Commercial real estate and multifamily lenders set new record

Commercial and multifamily lenders had another banner year in 2018, when closed-loan originations rose 8% to a high of $574 billion.

“Borrowing and lending backed by commercial and multifamily properties hit another new record last year,” Jamie Woodwell, vice president of commercial real estate research at the Mortgage Bankers Association, said in a press release.

“Solid fundamentals, growing property values, low interest rates and strong appetites from both borrowers and lenders all helped drive an 8% increase in recorded multifamily lending from a year ago. Repeat participants in our survey increased their lending by 4% during 2018, with the remaining growth coming from the addition of new firms.”

Commercial bank portfolios provided the most capital to the market, representing $174 billion or nearly one-third of the total. Government-sponsored enterprises Fannie Mae and Freddie Mac were responsible for more than $142 billion or nearly one-fourth of the total.

Digital mortgages”Many capital sources rose to record levels of lending — including bank portfolios, life insurance companies and the GSEs,” Woodwell said. “Among property types, multifamily pulled even further ahead as the dominant lending target, growing to 46% of total mortgage banker lending — a series high.”

Office was the next largest property type after multifamily, representing 18% of the total. Retail, hotel/motel and industrial property types each represented 8% of the market for a combined 24% market share. Health care loans represented 2% of the market.

The previous record for commercial real estate and multifamily loans closed in a year was $530 billion, according to the MBA.

Source: Bonnie Sinnock, National Mortgage News

These Are The Top US Commercial, Multifamily Mortgage Originators

According to new research prepared by the Mortgage Bankers Association, the following firms were the top commercial/multifamily mortgage originators in 2018:

  • HFF
  • Wells Fargo
  • CBRE Capital Markets, Inc.
  • Key Bank
  • Eastdil Secured
  • JP Morgan Chase & Company
  • Meridian Capital Group
  • Bank of America Merrill Lynch
  • PNC Real Estate
  • Berkadia

The MBA report sthat by dollar volume, the top five originators for third parties in 2018 were:

  • HFF
  • CBRE Capital Markets, Inc.
  • Eastdil Secured
  • Meridian Capital Group
  • Key Bank

The MBA further states that the top five U.S. lenders in 2018 were:

  • Wells Fargo
  • Key Bank
  • JP Morgan Chase & Company
  • Bank of America Merrill Lynch
  • Capital One Financial Corp

Nine different companies were at the top of the 11 lists reporting total originations by investor groups:

  • JP Morgan Chase & Company, Citigroup Global Markets, Deutsche Bank Securities, Inc., Eastdil Secured, and Goldman Sachs were the top originators for commercial mortgage-backed securities (CMBS).
  • Key Bank, Wells Fargo, JP Morgan Chase & Company, PNC Real Estate, and Meridian Capital Group were the top originators for commercial bank loans.
  • HFF, MetLife Investment Management, Eastdil Secured, PGIM Real Estate Finance, and New York Life Investments were the top originators for life insurance companies.
  • Wells Fargo, Walker & Dunlop, CBRE Capital Markets, Inc., Berkadia, and Newmark Knight Frank were the top originators for Fannie Mae.
  • CBRE Capital Markets, Inc., Berkadia, Walker & Dunlop, HFF, and Key Bank were the top originators for Freddie Mac.
  • Red Mortgage Capital, LLC, Greystone, Berkadia, Walker & Dunlop, and Wells Fargo were the top originators for FHA/Ginnie Mae.
  • Nuveen Real Estate, Newmark Knight Frank, Barings, CBRE Capital Markets, Inc., and JLL were the top originators for pension funds.

  • Wells Fargo, CBRE Capital Markets, Inc., Marcus & Millichap Capital Corporation, JLL, and Meridian Capital Group were the top originators for credit companies.

MBA’s Annual Origination Volumes study is the only one of its kind to present a comprehensive set of listings of 136 different commercial/multifamily mortgage originators, their 2018 volumes and the different roles they play. The report presents origination volumes in more than 140 categories, including by role, investor group, property type, financing structure type, and by the location of the originating office.

Source: worldpropertyjournal

U.S: Low mortgage rates may drive home purchase lending to 14-year high

The recent drop in mortgage interest rates is already having an impact on overall mortgage demand as well as the demand for refinances, but just how much could the return of low interest rates impact the market?

