December 11, 2014
Latest from Inside Mortgage Finance
Total bank and thrift buyback activity fell by 82.0% from the previous quarter according to estimates from Inside Mortgage Trends
Jumbo mortgage lending and securitization remained one of the bright spots in the home-loan business during the third quarter of 2014, according to a new Inside Mortgage Finance analysis. A total of $81.8 billion in mortgages exceeding the traditional $417,000 conforming loan limit were produced during the third quarter, up 15.4 percent from the second quarter of 2014. Total mortgage originations were up 11.3 percent over the same period. Total jumbo activity included...[Includes three data charts]
Quicken Completes LPMI ‘Sale’ in 60 Hours, Gives Up Profits for Exposure; Other Wholesalers May Follow Suit
Quicken Loans, the nation’s largest nonbank lender, recently offered a lender-paid mortgage insurance “sale” through loan brokers, committing $100 million to the effort and wrapping up the promotion in roughly 60 hours. According to Tod Highfield, vice president of loan production at Quicken, the sale wasn’t designed to hit any volume targets per se, but was meant to heighten the firm’s profile among certain segments of the origination market, namely brokers, credit unions and community banks. The offer was pitched...
Fannie and Freddie Roll Out Much-Anticipated 3 Percent Downpayment Option, Mortgage Industry Response Tepid
Fannie Mae and Freddie Mac this week officially announced 97 percent loan-to-value ratio programs to a mixed industry response. Fannie’s low-downpayment option will be available through its MyCommunityMortgage program, as well as for refinances and other non-MCM mortgages. Freddie will offer its 3 percent downpayment product as a purchase or no-cash-out refinance in its Home Possible Advantage program. The biggest difference between the two is...
Latest Mortgage Data
- Private MIs Post Gains in 3Q14
- Slowdown in Purchase Market Cooled GSE MBS in November
- MBS & ABS Issuance at a Glance
- Complaints About Debt Collection Down Again by Double Digits in 3Q
- 30-60 Days Uptick Raises FHA Delinquency Rate
- Jumbo Originations Rose in 3Q14; Bank Demand Remains Strong
- More Latest Data
Commercial banks and thrifts reported a seventh consecutive quarterly decline in mortgage purchases and indemnifications during the third quarter but still hold hefty amounts in reserves against future buybacks, according to a new analysis by Inside Mortgage Trends. Banks and thrifts reported $998.8 million in mortgage repurchases and indemnifications during the third quarter, down 1.3 percent from the second. It was also the lowest quarterly repurchase figure reported since ...
Seasonal trends hit the GSE single-family mortgage-backed securities business in November, with new issuance of single-family MBS tumbling 15.1 percent from October. A new Inside the GSEs analysis of loan-level MBS disclosures reveals that a sharp 22.0 percent drop in securitization of purchase-money mortgages was the major factor in the November decline. Refinance loans delivered to Fannie Mae and Freddie Mac MBS pools were off a milder 6.8 percent from the previous month. In fact, more than half of Fannie’s MBS flow in November came from refinance loans, the first time since March that purchase mortgages accounted for less than half of the GSE’s business. One sign of the increased refinance share of GSE business ... [with two exclusive charts]
Naysayers have been predicting the demise of publicly traded mortgage real estate investment trusts for two years now and have been consistently disappointed. It’s hard to say whether things will be different this time around. According to figures compiled by Inside MBS & ABS, it appears that most REITs have been intentionally reducing their MBS holdings over the past several quarters, preparing for the day when bond prices finally fall. At Sept. 30, 16 publicly traded REITs held...[Includes one data chart]
Michael Levitis, principal of the Mission Settlement Agency (a debt-settlement company), was slapped with a nine-year prison sentence and ordered to pay $2.2 million in restitution and a fine of $15,000 after pleading guilty to several charges brought in response to the CFPB’s first publicly announced criminal referral to the U.S. Department of Justice last year. Levitis pled guilty to one count of conspiracy to commit mail fraud and wire fraud, and another count of conspiracy to commit wire fraud. He has been ordered to surrender for service of his sentence on Feb. 23, 2015, at an institution to be determined by the state Bureau of Prisons. Upon release from imprisonment, Levitis will be on supervised release for a term ...
Originations of jumbo mortgages increased in the third quarter of 2014 compared with the previous quarter, according to a new ranking and analysis by Inside Mortgage Finance, an affiliated publication. Big banks continue to have a strong appetite for jumbos, prompting some smaller banks to sell jumbos to them and keeping some nonbanks out of the jumbo mortgage-backed security market altogether. An estimated $65.0 billion in jumbos were originated in the third quarter of 2014 ... [Includes one data chart]
The FHA’s accounting of receivables from settled legal claims and partial claim notes is so sloppy that the exact amount collected might be difficult to gauge, according to an internal audit of the agency’s FY 2014 and 2013 financial statements. Conducted by the Department of Housing and Urban Development’s Inspector General, the audit concluded that the FHA had booked receivables from seven cash settlements totaling $1.2 billion in FY 2014 but collected only $466.4 million of those settlements. In addition, during fiscal 2014, as part of its loss mitigation efforts to bring delinquent loans current, the FHA paid $4.4 billion to lenders for partial claims but never received the required promissory notes from the lenders for $1.5 billion of the claim payments. FHA rules require lenders to provide the agency with promissory notes for the payments made or ...
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