The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago The Best Markets For Residential Property Investors 2 days ago Former Fannie Mae CEO Claims SEC Failed to Prove Accusations of Subprime Lending Fraud Sign up for DS News Daily Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribe Servicers Navigate the Post-Pandemic World 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago March 23, 2015 1,063 Views Tagged with: Fannie Mae SEC Subprime Lending Servicers Navigate the Post-Pandemic World 2 days ago Home / Daily Dose / Former Fannie Mae CEO Claims SEC Failed to Prove Accusations of Subprime Lending Fraud Fannie Mae SEC Subprime Lending 2015-03-23 Brian Honea About Author: Brian Honea in Daily Dose, Featured, Government, News Share Save The Week Ahead: Nearing the Forbearance Exit 2 days ago Former Fannie Mae CEO Daniel Mudd told a judge that he did not believe the U.S. Securities and Exchange Commission (SEC) had proven its claims that the government-sponsored enterprise was guilty of fraud in regards to its subprime mortgage portfolio in the run-up to the financial crisis, according to media reports.Mudd, the CEO of Fannie Mae during the years leading up to the housing crash (2005 to 2008), and former Fannie Mae executives Enrico Dallavecchia (chief risk officer) and Thomas A. Lund (EVP), requested that Judge Paul Crotty in the U.S. District Court of the Southern District of New York grant them summary judgment on the grounds that the SEC had not shown evidence that the GSE misled or made false statements to investors about its subprime portfolio.The SEC sued the Fannie Mae executives in December 2011, claiming that they attempted to shield from investors the amount of subprime and high risk mortgage loans held by the Agency by omitting two types of loans known as Expanded Approval and MyCommunityLoans from financial statements.”Fannie Mae and Freddie Mac executives told the world that their subprime exposure was substantially smaller than it really was,” said Robert Khuzami, Director of the SEC’s Enforcement Division, at the time the lawsuit was filed. “These material misstatements occurred during a time of acute investor interest in financial institutions’ exposure to subprime loans, and misled the market about the amount of risk on the company’s books. All individuals, regardless of their rank or position, will be held accountable for perpetuating half-truths or misrepresentations about matters materially important to the interest of our country’s investors.”The executives responded by saying that Expanded Approval and MyCommunityLoans, which were intended for borrowers with weaker credit, were excluded from the financial statements because they did not qualify as subprime loans under Fannie Mae’s own qualification guidelines, according to reports. The defendants contend that investors had access to the Fannie Mae guidelines that define a subprime loan, and that a reasonable investor could have used that information to make informed judgments as to the Agency’s involvement in subprime loans or any other type of mortgage loan.According to reports, the SEC’s complaint alleged that a Fannie Mae 2007 public filing said that the extent of Agency’s involvement in single-family subprime mortgage loans amounted to $4.8 billion; however, the Agency held more than $57 billion worth of Expanded Approval and MyCommunityMortgage loans. In February 2008, which was seven months before Fannie Mae and Freddie Mac were taken into conservatorship by the Federal Housing Finance Agnecy, Fannie Mae reportedly had $90 billion worth of loans on the books but claimed only a small percentage of that was subprime loans. Crotty rejected a motion by the defendants in 2012 to have the SEC lawsuit dismissed; at that time, the judge called it “misleading” to not count Expanded Approval and MyCommunityMortgage Loans as subprime loans. Demand Propels Home Prices Upward 2 days ago Related Articles Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Previous: DS News Webcast: Tuesday 3/24/2015 Next: Schneiderman & Sherman Adds Three New Attorneys and Foreclosure Manager Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland.
Data Provider Black Knight to Acquire Top of Mind 2 days ago Paul Gomez is Senior Vice President & Chief Operations Officer for Genworth’s U.S. Mortgage Insurance business, based in Raleigh, North Carolina. Related Articles Tagged with: underwriter October 8, 2017 1,788 Views Previous: The Week Ahead: Q3 2017 Bank Earnings Next: HLP Announces New Addition to its Board of Directors Servicers Navigate the Post-Pandemic World 2 days ago underwriter 2017-10-08 Paul Gomez Share Save The Best Markets For Residential Property Investors 2 days ago In industries where price competition is fierce, finding other ways to bolster a company’s brand is vital for success and survival. In the mortgage industry, one proven way to do this is by making the underwriting experience as productive and efficient as possible.A Need for SpeedIn today’s market, speed is paramount. Not surprisingly, this holds true in underwriting as well. Loan officers and loan processors want an underwrite as quickly as one can be completed. Research* shows that across underwriting service providers, turn time (or speed of the underwrite) is one of the most important characteristics associated with a best-in-class underwriter.As such, the ultimate responsibility of every underwriter then becomes the completion of an underwrite as quickly as possible without sacrificing quality. Many underwriting companies turn to technology solutions for the assist in reaching this goal. Integrated capabilities such as intelligent document ingestion, workflow and automated loan routing, predictive analytics, and rules-based programming are becoming more common. These capabilities also enable enhanced data collection, which can provide further insight into loans underwritten, identify opportunities for innovation, and support predictive analytics.Approvals with Pricing That’s Just RightExpectation of an approval and competitive pricing are both significant factors in deciding which underwriter/underwriting service provider to work with. Pricing, of course, cannot be ignored for all the obvious reasons. However, pricing and underwriting speed are essentially irrelevant when a loan does not receive an approval.This does not mean that pricing is not still an important component. Even premier customer service has its limits in mitigating the effects of higher pricing. In order to steadily drive more business, underwriting service providers must ensure that they remain competitive in pricing without losing focus on other key customer service attributes.Customer Service You Can Rely OnRegardless of how much emphasis is seemingly placed on pricing as a highly valued attribute, studies show that this is not as singular of a focus as one might think. In fact, attributes such as turn time, ease of submission, expertise, customer service, and responsiveness often trump pricing and fees.All of these can be characterized as traits of good customer service, which illustrates a significant dynamic: price is not everything when generating new business.Regardless of why customer service may rank higher than pricing, the importance of customer service can be used to an underwriter’s benefit. Underwriters can directly affect the customer service they offer within their normal course of business, thus helping their companies grow business. And, good customer service has a compounding effect on new business generation. Each positive experience encourages customers to provide repeat business, and over time this can lead to a significant positive brand association and customer loyalty. The impact of good customer service cannot be overrated.ConclusionPrice is not everything when it comes to the decision of where to do business. Good customer service encompasses higher-priority attributes than other decision factors, leading to better referral rates than simply having the best price. Could your company’s customer service plan be better focused?*Research derived from 2016 and 2017 Genworth administered blind surveys to underwriting decision makers. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Power of the Underwriter Home / Daily Dose / The Power of the Underwriter Data Provider Black Knight to Acquire Top of Mind 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago in Daily Dose, Featured, Headlines, Market Studies, News Print This Post Sign up for DS News Daily The Best Markets For Residential Property Investors 2 days ago Subscribe Governmental Measures Target Expanded Access to Affordable Housing 2 days ago