In this Issue        

August 2019 Edition

Presidents Message

State News & Events

Legislative Update

WMBA 2019-2020 Dues Renewal 

2019 WMBA State Golf Outing

WMBA 2019 Best in Business

WMBA Mortgage Boot Camp

New WMBA Member Spotlight

Chapter News & Events

Milwaukee Chapter Zoo a la Carte highlights

Madison Chapter Fall Kick Off

MBA Updates

Upcoming Educational Webinars

Dear WMBA Members,

Fall is just around the corner and falling mortgage rates are resulting in most of us being very busy. Networking with our industry peers is one of the benefits of being involved in our association and often results in picking up some “best practices” to help become more efficient in these busy times.
 
Please take a look at some of those networking opportunities below.
 
There is still time to sign up for our  annual golf outing to be held at the spectacular The Grand Geneva Resort and Spa on September 12^th http://wimba.org/2019Golf  This is a great way to meet members and wonderful opportunity to sponsor a hole or simply attend the dinner.
 
The Madison Chapter will be hosting the Fall Kickoff event at the Vintage Brewing Company on September 26^th .  The Distinguished Service Award will also be presented that night.
http://wimba.org/2019Madisonfallkickoff
 
Our 5^th annual Best in Business Awards will be held on October 22^nd at the Concourse Hotel in Madison. Watch for the nomination announcement and help recognize the hard work of your peers and co-workers.
 
The 2^nd annual Mortgage Bootcamp will be held at the Delafield Brew Haus on Novemebr 12^th & 13^th.
 
In addition we have several committees covering every segment of our industry that meet on a regular basis both in person and on conference calls. We are always looking for more feedback and ideas on how we can create more value for our membership, please contact me or anyone on the Board of Directors with your ideas.
 
 
Thanks and have a great September!



Leo Spanuello
WMBA President 2019-2020
Regional Mortgage Sales Manager
North Shore Bank
lspanuello@northshorebank.com
262-787-6872
 

Legislative Update - Buddy Julius

Remote Online Notary Legislation Update AB293/SB 317
 
Earlier this month the Firm Consulting team attended  a stakeholder meeting with the primary author of the Remote Online Notary bill, Rep. Joan Ballweg.  Also in attendance were representatives from the State Bar, the Land Title Association, the Realtors Association and a company called Notarize, an online platform for notary services. 
 
The results of the meeting are that Rep. Ballweg is going to have drafted a substitute amendment to address some substantive concerns from DFI, the State Bar, and the land title association around enforcement mechanisms and estate planning exceptions.  She will circulate the new draft as soon as it's completed.  
 
In addition, the Realtors had some concerns around data privacy.  Specifically, they wanted language to address whether and how DFI could sell the data they collect from registrants.  It was agreed that this would not be addressed in the substitute amendment as it touched upon much larger data privacy issues that the author felt would be better addressed in a comprehensive bill on the subject.
 
A public hearing on the bill will likely be scheduled in the fall. 
 
 

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WMBA 2019-2020 Dues Renewal 

Have you renewed your WMBA annual dues? Emails were sent via the database to all current members with a link to your online profile for payment. If your company has an Unlimited Regular or Associate membership, your Bundle Administrator received the renewal email.

Payments can be made by credit card online or by company check. If you prefer to renew by mail, complete the application form and submit with your payment.

For more details about membership, go to the WMBA Membership page.

Upcoming Events

Milwaukee Chapter Zoo a la Carte Highlights

On August 16^th, the Milwaukee Chapter hosted the annual Milwaukee County Zoo Ala Carte event, inviting members and their families to join in an evening of socializing and participating in Zoo activities.
 
The weather was spectacular, the animals were out and active, the train was whistling and moving many visitors throughout the evening, and the local restaurant vendors were bringing out their star dishes for all to taste.
 
This is such a great opportunity to connect and unwind with industry peers along with their family and friends.
 
Here are the sponsors for this year’s event:
 
The sponsors that roared at the Lion Level of $100 were Merit Title, Genworth Mortgage Insurance, First Bank Financial Centre, North Shore Bank, Tri City National Bank and Arch Mortgage Insurance Company.
 
The hungry sponsors at the Tiger Level of $50 were Essent Guaranty, Waukesha, State Bank, Guidance Mortgage, LLC, Mortgage Guaranty Insurance Corp (MGIC), Attorney’s Title, WaterStone Bank, Wisconsin Mortgage, and National Mortgage Insurance Corp (NMI).
 
