Monthly Archives :

May 2018

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MBA’s National Secondary Market Conference & Expo 2018

MBA_secondary_market_conferenceNew York, NY (May 20-23)
Central concerns for lenders attending MBA’s National Secondary Market Conference & Expo 2018 in New York City included increasing interest rates, falling applications, and smaller margins. With mortgage originations continuing to plunge, many participants were hoping to find the secret to originating loans more efficiently and cost-effectively. The conference represented another productive event for Aspen Grove Solutions.

Originations on the Decline

MBA chief economist Mike Fratantoni warned that originations are trending negatively. He pointed to the latest MBA Mortgage Performance Report, which highlighted the adverse effects that regulation, additional fixed costs, fierce competition, and a move from refinancing to purchase are having on mortgage profits. Fratantoni noted that overcapacity and high expenses led to losses at mortgage banks during the first quarter, for the first time since the same period of 2014, and he also pointed out that many independent mortgage banks are considering abandoning servicing.

Digital Mortgages

Many mortgage originators are pinning their hopes on digital mortgage processes. According to Michael Drayne, senior vice president of issuer and portfolio management, Ginnie Mae will release a plan in June that will address the role of digital mortgages at the agency.

Ginnie Mae securitizes production for the Federal Housing Administration, Veterans Affairs and the U.S. Department of Agriculture Rural Housing Service, and all of these agencies discussed planned technology upgrades designed to help lenders cut costs. To underline the interest in digitization, the final general session at MBA’s National Secondary Market & Expo 2018 was called “Securitizing the Digital Mortgage.”

Non-QM (Qualified Mortgage) Loans

A key aspect of the conference was a marked interest in non-QM (Qualified Mortgage) loans. With market conditions becoming more difficult, it is becoming harder to find easy loans where borrowers meet qualified mortgage standards. This means that the future of the mortgage industry is likely to depend on atypical borrowers, who may not meet conventional lending criteria but are a good risk for the appropriate product. Partly because of this, the non-QM market is forecast to increase by 400% in the next year. Panelists discussed non-conforming loan types, such as bank statement loans and condo loans, although several cautioned against likening non-QM to subprime. They also noted that underwriting non-QM loans can be challenging, especially because they have limited potential for automation.

Conclusion

Attendees left MBA’s National Secondary Market Conference & Expo 2018 with a keen sense of the demands facing them in the lending market. There may be some good news for the industry in relation to the passage of Dodd-Frank reforms that relax the rules restricting thousands of small and medium-sized banks, but the general outlook for mortgage lending is challenging.

150 150 Aspen Grove Solutions

TLS Notification

TLSOverview

On June 30th, 2018, the Payment Card Industry Data Security Standard (PCI DSS) will enforce the disablement of TLS versions 1.0 and 1.1. To ensure compliance, Aspen Grove Solutions will support this change ahead of time on May 15th in a phased approach covering all systems.

Why the change?

This is a positive security enhancement to enable the protection of credit card information over a secure channel.

When will this change happen?

This is a phased approach across all systems, beginning on May 15th and scheduled to finish for June 20th, 2018. For more specific information on a system, please contact security@aspengrovesolutions.com.

How will this affect me?

Users operating unsupported browsers or operating systems may be affected by this change.

Please check using the handy link below to see if your current browser is supported:

https://www.ssllabs.com/ssltest/viewMyClient.html

Most Aspen customers using modern browsers and operating systems will not be affected.  Only very old browsers and operating systems will be unable to make connections using the newer TLS protocol.  Beginning May 17th, 2018, it will be necessary to use an operating system and browser capable of connections using TLS 1.1 or higher.

See the list below for minimum required versions:

Compatible Operating Systems:

Windows 7
Windows 8
Windows 8.1
Windows 10
Windows Server 2008 R2
Windows Server 2012

Compatible Browsers:

Chrome v22 or higher
Firefox v27 or higher
Internet Explorer 8-10 (if TLS 1.1 is enabled)
Internet Explorer 11 and higher (TLS 1.1 is enabled by default)
Safari v7 or higher
Edge

Compatible Mobile Browsers:

Chrome on Android Jelly Bean 4.1-4.3.1 and Android KitKat 4.4-4.4.4 (if TLS 1.1 is enabled)
Chrome on Android Lollipop 5.0-5.0.2 and higher (TLS 1.1 is enabled by default)
Safari v5 and higher
Internet Explorer Mobile on Windows Phone 8 (if TLS 1.1 is enabled)
Internet Explorer Mobile on Windows Phone 8.1 and higher (TLS 1.1 is enabled by default)
Edge all versions
Opera 12.18 and later.

What can I do if I’m not compliant?

Non-compliant customers must update their browser or operating systems to one of the supported systems listed above. Customers will not be able to connect to any global systems accepting credit card payments after June 30th.

Questions

If you require further information or have any questions please don’t hesitate to ask by emailing security@aspengrovesolutions.com or contacting our customer care team on 240 8959 200.

150 150 Aspen Grove Solutions

American Mortgage Diversity Council Member Meeting

American Mortgage Diversity CouncilThe Joule Hotel, Dallas, Texas (May 2, 2018)

The third annual American Mortgage Diversity Council Spring Member Meeting brought together leading executives from across the United States to promote the agenda of diversity and inclusion in the U.S. residential mortgage industry. Aspen Grove Solutions president, Edmond Buckley, participated in a lunchtime session on subcommittee and Affinity Group updates. Key speakers on the day included Dr. Antonio R. Flores, president and CEO of the Hispanic Colleges and Universities (HACU). Dr. Flores is among the 400+ CEOs in the CEO ACTION for Diversity and Inclusion Pledge, the primary CEO-driven business drive to promote diversity and inclusion in the workplace.

The event was organized exclusively for members of the American Mortgage Diversity Council (AMDC), who discussed the most high-profile issues relating to diversity and inclusion that affect the mortgage industry. The council is dedicated to promoting solutions that support a wide variety of diversity initiatives. Issues it faces include supply-chain diversity and the challenges confronting minority, LGBT, and women-owned businesses.

You can see the agenda for this event here.