coestervms day 1 certainty - coestervms compliance, coestervms reviews

Collateral Underwriter

Day 1 Certainty

▪During the MBA Conference Fannie Mae announced the implementation of Day 1 certainty which promises to give lenders that sell to Fannie Mae protection from buyback risk. ▪Day 1 Certainty is Fannie Mae’s new initiative that

provides our customers with freedom from reps and warrants on key aspects of the mortgage origination process.

Day 1 Certainty

▪Fannie Mae is offering data validation services on income, employment, and assets through Desktop Underwriter and on appraisals through Collateral Underwriter. – These loan components have been the biggest pain points

that can lead to repurchase requests.

– www.fanniemae.com/Day1Certainty

Day 1 Certainty

Collateral Underwriter

▪What is Collateral Underwriter (CU)?– CU is a proprietary appraisal review application developed

by Fannie Mae. It is the latest addition to our comprehensive suite of risk management and loan quality tools available to our lender partners.

▪What does CU do? – CU leverages an extensive database of market data and

analytical models to highlight appraisals with heightened risk of property eligibility and policy compliance violations, overvaluation, or quality issues.

Day 1 Certainty

▪Fannie Mae is offering data Day 1 Certainty on appraisals with CU Scores below 2.5

Collateral Underwriter

▪Use of Collateral Underwriter– Currently only 27% of appraisals are viewed in CU (with

over 1.8 million appraisals viewed).

▪What I see with most mortgage lenders▪Full CU Implementation team ▪Relying on AMC’s and understand general importance ▪No understanding or implementation of the process

Collateral Underwriter

Collateral Underwriter

Collateral Underwriter

Implementation

▪Large Clients 3 Billion+ – Chief Appraiser▪Most of our larger clients have hired a chief appraiser and team

to handle implementation. ▪ Internal team handles CU review, clear flags and order reviews on

files 3 or above. ▪Medium Clients 1 – 2.9 Billion – Defined Escalation process▪ In House – Underwriter reviews, revisions on flags, field or desk

reviews on orders above 3’s.▪AMC – Handle Revisions on Flags, clear flags, order field or

desk reviews on orders above 3’s ▪Smaller Clients - 1 billion or less – ▪Similar to above but rely heavily on AMC or outsourced process

Sample Scorecard

Sample Scorecard - CU

Monitoring

▪Quality Monitoring is not just a file by file basis but an overall management process to ensure you have proper controls in place to ensure the quality of the collateral and a proper collateral management process and procedures.

Future Position

▪As much compliance and controls that are in place for underwriting the income you should expect to invest in underwriting the collateral. ▪Many lenders have addressed a lot of these concerns with

hiring a chief appraiser or using a third party AMC.

Service

▪East Coast and West Coast Operations– Corporately located in Rockville, MD– Operations center located in Irvine, CA

▪Designated team with 20 years experience in the mortgage industry

Service, cont.

▪Service Levels– Nationwide competitive average turn times– Vendor management recruiting campaigns for appraisers– Nationwide fee calculator and TRID friendly fee schedule– Appraiser SLA: acceptance and scheduled within 24 hours– Appraisal must be submitted within 48 hours after

inspection– Over 1,500 appraiser mobile users

Compliance▪Full AIR and Dodd-Frank Regulatory Compliance▪Integrations directly with GSE’s for ULDD and UCDP

Compliance▪Full Audited Compliance Management System▪Full-time Compliance and Legal team▪Borrower facing Appraisal Delivery System▪Comprehensive Value Rebuttal process

QC Process

▪Team of certified staff appraisers▪Tiered QC Process

– Appraiser training for entire network– Appraiser Intelligent Review (AIR) system based on GSE

and HUD guidelines– Client, state and investor review checklist

▪Provide UCDP and EAD submissions

Technology

▪Integrations with major service providers▪TRID calculator and estimated turn time feature▪Workflows and notifications▪Data integrations with multiple LOS and portal systems▪Recognized by Housing Wire as one of the Top 100

mortgage tech companies

Encompass Integration ▪Custom Interface▪Mimics Cloud Control System▪Features

– Order placement– Pipeline management– Add\update processors– Multiple payment options– Disclosure calculator– Borrower valuation delivery queue– Field mapping to eFolder

Who We Serve▪20 of the top 50 mortgage lenders use CoesterVMS

– Freedom Mortgage– Loan Depot– Sierra Pacific Mortgage– Mortgage Masters/iMortgage – First Guaranty Mortgage Company– George Mason Mortgage– Wyndham Capital Mortgage– American Financial Resource - eLend– American Financial Network– PRMG

Serving your branch ▪The right choice for every branch manager 

– Designated relationship manager – Appraisers on staff for value rebuttal assistance– Monthly performance scorecard calls– Appraiser Panel management and training– Direct Encompass Integration – Monthly Visits – 24/7/365 Dedication to service – Contact your local market

leader anytime. 

Case Study

Pain Points:

▪ 7 Billion in yearly revenue▪ 19,000 appraisals ordered

per year▪ Losing 200k per quarter on

appraisal invoices▪ Ten dedicated operation staff▪ Branch level issues with ordering

and invoicing▪ Ordering double and triple

appraisals without knowing

How We Helped:▪ Boarded their panel ▪ Cleaned up their panel▪ Established scorecards▪ Visited branch offices▪ Established accountability▪ Training procedures▪ TILA intent to proceed within

Encompass▪ Centralized invoicing and

accounting

How We Can Help You

▪Significantly decrease overhead/ billing nightmares▪Provide accountability, transparency, and communication▪Panel management

– Review and board appraisers– Train appraisers by specialty– Establish proper panels – Provide scorecards

▪Streamline appraisal process

Accolades

▪2013, 2014 and 2015 500 Fastest Growing Companies – Awarded by: Inc

▪2014 Fastest 50 Growing Companies– Awarded By: Washington Business Journal

▪2014 Innovation Award– Awarded By: October Research

▪2015 and 2016 - Top 100 Tech Companies– Awarded By: Housing Wire

Thank You“CoesterVMS' integration with Encompass has made my job easier because my staff can focus on production, not compliance, which saves time. The marriage between these two systems seamlessly ties the Encompass data into our appraisal ordering process. We have gained time efficiencies and reduced keystroke errors!"

- Andria Lightfoot, VP of Project Management at George Mason Mortgage.

“Working with CoesterVMS will allow us to improve the speed, efficiency and quality of our valuation services. More importantly, the software platform used by CoesterVMS will bolster our compliance efforts.” - Andrew Peters, CEO of FGMC