Quite a bit, according to new data from iEmergent.

iEmergent, a mortgage forecasting and advisory firm, is projecting a 3.9% jump in total home-loan volume this year. That puts iEmergent at the head of the forecasting pack.

Freddie Mac is expecting a gain of 1.5% for total mortgage lending, according to its March mortgage finance forecast. The Mortgage Bankers Association pegs the increase at 1%, and Fannie Mae expects a drop of about half a percentage point.

Mark Watson, iEmergent’s director of forecasting, said the difference in outlooks is due to expectations about home sales.

In fact, he’s calling for $1.2 trillion in home purchase lending this year. That would make it the best year for that category since 2005. And the reason? Low interest rates.

“We think the lower mortgage rates will create a huge push, partly from Millennial buyers, that’s going to support strong growth in home sales over the next several years,” Watson said in an interview.

The decline in mortgage rates this year is due to two factors, said Watson. One is Brexit, Britain’s stalled efforts to leave the European Union. British government missteps have caused a “flight to safety” among international investors that increased demand for U.S. dollar-denominated bonds, which translated into lower rates for homebuyers, said Watson.

The second reason for lower rates? The U.S. economy’s “hangover” from federal tax cuts that became law more than a year ago, he said.

“The tax changes were a positive for the economy at first, but a big part of the stimulus from that is over and now it’s going to be more of an economic hangover because deficits are going to be higher,” he said.

At first, many economists thought those deficits would result in higher mortgage rates because the government would have to increase borrowing, Watson said. But, signs of a slowing U.S. economy at 2018’s end caused the Federal Reserve to stop raising rates at its January meeting, and recently signal that it does not plan to raise rates again this year.

Instead, the policy makers pledged to be “patient” before pushing up borrowing costs.

“Before that time, everyone thought they were going to do at least two, or maybe even three, rate-rises this year,” said Watson. “That’s clearly not going to happen, now.”

In March, Fed Chairman Jerome Powell said there will be no rate hikes in 2019. And, because Fed policy makers are loath to look like they are influencing national elections, they may hold steady in 2020 as well, Watson said.

The reason the Fed has the option to hold rates steady is the low rate of inflation, he said.

“It looked for a period of time like inflation was going to go over the Fed’s 2% target,” said Watson. “Then it dipped down and that gave the Fed a lot of cover to say we’re going to slow down on rates rises.”

And because of that, mortgage rates could very well stay low for a while, which could mean good news for those in the housing market.

Source: By KK Howley, Housing Wire

With Mortgage Rates at a Low, Loan and Refinance Applications Surge

As mortgage interest rates dropped to their lowest levels in over a year last week, home owners and buyers raced to submit their refinance and other loan applications before rates start going up again.

The number of overall mortgage applications surged 28.4% last week compared with the previous year, according to the Mortgage Bankers Association. They were up 18% over the previous week.

Refinance applications, in which homeowners will typically try to lock in lower rates, shot up the most, an astounding 58% from a year ago. They also jumped 38.5% from the prior week

Meanwhile, purchase applications, for the loans used to buy a home, were up 9.8% from a year ago and rose 4.1% from the previous week.

Folks flooded the offices of lenders across the nation because the average rate for a 30-year, fixed-rate loan fell to just 4.06%, according to Freddie Mac. That’s the lowest it’s been since January 2018—and a significant drop from when rates hovered just under 5% in November.

These may sound like incremental changes, but even a single extra percentage point can add more than a hundred dollars to a monthly mortgage payment for a roughly $300,000 home. And that could tack on thousands, if not tens of thousands, of dollars over the life of a 30-year loan.

“Customers, especially in the refi market, are really interest-rate sensitive,” says Chief Economist Danielle Hale of realtor.com®. “It generally makes sense [for homeowners to refinance their mortgages] if you’re getting a lower interest rate, because that’s what’s really going to save you money.”

The lower rates are also a windfall for cost-sensitive home buyers who worry about struggling to make high monthly mortgage payments.

“Purchase applications have now increased year over year for four weeks, which signals healthy demand entering the busy spring buying season,” Joel Kan, the Mortgage Bankers Association associate vice president of economic and industry forecasting, said in a statement.

