Kracl said the quicker loan officers contact consumers, the more likely they can turn those prospective consumers into borrowers. “Consumers want contact and lenders can use some technology tools to create efficiencies in that process,” Kracl said.

Mortech offers pricing rate notification, prospect management tools, custom rate sheets and loan product eligibility and guidelines services. Its web-based software, Marksman, gives lenders ability to automate and manage loan processes and manage sales cycles.

“Consumers are getting smarter in all areas of business,” Kracl said. “It’s true of the mortgage business too. Regardless of which lead aggregator a lender uses, the key is to reaching the consumer with believable results. Consumers are smart enough to spot misinformation.”

Kracl suggested lenders provide real, actual pricing to borrowers, establishing a personal relationship while gaining their trust. “It has the best rate of converting prospects into borrowers,” he said.

Mortech’s relationship with LendingTree, Charlotte, N.C., recently experienced a 450 percent increase in its lender network customer base.

“Leads go into LendingTree and are then distributed out,” Kracl said. “When borrowers come to LendingTree, we match their application with one of our lenders, matching their specific criteria. We then notify the loan officer and management of the loan officer so that they will be able to contact the consumer as soon as possible.”

“The LendingTree partnership focuses on how to converge processes into customers,” Kracl added. “In the past two years, we’ve changed our focus to offer more automated processes and focus on creating efficiencies, while also keeping the personal aspect of customer relationship management.”

Mortech also provides eligibility and investor guidelines that are digitally integrated into the results it delivers to its customers and subsequent borrowers.

“Some of the information doesn’t translate well,” Kracl said. “Furthermore, underwriters need guidelines in a narrative form but an originator would perhaps only want to know whether they can originate or a loan or not within fewer parameters.”

Mortech’s Pure Eligibility component provides eligibility and investor guidelines. “We see it as a filtered kind of process,” Kracl said.
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"MBA is very fortunate to welcome Jim to our Government Affairs staff," said MBA President and CEO Jonathan Kempner. "His thorough understanding of financial management and accounting standards and his years of active participation on our Financial Management Committee will allow him to step right in and hit the ground running. He will be an invaluable addition to our policy team."

Gross has more than 20 years of experience working in accounting and tax policy in the industry, including 10 years of Big 4 accounting experience. He previously served as the chief financial officer of NetBank Inc., an internet-only bank for which he designed and built net value-added internal reporting systems for two mortgage production units, a loan servicing operation and an on-line commercial bank. He has also served as CFO or controller for a number of small and mid-size banks and major mortgage banks.

Gross takes the accounting policy reins at MBA from Alison Utermohlen, who is retiring after 20 years of serving MBA members.
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Integration of the MindBox applications into StoneWater's broker portal, H2O Online, enables brokers to apply for mortgages online and receive loan approval decisions, qualifying conditions and alternative loan suggestions.

Advantage Systems Adds Dashboard to AMB Accounting Software
Advantage Systems, Irvine, Calif., a provider of accounting and contract management tools, added a dashboard analytics feature to its Accounting for Mortgage Bankers software package.

The feature expands the scope of traditional accounting systems so data can be more easily accessed by non-accounting staff. Data are displayed through charts and graphs. The feature can be used to study real-time loan profitability and help determine which loan products, branches and loan officers are most profitable. Another attribute is the ability to illustrate activity on loans even after closing, helping track amounts due from fees and ancillary expenses.

SigniaDocs Announces eSign eNsure
SigniaDocs, Houston, a provider of eMortgage services, announced an effort to protect lenders called eSign eNsure. It enforces compliant disclosure and closing practices by warranting the Good Faith Estimate, the Truth in Lending Statement and annual percentage rate calculations by creating electronic date and time stamps in key disclosure areas, signifying borrower understanding and acceptance of the loan conditions.

Developed in collaboration with Shanks Darby PC, Houston, a law firm specializing in commercial and residential real estate law and compliance, eSign eNsure creates legal representation and warranty around processes that involve electronic loan document disclosures.

Harland Financial Markets CompliancePal
Harland Financial Solutions Inc., Lake Mary, Fla., will market Compliance Pal, software from Compliance Coach Inc., San Diego, that enables compliance with the FACT Act Identity Theft Red Flags Rule.

CompliancePal is a web-based software that walks the user through a series of questions and produces the required risk assessment, mapping of red flags to appropriate detection and response procedures, a written program, training materials and acompliance status report—components necessary to pass an audit.

