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FANNIE MAE AND FREDDIE MAC JJAN.U- AFERBY. 22001188
the best client experience in the nation for the last eight consecutive years and running,” Quicken’s founder and chairman Dan Gilbert. (The Hill, Sylvn Lane, 02/22/18; HousingWire, Kelsey Ramirez, 02/22/18)
Are alternatives to traditional appraisal reports more risky?
Lenders are increasingly adapting alternatives to traditional appraisal reports— including hybrid appraisals, broker price opinions, and automated valuation models—which offer different strengths and challenges, according to Moody’s Investor Services. As a result, new residential mortgage- backed securities that are collateralized by these mortgages are at risk of weaker credit quality, according to Moody’s.
“In seeking to reduce operational costs, increase ef ciencies, and address the shrinking ranks of US property appraisers, mortgage market participants are exploring the use of alternatives to traditional means of calculating property values and, in some cases, starting to use them more,” said Moody’s analyst Lima Ekram. “Their use in tasks that affect the credit quality of RMBS securitization collateral could, however, lead to a weakening of new RMBS transactions.”
However, this risk can be mitigated by using products with stronger pro les, adhering to borrower or loan attributes that result in stronger and/or more predictable mortgage performance, and employing additional RMBS credit enhancement, according to Moody’s. (MPA Magazine, Francios Monfort, 02/23/18)
Reinventing homeownership by fractionalizing residential equity
In a Lend Academy interview, Ron Suber, President Emeritus and Senior Advisor at Prosper Marketplace, said:
Another [ n tech lender] that I’m very excited about is Unison. So there are four companies like Unison in America, there are a few in Australia and others, where they’re trying to unlock people’s equity and fractionalize the equity in the biggest asset people own.
So for example you, Peter Renton, own a house, your kids are going to college, what should you do to come up with $100,000? Do you do a home equity line of credit, do you do a new mortgage, do you go to one of the student loan lenders and take on more debt or do you sell 5% or 10% of the equity in your home.
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