Technology

LenderLive Network Inc., a Denver-based company that provides business process outsourcing and technology, said it has launched the first large-scale Home Affordable Modification Program campaign with one of the nation's top four servicers. It did not identify the servicer it was working with. HMP is part of the recently passed Making Home Affordable program, which will allow up to nine million Americans to refinance or modify their home loans. With this campaign, LenderLive plans to manage all of the inbound and outgoing documents required under HMP, including certain fulfillment processes. "At launch, we anticipate processing nearly 2,000 transactions per day," said Rick Seehausen, chief executive of LenderLive Network. The company has another five servicers in the queue for which they are preparing to initiate services.

Fannie Mae said its refinancing volume totaled $77 billion in March, up from $41 billion in the previous month, as borrowers took advantage of lower mortgage rates and a new flexible refinancing program. The mortgage giant it has not seen this level of activity since refinancing boom of 2003. "We anticipate that volumes will increase even more as millions of additional homeowners become eligible to refinance" under the Home Affordable Refinance initiative, according to Fannie executive vice president Tom Lund. Under that initiative, Fannie and Freddie Mac are expected to use flexible underwriting to refinance mortgages they already own or guarantee. Borrowers with loan-to-value ratios between 80% and 105% can refinance at current market rates under this initiative. Mortgage insurance requirements have been waived on those refinancing transactions. Existing insurance policies will be transferred to the new loan, however. Lenders and brokers can use Fannie's Desktop Underwriter to process those refinancing applications.

RealtyTrac, Irvine, Calif., is launching a new service called RealtyTrac Renter Alert, which gives tenants advance notice when the property they are renting enters into default or is about to be foreclosed by a lender.Over 30% of homes where the mortgagor has defaulted or the property has gone into foreclosure are not owned by the occupant. Thus, hundreds of thousands of renters are at risk of being evicted, even though many have never missed a rent payment. The new monitoring service sends e-mail alerts to subscribers warning them immediately of any foreclosure activity on a specific property.

Docu Prep Inc. and Xerox Mortgage Services have integrated their joint services to enable lenders to incrementally implement full electronic processes. Docu Prep's EESS (short for Entire Electronic Signature Solution) provides e-disclosure, e-signature, e-modifications, e-closing, and e-vault services. This technology combines with the BlitzDocs collaborative network allowing lenders to enter the electronic world where they want to and gradually expand out to doing full e-closings. The service can be used for something as simple as allowing the borrower to e-sign a disclosure or it can allow the lender to open the electronic signing room as 'view only' to closing agents or attorneys, and makes a seamless transfer to the e-vaulting services, including MERS.

Integrated Asset Services LLC, a Denver-based default management and residential collateral valuation services provider, has rolled out a new product, called the "Conditioned Valuation Model." The company describes a CVM as a cost-effective tool that allows the integration of automated property analytics with human observation, adding that it falls out on the continuum between an automated valuation model and a broker price opinion. A CVM delivers a real-time, 360-degree view of the condition of the property, the neighborhood, the condition-adjusted value and market price trends. "Traditionally, the industry has had the choice of a more expensive human-based solution or faster and riskier automated solutions. But the current mortgage industry requires these two valuation approaches interact intelligently and at the right price point," said Dave McCarthy, chief executive of IAS. A CVM costs half the price of a standard BPO. The executive said CVM was designed to help avoid AVM failure to disclose supporting data and valuation methodologies that result in questionable property valuations. The CVM uses a valuation formula that integrates property data from IntelliReal, IAS' technology partner, to provide real estate intelligence, analysis, current neighborhood sales data and active listings. The data is then combined with a hands-on inspection performed by a third-party property inspection firm, including photos on the subject property and its neighborhood condition, occupancy status, and conditions that impact value.

