GSEs Vy­ing to Help Lenders Man­age MSRs

National Mortgage News - - Servicing - By Bonnie Sin­nock

Govern­ment-spon­sored en­ter­prises Fan­nie Mae and Fred­die Mac are in a race to of­fer ser­vices and tech­nol­ogy that help mort­gage bankers raise cash from mort­gage ser­vic­ing rights.

Fred­die Mac, for ex­am­ple, re­cently launched tech­nol­ogy that helps man­age the trans­fer process for mort­gage bankers that are sell­ing MSRs as its up­grades au­to­ma­tion sup­port­ing loan and ser­vic­ing sales.

“You have to take that ser­vic­ing, all the data and doc­u­ments, and move them onto [a new] sys­tem phys­i­cally. That tends to be a messy process,” said Hakan Beygo, se­nior di­rec­tor of sin­gle-fam­ily se­condary ex­e­cu­tion strate­gies at Fred­die Mac, in an in­ter­view. “So we said is there a way to ad­dress and make this process eas­ier?”

At the same time, Fan­nie Mae is mak­ing plans to take ser­vices and tech­nol­ogy that sup­ports MSR sales a step fur­ther in June through im­prove­ments to the fund­ing process.

“For lenders who want to sell us a loan and sell the ser­vic­ing to a buyer we’re try­ing to im­prove that,” An­drew Bon Salle, ex­ec­u­tive vice pres­i­dent at Fan­nie Mae, said in a sep­a­rate in­ter­view.

The tech­nol­ogy im­prove­ments and ad­di­tions the GSEs are im­ple­ment­ing are a re­sponse to thin lend­ing mar­gins that are driv­ing some mort­gage bankers to sell or se­cure fi­nanc­ing against their mort­gage ser­vic­ing rights as well as im­ple­ment cost cut­ting mea­sures.

In ad­di­tion to sim­pli­fy­ing ser­vic­ing pro­cesses, the GSEs are con­tin­u­ing to test drive pi­lot projects aimed at do­ing the same for orig­i­na­tion op­er­a­tions, but some of these may take time to ma­te­ri­al­ize.

Ef­forts to test the use of con­sumer bank in­for­ma­tion tra­di­tion­ally used to val­i­date as­sets to also ver­ify in­come and em­ploy­ment for W-2 em­ploy­ees, for ex­am­ple, are still due to be rolled out by Fan­nie to the full mar­ket this year, but the project is not ready for prime time yet.

Among hur­dles that have to be ad­dressed in au­tomat­ing the process are dif­fer­ences in the data sets dif­fer­ent banks de­liver, Des­mond Smith, se­nior vice pres­i­dent and head of cus­tomer de­liv­ery at Fan­nie Mae, said dur­ing a ses­sion at the MBA’s Na­tional Se­condary Mar­ket Con­fer­ence in New York.

“Banks don’t have the same or sim­i­lar ways to sub­mit the data,” said Smith.

“It is ab­so­lutely our goal to bring this out to all lenders,” he said, but added, “I don’t think I can give you a date right now.”

Fred­die Mac also has a sim­i­lar pi­lot project in place, and also does not have a def­i­nite roll-out date yet, Se­nior Vice Pres­i­dent Kevin Palmer said at the con­fer­ence. In its test­ing, Fred­die is look­ing at is­sues like, “How do we in­still the con­fi­dence that this is done in a very safe and se­cure way?” Palmer said.

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