Thank you to the event sponsors, whose support makes this annual event possible and so fun! These contributions also earned the sponsors special mention on signage at the beverage station.
 
A note of gratitude to the members of the Milwaukee Board for the time spent planning the night. In addition, an extra thank you to Jill Meier and Carrie Holan for their work in organizing the Chapter event and inviting sponsors to participate. Attendance was great and the evening was a success!
 
Cheers to all and to next year!
 
Submitted by: Teressa Rowley

Below are a few photos from the event including the Lion and Tiger sponsors!
 

Madison Chapter Fall Kick Off 
September 26, 2019

Please join us to for our annual kick-off event! We will be introducing the 2019-2020 Board of Directors and honoring our Past President, Chad Laipple and the 2019 Distinguished Service Award Recipient, Sara Whitley. 
 

Registration Deadline: September 26, 2019


 

Registration Deadline September 26, 2019

For a PDF of this flier, click here.

 Applying predictive analytics to credit scoring, beyond

Among the individual components operating in the background of most artificial intelligence (A.I.) systems is predictive analytics. The process has proven effective in numerous other business processes and is a driving force behind many of A.I.’s capabilities.

Predictive analytics has been used particularly heavily in the credit scoring, underwriting and appraisal processes.

Blend Enterprise Compliance Manager Austin Miller and John Vong, executive chairman and founder of ComplianceEase, explained to Dodd Frank Update how predictive analytics has evolved and its value in the mortgage business. Vong noted that Fannie Mae and Freddie Mac are among the largest institutions currently using the technology, particularly when handling large refinancing volume
.
Credit scoring, appraisal applications
Predictive analytics are used to provide an objective outlook to enable A.I. systems to make reliable decisions about available data. It also can be used to expose faults with current methods of evaluating credit applicants.

Miller pointed to a study by FinRegLab.com that explored issues that exist in common credit scoring models.

A common practice in determining an applicant’s creditworthiness that has proven problematic in some cases relates to the use of consumer credit reports, Miller explained. Relying too heavily on those reports has been found to create impediments to credit access disproportionately affecting certain groups of borrowers. The solution to that issue may lie in using other data to determine a borrower’s ability to repay a loan.

The FinRegLab.com research showed that “cash-flow” data was a more effective predictor of a borrower’s creditworthiness than their credit score.

“The study found that taking in bank account data and using that to determine whether a person has enough cash-flow to support monthly payments actually has profoundly predictive powers in determining a customer’s creditworthiness,” Miller said. “It’s similar to the predictiveness of credit reports but hasn’t demonstrated the same level of biases that have traditionally shut out other groups from credit products that traditional credit reports have proven to have done.”

The study found that the cash-flow data can be at least as predictive of as traditional credit scores. Pertaining to borrowers who have limited or non-existent credit histories, cash-flow data can provide meaningful predictive power that, by extension, can help borrowers with limited access to credit. The study further explained that cash-flow scores and attributes seemingly improved lenders’ ability to predict credit risk among borrowers that are scored by traditional systems as presenting similar risk of default. 

Cash-flow information can be used effectively either in combination with, or in place of, credit reports in a company’s predictive analytics model to make such determinations to better serve community credit needs, Miller suggested.

Miller noted that, according to the study, when divided into subgroups based on likely race, ethnicity and gender, the degree to which cash-flow data predicted credit risk was relatively consistent.

“Moreover, when compared to traditional credit scores, the cash-flow based metrics appeared to predict creditworthiness within the subpopulations at least as well as the traditional scores, and better in selected cases,” the study found. “Overall, the cash-flow data appeared to provide independent predictive value across all groups, rather than acting as proxies for a demographic group.”

Miller detailed steps Blend has taken to mitigate fair lending risk and to facilitate a more efficient origination and underwriting process for the benefit of all parties involved.

“We actually analyze the types of document requests that are made of borrowers,” Miller said. “We use that analysis to determine borrowers who have similar characteristics so we can surface document requests to that borrower to ensure they are consistently applied, earlier on in the process. This enables them to sort of speed through the underwriting process.”

By recognizing the many similarities that occur in the compliance process and delegating those to an A.I. system, rather than having a human perform a manual “stare and compare” on pages and pages of documents, the process can be made much more efficient and accurate.

