Transcription
Turn Compliance into yourCompetitive AdvantagePresented byShelly SchwiesoVP, Mortgage StrategiesJuly 30th, 20151
MORTGAGE PARTNERSHIP FINANCE (MPF ) PROGRAMDisclaimerThis presentation is not an offer to sell or buy any mortgage or financial product. Therates and other values presented in this material are indications only; the actual amountsmay vary, and all terms are subject to change without notice. Any member who engagesin any transaction described in this material will be required to execute a writtenagreement with the Federal Home Loan Bank of Seattle (Seattle Bank) that will govern theterms and conditions of that transaction. It is the member’s sole responsibility to reviewany such agreement prior to signing it. In the event of any inconsistencies between thisinformation and any such agreement, the agreement shall be determinative.This presentation is based on information contained in the Mortgage Partnership Finance(MPF ) Program Guides and the MPF Xtra Manual as of the date of this presentation.These documents govern and control in the event of discrepancies between theinformation provided in this presentation and the documents themselves. The officialversions of these documents are available through AllRegs .“Mortgage Partnership Finance ,” “MPF,” “eMPF ,” and “MPF Xtra” are registered trademarksof the Federal Home Loan Bank of Chicago, and the “MPF Mortgage Partnership Finance”logo is a trademark of the Federal Home Loan Bank of Chicago.FHLB DES MOINES2
What is the MortgagePartnership Finance (MPF )Program?FHLB DES MOINES3
FHLBank History The FHLBank System was chartered by Congressin 1932 and has a primary mission of providingmember financial institutions with financialproducts and services that assist and enhancethe financing of housing and community lending There are currently 11 FHLBanks, 9* participatein the Mortgage Partnership Finance Program* The merger of the Seattle and Des Moines is considered in this amount4
FHLBank System Overview5
What is the Mortgage Partnership Finance (MPF )Program? Introduced in 1997, the Mortgage Partnership Finance (MPF ) program gives members of the FHLBank System acompetitive alternative to selling their mortgages tosecondary market agencies FHLBanks participating in the MPF Program may holdloans on their own balance sheets or they may sell loansthrough to Fannie Mae, Redwood Trust or Ginnie Mae(GNMA).6
What Makes MPF Different?Ease of Delivery, No Credit OverlaysKEYYouYour CustomerInvestorFHLBankTraditional Loan Sales ProcessCustomerapplies fora loanYou lockand closethe loanSendcompleteloan file toinvestorInvestorperformspost-closeQC for eachloanYouReceiveFundsLoan held byFHLBbank or soldto Pass ThroughInvestorSendcollateralpackage tocustodianYou adviceissuedYouYouReceiveReceiveFundsFundsMPF Loan Sales ProcessCustomerapplies fora loanYou lockand closethe loanUploadULDD 3.0XML file toeMPF PortalYou sendcollateralpackage tocustodian**Approximately 10% of loans randomly selected for post-close QC (Fannie Mae QC standards), subject to additionaldiscretionary requests. MPF Direct (Jumbo) loans sold via traditional loan sales process.FHLB DES MOINES7
Industry HeadwindsFHLB DES MOINES8
The challenge Shrinking Margins New and Increased Regulation Evolving Customer Needs9
Rapid Change “Powerful forces - majoreconomic cycles,generational shifts,technology revolution, anda historic culturaltransformation areconverging.”– Michael Malone, TheFuture ArrivedYesterday10
Demographics 56% of New Homebuyers are Hispanic1 Millennials are now the largest and most diversegeneration in U.S. History2 Millennials have their own language – “digital”2Sources: 1: National Association of Realtors, 2015. 2: Pew Research Center, March 7, 2014.11
What’s Your 3-5 Year Plan? In the next 5 years, 74% ofMillennials plan to make a movein the housing market. In the next 12 months, 32% ofMillennials plan to buy a home.12
Understanding ChangeFHLB DES MOINES13
Complacency Kills14
