Mortgage Software for Mortgage Bankers

OpenClose a hit at MBA Annual 2015 in San Diego

Posted by Frank Bocchino on Mon, Oct 26, 2015

The MBA Annual 2015 in San Diego was a big hit this year. The expo continues to gtrow each year showing a strong mortgage industry.

Compliance and TRID were the hot topics at the conference as expected. And it was no big surprise that the search for loan origination software that was compliant with all the regulations.

OpenClose was showing its 100% web browser-based, multi-channel LOS with wholesale, retail, and correspondent options.

Here's what other lenders said their top reasons for choosing OpenClose:

· Flexible workflow with the ability to add custom work queues
· Enhanced reporting and dashboards (OC Optics)
· Managed pricing with more than 60 Investors included in the LOS
· Imaging and document management
· System-to-system integration with top Document providers

Thanks to all who attended! Missed us?Just fill out a form and we'll call!

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Topics: LOS, mortgage lender, Loan Origination, Mortgage Banks

The Sky's Not Falling. Your Mortgage Lending Profits Are.

Posted by Frank Bocchino on Thu, Jul 31, 2014

 

By most estimates, mortgage rates were expected to climb this year, with rates on the 30-year fixed-rate mortgage predicted to exceed 5%. Instead, rates are now lower than they were this time in 2013 — much to the advantage of mortgage shoppers.

Yes the rates will rise again, and the nature of the lending business. You can't control the rates from rising and falling, but you can better prepare for the demand. Many lenders overlook the one are that can help them reduce costs, control, spending, and maximize profits: their loan origination software.

What choices are your organization making? 
Are you taking advantage of the current rates with the most current lending software?  Open Close has developed a lending software that can stand the test of fluctuating markets. At a cost that won't break the bank.  

We encourage you to take a look at OpenClose. It’s the fastest, easiest, most compliant way to maximize profits today and tomorrow regardless if rates rise or fall.  Ask us how.

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Topics: Loan Origination software, Mortgage Banking Software, mortgage lender, Compliance

Mortgage Loan Origination Software Search

Posted by Frank Bocchino on Mon, Jan 27, 2014

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If you think searching for a new car or phone takes some thought, think about what goes into searching for new mortgage loan software. 

There are no websites, or reviews, or books to read on the subject. I's all done on word of mouth. Or maybe you remember liking the one you used at the last company? The problem is mortgae lenders don't start looking for Loan Origination Software until the need is pressing.

Why not get a head start by starting your search at OpenClose? We have the resourses to help you make the right decision-- before it's too late.  Visit us and download Loan Origination Software info for free.

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Topics: mortgage lending software, mortgage technology, Mortgage Banking Software, mortgage lender, Mortgage Loan Origination software, mortgage loan software

Consumer Financial Protection Bureau Report Card: Part 3

Posted by Vince Furey on Tue, Aug 20, 2013
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Prohibitions on Financing Credit Insurance Premium

  • It will likely be 3-4 months before any potential amendments are released; I mention this simply because it demonstrates the CFPB’s willingness and desire to fully understand an issue before going live.  Originally scheduled to go in effect June 1, 2013, the rule prohibits creditors from financing premiums or fees for credit insurance products in connection with any residential mortgage loan or any open-ended credit plan secured by a principal dwelling.  This applies to credit life, disability, unemployment, credit property insurance and similar products.  The provision included vague language related to not prohibiting credit insurance or credit unemployment when premiums and fees are paid in full on a monthly basis, reasonable, the creditor is not compensated, there’s a separate insurance contract and premiums/fees are not paid to an affiliate.  This led to several interpretive questions from industry stakeholders.  The CFPB did the right thing and delayed implementation until 01/10/2014, consistent with implementation of other provisions.  Additionally, the CFPB will be publishing a proposal to seek further comments from consumers and industry stakeholders.

 

Qualified Mortgage Job Verification Standard

  • This was another one that makes to pitch yourself and wonder if you’re dreaming.  The ATR and QM Standards included a provision that required lender to determine a borrower’s “probability of continued employment”.  The infamous “Appendix Q” outlined the many hoops lenders needed to jump through to, maybe, adequately verify “probability of continued employment”.  But do you really know.  What is the borrower is fired 2 months later; do I kiss my safe harbor protection good-bye? Once again the CFPB brought some common sense and clarity on this topic.  Lenders must verify the borrower is employed and that the employer has no immediate plans to eliminate the position.  OK, that’s doable.

 

Now the 5% they got wrong…

 

Ability-to-Repay (ATR) and Qualified Mortgage (QM) Standards

  • In my opinion, the CFPB didn’t go far enough in their exemption of small banks and credit unions.  The 500 or fewer 1st lien loans per year are not enough loans.  Maybe if they specified 500 or fewer portfolio 1st mortgage loans.  Due to traditional means of generating fee income being decimated by the financial crisis, numerous small banks and credit unions turned to the traditional secondary market mortgage space as means to generate reliable fee income.  This has been a successful strategy for most but the need to provide non-traditional mortgage products to support their small business customers’ remains.  By limiting the exemption to those institutions funding just 500 or fewer loans per year the CFPB is substantially limiting small banks and credit unions ability to serve their small business customers and the communities they serve.
  • Interest Only Loans should have been included in the ATR and QM Standards exemption for small banks and credit unions.  While interest only financing, especially in the Alt-A and Sub-prime space, certainly contributed to financial crisis, interest only financing is still a viable product and an effective cash-flow product for self-employed borrowers.  When qualified appropriately utilizing fully amortized payments, small banks and credit unions can provide sound interest only financing and better serve the overall borrowing and cash-flow needs of their small business customers.  They should be able do so and still retain their safe harbor protections.

 

All in all, the recent release of final rules, clarifications and extensions are positive signs.  They demonstrate the CFPB is looking closely at the provisions included in Dodd Frank, considering their impact on the market, listening to industry stakeholders and consumers and making informed decisions related to amendment and implementation.

 

Vince Furey is the SVP of Lending Solutions at OpenClose, a pioneer of Software as a Service (SaaS) computing solutions for the financial industry since 1999. OpenClose, built in modern (.NET) technology is supported by mature, service-over-sales approach delivery. It provides a variety of Web-based solutions for credit unions, banks, and mortgage lenders from loan origination software, loan pricing, website design, analytics reporting, imaging and social media marketing. For more information about loan origination systems, visit OpenClose

Topics: mortgage lender, Mortgage Banks, mortgage, Consumer Financial Protection Bureau, CFPB

8 Change Points a Mortgage Lender Needs to Consider

Posted by Bill Mitchell on Mon, Feb 11, 2013

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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

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Topics: Mortgage Software, LOS, mortgage lender, Banking Software

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