Home Equity Loans

Browse articles from all of our Newsletters related to Home Equity Loans.

June 26, 2015 - Inside FHA/VA Lending

Handbook FAQs Hold No Surprises, But More Guidance Expected

The frequently-asked-questions guidance to using the FHA’s consolidated Single Family Policy Handbook is good to have though it shows just how complicated the FHA’s mortgage origination process is, according to lenders. In fact, the updated FHA handbook could still be confusing to borrowers simply because a lot more information is concentrated in one source, lenders said. According to the FHA, the more than 290 FAQs will enable lenders to make operation adjustments before the handbook goes into effect on Sept. 14, 2015. The FAQs are for information purposes only and do not apply to current FHA policies. They do not establish or modify policy contained in the handbook. The FAQs reiterate information in the handbook under headings such as Credit Underwriting, Closing and Insuring, FHA System Support and Consumer Information. Industry observers noted that the FAQs did not ...

June 26, 2015 - Inside Nonconforming Markets

Bank Home-Equity Loan Holdings Down Slightly

The amount of home-equity loans held by banks and thrifts as of the end of the first quarter of 2015 declined slightly compared with the end of 2014, according to the Inside Mortgage Finance Bank Mortgage Database. Banks and thrifts held a combined $974.0 billion in home-equity lines of credit, unused HELOC commitments and closed-end second liens at the end of the first quarter, down 0.9 percent from the previous quarter. Closed-end seconds accounted for 7.5 percent of the holdings, with the remaining balance divided fairly evenly between HELOCs and unused HELOC commitments ... [Includes one data table.]

June 25, 2015 - Inside Mortgage Finance

Nonbanks Continued to Build Market Share in Early 2015 Mortgage Originations, More Deconsolidation Seen

Nonbank mortgage lenders accounted for 43.3 percent of the total originations produced by the top 100 lenders during the first quarter of 2015, according to a new Inside Mortgage Finance ranking and analysis. That was up from a 42.7 percent share of production by the top 100 in the fourth quarter of 2014 and a 38.0 percent share a year ago. The 48 nonbanks that ranked in the top 100 originators had a combined $133.35 billion in first-quarter production, up 13.0 percent from the fourth quarter. Banks and thrifts still play...[Includes one data table]

June 12, 2015 - Inside FHA/VA Lending

HECM Lenders Seek Clarity on Reverse Mortgage Advertisements

The National Reverse Mortgage Lenders Association is seeking guidance from the Consumer Financial Protection Bureau on how to design reverse mortgage advertisements without triggering regulatory scrutiny. Peter Bell, NRMLA president and chief executive, said he had sent a Freedom of Information Act request seeking access to the particular ads that the CFPB sought comment on in a recent study on reverse mortgage advertisements. The study found that consumers who viewed the ads were left with misimpressions about reverse mortgages. For example, consumers were confused about reverse mortgages being loans. Some thought that home-equity conversion mortgages are a “government benefit” or that they could ensure that homeowners could stay in their homes for the rest of their lives. Others complained of difficulty reading the fine print and that ...

June 12, 2015 - Inside FHA/VA Lending

HECM Production Rises in 1Q15, HMBS Issuance Going Strong

Total originations of reverse mortgages with FHA insurance increased in the first three months of 2015, according to an Inside FHA/VA Lending analysis of agency data. Home Equity Conversion Mortgage production, overall, rose 3.0 percent to $3.9 billion from the fourth quarter of 2014 and was down 2.0 percent on a year-over-year basis. HECM purchase loans far outpaced refinances, which accounted for only 14.5 percent of total HECM volume in the first quarter. Lenders reported a total of $2.3 billion in initial HECM principal amount at loan origination. Meanwhile, there is continued investor interest in HECM mortgage-backed securities (HMBS), according to Ginnie Mae. The unpaid principal balance of HMBS climbed to $48.9 billion in FY 2014 and the number of participations (the funded portions of HECM loans that have been securitized) has increased to 6,585, 856. HMBS issuance was ... [1 chart]

June 12, 2015 - Inside Nonconforming Markets

Supreme Court Ruling Favors Second-Lien Holders

The Supreme Court last week issued a ruling that favors second-lien holders in cases involving negative equity and Chapter 7 bankruptcy. Industry analysts caution that Supreme Court justices look eager to rule differently if a similar case reaches the court. The cases considered were Bank of America v. Caulkett and Bank of America v. Toledo-Cardona. In both cases, borrowers in a negative equity position on their second liens sought to void the second liens ...

