GOTCHA COVERED!!
Appraisal fintech touts first-of-its-kind warranty against loan repurchases
Reggora says it will cover 'any financial loss' associated with a buyback or LLPA
Appraisal management fintech Reggora has announced a new warranty backing the results of its software’s appraisal reviews — effectively a guarantee that the company touts as the first of its kind within the mortgage industry.
Specifically, when an appraisal passes the automated review of the firm’s Reggora Appraisal Review platform, Reggora now says it will cover any financial loss associated with a repurchase or loan-level price adjustment stemming from an appraisal defect.
Some 70% of a mortgage lender’s appraisals will be eligible for the warranty, Reggora estimated. A statement from the company said that this will allow lenders to “significantly reduce underwriting costs, close the eligible loans faster, and eliminate financial losses associated with these repurchases and adjustments.”
Loan repurchases can be requested by Fannie Mae and Freddie Mac when they uncover defects, including appraisal-related issues, in underwriting. Buybacks, according to data from Inside Mortgage Finance, were actually down in the second quarter, but repurchases and loan-level pricing adjustments nevertheless represent costly curveballs, especially for independent lenders.
Brian Zitin, Reggora’s CEO, said that the company was motivated to make the move in anticipation of higher loan activity, presumably from a lower rate environment as the Federal Reserve rolls back its restrictive anchor interest rate.
“As the mortgage industry prepares for volume to increase, we wanted to help lenders handle that volume much more efficiently,” said Brian Zitin, CEO of Reggora. “Eliminating the need to manually underwrite the vast majority of appraisals goes well beyond a technology improvement and truly allows lenders to close loans faster at a lower cost.”
Specifically, when an appraisal passes the automated review of the firm’s Reggora Appraisal Review platform, Reggora now says it will cover any financial loss associated with a repurchase or loan-level price adjustment stemming from an appraisal defect.
Some 70% of a mortgage lender’s appraisals will be eligible for the warranty, Reggora estimated. A statement from the company said that this will allow lenders to “significantly reduce underwriting costs, close the eligible loans faster, and eliminate financial losses associated with these repurchases and adjustments.”
Loan repurchases can be requested by Fannie Mae and Freddie Mac when they uncover defects, including appraisal-related issues, in underwriting. Buybacks, according to data from Inside Mortgage Finance, were actually down in the second quarter, but repurchases and loan-level pricing adjustments nevertheless represent costly curveballs, especially for independent lenders.
Brian Zitin, Reggora’s CEO, said that the company was motivated to make the move in anticipation of higher loan activity, presumably from a lower rate environment as the Federal Reserve rolls back its restrictive anchor interest rate.
“As the mortgage industry prepares for volume to increase, we wanted to help lenders handle that volume much more efficiently,” said Brian Zitin, CEO of Reggora. “Eliminating the need to manually underwrite the vast majority of appraisals goes well beyond a technology improvement and truly allows lenders to close loans faster at a lower cost.”
=======
No comments:
Post a Comment