TOPIC: Home Equity

Home Equity Forbearance due to COVID-19

VP at a bank ($273MUSA)
We are entering into Forbearance Agreements with our borrowers who have Home Equity loans since they cannot defer payments due the the requirement of having to be paid back in substantially equal payments.  At the end of the forbearance period we will add all accrued interest to the balance do a modification agreement.  I'm curious how others are handling this on their loan systems.  Are you advancing the due date to the end of the agreement or are you letting the loans be past due until the end of the agreement?

    High Priced/High Cost Mortgage

    Manager at a credit_union ($141MUSA)
    Good afternoon:

    I am hoping that someone might be able to share any tools or worksheets they use to determine if a mortgage (or fixed home equity loan) meets the high priced/high cost mortgage requirements as required by Reg Z.  Currently we outsource our 1st mortgage originations and they calculate this on those loans.  But we need to be calculating for our equities, which are processed in house.   

    Also, if you have an excerpt from your lending policy that may address this, that would be especially helpful as well.

    Thanks!

      Cash out Refinance of 1st lien mortgage (Homestead) and 2nd lien Home equity in California

      VP at a bank ($897MUSA)
      If a borrower wants to get a cash out refinance combining the original 1st lien mortgage and 2nd lien HE loan, is that possible? Also would it just be a considered a Cash Out Refi without having the HE requirements?  As stated in the subject this is in California and we have branches there.

       I am new to dealing with CA laws and have had trouble locating what I need to make a determination. So helpful answers and links to find the answers I need will be greatly appreciated. So far it appears structuring the loan as a Cash out refi will be fine. The cash out will be for business investment purposes and the HE funds were used for that as well. As far as TRID goes I will have to see what the majority of funds are going towards which is probably the refi of the mortgage but I haven't looked at the numbers of it all yet.  

        Lendwell Demo Video

         "In the last few weeks, you've likely heard about Lendwell, a mortgage settlement platform that offers multiple services in one convenient location. A common question that we have received is, "What does the process look like in Lendwell?”. 

        To answer that question, we've put together a short demo so that you can see how simple the ordering processing is with Lendwell. If you have any questions or if you're ready to try Lendwell for yourself, please reach out to us at hello@lendwell.com. We can get you set up today.

        https://videos.sproutvideo.com/embed/a49ddbb61d18efcb2c/5e8c3c5ea10e53fb 

          FAIR LENDING: (HMDA)

          With the adopted amendments to Regulation C, referred to by the Consumer Financial Protection Bureau (CFPB) as the “Final Rule.” It brings with it a potential set of new challenges. The Final Rule adds 25 new data elements to the existing LAR data set, modifies, and expands many other existing elements. The lack of certain loan-level information in the current LAR data set has resulted in regulatory and enforcement agencies’ allegations of disparate treatment redlining based primarily on a statistical analysis of a mortgage lender’s application or origination rate in comparison with that of other mortgage lenders that are deemed to be its peers. Do the new data elements in the Final Rule improve fair lending or do they just allow for other areas of fair lending analysis to emerge and therefore present new challenges for mortgage lenders? Let me know what you think!

            True Costs of Processing a Loan File

            We all know that loan files can be costly. Whether it be the cost of working with a vendor or to get a report processed, we know those monetary costs can stack up. But what is the true cost of each loan file? How many hours do you spend inputting customer information or going back and forth with an appraiser? Most importantly, why is spending all that time justified, or are you seeking ways to cut down the true costs of a loan file? 

              Now available to watch on demand! [FREE] New CBANC Member Benefit: Lendwell

              Check out our new webinar! We discuss how Lendwell is currently helping hundreds of financial institutions and their lending teams save 2 hours per loan file by having a one-stop-shop for all settlement products and how we are able to deliver 20% immediate savings to your settlement costs. We also answer questions in real time and highlight some of our current institutions who use this platform today.

              https://www.cbancnetwork.com/education/webinars/view/66b66f6e-7789-453a-814f-3277ac986a6c

              Please feel free to message me directly to schedule a demo. 

                My takeaway from the California Mortgage Bankers Association's inaugural Mortgage Innovators Conference

                Attending the Mortgage Innovators Conference in San Diego this past week was a very interesting and an eye-opening experience. The conference, sponsored by the California Bankers Association, specifically gave insight on the latest efforts of leading Fintech companies in the mortgage industry to improve the process of making mortgage loans to their consumers. Expert speakers from these companies covered topics from using new software platforms to enhancements in technology that will move the industry into digital mortgages. The overall goal was how to streamline the business processes to reduce cost, increase efficiency, and create a better consumer experience. 

                One particular hot topic that was highlighted was the increased use and dependency of social media in communicating with their customers and to market the different lending programs to potential borrowers. The emphasis on cell phone friendly applications was key to implementing consumer engagement strategies, account maintenance, service innovations, and new platform designs. 

                The incorporation of HousingWire to gather leading companies to attend and exhibit at the conference was very valuable since they analyze the most innovative technology companies in the U.S. housing economy. Several companies such as SimpleNexus, Blend, and BeSmartee were among the FinTech companies breaking new ground on making strides to move the processing of loans to a new era. 

                Bringing together industry leaders, technology decision-makers, and vendors to explore, learn, exchange best-in-class ideas, technology, solutions, and solve real problems was a perfect opportunity for lenders across the country to network with attendees to discuss challenges and opportunities ahead.  

                What news or emerging tech from this conference are you most interested in?

                  CBANC Network Announces New TRID Compliant Calculator

                  CBANC Network is pleased to announce the integration of LodeStar's fee quoting service into our Lendwell platform. A long-time Lendwell partner, LodeStar helps lenders save time and money by automating the closing cost quoting process. Their TRID complaint quotes are 100% guaranteed for accuracy and include transfer taxes, recording fees, and title costs. Both first mortgages and home equity loans are supported. The new Fee Calculator is now available through your Lendwell platform. LodeStar's online demo can be accessed by clicking on: www.lodestarss.com/loan-estimator-features/demo/ For more information, contact Joe Walsh (jwalsh@cbancnetwork.com) at 512-583-4576.

                    HELOC - Cards?

                    Director at a Company (USA)
                    Hello!  Does your FI issue HELOC Cards? 
                    We currently create checks for our HELOC customers.  The checks are ugly, and merchants sometimes give our customers a hard time taking them...so, we are considering issuing cards tied to the HELOC.  We are an FIS/Horizon/Visa bank.  our understanding is that we would have to create a credit BIN (we don't currently offer credit cards).  Looking to find out what the norm is - Cards or just checks for HELOCs?  And any words of wisdom/caution. Thanks!

                         Originally posted by Kate Brogan, AVP Operations & Electronic Banking, on 20 Jun 2019 to CBANC FI Professionals Community.