Mortgage Lending & Servicing

Browse articles from all of our Newsletters related to Mortgage Lending & Servicing.

March 22, 2017 - IMFnews

Short Takes: Reading the Mortgage Tea Leaves for 1Q17 / When in Doubt, Go Non-QM / Impac by the Numbers / Applications Fall, Existing Homes Sales Drop as Well

Don’t look now but the yield on the benchmark 10-year Treasury is now down to 2.40 percent. And just in time for the spring home buying season…


March 22, 2017 - IMFnews

Finance of America Commercial Makes Big Push Into Broker Market with ‘Fix & Flip’ Lending

CEO Mark Filler said FoAC is now offering fix-and-flip loans as cheaply as 6.99 percent…


March 22, 2017 - IMFnews

Bank Holdings of First Liens Increased in 4Q16 – Ever So Slightly

It appears that depositories are growing their portfolios by adding jumbo mortgages along with loans eligible for sale to Fannie Mae and Freddie Mac…


March 21, 2017 - IMFnews

Short Takes: Coming Soon: Falling Interest Rates? / Walter Gets Smacked Down Again / Embrace Sends its Top LOs to Boca / CoreLogic’s $5 Million Man (Rounded) / A New Hire for Silver Hill

All totaled, the new CoreLogic chief could earn almost $5 million...


March 21, 2017 - IMFnews

IMF Poll: Lenders Will Liberalize Underwriting Standards – but Not by Much

Some 14 percent of respondents said they might begin making non-qualified mortgages over the coming months.


March 21, 2017 - IMFnews

MBA: Net Origination Profit Plunged 68 Percent in 4Q16

MBA noted that including all business lines, 73 percent of the mortgage companies posted pre-tax profits for the fourth quarter, down from 94 percent in 3Q16…


March 21, 2017 - IMFnews

Subservicing Sector Starting to Look Crowded As More Firms Choose ‘Capital Light’ Strategy

The nation’s three largest residential subservicing firms are: Cenlar, Dovenmuehle and Loan Care. All are nonbanks.


March 21, 2017 - IMFnews

Still Rising: Retail Channel Accounts for 81.6 Percent of Jumbo Originations

Roughly $72.09 billion of jumbo mortgages were originated in the fourth quarter, down 3.4 percent on a sequential basis.


March 20, 2017 - IMFnews

Short Takes: Walter Retains M&A Advisor Houlihan Lokey / A Penny Stock / $902 Million of Losses / Rebranding for MountainView / Ocwen Shuffles its Board

Over the past three years, Walter Investment Management has lost a whopping $902 million...


March 20, 2017 - IMFnews

Prestwick Selling $335 Million of Fannie Mae Servicing Rights

A small portion of the loans are characterized as non-owner occupied…


March 20, 2017 - IMFnews

Serial Rapid Refinancing on VA Loans Continues. Is There a Cure?

MBA’s Pete Mills noted there are a handful of lenders and brokers that specialize in quick-turn refis…


March 20, 2017 - IMFnews

Wholesale-Broker Channel Saw Big Gains in Agency Market Last Year

Mortgage brokers earned their biggest market share in the Ginnie Mae sector…


March 17, 2017 - Inside FHA/VA Lending

USDA Securitization Rose in 2016, Chase Home Continues to Lead

Approximately $18.8 billion in rural housing loans with a U.S. Department of Agriculture guarantee were delivered into Ginnie Mae pools in 2016, according to an analysis of Ginnie data. Securitization of USDA loans was up 3.9 percent from the previous year. Fourth quarter production, however, was off 10.3 percent from the prior quarter, slowing down production of USDA loans during the period. Ditech Financial, which ranked 15th among the top Ginnie Mae issuers of mortgage-backed securities backed by USDA loans, ended 2016 with $284.9 million. That was up a staggering 4712.9 percent from 2015. Chase Home Finance led the market with $3.6 billion in 2016, despite hefty declines quarter-over-quarter and year-over-year. Second-ranked PennyMac closed the year with a total volume of $2.1 billion, while Freedom Mortgage, in third place, reported $2.0 billion, a whopping ... [ 1 chart ]


