[Alice] Thanks Dave and hi everyone. Two items I wanna cover for you today. First of which is the trigger leads bill, which many of you I’m sure have heard the Senate has passed and will now be on its way for President Trump to sign. Once he does sign that it’ll be 180 days. So basically in six months that practice of purchasing leads from a credit bureau at the time that the borrower initiates an application for any kind of lending. For us specifically, we watch mortgages that type of marketing aspect and lead generation will stop. Lenders who for their own portfolio, their own existing customers, for their customers who may have an inquiry hit their report. Those types of trigger purchases are still going to be allowed. But for X, Y, Z lender to just blanketly scoop up a particular demographic that they choose, or just wide net in a particular geographic region as an example of any customer who just applied for a mortgage and a credit report was ordered those types of trigger leads for those of who aren’t in the business, that’s what we’re referring to. Those types of trigger leads will be stopped. So no more will customers be getting 50 phone calls every time they apply for a mortgage. So we’ll wait for the president’s signature to know the effective date. As far as what the industry’s going to do. There’ll be some companies who make changes right away. There’ll be others who ride that horse all the way to the finish line today, 179 to scoop up as many leads and potential people, they can call their customers with a financial relationship as possible. So we’ll watch that, see if there’s any developments you should be aware of. The second thing I wanna talk about is, as you heard in Adam’s report, he talked about the letter that the MBA sent over to Fannie and Freddie requesting changes in construction and renovation lending. Again, a little background for those of you who aren’t doing this every single day, the reason this is important in particular that the first bullet talks about being able to get Fannie and Freddie to purchase the loans during, at the very beginning of construction for what we call a single close. Most customers prefer this. It’s so much easier to just close one time. When you’re building a home, you’re on the same set of documents, but the documents allow for that you’re able to take the draws during construction In today’s world, the lender carries all that risk until the house is a hundred percent complete. And a lot can happen and a lot goes wrong. Some companies do this amazing work. They have terrific programs, but it’s very few companies who are willing to take that risk. Getting this change. Also getting a chance to sell renovation loans earlier, such as a 50% completion point. It would be really much needed changes in the way mortgages work today, so that more lenders would be at the table and take the risk off of the lender and put it with Fannie and Freddie who can well afford this and well manage this at the time that allows the lender to sell it right at the time of closing. So those are the reasons behind it. The why with Adam’s report and why that letter was so important and something we hope everyone in the industry can get behind and encourage Fannie and Freddie to make those changes. That’s my report for today. Dave, back to you.
Alice Alvey, Master CMB
She handles development of their World Class Training program designed to support UHM partners and organizational effectiveness.
Prior to UHM, Alice served as Senior Vice President at Indecomm leading the Indecomm-Mortgage U division, Internal QA and Compliance and SaaS technologies. Indecomm acquired Mortgage U in 2013, where Alice was President/Co-founder, providing training and consulting since 1996. Prior to MU she served as SVP of Operations at a national bank overseeing operations for wholesale, retail and correspondent from underwriting through servicing, and compliance.
She has been in the trenches of mortgage lending operations from application through servicing for over 30 years. Her authoring work in training content, policies and procedures and the FHA/VA Practical guides illustrates her ability to bridge regulatory requirements with day-to-day operations.
Alice has been a weekly contributor to the Lykken on Lending show since its beginning in April 2009 and has made her weekly contributions to 450+ episodes!