National Mortgage News - May 2024

What makes mortgage professionals embrace, or balk at, AI use

While many working in home lending are looking to artificial intelligence for future efficiency and automation, job loss is also a concern among a majority of respondents in a new Arizent survey.

While the rise of artificial intelligence in home lending brings about "fascination" over its capabilities for some, others claim it's a technology people might use "to mask their incompetence."

In a study posted weeks after it raised concerns about "junk fees," the Consumer Financial Protection Bureau noted that the amount of borrowers paying discount points doubled from 2021 to 2023, with the increase larger among consumers with lower credit scores.

Some mortgage companies had to write down values in the fourth quarter due to increased prepayment risk, but many loans haven't been exposed to that concern.

The order in the Cenlar loan modification case highlights what courts may look for in qualified written request responses, something other servicers like Specialized Loan Servicing also are contending with in litigation.

The Department of Housing and Urban Development agency warned in an online notice that issuers with prepayments exceeding certain limits could face sanctions.

Keeping vendor arrangements under wraps, "pen-tests" and a few simple email setting changes can make a world of difference in avoiding future attacks, experts say.

The memorandum creates channels for sharing information about nonbanks between the Federal Housing Finance Agency and the Conference of State Bank Supervisors.

The appellate court decision allowing the Justice Department to reopen an investigation into the National Association of Realtors is likely to disrupt the Sitzer/Burnett settlement, Keefe, Bruyette & Woods said.

Also, Argyle, Two Harbors add mortgage tech experts to boards, Planet Home expands sales team and Calque names its CEO.

By imposing this designation, the Federal Housing Finance Agency and the Biden Administration will only drive more industry consolidation and increase systemic risk writes the Chairman of Whalen Global Advisors writes.