The Mortgage Bankers Association on Monday laid off about 16% of its workforce - about 20 full-timers - including four of its vice presidents. A spokeswoman for the trade group said the layoffs "were across the board" affecting all of its departments, including communications, government, marketing and research. Since last year MBA has lost about 30% of its staff. After the cutbacks the organization will employ about 110. Recently, mortgage technology vendors said MBA would eliminate its annual technology trade show to save money, but the spokeswoman shot down such talk in part. It is unlikely the MBA will hold a standalone technology show, but rather fold technology into its other shows or do smaller regional technology shows. Its membership ranks have been hurt by the worst housing downturn since the Great Depression, resulting in hundreds of non-banks and depositories closing their doors over the past 18 months. The trade group has been criticized by members and past employees for two large, somewhat recent blunders: building a new $100 million headquarters in Washington and then struggling to lease out its empty floors. It also merged with a subprime lending trade group, most of whose lending members have failed. Discussing the office building, one former MBA executive said, "They basically traded paying the rent for bodies." The executive, requesting anonymity, said the staff cuts "will impact a lot of long-term projects they have."

The price gap between homes that sell as REO and the rest of the market is widening, according to a new study by Lender Processing Services. Prior to 2007 the difference in prices was slim, said LPS, a mortgage software company based in Jacksonville, Fla. Using a home price index that it developed, LPS conducted a study of changes in regional home prices between 2007 and 2008 in the nation's top housing markets. "In general, markets that experienced sharp drops in home prices in 2008 also saw deeper REO discounts," said LPS senior vice president Nima Nattagh. The largest drop in prices of REO sales were found in Riverside County, Calif. In 2008 home prices fell 28% there compared to 2007. However, when REO sales are factored in, prices fell by 34%. Home prices declined by 29% during 2008 in Phoenix where analysts cite significant overbuilding. When REO sales were excluded from the analysis, though, the price decline was less severe at 19% year over year. The gap between home prices with and without REO sales was smallest in Seattle, New York and Cambridge, Mass. While the Western states and Michigan and Florida saw double-digit declines in home prices, other regions have fared much better. But further deterioration in the housing market will most likely deepen the REO discount levels in these markets, LPS said.

The Treasury Department has explained how to use a new website that allows homeowners to learn about Obama administration's new housing plan and whether they can qualify for a loan modification.The new MakingHomeAffordable.gov website has a calculator that allows homeowners to estimate how they could benefit from a modification. "Be sure to check out the calculator that allows homeowners to estimate the reduction to their monthly mortgage that they might get under the plan," a White House blog says. Meanwhile, agency officials are working on a net present value (NPV) test that servicers will use to determine if a loan should be modified. They plan to roll out a standard NPV model soon that provides some flexibility for servicers. For example, a servicer with a low re-default rate would not have to use the national rate.

SigniaDocs and World Wide Notary have integrated their platforms to support e-signatures and e-notarizations for any mortgage document or document set. The integration of data, from the loan origination systems through MERS registration, aims to eliminate errors that otherwise might result from fragmented paper-based systems. The resulting blend of capabilities allows lenders essentially to avoid printing mortgage documents requiring signatures by borrowers, so mortgage transactions can remain electronic from start to finish. At the MBA Technology Conference in Las Vegas, SigniaDocs said that by using SigniaDocs' eVault, all documents that are traditionally "papered out" and reviewed during the closing process are now available in advance of closing. Borrowers can review and click-to-sign the majority of documents at their leisure and then the few that need to be e-notarized or witnessed by a notary are passed to World Wide Notary's DigaSign system to complete the documents through this partnership.

Kroll Factual Data and MIAC Analytics formed an alliance at the MBA Technology Conference in Las Vegas to provide whole loan collateral risk assessment to mortgage investors and risk managers. The alliance provides real-time risk metrics to help MIAC's clients measure fundamental risks, said Paul Van Valkenburg, principal at MIAC. He said it also provides customers with current loan value and borrower credit information that allows them to manage portfolio risk accurately and in a timely manner. Specifically, the alliance can deliver information within hours that once took days or weeks, Mr. Van Valkenburg said. Kroll Factual Data assesses consumer data to help clients evaluate loan characteristics and transfer risk. MIAC Analytics' software products assist with deriving loan loss reserve calculations, pricing and valuation of mortgage-based assets and other-than-temporary impairment for securities.