Source: Clare Trapasso, Realtor.com

U.S. mortgage applications hit two-and-a-half year high

The Washington-based group’s seasonally adjusted index on requests for loans to buy a home or refinance a mortgage increased 18.6% to 503.6 in the week ended March 29. This was the strongest reading since 512.9 in the week of Oct. 14, 2016.

Interest rates on 30-year “conforming” mortgages, or home loans with balances of $484,350 or less, averaged 4.36 percent, the lowest since the week of Jan. 19, 2018. They were 4.45% a week earlier.

Average rates on other fixed-rate mortgages MBA tracks fell by 0.07 percentage point to 0.14 percentage point.

“There was a tremendous surge in overall application activity, as mortgage rates fell for the fourth week in a row,” Joel Kan, MBA’s associate vice president of economic and industry forecasting, said in a statement.

Much of the week’s increase stemmed from a 39% surge in refinancing activity, which propelled MBA’s refinancing gauge to 1,786.0, its strongest level since November 2016.

Refinancings grew to 47.4% of total mortgage applications last week from 40.4% a week earlier, MBA data showed.

Existing homeowners with more expensive homes filed more refinancing applications with lenders last week. The average size of conforming loans for refinancing hit an all-time high at $438,900 in the latest week. Loan applications to buy a home climbed by 3%, with the average loan size shrinking slightly.

Smaller purchase loan sizes were “a positive sign that first-time buyers were increasingly active in the market,” Kan said.

MBA’s seasonally adjusted barometer on purchase mortgages, seen as a proxy on future housing activity, has advanced since early March to 276.6, which was its highest level since the week of Jan. 11.

Source: Richard Leong, Reuters

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Zillow is now a mortgage lender, launches Zillow Home Loans

Zillow has owned a mortgage company for approximately six months, having purchased Mortgage Lenders of America in November 2018, but now, the online real estate giant has truly become a mortgage lender as well.

Zillow announced Tuesday that it is launching its own mortgage lending operation, which it is calling Zillow Home Loans.

For years, prospective homebuyers could search for a mortgage through Zillow’s site, as lenders paid to have their interest rates and terms listed on Zillow’s mortgage marketplace. Now, they’ll have a new competitor: Zillow itself.

The company is rebranding Mortgage Lenders of America to carry the Zillow name, and will use the lender to finance home buying and selling through its Zillow Offers platform.

It’s a truly massive move for Zillow, which describes the change rather simply: “Home shoppers who visit Zillow to shop for a mortgage can now get financing directly from Zillow Home Loans.”

The move is the latest in a nearly two-year effort to reshape how Zillow conducts its business.

Back in 2015, former Zillow CEO Spencer Rascoff said that the company views itself as a media company, not a real estate company.

“We sell ads, not houses,” Rascoff said at the time. “We’re all about providing consumers with access to information and then connecting them with local professionals. And we do a great job of giving those local professional high-quality lead, they’ll covert those leads to at a high rate and then want more media impressions from us. So we’re not actually in the transaction, we’re in the media business.”

But in the last few years, things changed dramatically at Zillow.

In 2017, Zillow shook up the real estate industry when it announced that it was getting into the home selling business by launching “Zillow Instant Offers.”

In the program, homeowners looking to sell their home in certain markets were able to get cash offers for their home from selected investors interested in buying it, all within Zillow’s platform.

But that was just the beginning. Later, Zillow began buying and selling homes directly to and from homeowners, becoming an iBuyer. Through its “Offers” program, Zillow buys a home directly from a seller, makes the “necessary repairs and updates” and lists the home “as quickly as possible.”

Zillow expanded the “Offers” program to new markets, but it didn’t stop there.

Last year, the online real estate landscape shifted dramatically when Zillow announced that it was getting into the mortgage business by buying Mortgage Lenders of America.

According to Zillow, the acquisition of Mortgage Lenders of America would allow the company to “streamline and shorten the home-buying process for consumers who purchase homes through Zillow Offers.”

The company paid $65 million to acquire Mortgage Lenders of America, and closed on the deal late last year. At the time, Zillow said that it planned to rebrand MLOA, and that’s just what it has now done, rebranding its mortgage business to carry the Zillow name.

