The Mortech Blog


Spotlight on Monthly Complaint Snapshot from CFPB

Posted by Lori Rezac on Feb 23, 2017 12:39:17 PM

Mortgages had the spotlight in the Consumer Financial Protection Bureau's (CFPB) monthly compliant snapshot. Many are experiencing problems with mortgage servicing, escrow accounts, and resolving loan problems.

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Mortgage Hedging – When Should I Hedge?

Posted by Brian Hall on Feb 22, 2017 12:25:53 PM

A growing question in the mortgage industry is: “when should I think about mortgage hedging?” After all, for those with the capability to hedge, doing so should be a no-brainer. Properly hedging your pipeline mitigates risk and allows for the execution of trades on hedge products that allow you to make more money. And at the end of the day, who doesn’t want that?


Often when considering mortgage hedging, though, you have to think about the barrier to entry, and if you’re ready to jump in or not. While there isn’t an exact number that you can point to as the right amount of money you should be seeing each month before hedging, there’s a pretty defined range that you can see if you fall into. Typically, lenders want to be on the higher side of between $12-15 million dollars in monthly hedgeable loans before considering mortgage hedging. And while being closer to $12 million can work, it’s typically best to wait until you’re at least trending toward the higher end of that range before diving in.



But then, once you’ve evaluated how much money you’re seeing monthly in hedgeable loans, and you’ve decided that mortgage hedging is something you want to get into, what’s the next step? That’s where Mortech comes in.


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Secondary Marketing Tools, Third Party Originators and LOS Integrations – Speed and Tools in a Vital Time

Posted by Brian Hall on Feb 16, 2017 1:55:27 PM

Gone are the days of, “I’ll get that to you tomorrow”. Ever since the internet began powering our everyday lives, the world has become that of instant gratification, for better or worse. Everything from the news we get, to the way we communicate happens instantly, and waiting too long can drive those you’re communicating with crazy. These same ideas have spread into how businesses, and even entire industries, operate. As communicating and working together becomes faster and more simplified, utilizing these tools keep your business ahead of the curve.

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MBA Recommends GSE Reform

Posted by Lori Rezac on Feb 10, 2017 2:40:48 PM

The Mortgage Bankers Association (MBA) has released a paper, GSE Reform Principles and Guardrails, with their recommendations on Fannie Mae and Freddie Mac (the GSEs) reform. The reform of the GSEs being one of the last items left over from the financial crisis, the MBA has put together a Task Force to determine the best course of action. The Task Force itself was created using MBA member companies of various sizes and models, representing a broad range of real estate entities.

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The Relationship Between Mortgage Rates and Online Quoting

Posted by Brian Hall on Feb 8, 2017 3:13:44 PM

In the last six months, mortgage rates have taken a sharp turn from the direction they were headed for much of the last two years. After a steady decline, rates shot back up at the beginning of November in 2016, and despite dropping some, they still remain substantially higher than they were at any point in the last two years.


However, as rates have gone up, so has online quoting by lenders.



Over the six-month span, as rates began to climb, online quoting and advertising by lenders followed suit. As interest rates rise, and refinances dwindle, online quoting is a great way for lenders to get their brand in front of thousands of potential borrowers on a daily basis. By quoting online to marketplaces like Zillow, Bankrate®, and LendingTree®, you can find more long-term borrower contacts, and reach them with the most accurate depiction of a product you can offer.


If the last six months are any indication, rates may not be dropping again any time soon. Are you staying competitive, and getting your rates in front of potential long-term borrowers? Are you providing them with the most accurate and updated rates, and reaching out to them as soon as possible? Mortech has the tools you need to do that and more. Together with Mortech, you can keep filling your pipeline with leads, and also be equipped with the tools you need to distribute and nurture those prospects.


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Support Squad: Help at Your Fingertips

Posted by Brian Kohel on Feb 7, 2017 1:05:23 PM

How many times have you had a question pop into your head late at night, long after people in your office or anyone who might know the answer has left for the day? Chances are too many times, and we’ve had the same thing happen to us too! We’ve recently launched our online Help Center to assist in any after-hours questions that might arise.


The Help Center allows for our customers to find help and answer their questions whenever they need them. Some of our most common issues we hear about are addressed in the Help Center already, but it doesn’t stop there. This is an ever evolving project, and we encourage you to utilize it whenever possible, and we recognize it is still in an infant state of development. That’s where you come in, if you have a question you feel should be addressed in the Help Center let us know and our documentation team will work on getting it added.


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HUD Officially Suspends Premium Reduction

Posted by Lori Rezac on Jan 25, 2017 12:05:00 PM

Hours after Donald Trump was sworn in as the 45th President of the United States, HUD released Mortgagee Letter 2017-07 suspending the FHA annual premium reduction indefinitely. All changes have been halted until it can be determined if the premium reduction is warranted. An additional mortgagee letter will be issued if this policy will move forward.


The premium cut would have offered savings of approximately $500 a year for the average borrower. This would have impacted their monthly payment by roughly $42, which could mean the difference between affordable and just out of reach. Additionally, with an increase in mortgage rates expected for 2017, this could have softened the financial blow for low to moderate-income borrowers.

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What's Happened to Mortgages Since the Housing Crisis?

Posted by Brian Hall on Jan 24, 2017 2:55:01 PM

Mortgages have come a long way since 2007. After the housing bubble burst, many wondered if the market would ever recover, and if it did, how long it would take? Now, a little over six years have passed since the U.S. Treasury announced it would be providing unlimited support to Fannie and Freddie, despite the huge losses at the time. We can now look back at what the market’s recovery has looked like.


The correlation of data is pretty straightforward – as rates began to decrease in 2010, the average loan amount for the year trended upward, and after 2012 when rates went on a two-year climb, average loan amounts responded by dropping. It’s interesting to note that other than the drastic change in 2012, which led to a responsively less ideal next two years, the data was pretty consistent in trending one direction. Even when rates had risen for the second straight year in 2014, they were still lower than 2011 or 2010, and when they began to drop again in 2015 and 2016, average loan amounts shot up to the highest they were in the entire period.


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FHA Reduces Annual Premiums on Most Mortgage Loans

Posted by Lori Rezac on Jan 17, 2017 1:11:19 PM

In an announcement made by U.S. Housing and Urban Development Secretary Julian Castro, FHA is reducing its annual mortgage insurance premium (MIP) by 25 basis points. This reduction applies to most new mortgages with closing/disbursement dates on or after January 27, 2017.

The action is in response to the current risk environment. The Mutual Mortgage Insurance Fund (MMIF) has increased in health for four straight years and mortgage rates are increasing forcing mortgage credit costs to go up.

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Four Ways You Can Get 2017 Started on the Right Foot

Posted by Brian Hall on Jan 12, 2017 12:55:55 PM

Did you make any New Year’s resolutions? You shouldn’t just set goals for your personal life though; lenders should also set business goals for themselves, and set out to provide better service to their customers, get bigger returns, and improve overall performance. Fortunately, with Mortech at your side, these goals you set can be a lot more achievable than something like going to the gym every day.


With that in mind, here are four things you can do right now to start improving your business throughout the coming year, all with Mortech’s help along the way.

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