While we found the NAHB plan to be light on specific solutions overall, it does propose some interesting ideas, such as turning the Federal Home Loan Bank (FHLB) system into a regionalized mortgage securitization network fed through a combination of private lenders and state/local housing finance agencies. Our own work with the Massachusetts Housing Finance Authority has demonstrated the potential merit this proposal holds. Additionally, the FHLBs have proven to be conservative in most of their dealings and, as such, did not take quite the hit other lenders did in the subprime fallout.

There is also something to be said for creating a more regionalized system of mini-mortgage markets. As we’ve seen, foreclosures have not affected all markets equally, and some markets, such as Houston, have thrived in spite of the economic crisis. Therefore, it makes sense to treat the mortgage industry as a microcosm of smaller markets, each with their own economic conditions, underwriting criteria (layered over basic industry quality concepts, of course), securitization outlets and servicing needs.

As we’ve reiterated for the past five years, transparency and data integrity must be the cornerstone of ANY solution to the mortgage industry’s woes, and the NAHB’s plan echoes our sentiments for the most part (again, says it’s a good idea but is light on specifics on how to achieve it). Here’s a novel idea – let’s have the MBA send this plan out to its members with a call for comments on how to beef up what’s admittedly a solid start on mortgage industry reform.

Of course, the plan’s proposal to eliminate the GSEs is going to be hotly contested, but even the NAHB admits that Fannie and Freddie could be repurposed into private securitization firms that deal solely with conforming loans, which isn’t that far off from what they were supposed to be doing in the first place. Point being, there are good ideas and common ground to be found here. Let’s take advantage of it while being careful to ensure that we are building a strong foundation rather than just transferring latent risk to a new vehicle.

For more on Bill’s background and why we think he’s tops, visit our “News” page: http://titanlenderscorp.com/News.htm

The Titan team just returned from MBA Servicing in Orlando, and the name on everyone’s lips was MERS.  From what we heard, smaller servicers in particular are the folks that have really struggled to meet the MERS QA requirements and, thus, we’re on the receiving end of some strongly worded letters from MERS to comply or else.  (The rumor mill at MBA Servicing also indicated that “or else” could mean financial penalties for continued non-compliance.)

Folks, the hole is only going to get deeper, as Mary points out in her article in Wednesday’s MBA Newslink.  She writes, “Serious industry players can no longer afford to fervently pray for a last-minute stay and then scramble to comply when it becomes clear there will be no forthcoming regulatory pardon. Patience for the mortgage industry is already at a minimum. Why exhaust it further?”

Hope is not a strategy.  Contact Titan to find out more about our MERS QA and Compliance Services and how we can help you be audit-ready, all year long.

It is our great honor to announce that Titan Lenders Corp. now offers processing and underwriting outsource services in addition to our back-office fulfillment outsource services, Whole Loan Purchase Review program and MERS QA data reconciliation and compliance services. We’ve grown and transformed with the mortgage market for a half decade as Titan Lenders Corp., bringing with us combined expertise of 50+ years.  Combined with the versatile functionality of our patented Cerberyx platform, our experience makes Titan an unparalleled provider of mission critical mortgage lifecycle services.

To oversee operations in this new division, we’ve also brought on board another Colorado pro, and this one’s got the chops.  Jan Conner has nearly two decades’ experience not only in managing processing and underwriting departments, but also in building mortgage companies from the ground up.  You name it, she’s done it, and we’re thrilled that she’ll now be doing it under the Titan name.  Full details are available here.

“The business enthusiast sums up his counsel role with the formula for ‘quality accountability:’ QA + QC = QA₂. 1n other words, the product of quality analysis coupled with quality control. He calls it his equation for private investment in the future.”

We call it, “The Foundation Upon Which We Built Our Business.”  Glad to have you on board, Mark!

For more on how Titan can help with your MERS QA needs, check out our MERS Management Solutions page.

To read a really intelligent, thoughtful piece on how the MERS QA procedures may actually help push the industry towards data integrity and standardization, read our article online in this month’s Mortgage Technology.

