Amilda Dymi

Many things have changed within the mortgage industry, including lenders’ newly found sense of responsibility to mold the level of education for the next generation of borrowers. Describing her company’s current and future strategy in dealing with today’s challenging financial times, Georgette Dixon, senior vice president and director of national partnerships for Wells Fargo, said that the solution is education, especially borrower education.

A new insurance product designed by Bakerjian Insurance Services aims “to protect lenders against potential damage” from repurchase demands from investors that may have originally been caused by fraudsters.The Novato, Calif.-based company said it created Lenders Misrepresentation Insurance to serve as a policy that protects lenders from buyback requests that are based on “material financial misrepresentation” in the borrower’s loan file.

The more aggressive lenders are in efforts to gather and share fraud data, the more effective their risk control and prevention results will be. At least that is the expectation of some insiders.

CoreLogic reports that “the good news” about a third consecutive quarter decline in negative equity for residential properties is not so good after all. It warns that since these gains “primarily” due to foreclosures of severely negative equity properties, and not increases in home values, are not significant enough to positively impact the still-weak economy.

Until now, the quality of services rendered by mortgage technology vendors and bank owned foreclosure management quality has been rated empirically. That reality may change.