Sense of urgency “In a world where the rate ofchange appears to be going upand up, we are experiencing amore global shift from episodicto continuous, with hugeimplications for the issue ofurgency and performance.”- John P. Kotter, A Sense of Urgency15
Shape-Shifters .best companies of the future will use the latestinformation processing, communications, and socialnetworking technologies to become shape-shifters,constantly restructuring themselves to adapt to changingcircumstances and new opportunities.- Michael Malone, The Future Arrived Yesterday
Changing times17
Right Brain, Left BrainFHLB DES MOINES18
A shift in power19
Meaning is the new money20
Conceptual Age Play:Design:Empathy:ThefundamentalAre gtellaDoes areHowour welogo,perceivedliterature,principle– seizingthe etplace?evenanourArewecreatingbigSinceour l thingsto all“Is mybewealthin oyeesandstorymoreempoweringpeople,is ourhands tomers?walls?customers?forcore?I can trust?”21
ExamplesFHLB DES MOINES22
What Would You Do with this postcard?23
How About This One?24
In tune or tin ear?25
In tune or tin ear?26
In tune or tin ear?27
In tune or tin ear?28
In tune or tin ear?29
Active consumersBrandexperience Participation Investment
We’ve got some work to doOnly 25% of borrower’s believe our industry has apositive reputation. Harris Poll 2013 RQ Summary report But reputation is still one of the top three thingsborrowers look for Lock in loyalty – PWC 2013
Top Four OpportunitiesFHLB DES MOINES33
Become an experience provider1. Borrowers want a loan officer that actsas an advisor and advocate for them,rather than a transactionrepresentative.2. They want a mix of both digital andface-to-face interactions throughoutthe mortgage process.3. They want to get through the processas quickly and painlessly as possible.4. They want to understand fees, terms,and the length of the entire process –upfront, with no surprises.34Lock in loyalty – PWC 2013
Customers remember your LoanOfficer more than your ratesBreakdown of positive loan officerinteractionFriendly onPersonalizationLock in loyalty – PWC 2013Customize the mortgage experience for your borrower using the loan35officer as a personal advisor and supporter.
Personalize It! In the mortgage product In the service In the relationship36
Randy Glasbergen / glassbergen.com“I’d like an all-natural, hypoallergenic,gluten-free mortgage with a low-carbonfootprint prepared with recycled soy ink in apeanut-safe environment.”37
Customer segments All borrowers want the convenience of digital at different stages,but when complexities arise, they want someone by their side.No Fuss Fred 31%NoviceNancySavvySteve 22% 27%RelationshipRachel 20%Lock in loyalty – PWC 201338
Borrowers want a mix ofdigital and traditional Offer a variety of ways—digitally, through the phone, and in person—thatborrowers can complete different parts of the mortgage process.39Lock in loyalty – PWC 2013
Borrowers want a fastersmoother process What’s exasperating your borrowers?40Lock in loyalty – PWC 2013
Mortgage process should betransparent Design your mortgage process to be transparent from application toclosing, especially when it comes to fees and terms, with communicationand updates offered in the way that your customer desires.41Fannie Mae National Housing Survey, Nov. 2013
Make compliance yourcompetitive advantage New regulations require more in-depth disclosure, but borrowers want more thandisclosure they seek understanding. Create a personalized mortgage experience thatyour borrower will remember – creating a customer for life.TeachTailorTakeControlFor DifferentiationFor PersonalizationOf the SaleDavid Savage, Mortgage Coach, WashingtonMortgage Association Meeting March, 24th, 2015
Advice vs. Price43
Q&A SessionFHLB DES MOINES44
MahaloShelly .com
FHLB DES MOINES 7 What Makes MPF Different? * *Approximately 10% of loans randomly selected for post-close QC (Fannie Mae QC standards), subject to additional discretionary requests. MPF Direct (Jumbo) loans sold via traditional loan sales process. Traditional Loan Sales Process Customer applies for a loan You lock and close the loan Send .
