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Day 1 Certainty Will Help Credit Unions Serve Customers

Enhanced validation service and property inspection waivers will save credit unions’ borrowers time and money.

Credit unions value the relationships with their members, and earn their loyalty by providing the highest level of customer service. By leveraging recently announced offerings from Fannie Mae, credit unions can serve their members through even more efficient origination, processing, and closing of mortgage loans.

Day 1 Certainty will give credit unions increased efficiency as well as freedom from representations and warranties (reps warrants) on key mortgage loan components. Powered by industry-leading technology solutions, Desktop Underwriter (DU) and Collateral Underwriter (CU), Day 1 Certainty will be provided when lenders implement these lender options.

The DU validation servicegives lenders freedom from paper-based processes with validation of income, assets, and employment, and relief from reps and warrants on validated components. Lenders who tested the validation service were able to deliver an enhanced borrower experience, saving time by leveraging electronic data over paper. And they reported that their processors saved approximately 90 minutes, and underwriters saved 20 to 30 minutes of touch time, allowing them to focus on managing exceptions. Total overall time saved: four to seven days. Income validation is now available, and validation of assets and employment will be offered in DU beginning the weekend of Dec. 10.

Eric Burgoon, senior vice president and chief lending officer at at Lake Michigan Credit Union, commented, This is a game-changing step in giving our members relief from most of the paper-based processes in the industry, and its ease of use through DU and CU helps us deliver faster service, too.

The Enhanced Property Inspection Waiver (PIW)offers lenders and their borrowers freedom from appraisal requirements on eligible refinance transactions. A PIW can save borrowers money and shorten the loan origination process by eliminating the need to obtain and review an appraisal. And when a PIW offer is exercised, lenders receive relief from reps warrants on property value, condition, and marketability.

The current PIW offering has been available on a limited basis. The enhanced PIW powered by Collateral Underwriter will be available to all lenders in DU effective the weekend of Dec. 10.

This change will be very beneficial to us and our members, said Jayme Larsen, senior manager of mortgage credit administration at BECU. Tying the issuance of a PIW to hard data from Collateral Underwriter instead of the previous system that also factored in borrower data will give us a much more reliable result. We will have peace of mind knowing that we can’t lose the PIW after it’s issued due to changes in the DTI ratio, credit score, assets, or other credit factors.

Day 1 Certainty also means freedom from reps and warrants on appraised value with the power of Collateral Underwriter. Effective the weekend of Dec. 10, eligible transactions simply need a CU risk score of 2.5 or lower on the appraisal and an Approve/Eligible recommendation on the DU loan casefile.

Learn more about how Day 1 Certainty can help your credit union provide even more efficient service to your members. Access fact sheets, FAQs, lender webinar registration, and more to find out how to get Day 1 Certainty.

This article is sponsored by a recognized solutions provider in the credit union industry. Callahan & Associates does not endorse vendors or the solutions they offer, and the views and opinions offered here might not reflect those of Callahan. If you are interested in contributing an article on CreditUnions.com, please contact the Callahan team at ads@creditunions.com or 1-800-446-7453.
November 14, 2016

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