How To Comply With Collateral Data Delivery FNC, Inc. Web Conference

How To Comply
Collateral Data Delivery
FNC, Inc. Web Conference
March 16, 2010
• FNC, Inc.
• History / Data Management
• Collateral Data Delivery
• Field Experience
• Data Standards
• Questions & Answers
• FNC, Inc.
• Shawn Telford, Director, Product Management
• Mike Mitchell, Chief Strategy Officer
• JJ Neilson
• Assistant Vice President, Team Lead Loan Risk and
Recovery, Collateral Management, SunTrust Mortgage
• Kirk Rzasa,
• Senior Business Consultant, Quicken Loans
• Carol Luitjens
• Chief Marketing Officer, FNC
• [email protected]
• “Chat” box submission
Conference Web Page
• Today’s PowerPoint
• Audio
• Questions
Shawn Telford
Director, Product Manager
About FNC
• Focused on collateral since 1995
• Collateral management platforms
• Collateral Management System® (CMS®)- Enterprise
• Collateral Headquarters™ (CHQTM ) - Software-as-a
• AppraisalPort® – work portal for >58,000 appraisal
• Generally Accepted Appraisal Rules™ (GAAR®)
About FNC
• Platforms are used to ensure:
Appraiser independence
Appraisal/Valuation compliance
Market trends and tracking
Data extraction
• Clients share data through our National Collateral
• Top US financial institutions use FNC platforms, GAAR
and CDNA analytics to process, review and underwrite
How is FNC Unique?
• FNC focuses on
Regulatory compliance
Data extraction and shared data/documents
Collateral analytics
Deployment of an enterprise application
Process management and automation
• FNC focuses on data extraction, regulatory compliance
and streamlining the collateral decision-making process
for our clients in all areas including origination, servicing,
and secondary/capital markets.
All About Data
• History of open XML for appraisals
• 1997/98
• FNC Worked with Appraisal Institute to create
open XML appraisal standard known as AI XML –
AI ReadyTM
• FNC wrote objects and gave them to appraisal forms
vendors who used them to create XML
• We can deliver any XML standard the client desires
including MISMO
• All major appraisal forms companies support AI
All About Data
• PDFs and paper to data
• Developed data extraction from PDFs
• First generation PDFs—a term FNC “coined”
• Second generation PDFs—essentially faxes we
convert to data
• All services can be returned to institution as datastream including public record data, tax assessed
values, AVMs, BPOs, appraisals, other inspections,
and reviews.
Why is the Data Important?
• Process and Workflow automation
• Regulatory Compliance
• Standardized Review and Decisioning
• GAAR Compliance
• GAAR Risk
• Appraisal Score
Objective, Enterprise-wide Quality Control
Transparency…at the loan level
Vendor performance measurement & tracking
Reporting and internal policy compliance
What is the CDD?
• Fannie Mae created a stir by announcing the
CDD (Collateral Data Delivery) initiative May
• Requires lenders to deliver appraisal data prior to
loan delivery
• “Effective on a date to be announced, but no earlier
than July 1, 2010”
• Appraisal must be delivered as XML or PDF (fees
charged for PDF’s)
• Lenders may integrate directly to CDD or use the
CDD web portal to upload
Fannie is First Out of the Gate
• Fannie’s CDD is the first secondary market
initiative requiring appraisal data delivery.
• Freddie Mac has publicly indicated they also would
expect appraisal data delivery for loans they purchase
• HUD has indicated a strong interest in accessing
appraisal data as part of their insuring process
• Transparency of collateral valuation is becoming a
focus, and having the appraisal data is key to creating
that transparency
What is the Status of the Fannie CDD?
• Currently the CDD is in pilot with a limited
number of lenders
• Fannie is actively engaging their customers,
setting expectations and answering questions
• Quicken Loans working with FNC is currently
piloting a direct integration(XIS) to the CDD
• The FNC CMS system used at Quicken Loans will
facilitate delivery to the CDD and the associated exception
handling process
• Exception handling will include automated overrides,
queue managed overrides, and appraiser edits/ resubmission
Mike Mitchell
Chief Strategy Officer
Updates from the Market
JJ Neilson,
Assistant Vice President, Team Lead Loan Risk and Recovery,
Collateral Management, SunTrust Mortgage, SunTrust Mortgage
• Importance of Appraisal Data
• Importance of Managing the Appraisal Data
Updates From The Market
Kirk Rzasa
Senior Business Consultant, Quicken Loans
• Appraisal Review Management
• Quality Control
• CDD Pilot
• AI Ready
Moving Forward with Data
• Complying with CDD and other appraisal
data delivery initiatives to the secondary
market needs a global approach
• Standard process for all channels & investors
• Leverage enterprise collateral platform for
procurement, review, scoring and investor
• Avoid custom process for each investor
• Data value to enterprise goes beyond CDD
Have a Single Standard Process
• Simplify a standard “best practice” process
• Expect new investor requirements, new XML data
“flavors”, new appraisal requirements, new
appraisal vendors or trading partners
• XML is like ice cream…..
• “Cleanest” data created by the appraiser
• FNC recommends AI Ready
• AI Ready is ALL the data in the appraisal.
• The data is validated by the appraiser before
submission to the lender client
Data Delivery Via FNC GatewayTM
Four Simple Steps To Comply
1. Trigger: Which files will you send to CDD
(Secondary Market) – by specific loans or by
status (e.g. clear to close)
2. XML Data Package: Creating the correct package
of XML data – MISMO 2.6 vs MISMO 3.0 vs Other
with “wrapper” and other attachments
3. Managing the Exceptions: Front end scrubbing
with GAAR and back end process of overrides,
edits, revisions & resubmissions.
4. Storage and Management: Managing of the CDD
(and other Secondary Market) receipts and
approvals for inclusion in the loan delivery.
• Create a standard, robust process
• All Channels
• All Investors
• All Vendors (current and future)
• Exception Management is Critical Path
• Automated Overrides
• Queue driven Overrides
• Revised Appraisals/Resubmission
• XML is like Ice-cream…
• Today’s Questions
• Chat Function
• [email protected][email protected]
• Collateral
• On-going discussion (blog)
© 2010 FNC, Inc.
Thank You
• Questionnaire