Lykken on Lending

[David]I want to get over to the other topic, Alice, that you have, and we’ll get into your segment. Now let’s talk about the Ginnie Mae announcement that you found this morning.

[Alice]Yes, it was good news. So for those of you who are familiar with trying to pull government loans as an issuer into Ginnie Mae pools, that we’ve been handcuffed a bit on being able to really fully utilize e-mortgages and e-notes because Ginnie Mae wanted any kind of a digital document loan to be within the same pool. So if you’re pooling $2 million worth of loans, they all had to be closed digitally with Eloans, you couldn’t commingle digital docs with a ink signature note and mortgage and so for a lot of lenders, there was just not best execution, right? You want to be able to just pull from all the loans that you have all your gov e loans to be able to pull together your pools. So they announced and it makes sense that the secondary conference is going on. So big announcement for that group meeting is that you can now co mingle effective with issuance on June 1st. So that was good news for lenders that one, it’s quick. Hopefully all of you are already approved as an e issuer and can jump in on this. If not, get yourself approved and look at your systems and see when you can start now effectively offering more government loans with e notes and e mortgages.

[David] Yeah, very good.  Alice, anything else you see on the legislative front that’s noteworthy.

[Alice] I think it was just interesting. The net production income that was used in the recent report on the mortgage banking and the risks and they showed the net loss that lenders are experiencing now, and they’re using the MBAs quarterly reports. Now, essentially, it feels like they’re using the MBAs reports to make their case that there needs to be more regulation over our industry and I thought that was interesting.

[Bill] So Alice, what you’re saying is that it’s not right to  have regulatory costs, drive up the cost to originate, and then use that high cost to originate to circle back to more regulatory costs.

[Alice] Exactly. They caused the problem. All this regulations caused the problem and the market swings were playing against us. And then the data stops in Q4 of 2022, which is the lowest point it was. It hasn’t been that low through the rest of 23 and the first part of 24. So it was an interesting spin that they’ve chosen. And I think they forgot that part, their impact on that.

[David] Yeah. Very interesting. There’s so much stuff going on right now in our industry. And I encourage you to stay in touch with what’s being posted out there. Again, check out Greg Sher’s comments. Alice, thank you so much for your report. I love so much of what you are looking at out there. Is there anything that you’ve talked about recently that had any developments on it. And he’s gotten more legs.  I’m looking back over some of the comments that we received from listeners. They all love your report.

[Alice] Yeah, I think I actually have a segway for Allen and that is that technology is driving every decision that we make today. You used to be able to just focus on operations or sales and technology is not just at the table. Technology is driving the table and the decisions that have to be made and where the money needs to be spent to gain those efficiencies and  so I think that’s a segue over to Allen. One of the biggest discussions out there.

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Alice Alvey, Master CMB
Vice President Partner Education and Training at Union Home Mortgage
8241 Dow Circle
Strongsville, OH 44136
D: 440.420.4294
C: 248.941.1939

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!