There’s no denying that much of the recent news about the housing and mortgage market has been negative. This includes housing inventory shortages, higher home prices, higher mortgage rates compared with 2022, and affordability challenges for would-be borrowers. But, if we flip the lens, many opportunities are embedded in these challenges. We can help your originator team reset their focus, strengthen new, relevant skills, and create a playbook for success in 2023.

Let’s face it… the last week has not been pretty for the banking industry with the implosions of both Silicon Valley Bank and Signature Bank, while still, other regional banks teetered but appear to have been pulled back from the precipice. Pure and simple, this was total mismanagement of risk between the assets on their liability side as well as a textbook case of how a bank should not be run. As a former colleague of mine used to say: “Nobody gets to bet the Bank.” Truer words…

Like all lenders, not one of you ever got into this business to manage compliance on a day-to-day basis, but here at SCA, we sure did.

SCA’s compliance consulting team comprised of industry veterans and leaders help financial institutions just like you to maneuver through the ongoing challenges and minefields associated with regulatory compliance in the areas of CRA, Fair Lending, HMDA, ATR/QM, RESPA, TRID, Flood Insurance, Mortgage Servicing rules, HOEPA and REMA.

Loan Origination Solutions

Servicing has increasingly become a focal point of regulators in the mortgage industry. When production picks back up, are you sure that your team is equipped with the right tools to succeed?

Abrupt increases in mortgage rates and decrease of production and loan volumes has allowed lenders to focus on loan quality and salability to investors. The overall critical defect ended Q1 2022 at 1.93%, representing a .02% decline from Q4 2022. Q2 2022 purchases alone, accounted for 77.24% of all faults, up 28% from the share of 60.18% in the prior quarter, while refinances accounted for 22.76% of defects this quarter.

In today’s world, most of us could not imagine living without the modern advances made by the use of technology and automation. It’s no different in the lending world; so many of our processes are reliant on automation- whether you realize it or not. Do you use an LOS to process loan applications? Automation. How about onboarding to the core? Automation. Even if you don’t use an interface, your core has automation by way of applying product defaults, generating daily reports, the posting of general ledger entries, and more. Initially, the use of automation was a way to remove the duplication of efforts and speed up a tired process. But now, we rely on it so much that often we forget to understand the mechanics of how it all works.

In this series we will highlight some of the folks that keep the SCA machine moving forward and continually improving year over year to best meet our clients needs.

This week, we’d like to introduce one of the newest additions to the SCA family of consultants: David Brennan