Blog Archives - MortgagePath

Changes to the Qualified Mortgage Rule Are Coming; Be Prepared

Colgate Selden, Managing Director, Head of Regulation and Compliance2020-12-28T18:21:26+00:00September 15th, 2020|

Changes to the Qualified Mortgage Rule Are Coming; Be Prepared With origination volumes skyrocketing due to historically low interest rates, it would be an understatement to say lenders have been preoccupied in 2020. However, as the Consumer Financial Protection Bureau considers changes to the qualified mortgage rule, lenders must shift a portion of their focus to ensure they understand the proposed changes and are prepared to comply once the rule becomes final. The CFPB's proposals would eliminate the much-reviled Appendix Q and clarify several factors currently used to assess a borrower's ability to repay — including the consumer's current or reasonably expected income or assets and current debt obligations, alimony, and child support— and offer a path for loans to achieve safe harbor status over time. As with any regulatory change, the proposals offer cause for celebration and concern. For example, many lenders will applaud the elimination of Appendix Q, which is

Why Technology Firms Should Hire Liberal Arts Majors

Anne Henderson, Managing Director, Client Engagement and Implementation2020-10-29T15:42:32+00:00September 10th, 2020|

Why Technology Firms Should Hire Liberal Arts Majors As companies, individuals and jobseekers from different industries and walks of life virtually converge for Denver Startup Week, many may [incorrectly] assume a lack of tech-driven experience may limit their attractiveness to tech startups. But, sometimes the most unconventional pairings – such as a technology company and a liberal arts major – can make for stellar partnerships.So many times, people look at technology companies and assume only those with a background or major in computer science or engineering get hired. That line of thinking is both incorrect and potentially detrimental for both the company and the jobseeker. Not only do tech-focused companies need skilled people in non-tech roles – think sales, marketing, client services, human resources – but hiring individuals with varied backgrounds, perspectives and personalities fosters creativity, growth and ingenuity.Let’s look specifically at why tech companies should seek out

Mortgage Fulfillment Onboarding: What Happens After the Contract is Signed?

Paul Katz, Managing Director, Head of Bank Relations2020-12-15T15:12:03+00:00September 18th, 2019|

Making the decision to outsource mortgage fulfillment and deliver the digital lending experience your customers demand is a pivotal step. And, it’s followed by an equally important one: Getting new solutions on board seamlessly and methodically while your business drives forward without a hitch or hiccup. The vendor onboarding process at Promontory MortgagePath isn’t simply a matter of grafting new technology and processes onto your existing systems and methods. Complex solutions require sophisticated implementation plans. A well-organized, transparent, and collaborative approach is crucial to a seamless and successful implementation. Oue Service Delivery Team members are your partners every step of the way, with a shared goal of ensuring a smooth and productive transition. We understand the stakes are high in any operational implementation, and no two transitions are ever alike. From the start, you can expect a clear project outline including key milestones and deliverables. But, “onboarding” is not synonymous

Are You a Good Candidate for Outsourced Mortgage Fulfillment? These Five Questions Can Help You Decide.

Paul Katz, Managing Director, Head of Bank Relations2020-12-15T15:11:34+00:00July 18th, 2019|

“Should I stay or should I go?”—The Clash In today’s volatile mortgage environment, many community lenders are reexamining their commitment to mortgage operations or withdrawing from residential lending altogether. But, with the single-family mortgage often functioning as a cornerstone product for community lenders, many are asking themselves: Do we really want to send customers across the street for a product our communities expect us to offer? More and more lenders are turning to outsourced fulfillment to continue offering this core product. But, is outsourced fulfillment right for all local lenders? Is outsourcing an option you should be exploring? To help decide, ask yourself: Why are you in the mortgage business? Are you offering the digital customer experience large lenders and FinTechs are marketing? What is your current monthly loan volume? What is your residential lending growth strategy? What are your fully-loaded origination costs per loan? Why are you in the

From a Big Bank to a Tech Startup: Four Noticeable Differences

Sean Gaskin, Manager, Mortgage Specialist Team2020-12-01T21:27:42+00:00July 18th, 2019|

I worked at one of the largest national banks for 18 years when I knew it was time for a change. While I amassed an incredible amount of knowledge working alongside brilliant mortgage minds, I woke up wanting more. My career in banking was an accident – it wasn’t my passion. I longed to channel my expertise into a role that put me in the proverbial “driver’s seat.” As I began exploring different options across the country, a Denver-area recruiter reached out with an opportunity at a mature startup. After nearly two decades in big-bank corporate culture, transitioning to a startup never really occurred to me – trading stability and certainty for unpredictability and greater responsibility. I was intrigued and, with my family in tow, moved across the country to start life as a Promontory MortgagePath employee. As one might expect, startup life is notably different than corporate life. After

With Record High Mortgage Origination Costs, Can You Actually Save with Outsourced Fulfillment?