Ellie Mae, SAVVIS, Establish Partnership
SAVVIS Inc., St. Louis, Mo., a provider of IT infrastructure services for business applications, announced an agreement with Ellie Mae, Pleasanton, Calif., a provider of software and services for the mortgage industry. Ellie Mae will relocate and consolidate its U.S.-based IT infrastructure into two SAVVIS data centers in Santa Clara, Calif., and Chicago, leveraging a single-vendor environment to enhance connectivity between its redundant data centers.

Using SAVVIS’ IT infrastructure, Ellie Mae aims to deploy its web-based business services, including its Encompass Mortgage Management Solution, with greater efficiency and at lower cost. The partnership will feature SAVVIS’ Application Transport Network, which is integrated with most of its 29 data centers worldwide, virtualizing delivery of enterprise applications.

Pinnacle Capital Mortgage Taps Loan Score
Pinnacle Capital Mortgage Corp., a wholesale mortgage lender, partnered with Loan Score Decisioning Systems, Irvine, Calif., to utilize its decisioning and integration technology with its back-end loan processing system, Del Mar DataTrac. Loan Score technology allows PCM to automate product eligibility, pricing and underwriting approvals at the point-of-sale for brokers and also within DataTrac for operations staff.

Just Price Solutions Streamlines Mortgage Resolutions
Just Price Solutions, Pasadena, Calif., nonprofit technology subsidiary of Neighborhood Housing Services of America, announced a process to determine workable loss-mitigation options for borrowers, loan servicers and lenders.

By automating situational analysis, the process gives financial counselors, loan servicers and government stakeholders tools to communicate via the web and implement viable options for borrowers. Just Price Solutions allows real-time collaboration between loan counselors and servicers to determine borrower capability to sustain a fixed-rate mortgage and to identify alternatives to foreclosure.
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“There are several ways that this legislation helps make financing of tax credit assisted properties more available through FHA,” said Cheryl Malloy, senior vice president at the Mortgage Bankers Association.

Chief underwriters would review applications under the streamlined processing pilot program for all LIHTC loans instead of processing functions that would otherwise be performed by other employees.

Under the legislation, the HUD secretary must issue instructions for implementing the pilot program within 180 days, or before February 1, 2009.

The legislation exempts tax credit transactions from cost certification requirements if the estimate of the loan proceeds to actual cost ratio—at firm commitment—is less than 80 percent. It exempts tax credit properties from periodic inspections by the mortgagee, provided the agency allocating tax credits performs periodic inspections.

“The new legislation would eliminate several unnecessary processing steps, including a HUD subsidy layering review by providing that FHA insurance is not a subsidy,” Malloy said.

The legislation also prohibits HUD from requiring the escrowing of tax credit equity or any other form of security, such as a letter of credit.

“It requires the [HUD] secretary to determine whether any compliance monitoring by the allocating agency is sufficient to ensure compliance with any HUD requirements and, if so, to accept the agency’s evidence of compliance,” Malloy said.

In addition, the HUD secretary could not increase current multifamily mortgage insurance premiums until at least October 1, 2009, unless increased premiums would be necessary to prevent programs from requiring a credit subsidy appropriation.
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"This transaction came about through an excellent, long term relationship between the developer and Thrivent Financial for Lutherans that started in 1994 with the financing of the client’s Hartland Plaza in Austin," Lemos said.

Developers plan to take 14 months to complete Capstar at Compass Plaza, which is more than 90 percent pre-leased to Capstar Partners, Harden Healthcare, DMX Music and Compass Bank.
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The conference, Rise to the Challenge—Reporting Accurately in Volatile Markets, targets both residential and commercial/multifamily real estate finance professionals.

Upheaval in the mortgage markets, combined with changes in accounting and disclosure requirements, have created unprecedented financial reporting challenges for mortgage companies. MBA’s Accounting, Tax and Financial Analysis Conference 2008 offers a unique opportunity for mortgage finance professionals to share perspectives on the proper implementation of accounting and tax rules as well as prudent financial analysis and risk management. It also provides the opportunity to earn up to 16 CPE credits.

Register Now; Make Hotel Accommodations
Register online at www.mortgagebankers.org/conferences or call (800) 793-6222 (option 3) Monday–Friday, 9:00 a.m.–5:00 p.m. ET. You can also link directly to the registration form at http://www.mortgagebankers.org/files/conferences/pdf/M2902004_registrationform.pdf.

