique to FHA. Do you have fields for your case number? SOA? CHUMS ID and CAIVRS? 31

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33 What to look for in an FHA-friendly LOS The obvious Any FHA-capable LOS should have all input fields for items unique to FHA. Do you have fields for your case number? SOA? CHUMS ID and CAIVRS? Excess contribution amount, etc? 33

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35 What to look for in an FHA-friendly LOS The sublime A good solution should offer: County loan limit tables 35

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37 What to look for in an FHA-friendly LOS The sublime A good solution should offer: County loan limit tables Access to FHA Connection from inside the loan file 37

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39 What to look for in an FHA-friendly LOS The sublime A good solution should offer: County loan limit tables Access to FHA Connection from inside the loan file Easy to use access to FHA approved appraisers by geographic area 39

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41 What to look for in an FHA-friendly LOS The sublime A good solution should offer: County loan limit tables Access to FHA Connection from inside the loan file Easy to use access to FHA approved appraisers by geographic area Templates for fees on GFE to eliminate user errors 41

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43 What to look for in an FHA-friendly LOS The sublime A good solution should offer: County loan limit tables Access to FHA Connection from inside the loan file Easy to use access to FHA approved appraisers by geographic area Templates for fees on GFE to eliminate user errors Templates for the Reg Z, this is NOT a conventional loan 43

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45 What to look for in an FHA-friendly LOS The sublime A good solution should offer: County loan limit tables Access to FHA Connection from inside the loan file Easy to use access to FHA approved appraisers by geographic area Templates for fees on GFE to eliminate user errors Templates for the Reg Z, this is NOT a conventional loan Furthermore, a good solution should not present you with FHA-specific input screens unless you are working on an FHA loan. 45

46 Connecting with service providers You work with many outside parties on every loan file A modern LOS will make that communication efficient, accurate and easy 46

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48 Connecting with service providers You work with many outside parties on every loan file A modern LOS will make that communication efficient, accurate and easy A modern LOS will keep all third party documents in the loan file 48

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50 Connecting with service providers You work with many outside parties on every loan file A modern LOS will make that communication efficient, accurate and easy A modern LOS will keep all third party documents in the loan file A modern LOS saves you money through e-origination 50

51 Automated Approvals and The Paperless Loan Process Don Currie

52 Paperless Loan Advantages - Broker THERE IS NO PAPER! Broker keeps all original documents and disclosures Loan packages and conditions are no longer sent overnight or lost Cost of Transbox/Fed-ex delivery is eliminated No special equipment is needed; just a good scanner or fax machine 52

53 Paperless Loan Advantages - Lender Paper loan packages are no longer carried throughout the departments Multiple departments may view and work file simultaneously; including the broker! Dramatic improvement in customer service and turn times Efficiencies lower the cost to produce thereby reducing loan pricing 53

54 The Automated Paperless Process 1. Upload package into Encompass LOS/FHA Scorecard automated engine to approve, lock and accurately disclose 2. Scan or fax loan package and conditions into secure website 3. Step #1 and Step #2 can be completed at the point of sale in just minutes. Lender now has an approved, locked, disclosed submission at point of sale 4. The package is viewed and worked simultaneously by multiple departments 5. Documents may be ed anytime after approval, lock and review 6. Loan gets closed in record time 54

55 Q & A Send your questions to the Speakers by entering them on the Question and Answer box on the right panel 55

56 Speaker Contacts Darlin McRoyal ComplianceEase Jeff Benjamin Ellie Mae, Inc Don Currie HighTechLending, Inc

57 Evaluation and Webinar Archive An Event Evaluation will be sent to you after this Webinar Your feedback is very important for us to improve our future events Archived Webinar will be ready for download on December 12 th at ComplianceEase.com 57

58 Thank You for Your Participation! Ease ComplianceEase.com LogicEase Solutions Inc.