OpenClose had one of its best years in sales while continuing to enhance its product offering to meet the needs of the residential mortgage banking industry. Perhaps the greatest testament to our mortgage software and service is that many of our customers’ contracts came up for renewal last year and all re-signed.
Keeping compliance in the forefront, OpenClose has continued to make the loan process easier to use across platforms. Most notably it released OC Optics: a new Enterprise Reporting System that combines configurable management dashboard tools with a powerful graph and reporting solution to be used with its loan origination software.
A matured LOS, OpenClose continues with the spirit of innovators and continued to make strides in burgeoning areas through our social media management software as well as a being a recognized as a financial social media influencer through our blog. According to one recent study, about 52% of U.S. adults now use social media - 81% of people ages 18 to 24, 67% of 25-to-34-year-olds and 59% of 35-to-44-year-olds. In the next 5 years 70% of mortgage originations will come from Gen X and Gen Y consumers. OpenClose anticipates the needs of the industry rather than waits to catch up.
Many lenders are looking to change and/or enhance their loan software technology this new year. But regardless of whether you are looking for a new LOS to and or improve loan pricing, loan origination, banking, or post closing, you'll need a Change Implementation Plan (CIP)
Here are a few key questions to ask yourself prior to an LOS change:
1. Why are you changing? Never change for the sake of changing or because the budget allows for it. Change for the right reasons
2. Why now? Is this the best time to change or simply start the review process. Is there a merger down the road with a company that will require additional functionality.
3. What if we don’t do this now? Waiting to change in not always good and not always bad.
4. How will we get there? Who will make the decision. Will IT be consulted?
5. What’s in it for our people? Will this make the employees lives easier or more complex.
6. How will the gains outweigh the losses? Will it cost ypou more or less per loan to modernize. Will you lose time, people?
7. How will we bring our people along with us? What is the training procedure in your company? Will you need additional resources
8. How will we consolidate change? Here's where implentation and scheduling are key
Good news today from Freddie Mac who believe mortgage rates are likely to remain near record lows for the first half of 2013, and expect property values to strengthen, according to its U.S. Economic and Housing Market Outlook.
The U.S. Department of Housing and Urban Development (HUD) has announced plans to sell as many as 40,000 distressed homes via its Distressed Asset Stabilization Program (DASP) in the next 12 months, according to Dan Green.
And finally President Obama's deficit commission proposed lowering the limit on mortgage principal eligible for a deduction to $500,000 from the current $1 million, removing any break for interest on a second home and turning the deduction into a tax credit capped at 12% of interest paid.
All these changes will mean changes to your software will have to adapt. Are you ready? More importantly, is your mortgage loan origination software ready?
- The Wall Street Journal reports that according to a new study from the American Action Forum, the potential impact of three important mortgage regulations set to take effect next year could reduce lending by as much as 20% over the coming three years. It sites the Basel III agreement, the “qualified mortgage” “qualified residential mortgage” rules that are part of Dodd-Frank.
- Ally Financial Inc's banking subsidiary on Friday is planning to sell much of its remaining mortgage portfolio which had $122 billion of mortgage loans in the third quarter of 2012. Its Residential Capital LLC mortgage unit filed for bankruptcy in May and the assets were bid on this week in a bankruptcy auction.
- Freddie Mac published its Primary Mortgage Market Survey. It shows that fixed mortgage rates are moving higher but remaining near their all-time lows The 30-year fixed-rate mortgage averaged 3.41%. Last year at this time, it averaged 4.10%.
Want to access Freddie Mac and other third-party mortgage software right from your mortgage loan origination software? Get OpenClose!
Starting today, the nation's largest banks will be be required to improve their mortgage servicing. Today is the deadline for Ally Financial, Bank of America, Citigroup, JP Morgan Chase, and Wells Fargo, to implement hundreds of customer service improvements on its home loans as manadated by the Attorney General.
The standards forbid the practice of filing forged legal paperwork to speed the foreclosure process. In addition, mortgage servicing practices no longer can foreclose on a borrower while simultaneously negotiating a loan modification. Customers must have a single point of contact, rather than many. And they must treat foreclosure as a last resort.
Quite a challenge ahead for these mortgage banks. Though much of the mess may have been avoided if the mortgage lenders had the right loan software in place.