June 11, 2015 - Inside Mortgage Finance

Home-Equity Lending Tapered Off in Early 2015, But New HELOC Commitments Tick Higher

Americans were too busy refinancing and shoveling snow to get new home-equity loans during the first quarter of 2015, a new Inside Mortgage Finance analysis reveals. Mortgage lenders did an estimated $19.5 billion of home-equity lending during the first three months of 2015, based on new commitments for home-equity lines of credit – by far the most active part of the HEL market – plus originations of closed-end seconds. That was down 7.1 percent from the fourth quarter of last year. Despite the slowdown in the first quarter, home-equity production was...[Includes three data tables]

June 4, 2015 - Inside Mortgage Finance

Supreme Court Ruling in BofA Cases Favorable to Second- Lien Holders; Changes Likely in Loss Mitigation Process

The Supreme Court of the U.S. this week ruled unanimously in favor of Bank of America regarding two lawsuits involving negative equity, second liens and Chapter 7 bankruptcy. While the ruling favors holders of second liens, industry analysts suggest that it could have an impact on loss mitigation negotiations between lien holders and prompt borrowers to shift to Chapter 13 bankruptcy filings. The cases considered were Bank of America v. Caulkett and Bank of America v. Toledo-Cardona. In both cases, borrowers in a negative equity position on their second liens sought to void the second liens as part of a Chapter 7 bankruptcy. The Eleventh Circuit Court of Appeals had ruled in favor of borrowers in such cases. “The court’s decision not only resolved...

June 4, 2015 - Inside Mortgage Finance

Citadel Launches a Nonprime Second-Lien Product, But Don’t Expect Other Nonbanks to Join the Party

Citadel Loan Servicing this week rolled out something the residential market hasn’t seen in quite some time: a nonprime second lien from a nonbank. But don’t expect a groundswell of copycat loans. Moreover, it’s doesn’t appear that Citadel’s bold move is likely to ignite the return of nonbanks to producing second liens of any type – whether it’s a closed-end second or a line of credit. Anecdotal evidence suggests...

May 29, 2015 - Inside FHA/VA Lending

GNMA Cautiously Embraces New Entrants Despite Lingering Doubts

New entrants in the Ginnie Mae issuer community expand access to credit at lower cost, deepen the market for Ginnie mortgage servicing rights and help address the agency’s “too-big-to-fail” issue, said the agency’s top executive. “Our top concern is that issuers have the operational and financial strength to meet issuer/servicer obligations,” Tozer said during the recent secondary market conference sponsored by the Mortgage Bankers Association. The flood of new nonbank issuers into the program has been well documented. While they have diluted the heavy concentration of business in the hands of a few megabanks, many have complex financial structures that are less tested in the marketplace, he said. The pipeline of issuer applicants has dropped dramatically, the Ginnie executive reported. To get approved, an applicant has to show where the cash will come from to ...

May 29, 2015 - Inside FHA/VA Lending

Streamline Refis Power VA-Backed MBS, FHA Up in Most States

Security issuances backed by VA loans totaled $35.5 billion in the first quarter of 2015, with VA streamline refinance loans accounting for 57.7 percent, according to an Inside FHA/VA Lending analysis of Ginnie Mae data. Approximately $20.5 billion in VA interest rate reduction refinancing loans were securitized during the first three months as borrowers took advantage of lower interest rates. “For the last three to four months, rates have been bottoming out again, and if rates are lower it makes sense to refinance,” said Jon Shrum, vice president of Commerce Home Mortgage, a VA-certified lender in Huntington Beach, CA. An estimated $14.5 billion in VA purchase mortgages also were securitized during period. VA loans comprised 13.1 percent of all loans in Fannie Mae, Freddie Mac and Ginnie Mae mortgage-backed securities. California, Virginia, Texas, Florida and Washington, ... [2 charts]

May 29, 2015 - Inside MBS & ABS

Bank ABS Holdings Declined in Early 2015, Continuing a Trend That Began During 2013

Banks and thrifts held $155.55 billion of non-mortgage ABS on their books as of the end of March, a 2.3 percent decline from the previous quarter, according to a new Inside MBS & ABS analysis of call-report data. The first-quarter figures mark the fifth straight quarterly decline in bank ABS holdings, which peaked at $173.80 billion at the end of 2013. Bank ABS holdings were down 9.9 percent from the first quarter of last year. Almost every ABS category was...[Includes two data tables]

May 28, 2015 - Inside Mortgage Finance

Brokers, Retail Shops Do Heavy Lifting During First-Quarter Surge in Mortgage Originations

All three mortgage-production channels saw increased volume during the first quarter of 2015, but brokers made the most of the rising market, according to a new Inside Mortgage Finance ranking and analysis. Mortgage brokers produced an estimated $39.0 billion of home mortgages during the first three months of 2015, an increase of 14.7 percent over the fourth quarter. That pushed the broker share of originations to 10.8 percent, the sector’s highest market share since 2010. Retail production facilities did...[Includes five data tables]

May 22, 2015 - Inside Mortgage Trends

Economists Tout Model for House Price Trends

Economists at the Federal Housing Finance Agency published a paper last week detailing a model that could be a better gauge of how low house prices can fall than models used before the financial crisis. “Leveraging a model based upon consumer and investor incentives, we are able to explain the depth of housing market downturns at both the national and state level over a variety of market environments,” the economists said. The economists noted that their model is dynamic, which is more useful than the static models used by the predecessor to the FHFA, which “proved insufficiently stressful in the lead up to the Great Recession.” A model based on a static shock can produce an insufficient level of stress ...


A lot has been written about the ‘Millennial Generation’ being key to the future of the housing/mortgage market, but how much of your mortgage workforce includes Millennials – those born roughly between the years 1980 to 1999?

Less than 10 percent
11 to 30 percent
Greater than 30 percent
It’s so small we can’t even measure it.
We’re tired of reading about how important Millennials are…

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