“There are so many different types of paperwork with similar data points that need to be compared to one another and assessed. I think that the combination of OCR technology with A.I. that actually analyzes those datasets is going to be really important to focus on paperwork reduction and improving efficiencies in the industry,” Miller said. 

Valuation applications
Similar to how predictive analytics is used to evaluate historical data to make determinations about a borrower’s creditworthiness, Vong noted it also can be used in appraisal underwriting.

“With credit scores, they use predictive analytics to look at a consumer’s credit history and attributes that predict how they will behave in the future,” Vong said. “For instance, an AVM (automated valuation model) looks at historical and current data in an area and predicts the value of a property. But in compliance, it’s pretty dry. It’s black and white. So we don’t use predictive analytics for that.”

By examining data gathered from various relevant sources, predictive analytics allows an A.I. system to make the types of determinations appraisers currently make, but in a fraction of the time.

“AVMs look at similar comparable properties with similar square-footage figures, location, and similar prices and try to predict their value,” Vong said. “When a homeowner goes to a real estate search engine to find out the price of a house, search engines will use comparable data and several models to predict the value of that home.”

Because such technology makes determinations about property values absent an actual visit to the property, many appraisers are quick to note that there are certain anomalies that such technology cannot account for that can have a major impact on the value of a particular property.  

Marketing applications
Vong noted that lenders often use predictive analytics in marketing, particularly with regard to refinancing and debt consolidation. He explained that by looking at a borrower’s credit history, a lender can consider a person’s credit rating, their personal debt and other factors and determine whether they are in a suitable position for a refi.

AVMs also come in handy in determining whether consumers have sufficient equity in their homes and may be a candidate for specific refi products.

MBA Annual19 Comes to Austin, Texas Oct. 27-30

MBA Staff
August 08, 2019

The Mortgage Bankers Association's Annual Convention & Expo takes place Oct. 27-30 at the Austin Convention Center in Austin, Texas. 

Experience It Live
Annual19 is the largest gathering of of the year for the real estate finance industry, featuring more than 100 expert speakers; more than 500 companies; more than 4,000 attendees; and unlimited networking opportunities.

Meet Industry Innovators & Experts
Everyone who's anyone in real estate finance attends this annual gathering. This is the one event you need to gain access to the industry's power players and innovators.

Get the Pulse of the Industry
Nobody has their finger on the pulse of the industry like MBA's experts and advocates. Hear directly from them and other heavy-hitters to get the insights you need to grow your business.

Experience Products from Leading Companies
Meet with hundreds of exhibitors in THE HUB and get hands-on access to the latest products and services that will take your business to the next level.

Leave with Strategies for Success
Leave MBA Annual19 with more than just great memories. Leave with actionable takeaways for future success.

Convention & Expo Highlights
--Keynote presentation from former Gov. Terry McAuliffe, Gov. Chris Christie and CBS moderator Maureen Brennan.
--Opening General Session featuring Admiral William H. McRaven, USN, (Ret.).
--Keynote addresses by MBA President and CEO Robert Broeksmit, CMB; MBA Chairman Christopher George; and Incoming MBA Chairman Brian Stoffers, CMB.
--General Session featuring Federal Housing Finance Agency Director Mark Calabria.
--ConcertMBA featuring Grammy award-winning artist Keith Urban.
--THE HUB, with all the people, products and serivces you need to succeed.
--mPowering You: This popular all-day event is now in its third year at MBA Annual19.

Who Should Attend
MBA Annual19 is the nation's largest gathering of real estate finance professionals. Whether you are new to the industry or a seasoned professional, everyone who's anyone in real estate finance should be there. Attendees include professionals working in the single-family sector of the real estate finance industry, including:
--CEOs, Vice Presidents and Senior Managers
--Managers and executives serving residential loan production and servicing, all business models
--Banks and independent mortgage bank managers and executives
--Mortgage investors (all sizes)
--Government agency representatives
--Regulators
--GSEs
--Technology providers and vendors
--Attorneys and other service providers to the industry
--Industry leaders, CMBs, Future Leaders and anyone else participating on an MBA Committee

Registration
To register for MBA Annual19, click https://www.mba.org/store/events/conferences-and-conventions/annual-convention-and-expo-x241363. 

For more information and frequent updates about MBA Annual19, click https://www.mba.org/conferences-and-education/event-mini-sites/annual-convention-and-expo.
 

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Upcoming Educational Webinars

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