In early April, a large group of influential technologists, bankers, service providers, CIOs, COOs, and CEOs met with mortgage industry leaders in Los Angeles at the National Technology in Mortgage Banking Conference. The gathering was filled with diverse conversations on many topics, but one question served as an overriding theme: how will the mortgage industry be rebuilt?

As a rare confluence of mortgage companies and technology-driven luminaries from a range of other fields, the event became an opportunity for lenders to face a vision of the future of their industry. If you weren?t there, here is a brief recap of some of the themes that stood out in three days of speeches and presentations.

Alternative Credit Models

The conference?s first two speakers, the CIO of Experian and the CEO of Tavant Technologies, got things started by highlighting the important role that alternative credit models are likely to play in the near future in the lending industry. Their other main point of discussion centered on the current and future challenges presented by regularly dealing with massive global data centers.

Completely Digital Mortgage Origination

One of the featured panel discussions focused on the goal of making mortgage origination a 100 percent digital endeavor. The CIO of Fremont Bank, the COO at Employee Loan Solutions, and the former CIO of National MI, led a group talk on the challenges and benefits of ?going paperless,? in general, and the all-digital mortgage, specifically.

The discussion raised many points of interest to lenders, including:

• Most consumers would experience real benefits from a fully digital mortgage origination process because lenders could provide a clear, binding decision earlier in the process.
• Lenders would benefit by being able to rapidly integrate asset, employment, and income information
• The lending process of the future is extremely likely to be a completely online experience built around digitally gathered and managed information

Better Leveraging of Technology

Throughout the conference, speakers expressed clear agreement that leveraging technology will be a necessary skill for all successful mortgage companies. Many presenters highlighted the importance of using technology innovation throughout the whole origination process, not just at the point of sale.

Achieve Technology Innovation with Acuity National Real Estate Solutions

As a leader in technology in the title industry, Acuity National Real Estate Solutions is the ideal partner for lenders looking to stay on the cutting-edge of a rapidly evolving industry. To learn more about the comprehensive suite of services we offer to loan officers, lenders, and realtors, please visit our homepage.

On May 5, when the Consumer Financial Protection Bureau (CFPB) holds its next field hearing, the agency is expected to release its long-awaited proposal for the use of arbitration agreements in select types of consumer financial services contracts.

Last October, the CFPB first announced that it was contemplating rules calling for a ban on ?free pass? arbitration clauses by financial companies and banks aiming to prevent consumers from grouping up to sue for relief. According to a CFPB release, the hearing in early May will feature a statement from the agency?s director as well as testimony from some consumer groups, key industry professionals, and members of the public.

What to Expect

Experienced CFPB watchers have noted that the agency commonly uses field hearings as a venue to announce new developments, and proposed arbitration rules are the most likely subject. In the past, proposed rules announced at hearings have been in near final or final form. If that?s the case again, that would suggest new arbitration rules could be in effect by the end of summer 2017.

What?s actually at issue in the arbitration discussion is the clauses in financial service and product contracts that demand consumers take any disputes to an arbitrator instead of a court. Over the past six months, there have been indications that the CFPB is willing to propose a set of rules that cover a broad range of financial products, including checking accounts, payday loans, student loans, and credit cards.

No More Arbitration?

A 2015 study conducted by the CFPB found that consumers rarely understand arbitration clauses in financial service contracts. In some cases, failure to understand clauses may have dissuaded people from starting or following through with disputes. In response to the study, the agency said it was considering banning contract arbitration clauses that specifically prevent class action lawsuits. Soon after, the CFPB continued the march toward new rules by convening a review panel to collect feedback from the industry.

As observers have noted, the next logical step for the CFPB, based on all the statements and events that have led up to the May 5th hearing, is for the announcement of a ?de facto ban? on arbitration clauses.

Information for Lenders

Acuity National Real Estate Solutions provides lenders and loan officers the information they need to stay on top of key industry trends. We also offer an all-inclusive suite of title services made to reduce costs and streamline closings in today?s real estate environment. To learn more about our offerings, please visit our homepage today.

Once the object of derision among financial professionals, reverse mortgages have come into their own in the current financial landscape. As more and more homeowners choose this option to collect an advance on their equity and put off repayment until a home?s sale, the reverse mortgage is increasingly being seen not as a stalling tactic for the financially unprepared, but a vital tool in the savvy real estate investor?s strategy set.

Issue Background

Typically reserved for older homeowners, the reverse mortgage is a special kind of loan that taps into the equity, or accrued value, of a piece of real estate to provide the borrower with a steady income stream. Since the loan is based in already-existing equity, the bank can make calculations based on the property?s price appreciation, current mortgage terms, initial length and other related factors to create a loan that will not exceed the home?s valuation over its lifespan.

A few rules do apply: as mentioned, reverse mortgages are generally only given to property owners over 62. Additionally, no liens or encumbrances may be currently enacted against the property. If any such claims exist, the loan will first go to paying those off before being dispersed to the borrower.

Then and Now

So why the shift from ?fallback plan? to ?legitimate investment strategy?? A few different factors. First and foremost, the 2008 financial crisis did a lot in terms of normalization: as borrowers saw their retirement evaporate before their eyes, there was a mass scramble for solutions of all sorts. As reverse mortgages became more common, they became more publicly understood and thus more acceptable.

Another important shift was the Reverse Mortgage Stabilization Act of 2013, which mandated that a chunk of the equity ? about 40% ? was to be made unavailable until a year after the initial loan. The banking system also implemented an assortment of regulations that ensured reverse mortgage borrowers were willing and able to pay insurance and taxes on the property, as well as protecting spouses not on the loan.

Fitting Into the Plan

Acuity National Real Estate Solutions? team of financial and real estate professionals can act as a bridge between lender and borrower to streamline closings on a variety of transactions, from reverse mortgages to new home ownership and much more. Visit our homepage to find out more about our comprehensive suite of escrow, title, real estate technology and related services.

The first week of April saw long-term interest rates dip to the tune of approximately.125% ? not a precipitous drop, but when the worldwide economy has been teetering so close to zero, any shift can speak to potentially major consequences. So what does this mean for the global lending market? A simple hiccup, or a portent of things to come?

Instability on the Rise

The drop was accompanied by several other warning signs of instability, as the 10-year Treasury note (a fixed-rate debt obligation from the government to private holders) settled slightly under 1.75% and low-fee mortgages at 3.75%. While not disastrously low, these numbers don?t live up to the projections given for the post-Federal Reserve meeting market. Why? Overseas economic instability.

Overseas Forecasts

The European Central Bank (ECB) has been buying up bonds left and right, leading many to speculate about that the EU is facing ? or, worse, already in ? active deflation. The same story holds true in Japan, where rapid demographic shifts due to an aging populace have caused even more panic. China, however, continues to hold steady: financial analysts predict that its internal mechanisms are ultimately unsustainable, but not a cause for real concern at the moment.

What Lenders Should Know

For the first time since the Federal Reserve began to publicize their meeting minutes over a decade ago, the global economic market is a major factor in domestic interest rate policy. The two-year Treasury note, which is more sensitive to Fed fluctuations than its 10-year cousin, is predicted to go through at least one more hike this year. Lenders take note: this is a sign of greater faith in a strengthening domestic economy, and concomitant rise in mortgages. However, caution should be practiced with regard to overseas and/or production investments as the strong US dollar continues to nibble at America?s export industry and undercut domestic manufacturing thanks to cheap imports.

The Acuity National Real Estate Solutions team is here to provide you with cutting-edge financial and real estate resources, backed up by comprehensive title, escrow and closing services. Visit our homepage to learn more.