Client Bulletin: April 15, 2024

New Monthly Report Details Corrections
On April 2, we launched a new report aimed at helping you improve the quality of your data for newly boarded loans. You already have received the April version of this report, and can expect to receive an updated version on the second business day of each month going forward.

This report offers a monthly lookback on the post-boarding data corrections that have been carried out on new loan flows once a complete document package has been received and reviewed. If no data corrections were made for new loans boarded the previous month, you will receive a blank report.

Insights into the post-boarding corrections made to your portfolio should enable you and your organization to identify potential opportunities to provide the necessary data elements upfront through New Loan Boarding channels, where applicable.

Look for the report, saved in a format like YYYYMMDD_Data Corrections_Report_[servicedforID]_[client name].xlsx, in your SFTP folder. A sample report has been posted in CenAccess, under Training & Reference > Transfer Instructions.

New XML Fields Included in Updated New Loan Transfer Instructions
We have an updated set of New Loan Transfer Instructions, which include new XML fields that may apply to your organization.

To help you with these changes, the following documents have been updated on CenAccess, for your reference:
• Cenlar New Loan Flow Transfer Instructions 20240329.pdf
• Exhibit A1 – XML Standard Interface File-20240329.xlsx
• Exhibit A3 – XML New Loan Boarding File Edits-20240329.xlsx
Please review these updated documents for a detailed list of the changes. If your organization plans on programming any of these new fields and wish to test this with Cenlar, you can open a CCM ticket once you are able to test the fields.

Take These Steps Now to Prepare for CenAccess MFA
As we announced in February and March 2024 issues of the Client Bulletin, we are planning to introduce enhanced security for our CenAccess application through the addition of Multi-Factor Authentication (MFA). We are currently targeting to launch this feature sometime in June. We are sharing this news again, so you can begin preparing your teams.

MFA validation will be facilitated through the Microsoft Authenticator app. CenAccess users will download the Authenticator application to their mobile device and use it to perform MFA in order to access CenAccess. Microsoft Authenticator App is available in both the Apple App and Google Play stores via mobile device, at no cost.

On launch date, CenAccess users will receive a temporary password and guidance on how to download Microsoft Authenticator, setup and access CenAccess via MFA. After initial validation and on an ongoing basis upon CenAccess login, users will be provided a one-time code via the Authenticator app for additional authentication to enable login. This will also help streamline password resets for CenAccess, as this will now be available to be done online.

We are providing this information in advance of activation so that you can prepare your processes and users. However, Cenlar clients do not need to do much in preparation for this enhancement.

You will need to:
• Alert your technology teams that CenAccess users will need to download the Microsoft Authenticator app onto their mobile devices in case they need support on the MFA activation date
• Inform CenAccess users of the coming enhancement and the need to download Microsoft Authenticator onto their mobile device during the activation process, and implement when they receive the email invitation, instructions and support materials
We will share our finalized MFA activation date and provide additional details for the conversion in a future issue of the Client Bulletin.

Important Changes to Our Leadership Structure
On April 9, we shared with you important changes to our leadership structure at both Cenlar Capital Corporation (CCC) and Cenlar FSB (collectively, Cenlar). Effective May 1, 2024, Jim Daras is stepping down as Chief Executive Officer and transitioning to a new role as Executive Vice Chairman of both CCC and Cenlar FSB’s Board of Directors, reporting to Board Chair Dave Applegate. President David Schneider has been appointed Chief Executive Officer of both entities and will remain in his current role as President.
As Executive Vice Chairman of both Boards, Jim will continue to work with our executive leadership team, be the senior representative to our clients and regulators and work on our future strategic direction.

Over the last several years, Jim has guided the strategic transformation of our organization with a relentless commitment to investing in our team, technology and our risk/controls infrastructure. He took charge at a vital time in Cenlar’s history, and the investments made under his leadership have built a stronger, more resilient company that is well positioned to continue to deliver industry-leading servicing solutions for our clients and their homeowners.

Among Cenlar’s results under Jim’s leadership are:
• Re-signed contracts with virtually all of our major clients over the last 18 months.
• Promoted from within and recruited 30 of the most accomplished leaders in our industry — from default to IT to risk management — to create the best team in the business, bar none.
• Converted to a C-corp from an S-corp, which enables us to leverage capital, diversify and grow the business.
• Made significant technology investments that have led to industry plaudits, including 2023 Mid-Cap CIO of the Year award and the 2024 ICE Innovation Award.
• Honored as a 2023 Fannie Mae STAR Performer in Solutions Delivery.
• Raised $30M of Tier 1 capital with a highly respected capital partner, putting us on a strong capital footing, able to withstand the earnings volatility that comes with our business.
We have every confidence that David will continue to set us on a positive path forward, as we look toward setting the bar higher not just for the future of our organization but also for our industry. David is an accomplished and highly regarded mortgage banking executive with deep financial and mortgage servicing expertise. His experience as a top executive at major firms like CitiMortgage, Washington Mutual and JPMorgan speaks for itself. David’s leadership over the last year, alongside Jim, has been critical to making Cenlar stronger than ever.

Among David’s key focuses as President has been further maturing Cenlar’s culture of client service excellence. With David at the helm, be assured our entire organization remains resolute in our commitment to you, our client partners.

Thank you for your continued partnership as our team works toward a seamless transition to this new leadership structure over the next several weeks. Please reach out to your Executive Client Manager with any questions.