Paul Katz, Managing Director, Head of Bank Relations2020-12-15T15:12:36+00:00July 18th, 2019|

Mortgage origination costs keep climbing, reaching a record $9,299 per loan in the first quarter of 2019, according to the Mortgage Bankers Association. This upswing has been fueled by rising compensation, benefits, technology and compliance costs, putting pressure on margins and leaving originators in a tight spot. Source: American Banker Outsourced mortgage fulfillment is recognized for its ability to help mortgage lenders manage costs and remain competitive in the face of ever-increasing built-in expenses. Many forward-looking lenders are embracing comprehensive outsourced fulfillment solutions to improve results, save time and free up resources to focus on the customer experience and contribute to overall business growth. But where can lenders actually save by outsourcing their mortgage operations? Does outsourcing really reduce cost and increase lender profitability? In a word: Yes. The key is to control what you can – and you can control fulfillment costs (and gain added savings along the

Q&A: Navigating Lending Tech Compliantly and Profitably

Colgate Selden, Managing Director, Head of Regulation and Compliance2020-09-24T14:29:02+00:00June 18th, 2019|

Banks today are under significant pressure due to declining mortgage origination volume, historically high costs, increasing competition from FinTech entrants, and consumers demanding a more user-friendly, digital experience. New and emerging technologies are transforming the financial services industry, and banks are turning to tech to meet customer expectations, reduce cost, and drive growth. The right technology can enhance borrower experience, deliver perfected data, and provide a detailed audit trail for a compliant lending journey. But, adopt the wrong technology solution or implement it incorrectly, and banks risk automating repeatable defects, which can be costly and time consuming to correct. At last week’s American Bankers Association Regulatory Compliance Conference, Dan Smith, SVP of Government Relations at ComplianceEase, and Colgate Selden, Head of Regulation and Compliance at Promontory MortgagePath sat down with Michael Kolbrener to discuss what bankers should be thinking about to ensure they’re employing the right lending tech to remain

Data, AI and the Future of Mortgage Technology

Kevin Wheeler, Senior Data Analyst2020-09-24T14:28:26+00:00June 18th, 2019|

I recently joined Promontory MortgagePath as a Data Engineer and – for the first time in my career – I’m working in the mortgage industry. I was attracted to the role because of the incredible data- and process-complexity. The almost infinite volumes of data provide both opportunities and challenges. How do we ensure the quality of data – its overall integrity (lineage, security, privacy), accuracy and completeness?. For me, full data transparency and availability are the keys to – and the foundation of – innovative technology solutions. In the mortgage space, the cost to originate a loan has increased dramatically in recent years – from about $3,000 before 2008 to over $9,000 today. Lenders are facing margins that have been stretched so thin their mortgage operations are no longer profitable. And, while it feels like everyone knows technology is the answer, it can be challenging in this climate to drive

The Banking Technology Roadmap: Successful Fintech Partnerships

Paul Katz, Managing Director, Head of Bank Relations2020-12-15T15:09:22+00:00May 18th, 2019|

Borrower expectations are shifting. Fast, secure, and accessible digital services are no longer an advantage – they’re imperative to remaining competitive. With the rising popularity of non-traditional banks and lenders, banks are seeking innovative ways to meet changing expectations, compete with new challengers and remain profitable. Last week, banking professionals in the areas of information systems and security, compliance, risk and more gathered at the New York Bankers Association’s (NYBA) Technology, Compliance & Risk Management Forum to discuss industry trends, emerging technologies and best practices. I hosted a session at the Forum, where I spoke directly with attendees about the future of digital banking. The session – The Banking Technology Roadmap – explored best practices when partnering with fintech companies and previewed what’s on the fintech horizon. Here are some of the session takeaways: BEST PRACTICES WHEN PARTNERING WITH FINTECH COMPANIES PLAN Know the tech budget What percentage of your