Accommodations are at the Mandalay Bay Resort and Casino, Las Vegas. Phone (702) 632-7777 or (877) 632-7800. Rates are $149/night standard. Cutoff date for this special rate is Nov. 10.

Sponsorship Opportunities
Conference sponsorship is the ideal vehicle to grab the attention of this important audience and position your company as a leader in the industry. For more information contact Phil Giorgianni at pgiorgianni@mortgagebankers.org or call (202) 557-2733.
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Candidates are preparing to complete the process and earn this designation in time for the anticipated graduation at MBA’s 95th Annual Convention & Expo, Oct. 19-22 in San Francisco (http://events.mortgagebankers.org/95th_annual/default.html). To prepare for the final stages of earning this designation, which includes intense written and oral exams, CampusMBA encourages candidates to enroll in an online CMB Prep Course.

CMB Candidates who have taken one of these online prep courses, which take place over a six-week period and are part instructor-led and part self-paced, have a higher success rate of graduation than those who do not take one of these courses. This summer, CampusMBA is offering two opportunities to complete this course and get on track to earn the CMB Designation. Each course is led by CMB Designees.

The prep course takes place Aug. 11 through Sept. 26 and is open for registration at http://www.campusmba.org/products/default.aspx?product_code=DL2-002010-WC-W. Both of these courses are Residential CMB Prep Courses. Prep courses for those seeking the Commercial CMB will be offered this fall. 

If you are not enrolled in the CMB program and would like to learn more about it as well as learn how close you may already be to earning this distinction, please call Alicia Willey at (202) 557-2766 or visit www.campusmba.org/cmb.

Learn about or enroll in the CMB program: http://www.campusmba.org/IndustryDesignations/CertifiedMortgageBanker?wt.mc_id=CMBProgNL.

Register for the June CMB Prep Course (enrolled CMB Candidates Only):  http://www.campusmba.org/products/default.aspx?product_code=DL2-002009-WC-W&wt.mc_id=CMBPrepNL.
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The Convention will deliver a program geared to near-term challenges facing the industry, as well as explore potential opportunities that exist currently and in the future. As always, the emphasis to provide solid, take-home value for participants will be at the forefront of our planning and execution of the convention.

In addition to popular workshop tracks covering management, business strategies and technology, participants can attend presentations covering legislative and regulatory issues and general industry trends, as well as an economic overview. The MBA Annual Convention is a unique venue that allows key industry leaders to articulate their thoughts and views about the current state of the industry and what the future might hold.

With 2008 being a critical political year and the convention being held just prior to the election of a new president, the Oct. 21 General Session will be both timely and provocative, with a discussion between former White House advisor Karl Rove and former senator and presidential candidate John Edwards.

Despite the challenging times facing the industry, it is important to take a break to be entertained and inspired. Jay Leno, the popular host of the Tonight Show with Jay Leno, will bring his wit and perspective as the headliner during Club MBA along with Beatles tribute band, the “Fab Four.” Chris Gardner will deliver his story of inspiration and perseverance at the Chairman's Luncheon. Gardner's life has been chronicled in his book The Pursuit of Happyness and in the movie of the same name starring Will Smith. And football legend Steve Young keynotes the annual Sports Luncheon.

An important part of every convention is the exhibit hall, where you can learn about products and services to help you conduct business as efficiently and effectively as possible. The exhibit hall is a part of the convention experience that allows you to closely interact with industry peers and make new industry contacts. This year's exhibit hall will once again offer a wide variety of firms who service numerous industry segments.

You can save on your registration fee through Sept. 19. The personalized registration form has been pre-populated with previous registration information to make your registration experience as easy as possible. Simply fill out additional details, such as registration fee type and payment information and return the form with payment to MBA.

You can also save time by registering through our online store. Once you log in, your registration details are captured and all you have to do is submit payment and checkout.

We strive to offer you a timely and informative program that provides tangible and practical benefits, and we hope you will be with us in San Francisco.

For more information about the MBA Annual Convention & Expo, visit the conference web site, http://events.mortgagebankers.org/95th_annual/default.html. For more information about the Convention’s Ticketed events, visit http://events.mortgagebankers.org/95th_annual/ticketed_events/.
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“The housing bill is the most important piece of housing legislation in a generation, and the Mortgage Bankers Association has been ahead of the curb on this for 10 years asking for GSE reform, a GSE regulator and FHA modernization,” said MBA Chairman-Elect David Kittle, CMB. “Ten years we've been working on this. It took turmoil in the housing market, but we're pleased that they did so.”

