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» VISIT US ONLINE @ DSNEWS.COM 103 According to the experts at Black Knight, total U.S. loan delinquency rates (which accounts for loans 30 or more days past due but not in foreclosure) are at 3.8 percent— a total of 56,500 foreclosure starts. is is a minimal change over May (0.12 percent) that Black Knight noted is unusual for this time of year in the face of seasonal pressures. Breaking down the data state by state, Mississippi led the nation in the number of past-due loans, as well as those that are 90-plus days delinquent (coming in at 10.13 percent and 3.05 percent, respectively). ough the Magnolia State ranks highest in comparison to the rest of the U.S., delinquency rates are still far below what Mississippians experienced in May of 2000, when the total past-due rate hit 23.4 percent and loans 90-plus days past due hit 10.18 percent. Colorado had the best ranking in terms of delinquencies, with only 2.14 percent of borrowers noncurrent. is is a -17.78 percent change over the year. Following Colorado in ascending order, North Dakota had a delin- quency rate of 2.23 percent, Minnesota at 2.47 percent, Oregon at 2.62 percent, and Montana at 2.64 percent. In its report, Black Knight also called out the states that experienced the most im- provement over the last six months, with the Garden State of New Jersey showing up at No. 1. Since the start of the year, the number of noncurrent loans in New Jersey dropped 17.39 percent. Close behind was Florida (-17.33 per- cent), Arizona (-16.81 percent), West Virginia (-16.69 percent), and Nevada (-16.51 percent). NORTH CAROLINA BofA Shows Double- Digit Growth Bank of America (BoA) reported a 10-per- cent increase in income for the second quarter of the year, according to a conference call with the Charlotte, North Carolina-based bank's leadership in July. e bank clocked in with a reported net income of $5.3 billion for the quarter. Earnings per share also increased at a rate of 12 percent, hitting $0.46 per share. ese numbers are in comparison to a previously reported net income of $4.8 billion and an EPS of $0.41. Revenue was also on the rise at a rate of 7 percent, jumping from $21.3 billion to $22.8 billion. Net interest income was reported to be $11.0 billion, an increase of 9 percent, which, according to the bank, is a reflection of the Fed's increased interest rates and loan growth. Noninterest income was $11.8 billion, an increase of 6 percent. BoA attributes this to higher investment banking fees and the sale of its non-U.S. consumer credit card business. In the realm of consumer banking, total active users on the bank's mobile app jumped to 22.9 million, an increase of 13 percent, and Merrill Edge brokerage assets were up 21 percent. Loans, deposits, and net income were all up, coming in at $18.6 billion, $56.3 billion, and $2 billion, respectively. "Against modest economic growth of 2 percent, we had one of the strongest quarters in our history. All of our businesses deliv- ered strong results, with several setting new records," said Brian Moynihan, CEO of Bank of America. "e investments we made to transform how we serve clients produced 500 basis points of operating leverage in the quar- ter. We achieved our 60 percent efficiency ratio target, and we continued to manage credit risk carefully in line with responsible growth. is supports our plan to return $17 billion in capital during the next four quarters, including a 60 percent increase in the quarterly common dividend." TENNESSEE Franklin-based FinTech: Innovation Isn't Just for the Customer By Sandeep Hinduja Innovation in the mortgage space is advancing at a rapid rate and playing a fun- damental role in transforming the customer experience. No doubt, it is critical to solve for the customer experience as it can lead to greater returns, better customer engagement, and productivity gains, and innovations such as web portals and apps have already acceler- ated production efficiency by enabling the borrower to self-serve. If front-end innovations are driving back-office efficiencies, then we must allow ourselves to imagine the behind-the-scenes impact that operational innovation will have on customer experience transformation. Beyond customer-experience, innovating for the sake of your operation is also worthwhile; operational innovation done right can acceler- ate timelines, simplify processes, improve origination quality, engage your employees, and reduce costs. By taking a broader view of the role inno- vation plays in the mortgage industry, lenders will be able to rethink how lending is done and create new processes, tools, and technologies. Here are four reasons to bring your organiza- tion along for the innovation ride: Process Simplification If you've been working in the mortgage industry for a long time—or even for just a single day—you know the business of origi- nating loans isn't exactly simple. It is often complicated by regulation, data, documents, and timelines. Innovating new ways to simplify and accelerate some of the more cumbersome processes is one of the biggest opportunities for the mortgage industry. While there have been significant reductions in days-to-close and noteworthy advancements in process automation, there are still ample opportunities for improvement around process simplifica- tion, hyper-automation, robotics, and artificial intelligence. Until originating a mortgage is as easy as originating an auto loan, the mortgage industry must continue to aggressively seek out opportunities to simplify back-office processes within the mortgage value chain. Innovation for Supply Chain Optimization e mortgage industry has an incredible ecosystem of businesses, partnerships, and third-party service providers. ese providers often contribute niche expertise on a specific aspect of the mortgage value chain. However, unless lenders are integrating quickly and seamlessly with their providers, there will al- ways be opportunities for innovation. Luckily, innovation to streamline the mortgage indus- try supply chain is already taking place. Plug- and-play APIs are rapidly becoming the new way for loan-origination technology platforms to enable lenders to easily add and remove new services to ensure they remain competitive in the emerging mortgage market. In addition, more lenders are implementing collaboration tools to ensure complete visibility into its ser- vice providers' involvement, including greater coordination for appraisals, title and closing, better reporting and metrics, and faster time- to-close. A streamlined supply chain translates to greater cost savings, faster cycle times, fewer setbacks, and customer happiness. Innovation for Customer Analysis & Underwriting Underwriting has certainly evolved, but the opportunity for even greater change is still ahead. Significant advancements in technology

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