[David] Alice Alvey, good to have you here. She is not acting retired folks. She is retired, but I’ve already got on her on calls with me and doing some things. It’s fun to see how her brain works. It’s just amazing. Alice, do you have a legislative update for us today?
[Alice] With the legislative update? It’s also the agency update, right? So we’ve got to keep an eye on what Fannie and Freddie are doing and they did issue their first memos of the year, early February. We haven’t had a chance to talk about that. Both of those memos. open up small doors like I mentioned in our previous discussion about rates. So it’s important to go through these. I hope all of you have great change management systems so you can jump on these and be ready for when DU 12.0 comes out and then updates accordingly. Both of them are trying to open up things a little bit with the appraisal piece so that you can have more hybrid appraisal opportunities. So, take a look at those. The most important thing that I want to bring up is that Fannie is expanding for when you get asset validation in the loan file. This is an underutilized area at a lot of companies. So, loan officers, this is your job to learn how to talk to customers so that they are comfortable and you’re comfortable with the technology to pull those 12 months of asset statements into a loan file. If you are not doing that on all the deals that you can, you are missing opportunities because the DU and LP can only validate rent history or just asset value, right? Looking at that borrower’s cash flow without a full 12 months. Now, loan officers push back and say, wait a minute, I don’t want them looking at large deposits or anything else to going back that far. They don’t. I can tell you they don’t. They’re still only looking at that 60 day window for the assets. So it doesn’t open a can of worms for you in the loan analysis. It does mean you have to be good at understanding how to help navigate with the customer through the technology to get it to work. I understand that has its roadblocks. Some companies have set up specialists, uh, special help departments to be able to jump on that. So if a customer gets stuck, it doesn’t have to be the LO who’s the one who has to be the tech expert. But more and more you see both Fannie and Freddie. Leaning on this feature to get you that little edge in underwriting of a deal you might have thought is not going to work. There’s no credit score, but you get those 12 months of asset statements and now you’ve got an opportunity for those loans. It can be surprising, and right now, like we’ve talked about every couple of deals matters, especially if you’re a loan officer trying to make the house payment. So, I think that was, check out both of those, uh, memos, both Fannie and Freddie issued those with some appraisal improvements and take a look at your, for your company on that asset statement, asset validation as a way to get more business in. Also, Fannie Mae did issue this, their information and business continuity. Maybe Allen is planning on talking about that. They have a new document out there. Their information security and business resilience supplement. So, the supplement is something that you really got to make sure you’re also dedicating the resources to, to get those policies and procedures up to date. So that’s my report for today, Dave. Yeah.
[David] And if you’re looking for anyone who helped you write the policy procedures, there is no one better than Alice Alvey, a. A fluid pen, especially when it comes to the complicated topic of policy procedures. Excellent, Alice. Appreciate it so much. I want to just encourage you all to go back and listen to all, every one of our contributors, Alice, Bill, David’s, Allen’s, Marc’s, they all have a place on our new website. If you haven’t checked out our news website, do so. You want to go binge on Alice, you can go to her page and binge away because she, all of the things she said, but there’s, it’s meaty stuff. Each one of these, our contributors share. So Leonard’s just a shout out to Ben Dela Cruz who helped get our new website built and launched. Thank you so much, Ben and I love the content that is there and of course, if you’re interested in advertising, we’d love to have you there.
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!