"This victory is the culmination of years of work by MBA leadership," said MBA Senior Vice President of Government Affairs Steve O'Connor. "Chairman after chairman of MBA has been working on these issues."

As elements of the bill began to take shape last year, MBA stepped up its advocacy efforts on Capitol Hill, providing testimony and suggesting language.

"We testified 18 times at congressional hearings last year and 12 times this year, and most of it involved things in this bill," O'Connor said.

Just as importantly, O'Connor added, MBA worked to ensure that ominous provisions did not make it into the final bill, notably a provision that would have allowed bankruptcy judges to alter the terms of primary mortgages for homeowners facing bankruptcy.

"It's important to note not just what is in the bill, but what is not in the bill," O'Connor said. "The bankruptcy provision would have been a deal-killer for the industry."

The final bill contains the following provisions:

• FHA Modernization: Authorizes a $25 million appropriation to improve technology, processes, program performance, eliminate fraud and provide appropriate staffing. Effective January 1 it also increases the FHA loan limit to the lesser of 115 percent of the local median home price or $625,500 with a floor for lower priced markets of $271,000; establishes a 12-month stay on FHA's proposal for risk-based premiums; sets the down payment requirement at 3.5 percent; and prohibits seller-funded down payment assistance (both direct or through a third party).

• GSE Oversight Reform: Creates a new regulator (five-year term, appointed by the president, confirmed by the Senate) with oversight authority similar bank regulators; establishes a new affordable housing fund and capital magnet fund to be funded by a 4.2 basis point fee on all new loans; significantly changes the affordable housing goals and raises the conforming loan limit to the higher of $417,000 or 115 percent of the local median home price, not to exceed $625,500 (the stimulus limits remain in effect until January 1).

• FHA Rescue: Creates a voluntary program for lenders to write down the loan balance in exchange for an FHA guaranteed loan not to exceed 90 percent of the newly appraised value of home. The lender would pay a 3 percent FHA loan origination fee. To qualify, the borrower must have a debt-to-income ratio above 31 percent on the original loan. The program is capped at $300 billion.

• Tax Incentives: Creates a $7,500 refundable tax credit for first-time home buyers; expands the volume cap for the low income housing tax credit; allows for tax-exempt treatment of bonds guaranteed by the Federal Home Loan Banks; and exempts the low income housing tax credit from the alternative minimum tax.

• Low Income and Affordable Housing: Encourages development of low-income and affordable housing by harmonizing multi-family FHA mortgage insurance programs with the low income housing tax credit. Allowing these two programs to work together will result in more effective uses of both programs.

• GSE Backstop: Authorizes the Treasury secretary to temporarily increase the GSEs' line of credit and to, if necessary, buy equity in the GSEs in order to provide confidence to credit markets. Also provides a role for Treasury and the Federal Reserve in GSE oversight to ensure safety and soundness. 

• TILA Reform: Requires Truth In Lending Act disclosures to be delivered seven days prior to loan origination; requires that disclosures include examples of how payments would change based on rate adjustments in addition to disclosing the maximum possible payment under the loan terms and mandates that the consumer receive early disclosures before paying anything more than a nominal fee that covers the cost of a credit report.

• Empowering States: Raises the cap by $11 billion on tax-free bonds that state housing finance agencies may use to help at-risk homeowners by refinancing troubled loans and appropriates $4 billion for states to purchase and renovate abandoned and foreclosed properties.

• Licensing: Encourages state officials to create a national licensing system for residential loan originators; allows HUD to create a licensing system for those states that fail to enact their own; establishes minimum qualifications for all loan originators and requires federal regulators to create a registry for banks and thrift employees who originate loans.  

So what does it mean for the industry, and for homeowners?

“It adds security,” Kittle said. “I think people will get back into the market now. It helps add liquidity to the market. When you have the GSEs—Fannie Mae and Freddie Mac—and settle the issues around them, and when you have the FHA modernization that we’ve been asking for for 10 years, and the rescue element to help people refinance mortgages into FHA, this is great…this bill covers every aspect of the mortgage process, and we’re pleased with it.”

O’Connor said the final bill was not “perfect.” However, he said that in the current political climate, getting a bill of this magnitude passed represented a major achievement. “We got most of what we wanted,” he said.
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