Rising rates will be the top challenge facing mortgage executives next year.

They cited rates, 54 percent, as the top obstacle the housing market faces in 2019. Next were a lack of affordable housing supply, 37 percent, and government sponsored enterprise reform, seven percent, according to a survey from Genworth Mortgage Insurance of more than 200 executives that attended the MBA Annual Conference last month. The pending expiration of the qualified mortgage, two percent, was next.

For first-time homebuyers, the scarcity of affordable housing, 58 percent, will make buying a home difficult for them. “While rising interest rates and a lack of affordable housing supply continue to drive increase in home prices, first-time homebuyers have not wavered in their efforts to buy homes," said Rohit Gupta, president and CEO, Genworth Mortgage Insurance. "We continue to stress the importance of education and [options] for this demographic to set them up for success.”

Also, first time homeowners suffer from a lack of consumer knowledge, 20 percent, about the homebuying process, and rising interest rates, 13 percent, will be a drag on originations among this segment of the marketplace. The lack of an appropriate credit history, nine percent, is a lesser barrier to entering the market.

Other conclusions from the survey are as follows:

Technology is needed in loan application submission and closing process to improve customer experience:
Eighty-five percent of executives believe that integrating technology into the loan application submission process, 41 percent, and/or the closing process, 44 percent, will provide the strongest improvements in customer engagement. Also, respondents identified either the loan inquiry process or private mortgage insurance, 15 percent, as areas where technology could make a large improvement.

Borrowers' risk profiles see minor improvements:
While the housing market is expected to undergo some turbulence over the coming year, industry professionals are beginning to notice small improvements in the risk profiles of borrowers that want to enter the market. Of those surveyed, 41 percent, noted a small improvement in the quality of borrowers, while 53 percent, saw no change to a small decline, in their profiles. However, some identified an increase, 5 percent, in the risk profiles of applicants; just one percent reported a significant decline in risk profiles.

Regulatory won’t support increase in affordable housing:
When it comes to fixing the disparity in available housing inventory, a majority of mortgage executives, 62 percent, do not believe that regulatory policy changes introduced over the next 12 to 24 months will support the construction of more affordable homes, those priced at $300,000 or less. The shortage of affordable housing options  identified in the survey as a significant hurdle for new homebuyers, as well as the overall success of the housing market in 2019.

BlackKnight has acquired Ernst Publishing Co., which provides fee results for loan estimates and closing disclosures and fee-engine technology. Users of Ernst's platform include 9 of the top-10 mortgage servicers, all 5 of the top title underwriters, and 9 of the 10 largest banks, according to the company.

Black Knight plans to integrate Ernst's capabilities into its origination solutions, but also to companies who do not use the Black Knight Empower loan origination system; it will continue to work with Ernst's current  partners and clients. Ernst programs processed 250 million real estate transactions in 2017, making it one of the most used technology in the industry.

Black Knight will augment its existing fee engine with Ernst's capabilities, including recording fees, transfer taxes, inspection fees, property taxes and title premium fees to create a unified access point for all fee-related needs. This comprehensive fee suite will integrate with Black Knight's Origination Solutions suite, which includes loan-origination software, regulatory compliance and eClosing capabilities, enhanced by artificial-intelligence technology.

Since the company was founded 29 years ago, Ernst has processed well over 1 billion transactions and unveiled dozens of technologies and products that produce efficiency across the real estate industry. The firm estimates that its technology is in use for 90% of the nation’s new loan originations and refinance transactions.

"Without a doubt, Ernst is the leading provider of fee and tax data in the industry," said Rich Gagliano, president of the origination technologies division of Black Knight. "By tightly integrating this technology and data into our origination product suite, we are able to better serve our existing clients. This is another step forward in our mission to provide a truly end-to-end origination solution, which will be unparalleled in the industry."

"Ernst and Black Knight share very similar goals--to create innovative solutions that transform the industry, support regulatory and compliance requirements, and create a better borrower experience," said Greg Teal, chief executive officer of Ernst.

Roostify has hired Courtney Keating Chakarun to serve as chief marketing officer. She joins from CoreLogic, where she served as senior vice president of marketing and innovation.

“As Roostify advances along the growth trajectory powered by our world class customers and emphasis on digital innovation, strong and focused marketing leadership is imperative to position ourselves for continued success,” said Rajesh Bhat, CEO of Roostify. “Courtney’s extensive leadership experience, marketing prowess and proven track record of driving growth will be great assets to Roostify, and we’re excited to welcome her to company.”

Chakarun joined CoreLogic in 2014, where she championed marketing and developed a plan for growth and innovation.  Prior to CoreLogic, she spent over a decade in various leadership roles at GE, most recently leading new product innovation, mobility, and consumer research insights for retail finance division, now known as Synchrony Financial, of GE Capital’s Retail Finance.

“Roostify has built an impressive position in the digital lending space and they are true innovators,” said Chakarun. “Most of all, I’m excited to be a part of a team that puts the customer first.” I look forward to contributing to the company’s next phase of growth and amplifying Roostify’s brand and customer value.”