“Getting a mortgage is often the hardest, most complicated part of buying a home. Since our inception, Zillow has been empowering people with information and resources to make smarter real estate decisions, including helping borrowers shop for the best lender and loan for their new home,” said Erin Lantz, vice president and general manager of mortgages at Zillow.

“With Zillow Home Loans we are taking an incredible step forward to deliver an integrated payments platform to complete the financing for Zillow Offers that delivers a more seamless, on-demand real estate experience today’s consumers expect,” Lantz added. “We continue to offer consumers the power of choice to shop for loans directly through Zillow Home Loans or through our popular mortgage marketplace.”

According to the company, homeowners using Zillow Offers to sell their home can “easily secure their financing through Zillow Home Loans, giving them the certainty to be able to sell their existing home and shop for a new home simultaneously.”

Additionally, homebuyers who want to purchase a home that Zillow owns may use Zillow Home Loans to “seamlessly finance their home purchase, giving them a convenient way to get into their new home on their timetable, with less hassle and stress,” the company said.

But the company added that the use of Zillow Home Loans is “not restricted” to Zillow Offers home sales. According to Zillow, borrowers may still use Zillow’s mortgage marketplace to shop for a lender and loan for any home purchase or refinanced loan.

Zillow Offers is now available in nine markets, according to Zillow. Zillow Home Loans is headquartered in Overland Park, Kansas, and has more than 300 employees.

Source: By Ben Lane, Housingwire

‘Now Is The Time to Refinance’ — Low Mortgage Rates Cause Surge In Refinancing

Last week’s massive dip in mortgage rates apparently pushed homeowners into action. According to new data from the Mortgage Bankers Association, refinancing was up 39% last week—hitting its highest point since January 2016.

Overall refinances accounted for nearly half of all mortgage applications—47.4%, specifically. For mortgage lender Better.com, the refi surge was even bigger. The company saw refinance loans make up 56% of its total loan activity in March. In total, Better.com had 893 refinance applications for the month.

Last week’s dip into low-4% mortgage rates is the big driver of this uptick in activity. According to Freddie Mac, the average rate on a 30-year fixed-rate loan as of March 28 was 4.06%. On 15-year fixed loans, it was 3.57%.

As Sathi Roy, Better.com’s head of refinance explains, “In the mortgage landscape, rates are king, and what we’re now seeing is that anyone who has thought about refinancing in the past year is now taking action on it.”

But rates are only the starting point. According to Roy, “learning from the mistakes of 10 years ago” is also what’s at work. With many experts saying a recession is looming. “People are trying to get ahead of what we experienced in 2008,” Roy said. “People are now starting to understand the importance of home equity and that a mortgage isn’t just a mortgage.”

Other major drivers of refinancing including divorce, the desire to tap into home equity for renovations or just the hot spring homebuying market.

“We see a spike in refinancing in the springtime, which is the busiest homebuying season,” Roy said. “Some people tap into equity of their house to buy a second house. Why save $100,000 when you’re already living in it?”

All About the Urgency

But refinancing wasn’t the only area to see a jump last week. According to the MBA, purchase loans were also up for the week. Total purchase activity was up 3% over the previous week and 10% over the year.

According to Joel Kan, associate vice president of economic and industry forecasting at MBA, “There was a tremendous surge in overall applications activity, as mortgage rates fell for the fourth week in a row—with rates for some loan types reaching their lowest levels since January 2018.”

Another notable stat? Average loan size on those purchase applications was down. And according to Kan, that’s a sign.

“The average loan size for purchase loans declined slightly, as applications for smaller purchase loan sizes exceeded that of higher loan sizes—a positive sign that first-time buyers were increasingly active in the market,” Kan said.

Still, despite this slight uptick in buying activity, Roy says the real urgency is for refinancers.

“The rate environment is tied to many different things, including the global economy, so although I cannot say with 100% certainty that rates will continue on this trend,” Roy said. “What I can say is that the cost of waiting is higher than the cost to put yourself in a better position. Now is the time to refinance.”

Source: Aly J. Yale

U.S. Mortgage Applications Spike 18 Percent in Late March

According to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending March 29, 2019, mortgage applications increased 18.6 percent from one week earlier.

The Market Composite Index, a measure of mortgage loan application volume, increased 18.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 18 percent compared with the previous week.

