Volume 2013 - Number 20
May 23, 2013
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The two biggest components of the residential mortgage market conventional loans below the conforming loan limits and government-insured mortgages saw measurable declines in new originations in early 2013, according to a new Inside Mortgage Finance analysis and ranking. The conventional-conforming market nearly all of which is financed through Fannie Mae and Freddie Mac securitization fell to an estimated $333.0 billion during the first quarter of 2013. That was down 5.4 percent from the fourth quarter of last year, but the sector still accounted for a hefty 66.6 percent of total originations during the period. The conventional-conforming market share hasnt changed...[Includes two data charts]
Private capital could better find its way back into the mortgage market, with decreasing costs for taxpayers and borrowers, if Fannie Mae and Freddie Mac would offer risk-sharing options to lenders at the point of sale, according to the Mortgage Bankers Association. The MBA first floated the concept several weeks ago at its secondary market conference in New York. In a white paper released this week, the group called on the Federal Housing Finance Agency to require the two government-sponsored enterprises to accept loans with deeper levels of credit enhancement in exchange for reductions in guaranty fees and other loan-level charges. This new structure would bring...
Republicans and even some Democrats in the House are calling for significant changes to the Consumer Financial Protection Bureaus ability-to-repay rule, but legislative changes appear unlikely as Democrats oppose most of the GOP proposals. One bill that is furthest along the uncertain legislative process is HR 1077, the Consumer Mortgage Choice Act, which would exempt certain fees from the 3 percent cap on points and fees for qualified mortgages under the ATR rule. The bill has 34 co-sponsors, including nine Democrats. Sens. Joe Manchin, D-WV, and Mike Johanns, R-NE, introduced companion legislation in the Senate last week. The bills have...
Adverse SCOTUS Ruling on Recess Appointments Can Result in Further Confusion, Disruption in Government
Whichever way the U.S. Supreme Court rules on the constitutionality of presidential recess appointments, the decision would probably cause more uncertainty and turbulence in the industries the ruling will likely affect, according to legal and policy analysts. SCOTUS is considering a petition filed last month by the Obama administration and the National Labor Relations Board to review a controversial ruling by the District of Columbia Court of Appeals that calls into question the validity of President Obamas appointment of three new members of the board in January. In Noel Canning v. NLRB, the plaintiff challenged...
Mortgage lenders that specialize in refinance lending have made a killing the past few years, especially call center operations with state-of-the-art technology. But is now the time for these firms to take their chips off the table or ponder a merger with more traditional lenders that have ties to real estate brokers and homebuilders? Paul Reddam, founder and president of CashCall, a top 30 lender, told Inside Mortgage Finance that he would be open to selling the company. We would entertain an offer at any time, said Reddam, who first made a name for himself in mortgages with Ditech Lending early last decade. Reddam noted...
After increasing for three consecutive months, the first-time homebuyer share of home purchases declined in April, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. Industry analysts suggest that the decline of first-time buyers is due to an increase in pricing for FHA mortgages and other changes aimed at reducing the FHAs market share and losses. First-time homebuyers accounted for 35.8 percent of home purchases in the April HousingPulse survey, based on the three-month moving average, down from a 36.1 percent share the previous month. At the beginning of April, the annual premium for all FHA forward mortgages with a downpayment of less than 5 percent increased by 10 basis points. The upfront mortgage insurance premium also increased 75 basis points to 1.75 percent. Thomas Popik, research director for Campbell Surveys, said...
Loan sellers and servicers doing business with Freddie Mac will be charged a so-called low-activity fee for not meeting new quotas for loan deliveries and mortgage servicing beginning next year, according to a policy change announced recently by the government-sponsored enterprise. Freddie Mac said it will assess lenders a fee of $7,500 if they fail to deliver mortgage loans with an aggregate principal balance of more than $5 million or service mortgages for the GSE with an aggregate balance of at least $25 million. Freddie will begin monitoring loan sales and servicing beginning this year and imposing the low-activity fee on slackers on Jan. 1, 2014. There were at least 277 lenders that sold...
The lack of a specific computer code for reporting short-sale mortgage transactions is creating numerous false reports of foreclosure on consumer credit reports, inhibiting their re-entry into the housing market, according to lawmakers on Capitol Hill and consumer advocates. Earlier this month, Sen. Bill Nelson, D-FL, dispatched letters to the Federal Trade Commission and the Consumer Financial Protection Bureau citing the disturbing consumer credit reporting practice of lumping short sale within the same industry code as a foreclosure in consumers credit reports. If a short sale is reported...
Weekly mortgage rates and application survey data as well as indexes for ARMs.
- GSE Private Mortgage Insurance Profile
- Mortgage Profitability Report
- GSE Seller Profile: 1Q13
- GSE Repurchase Activity Full Year 2012
- Top Mortgage Players
- 2013 Mortgage Market Statistical Annual
Most Popular Stories
- Caliber Enters the Correspondent Channel, Taps PennyMac Executive
- Home-Equity Market Still in Doldrums Despite Small Climb in Bank Unfunded Commitments
- Springleaf Readies Latest Non-Agency MBS, S&P Notes Lower Default Risk, Weak Enforcement Mechanism
- No Private Right of Action Under HAMP, Appellate Court Rules
- What Were Hearing: The Great GSE Preferred Stock Crapshoot / CBO Gives a Nod to Fannie and Freddie / The Buyback War is Not Over, Not By a Long Shot / Are Call Center Lenders In Play? / The QRM Rule May Get a Makeover / Goodman Going Part-Time at Amherst