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Volume 2014 - Number 39

October 16, 2014

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GSE Buybacks Up Sharply in Second Quarter as More Disputes Over Old Business Are Resolved

Mortgage lenders continued to work through a huge pile of repurchase demands related to loans securitized by Fannie Mae and Freddie Mac before the housing market crash. The two government-sponsored enterprises reported a total of $1.269 billion of repurchases by sellers during the second quarter of 2014, according to a new analysis by Inside Mortgage Trends, an affiliated newsletter, of Securities and Exchange Commission filings by the two GSEs. That compared to just $522.5 million in repurchases during the first quarter of this year. As has been the case since the buyback issue mushroomed several years ago, most of the second-quarter repurchases focused...[Includes one data chart]

A New Player Involved in Mortgage M&A Activity: Mid-Sized Commercial Banks

Mid-sized commercial banks are starting to turn up as potential buyers of mortgage banking franchises again, a trend that has not been seen in years, according to investment bankers that ply their trade in the space. “I’m working on two deals right now where the buyers are well capitalized commercial banks,” said Larry Charbonneau, a principal in Charbonneau & Associates, a boutique advisory firm based in Spring, TX. Charbonneau said he cannot identify the buyers due to non-disclosure agreements, but hopes to eventually. He noted that both banks have assets in the $2 billion to $3 billion range. “One of the banks isn’t...

State Regulators Propose Major Expansion Of Data Collection for Lending, Servicing

State regulators recently proposed expanding the data that state-licensed lenders must report on the Nationwide Mortgage Licensing System and Registry’s mortgage call report. The State Regulatory Registry said the data help state regulators supervise licensees, determine examination schedules, monitor compliance and calculate assessments. The SRR was established by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. The SRR owns and operates the NMLS and has required state-licensed lenders to submit quarterly call report data since 2011. On Oct. 1, the SRR proposed...[Includes one data chart]

CFPB Throws Industry a Few Bones on TRID Rule; Are There More to Come and, If So, Exactly When?

The Consumer Financial Protection Bureau last week proposed two narrow revisions to its complex mortgage origination disclosure rule, leaving the industry guessing what further changes could come as lenders gear up to implement a massive rule known as TRID: the Truth-in-Lending/Real Estate Settlement Procedures Act integrated disclosure. For most lenders, the most significant proposed change would relax the requirement that lenders provide a revised loan estimate on the same day that a consumer’s rate is locked. After considering industry feedback, CFPB staff concluded that such a short turnaround may be challenging for lenders that allow consumers to lock interest rates late in the day or after business hours. This could mean...

Layoffs Hit ‘Specialty Servicers’ Wingspan And RCS: Has This Niche Market Peaked?

Thanks to rapidly improving delinquency rates and real estate values, the bloom appears to be off the rose for specialty servicers that built their business on processing delinquent and high-touch mortgages that are guaranteed by Fannie Mae, Freddie Mac and the FHA. Over the past month, layoffs have plagued both Wingspan Portfolio Services, Dallas, and Residential Credit Solutions of Fort Worth, TX. Moreover, industry officials who work in the servicing sector believe...

Small Mortgage Lenders Renew Call for Lower FHA Premiums, in Anticipation of Healthier Insurance Fund

A group of small and mid-sized lenders this week renewed their request to the Department of Housing and Urban Development to cut FHA’s annual premiums to improve borrower access to credit, a change that likely depends on the annual audit of the Mutual Mortgage Insurance Fund. Sources expect the next annual audit report to show further improvement in the health of the MMI Fund, which had a negative economic value of $1.3 billion in September 2013, the end of the government’s 2013 fiscal year. Beyond getting back into the black, the MMIF still must reach a 2.0 percent statutory capital reserve requirement, which the last audit predicted would occur next year. The fiscal 2014 audit report is expected...

ATR Rule Not Impairing Access to Credit, But Other Regs Are Raising Costs, Hurting Customer Service

The Consumer Financial Protection Bureau’s high-profile ability-to-repay rule has had “little to no impact” on borrower access to mortgage credit, officials at the bureau said this week. But other regulations are certainly forcing compliance costs to go up while pushing the quality of customer service down, according to community bankers. Speaking during a meeting of the CFPB’s Community Bank Advisory Council in Washington, DC, this week, Brian Webster, program manager for the bureau’s Office of Mortgage Markets, said he was glad to see that mortgage lending did not grind to a halt the day after the ability-to-repay rule took effect in January. “Over the past months, we have heard...

Top 100 Mortgage Originators: 2Q14 Data

Mortgage Market at a Glance

Weekly mortgage rates and application survey data as well as indexes for ARMs.

Poll

Over the next six months we plan to hire this many more additional loan officers:

1 to 10 (We're being careful.)

31%

11 to 30 (We're optimistic.)

10%

More than 30 (We're in a growth mode as the banks get out.)

31%

We're cutting back. (Are you nuts? It's ugly out there.)

29%

Housing Pulse