The Refinance Index increased 39 percent from the previous week, and was at its highest level since January 2016. The seasonally adjusted Purchase Index increased 3 percent from one week earlier. The unadjusted Purchase Index increased 4 percent compared with the previous week and was 10 percent higher than the same week one year ago.

“There was a tremendous surge in overall applications activity, as mortgage rates fell for the fourth week in a row – with rates for some loan types reaching their lowest levels since January 2018. Refinance borrowers with larger loan balances continue to benefit, as we saw another sizeable increase in the average refinance loan size to $438,900 – a new survey record,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “We had expected factors such as the ongoing strong job market and favorable demographics to help lift purchase activity this year, and the further decline in rates is providing another tailwind. Purchase applications were almost 10 percent higher than a year ago.”

Added Kan, “The average loan size for purchase loans declined slightly, as applications for smaller purchase loan sizes exceeded that of higher loan sizes – a positive sign that first-time buyers were increasingly active in the market.”

The refinance share of mortgage activity increased to 47.4 percent of total applications from 40.4 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 9.5 percent of total applications.

The FHA share of total applications decreased to 8.8 percent from 9.3 percent the week prior. The VA share of total applications remained unchanged from 10.4 percent the week prior. The USDA share of total applications remained unchanged from 0.6 percent the week prior.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($484,350 or less) decreased to 4.36 percent from 4.45 percent, with points increasing to 0.44 from 0.39 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $484,350) decreased to 4.21 percent from 4.35 percent, with points decreasing to 0.25 from 0.27 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA decreased to 4.41 percent from 4.48 percent, with points remaining unchanged at 0.48 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 15-year fixed-rate mortgages decreased to 3.78 percent from 3.87 percent, with points decreasing to 0.40 from 0.47 (including the origination fee) for 80 percent LTV loans. The effective rate decreased from last week.

The average contract interest rate for 5/1 ARMs remained unchanged at 3.77 percent, with points increasing to 0.38 from 0.30 (including the origination fee) for 80 percent LTV loans. The effective rate increased from last week.

Source: Worldpropertyjournal

40th Kaduna fair: Mortgage bank has invested N5.03bn in 1,225 houses in Kaduna – MD

The Managing Director of Federal Mortgage Bank of Nigeria (FMBN), Architect Ahmed Dangiwa, says the bank has invested N5.03 billion in 1,225 housing units in Kaduna.

Speaking during the banks’ day at the ongoing 40th Kaduna International Trade Fair, the MD said the houses were developed in six housing estates project sited in Kaduna city,  Kafanchan and Zaria.

He added that the bank has equally disbursed over N578 million as home renovation loans to 652 beneficiaries in the state and earmarked N572 million for disbursement to NHF contributors in the state in the current year.

He noted that 10,133 retirees have been refunded the cumulative sum of N965 million saying, “Aside from direct fund investment, the bank is a significant contributor to socio-economic development of the Kaduna state.

“Not only have we contributed to the housing stock, home ownership rate and improving living conditions through our home improvement micro housing loans,  we can boast of having generated over 200,00 direct jobs at an average of 17 jobs per housing unit delivered in the state.

“Towards improving the national housing scheme service delivery, the bank recently launched its ICT platforms for contributions to access records of NHF contributors and ensure they receive SMS alerts of monthly deductions,” he said.

He advised contributors to use any of the ICT channels to access the bank’s NHF services and assured of the bank’s commitment to sustaining its partnership with Kaduna state with regards to housing delivery.

He urged that such economic events must be fully supported by business entities and corporate bodies to enhance and strengthen economic recovery being witnessed currently.

He observed that trade fair create wonderful opportunities for innovative sharing of business ideas, products,  good and services and also create a conducive atmosphere for positive and profitable business-to-business interactions and partnerships.

Source: By Maryam Ahmadu-Suka,

Here are the 5 key themes dictating the direction of digital mortgages

The mortgage industry aims at technology to streamline processes and tackle workflow inefficiencies, financial burdens and better borrower experiences.

Housing activity is down, costs to close are up, and lenders being forced to get creative hope digital advancements help combat these tough conditions, while also simplifying the process for consumers.

