Many NFL Fans might remember the Ice Bowl in 1967 where Green Bay and Dallas faced off in -13 degree weather and wind chill at -46 for the AFL-NFL World Championship. (No, there wasn't a "Super Bowl" yet!) Green Bay won the championship 21 - 17.
For the younger generation, we were able to watch history in the making with Ice Bowl 2.0 in Arrowhead Stadium to kick off this month. The temperatures were -4 degrees with a wind chill at -27. The Miami Dolphins had to travel away from their homes in South Beach with highs of 84 degrees to the frozen tundra of Kansas City. The Chiefs walked away victorious in a lopsided 26 - 7 win.
To put into perspective interest rates during the original Ice Bowl were at 4.625% and during the Ice Bowl 2.0 the interest rate was at 7.06%. Oh, how the times have changed.
Appraisal bias shouldn't be your only concern, who is conducting your appraisals?
FNMA’s Mortgage Fraud Investigations (MFI) team has detected instances of appraiser identity theft in mortgage loans originated between 2021-2023. Unlicensed appraisers are unlawfully using the identities of licensed appraisers without the licensed appraisers' knowledge. Red flags to identify this include discrepancies in names, signatures, contact information, and payment details. Lenders are advised to conduct thorough due diligence, use public records, and follow established procedures. General steps for fraud prevention include knowing third-party originators, educating staff, implementing a zero-tolerance fraud policy, sharing information within the organization, and reporting suspicious activity through established channels.
Nowadays, securing a mortgage has become more accessible thanks to technological advances. However, as we increasingly rely on digital platforms, we open ourselves to the possibility of a cyberattack. In 2023, according to Cybersecurity firm SlashNext, cyberattacks via phishing emails increased by 1265%, and a 967% rise in credential phishing in particular.
Similarly, over the last six months, we’ve seen the same trends occur in the mortgage industry. Whereas, major players have suffered from a series of Cybersecurity attacks, sparking concerns about the industry's readiness to handle such threats.
We asked our Director of Servicing Jules McCurley for her take on the most common findings of 2023 in Servicing QC. Here's what you should be looking out for:
12 CFR § 1024.38(b)(4) - Missing critical documents not boarded to the servicers imaging system. Origination documents such as the original Note, DOT, and Escrow disclosures. And Servicing documents such as delinquency notices, Loss Mitigation requests, and annual escrow analysis.
FNMA §D2-2-03 - Delinquency Letter Requirements not being bet per FNMA when using the billing statement in lieu of a delinquency letter. Per FNMA D2-2-03, the Requirements for a payment reminder notice are: 1) Address the borrower by name. 2) State a desire to work with the borrower to preserve homeownership. 3) State the amount of late charges that are due, if applicable. 4) Explain that the borrower can seek assistance with household budgeting at no charge from HUD-approved housing counseling agencies that can be found on HUD.gov. 5) Inform the borrower about the availability of additional educational resources at Fannie Mae’s Know Your Options™ website.
State Guidelines - Release of Lien/Reconveyance not completed and sent for recording within the required state guidelines. This varies by state but is often not completed and sent timely. In addition, evidence the Release of Lien/Reconveyance was prepared and sent timely should be retained within the servicer's system of record.
RESPA § 1024.17 - Failure to conduct an escrow analysis at the completion of the escrow account computation year.
Be sure to follow Jules McCurley for "Jules Rules" on LinkedIn
As MQMR concluded 2023, we joyously marked the occasion with our 6th annual Ugly Sweater Party. Being a fully remote company, fostering connections in enjoyable and distinctive ways holds a significant place in our core values.
MQMR is unique in that we have been remote since 2019, before the pandemic! In the spirit of keeping our company culture rich and thriving, we encourage activities for our employees to connect!
Fun Fact: Every month we hold company-wide “wellness Wednesdays” to encourage mental and physical health as well as encourage employees to meet on a one-on-one basis through our employee connection program via Slack called “Donut”! This is a program that pairs employees with others in the company that they might not talk to regularly!
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