• Tech Trends in Mortgage Due Diligence

    Posted by Gopi Krish | General Manager | Wipro Limited | Date: 10 Sept 2015

    Traditionally, the loan due diligence business was considered a people business whereby loan files were reviewed objectively by experienced professionals that understood the implications of credit, collateral, market, and borrower data. In fact, a highly seasoned and analytical talent base is still the most critical feature that drives accurate and actionable due diligence results. However, advancements in technology and data & analytics have naturally led to advancements in the field of mortgage due diligence. Today, technology is delivering substantial benefits to due diligence providers and their clients. Here are some of the ways technology can improve the quality, accuracy, and efficiency of due diligence reviews in mortgage loan manufacturing and secondary market processes.

  • 10 Things You Didn’t Know About Jennifer LaBud, COO at Opus CMC

    Posted by Stephanie Czekalski, Marketing Manager | Opus CMC | Date: 06 Aug 2015

    Recently, Jennifer LaBud, Opus CMC’s founding partner and COO won two awards for her leadership in the mortgage industry; National Mortgage Professional’s Elite Women in Housing Award and HousingWire’s Women of Influence. When we read about leaders in any industry, particularly women, we often want to hear about their career path and inspirations. Of course, we love the inspiration but it is also fun to know a little bit about the person behind the success. 

    In this blog, we asked Jennifer LaBud to share information about her career success as well as some little known facts that make her who she is:  

  • The Downstream Impact of a Third Party Review

    Posted by Bill Shuey, Director of Securtization | Opus CMC | Date: 26 Jun 2015

    Third party reviews are being used at every aspect of the loan value chain; from pre & post close quality assurance at origination through residential mortgage backed-security (RMBS) transaction reviews. Since third party reviews meet a wide range of needs such as reducing buybacks, flagging fraud, and delivering greater deal transparency, it is only natural that the quality of the review at origination will impact how a transaction unfolds at secondary market.

  • An Investigative Approach to Loan Reviews

    Originators, servicers, and investors all have various reasons to validate the quality and accuracy of a loan or loans but what it comes down to is simply this: when businesses make decisions based solely on guess work or “rough reviews” the  cost of the unknowns far outweigh the cost of a thorough due diligence review. While the specific risks within a loan file or portfolio can range from borrower credit worthiness to fee calculations or non-compliance, the broader risks for a business are twofold:

    1) Not having the right information to properly analyze risk and opportunity

    2) Lacking the knowledge, expertise or objective approach to identify the risks

  • ABC’s of SEC’s ABII: Impact on ABS/MBS Due Diligence

    Posted by John Levonick, Chief Compliance Counsel, Opus CMC | Date: 11 Jun 2015

    I recently published an article in the Journal of Structured Finance on how changes to the SEC’s regulation ABII impacts securitization due diligence.  The article entitled “Asset Backed Securitization Third Party Due Diligence Services:  Increased Transparency via Exchange Act Rule 15Ga-2 and Rule 17g-10” was published in the Journal of Structured Finance’s May edition and we recommend reading it for a deep dive view the SEC’s reformed regulation. 

  • TRID Part II – Due Diligence Liability Analysis

    Posted by John Levonick, Chief Compliance Counsel, Opus CMC | Date: 03 Jun 2015

    The Loan Estimate (LE) and Closing Disclosure (CD) delivery, timing, and content requirements are codified in Regulation Z and may be subject to the liabilities provided by TILA, including assignee liability and private rights of action. In short, what was RESPA liability for violations of RESPA before is now, in the case of many of the elements of the new disclosures, now TILA liability. Remember the GFE and Initial TIL have become the LE, and the Final TIL and HUD-1 are now the CD.

  • The 2016 Forecast for Non-Bank Mortgage Servicers: Cloudy with a Chance of Heavy State Regulation

    Posted by John Levonick, Chief Compliance Counsel, Opus CMC | Date: 27 Apr 2015

    On 3/25/15, the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) issued for public comment proposed Regulatory Prudential Standards for Non-bank Mortgage Servicers. As the regulatory authorities of non-bank mortgage servicers, state regulators anticipate enhanced prudential regulatory authority to implement comprehensive oversight programs for non-bank mortgage servicers. 

    After an extensive review of the current mortgage servicing industry to better understand its functions and impact on financial markets and consumers, the CSBS and AARMR determined that increased state prudential regulation of non-bank mortgage servicing companies would  

  • Preparing for the TRID Rule Volume 1

    Posted by John Levonick, Chief Compliance Counsel, Opus CMC | Date: 25 Apr 2015

    By now we (should) know what the basic tenements of the TRID rule are. The Loan Estimate and the Closing Disclosure have been consolidated and replace the function and data points of the Initial TIL, GFE, TIL, and HUD documents. They also consolidate the duality of risk that existed between RESPA and TILA as it applies to these specific disclosures. These new disclosures are effective with all applications, which are also newly defined, on or after August 1, 2015.

  • Jesinoski v. Countrywide Home Loans

    Posted by John Levonick, Chief Compliance Counsel, Opus CMC | Date: 18 Feb 2015

    On January 13th, the United States Supreme Court issued its eagerly anticipated opinion in the case of Jesinoski v. Countrywide Home Loans (“Jesinoski”), which resolved the district court’s conflicting opinion on what actions a consumer must undertake to effectively rescind a loan under the Truth in Lending Act (“TILA”).

    Jesinoski v. Countrywide Home Loans

  • Joint Agency Guidance on Private Student Loans With Graduated Repayment Terms at Origination

    Posted by John Levonick, Chief Compliance Counsel, Opus CMC | Date: 5 Feb 2015

    The OCC, FRB, FDIC, NCUA, CFPB ("agencies") in conjunction with the State Liaison Committee (SLC) of the Federal Financial Institutions Examination Council (FFIEC), have issued private student loan guidance to financial institutions with regard to loans that have graduated repayment terms. Private label student loans, not just federal student loans, may offer borrowers graduated repayment terms in addition to fixed amortizing terms at the time of loan origination.