But going digital is no easy feat. Technology investments push up closing costs, at least in the short term, and lenders targeting quicker closing times can only shave off so many days in such a fragmented industry. Evolving cyber security risks also need to be addressed.

Nonetheless, lenders are certainly making progress with tech and embracing things like artificial intelligence, with 2019 set to be an important year for innovation in the mortgage world, according to FormFree CEO and Founder Brent Chandler.

From rising closing costs to implementation strategies, here’s a look at five themes shaping the direction of digital mortgages in 2019, according to topics discussed at the Mortgage Bankers Association Technology Conference on March 24-27 in Dallas.


Money well spent?

Mortgage lenders utilize technology to make the process better for borrowers, but they’re also trying to drill down costs in a climate where housing activity lags on higher home prices and previous growth in rates.

But digital advancements are doing the opposite for closing costs. While this could be a result of upfront tech investments and implementation, it’s taking a toll on an already financially constrained industry.

The average total expenses to close a mortgage spiked, going to $8,405 in 2018 from $5,958 in 2013. Digitizing the process may not be the sole reason, but it’s a contributor, and is certainly putting the pressure on lenders to get creative to keep costs low.


Ingredients for success

Lenders are moving past optical character recognition and embracing artificial intelligence to streamline processes, but they’re not getting the whole picture.

At a time when institutions are extracting rich, comprehensive data, they’re then just converting that data to a PDF and shipping it off; efforts are being made to digitize the process, but the initiatives are not carried across the lifecycle of the loan.

Part of the problem is companies aren’t tackling issues piece-by-piece, and instead rely on one model to solve multiple issues. While one tool may be responsible for extracting data, another is likely required to facilitate it through an additional piece of the mortgage value chain.

The following formula can help institutions reach a successful technology implementation: identify a problem, determine whether they have the necessary data to settle the issue and then decide which machine learning model to use, according to David Frost, director of commercial mortgage servicing technology at Wells Fargo.


Holding back progress

In its pursuit of a better customer experience, the mortgage industry targets a quicker process, but its fragmented nature limits its efforts.

The average loan closing time fluctuated between 2012 to 2018, reaching a low within the range of 40.3 days in 2014 and a high of 48.2 days in 2012, according to Ellie Mae.

Though days to close did drop over the past couple of years, lenders are working to reduce it further, but they aren’t really addressing how compartmentalized the industry is.

“Everywhere you look its fragmentation upon fragmentation,” Aaron King, Snapdocs CEO, said in an interview. “Lenders have multiple technology components to stitch together, all these settlement agents, all these investors, all these underwriters. If you look at webcam notarization, if you look at e-notes, if you look at the adoption of all these really good technologies, none of them are getting traction because nobody is solving this network challenge.”

With technology quickened closing times are inevitable, though the amount of days that can be shaved off is up for debate.


The great debate

The conversation around mortgage technology is as much about the “what” as it is the “how.”

In taking tech steps forward, mortgage lenders evaluate whether building or buying a product is best for their business.

Purchasing a product is typically the quicker and most cost-effective option in the short run, as a tool is already in place for institutions to evaluate, and it’ll be more readily available for integration. But companies developing their own technology, though a hefty and potentially expensive task, have the advantage of customization, and may wind up spending less money down the line.

Companies tapping a vendor for tech should ensure a product will properly integrate, and those opting to develop their own must have adequate resources, manpower and a solid understanding of regulatory standards.

But whether built or bought, staying mindful of business objectives sits at the core of tech implementation, requiring heavy attention from business leaders and stakeholders over a tech department.


Privacy at a price

Mortgage lenders racing to adopt technology and streamline processes are also forced to battle increased data-privacy regulation and evolving cybersecurity risks extending beyond their own operations.

From securing their own data, to that of vendor partners, and even protecting borrowers from wire fraud, lenders are gearing up to battle a sea of potential risks, and all at a price.

If borrowers lose their down payment money to a scam artist who intercepts loan information and sends false wiring information for a down payment, they can no longer purchase that house and the lender loses a loan.

Wire fraud alone generated more than $1.4 billion in losses from over 300,000 cases in 2017, according to the FBI’s Internet Crime Complaint Center. The dollar volume and incidence of wire fraud has generally trended upward since 2013.

Source: By Elina Tarkazikis, National Mortgage News
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