DS News

» VISIT US ONLINE @ DSNEWS.COM 61 In general, I am cautiously optimistic about our industry's prospects for 2015. I'll still be competing in a challenging regula- tory environment and I'll almost certainly see a more competitive landscape due to consolidation. But I also see plenty of op- portunities to bring in more business, and that will benefit every company that is run Ill and understands how to add value to their partners, clients and the consumer. TITLE SERVICES JASON NADEAU Group President, Mortgage and Title Services at Stewart Title e new Closing Disclosure Form and lack of HUD-1 use post-August 1 will be the biggest change for our industry – both in tech and process. In fact, we believe this will be one of the largest single changes ever seen by the industry. Closer collaboration between lenders and closing agents will be required to implement and maintain compliance. Consumers understanding fees and costs will likely be clarified with the CDF form deployment; however, the loss of the HUD-1 for the process will interject new points of confusion as closing agents also attempt to sort through the process for documenting cash flows and cash distribution as required by escrow agents. Lenders are increasing their vetting and oversight of title and closing agents, and we expect that 2015 will see stricter standards for agents to comply in order to maintain business from lenders. You will see controls around data security, borrower experience, and documents processes procedures, and controls will now be required at all phases of the process for all agents, large and small. As a result of this, the cost to complete and sustain market share will increase for title agencies. SERVICING DAVE VIDA President of Loan Servicing, LenderLive For the past few years, the big news in our industry has been the evolving shift in servicing ownership, as market share leaders became sellers, creating a booming market for mortgage servicing rights (MSRs) and spawning a new class of mega-non-bank servicers. at story, however, was interrupted mid-year when regulators called a time-out due to their concerns for the volume and velocity of MSR deals and their potential impact on distressed borrowers. e big question—and opportunity—for 2015 is: how will this cliff hanger be resolved? If I had to guess, I would say that the deals currently on hold will eventually get done, because the would-be sellers and the ultimate buyers, investors, are still motivated. e bottom line is that money center banks are rethinking their commitment to mortgages, thanks to the higher capital requirements of Basel III and the reputational "hangover" from the mortgage crisis. Meanwhile, there continues to be a high demand for MSRs from Wall Street and private equity hedge funds. e story to watch in 2015 is: What will these deals look like when they come to market and who will ultimately service them? Can the mega-servicers overcome their legacy issues and rehabilitate their public personas to take this business? Or more likely, will some of these very large deals be broken up and parsed out to traditional sub-servicers and new, mid-tier players, like LenderLive? Certainly as a group, we're well- equipped to service the high quality assets that are being originated today. Scale, of course, is a consideration, and, realistically, new entrants won't be able to absorb 100,000-accounts packages. On the plus side, as new entrants, we aren't tethered to older servicing technologies. is means we can often provide greater transparency, real-time insight, higher levels of customization, and frankly, better service to investors. e non-bank servicers will also have to ensure they meet new requirements being rolled out. At some point, our industry will also have to begin innovating and creating new methods to improve the overall customer experience for consumers. In 2015, the shift in the servicing market share will most likely resume, but there will be new players, different-sized deals, and more scrutiny. Stay tuned. EXPERT OPINION "Certainly as a group, we're well- equipped to service the high quality assets that are being originated today. Scale, of course, is a consideration, and, realistically, new entrants won't be able to absorb 100,000-accounts packages. On the plus side, as new entrants, we aren't tethered to older servicing technologies. This means we can often provide greater transparency, real-time insight, higher levels of customization, and frankly, better service to investors." –DAVE VIDA

• Cover