August 2024

Mortgage’s Perennial Challenges: Cost, Compliance, Efficiency

As this issue of Covius Connection goes to press, mortgage rates are drifting down, and there is a growing expectation that a Fed rate cut is coming soon. Will this bring a year-end boost in purchase originations and a mini revival of refinances? That’s the hope, but whatever lies ahead, our industry will still face its perennial challenges of controlling costs, improving efficiency and staying compliant. Covius speaks to these challenges in this issue: we’ll look at concerns surrounding AI and its potential for bias, explore a new income verification solution, examine how servicers can prepare for their next audit and more.

Here’s to a productive last few weeks of summer and a successful transition into fall conference season! Speaking of conference season, we hope to see you at the Covius reception during the Five Star Conference in Dallas on Tuesday, Sept 24th – you can find details and RSVP below.

Pete Pannes
Chief Business Officer

A Low-Cost Solution for IRS Wage & Income Verification

With the IRS soon doubling its 4506-C fees, now is an excellent time to leverage Covius’ 8821 solution, an advanced IRS income verification tool that significantly enhances efficiency and accuracy while reducing costs and turnaround times. 

The new solution delivers a comprehensive array of 64 personal and business tax transcripts and allows clients to bypass legacy processes to fulfill most requests in less than 24 hours with significantly fewer rejections (less than 1 percent as compared to the 4506-C national average of 38 percent). Additionally, re-pulls or subsequent documents are delivered in minutes, with no extra fee.

At a Glance:

Rep & Warranty indemnification from Fannie Mae and Freddie Mac
Tax transcripts for loan origination are fulfilled 70% faster, are accurate and are offered for 25% the cost of traditional methods
Consent to request transcripts, once executed, expires in 3 years, not 120 days
Proprietary and direct connection with the IRS to retrieve accurate and reliable data

Taxdoor®, Covius’ proprietary income tax verification platform, supports the 4506-C and 8821, making it the perfect solution for migrating from the traditional 4506-C to 8821.

Ready for VASP Requirements? Attend This Essential Webinar

Are you ready for the VA’s new Servicing Purchase Program (VASP)? Join the Covius Compliance Solutions team Wednesday, August 28th at 2 p.m. for an in-depth webinar with guest speaker Katie Graham-Wagner, Veterans Affairs Servicer Liaison, to explore the program overview and the post-decision process. Learn everything you need to know about the program, which is targeted to assist more than 40,000 veterans, active-duty service members and surviving spouses experiencing severe financial hardship. Servicers are required to begin offering modifications by October 1st.

Register today to reserve your spot and ensure you’ll be ready to offer your borrowers assistance!

Contact Darby Emrick at Darby.Emrick@covius.com.  

AI and Bias: What Everyone is So Worried About

We have all, no doubt, heard and read about the growing concern about AI, but what is the basis for that growing concern? Why are so many agencies at all levels of government worried about the impact of AI within the mortgage space? We know that one of the biggest concerns about the use of AI is its potential to make biased decisions. In mortgage lending, there is worry that AI bias could result in harm to lower-income or minority borrowers. In her latest article, Kara Snow, Senior Regulatory Counsel, Covius Compliance Solutions, examines how the uncontrolled use of AI has resulted in bias outside of lending and why these stories of AI concern may be influencing legislators, regulators and advocacy groups with regard to the mortgage space.

Are You Prepared for Your Next Audit?

If there is one constant in mortgage servicing, it’s that compliance is always a moving target, and that means operations teams are often required to evolve. Ongoing servicing updates due to regulatory compliance changes or shifts in company product strategies often lead to changes in operational servicing procedures, which means internal written policies and procedures should be reviewed and updated proactively. Check out the latest article from Zaira Rodriguez, Clayton Servicing Oversight Operations Manager to learn more about how Clayton’s Servicing Oversight team works with mortgage servicers to evaluate or implement procedures to help ensure ongoing consistency and compliance.

Covius/Guardian Reception at Waterproof in Dallas During Five Star

Join Covius and Guardian Asset Management at the iconic Waterproof rooftop lounge at The Statler Hotel in Dallas for a night of craft cocktails and skyline views as we enjoy connecting during the Five Star Institute’s Annual Conference & Expo! RSVP to attend.

Navigating Real Estate’s Digital Landscape

Online platforms, virtual tours and digital marketing strategies have reshaped the real estate landscape, making it more accessible and efficient for buyers and sellers alike. In his recent article for REI-Ink, Christopher Link, Covius SVP of Asset & Default Management, explains how today’s digital tools, including auction platforms like RealtyBid, offer unparalleled opportunities to reach and connect with potential buyers.