The mortgage industry loves its acronyms doesn’t it? From LOS to LQI, PPE to GSE, AU to DU and everything in between, it’s a veritable alphabet soup out there. Two of the acronyms that get most confused are QA (quality assurance) and QC (quality control) because the industry has long assumed that the two terms are interchangeable. News flash – they aren’t, and if you’re relying on QC to achieve QA, you are in for a rough 2012. For those that don’t know, QA is systemic failure prevention; QC is a failure-detection system…and you need both if you hope to make it in the current mortgage market. For more on the differences between QA and QC, check out my article in the February issue of Secondary Marketing Executive.

Although MERS® Quality Assurance requirements are not that complex, they are time consuming. For those of us that love to read Quality Assurance Manuals for tedious procedural updates to implement, not a major problem. But many of us are busy working and looking for trusted colleagues to break trail on those issues and report back. If I may be so bold…a brief data dump incoming. Or, skip this blog and simply call me on how to meet MERS® QA requirements.

MERSCORP, by way of consent order, is now tracking and monitoring all of its members’ procedures and all loan data. So much for the gentlemen’s agreement to comply. Don’t blame MERS for the changes. The #2011-044 Consent Order passed down from the Feds is the reason for the shakedown. And with good reason. The information submitted to the MERS® System has proven to be…well…ahhem…not accurate.

In the effort of tracking and monitoring, MERSCORP is requiring all MERS® Members, Lite and General, to submit a revised QA plan for 2011 and annually thereafter. This would include the expectation that Members do what is in the QA plan and update it as needed. For the lucky General Member, you will also need to address the Annual Report, to include data reconciliation requirements. Titan tackled the data reconciliation with software, and built our MERS® Compliance suite of services to meet the conditions. Sassy.

For those servicers who have not responded, the 2011 deadline of December 31st has come and gone. The good news is…an extension has been granted through Tuesday, January 24th. Thankfully, there is room for noted exceptions on behalf of the MERS® member. But, exception or not, the enormous operational task of data reconciliation for each MIN with a minimum 17 data fields quickly becomes an exponential headache. The ability to track, monitor and clear the discrepancies without technological help is even more daunting.

Oh, one last thing, MERSCORP is rolling out a new version of their Quality Assurance Procedures, release 21.0 on February 27th. Registration and transfer time frames will be shortened, as well as adding additional fields per MIN to include an Owner Occupied and Loan Pool Identification fields. So… time to roll up your sleeves and get to reconciling or to make it a hassle free experience, call me to discuss your best course of action that won’t have you doing data entry through August.

Lazy, uninformed and disingenuous – my cup runneth over with epithets for this Congress.  It is unsurprising that our Congress and a general takeover by Communists are polling around the same approval rating.

If you are buying a home or refinancing in 2012, you can expect to pay a higher rate of anywhere from .5% to .8% for THIRTY YEARS because Congress insisted it “pay for” the short term 2% payroll tax extension with G-fees.   G-fees are an easy target, and your comprehension is not required for you to feel the impact.  For example, there are millions that still can’t define a CDO, but are quite aware that their home is worth 30% less than it was five years ago.

Every American that is trying to buy, sell or refinance their home will feel the result of this poorly timed “solution.”   Those homeowners hoping for relief from HARP 2.0 just saw the rates go up.   It is counterintuitive to harm both economic recovery and future tax revenues to “pay” for a tax cut?   Didn’t they even read the supply side handbook?  Supply side economics rests on the principal that a tax cut “pays for” itself – because it is a tax cut and encourages economic growth.

And just in case you doubt me, there it is … the written proof right on the rate sheets and lender/investor announcements.  EVERY one of them began announcing that mortgage interest rates would increase anywhere from .5 to .8% in the coming weeks.  This will not be a reflection of the market.  It will not be in response to the Fed.  This will be a direct response to the meddling of Congress in one of the most irresponsible encroachments on the free market we have seen so far from this group of boobs and yahoos.

And once again we all pay double the cost for half the benefit.