March 17, 2017 - Inside FHA/VA Lending

Georgia Appeals Court Finds for Wells Fargo in Provisional Win

A Georgia appellate court recently handed Wells Fargo Bank a provisional win in a lawsuit in which a VA borrower alleged breach of contract and wrongful foreclosure. In Wells Fargo Bank, N.A., d/b/a Wells Fargo Home Mortgage v. LaTouche, the court ruled that Wells did not breach its duty to the borrower to comply with VA foreclosure regulations. The court concluded that the trial court had erred in denying Wells Fargo’s motion for summary judgment as to the defendant’s claims for wrongful foreclosure that hinged upon the same VA regulations. The reversal stemmed from Wells Fargo’s request for an interlocutory review of the trial court’s denial of its motion for summary judgment on defendant Michael LaTouche’s claims for breach of contract, wrongful foreclosure and “surprise. An interlocutory review is undertaken when a question of law must be answered by an appellate court before ...


March 17, 2017 - Inside FHA/VA Lending

Serial Rapid Refinancing Continues As VA, MBA Explore Potential Cures

Solicitation of VA purchase loans for streamline refinancing within weeks of closing is apparently continuing despite Ginnie Mae’s efforts to stop the harmful practice. The Mortgage Bankers Association has expressed concern that guidance on pooling eligibility for streamlined refinance loans, which Ginnie issued in October last year, was far less effective than expected. Although the aggressive refinancing trend has slowed due to Ginnie’s action, there are still “pockets of that activity” being reported, said Pete Mills, MBA senior vice president. Refinancing a veteran’s purchase mortgage less than six months after its origination is not in the vet’s best interest because it strips equity from the house and results in higher financing costs, said Mills. While the rapid refi trend involves only a small number of loans in Ginnie mortgage-backed securities pools, investors do not get the full benefit of their investment because of early prepayment. Mills said there are a handful of lenders and brokers that ...


March 17, 2017 - IMFnews

Top Cities for Millennial Homebuyers Include Pittsburgh, DC

A new study by LendingTree said that Pittsburgh tops the list of cities for millennial homebuyers with 48.4 percent of all purchase mortgage requests coming from that demographic.


March 17, 2017 - IMFnews

Appraisers Frustrated with Regulatory Burdens, Low Pay

Appraisers are most frustrated with the FHA, excessive regulations and insufficient compensation, according to a National Association of Realtors survey of more than 2,000 appraisers.


March 17, 2017 - IMFnews

Grant from NAMB and United Wholesale Helps Fund 15 New Mortgage Broker Shops

A program launched in September to provide grants to mortgage brokers has helped launch 15 new independent mortgage brokerage shops, according to the National Association of Mortgage Brokers.


March 17, 2017 - IMFnews

Credit Reporting Changes Could Spur More Mortgage Lending

The three major credit bureaus plan to exclude two critical pieces of negative information from their reports, which may make it easier for some borrowers to qualify for a mortgage.


March 17, 2017 - IMFnews

Did QE Put the Fed in a Box from Which it Can’t Escape?

An interview this week with Peter Schiff, CEO of Euro Pacific Capital and a perennial critic of the Federal Reserve, suggests that the extraordinary level of support the U.S. central bank gave to the housing and mortgage markets in the wake of the financial crisis may mean the Fed is stuck between a rock and a hard place.


March 17, 2017 - IMFnews

Supply of MBS Outstanding Continued Growing in Late 2016

Thanks to strong growth in the agency market, the supply of single-family MBS outstanding continued to grow over the final three months of 2016, a new Inside MBS & ABS analysis reveals.


March 16, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

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


March 16, 2017 - Inside Mortgage Finance

Wholesale-Brokers Saw Biggest Gains in Agency Market Last Year, But Retail Was Still King

Fannie Mae, Freddie Mac and Ginnie Mae securitized $183.69 billion of newly originated mortgages produced through the wholesale-broker channel last year, a new Inside Mortgage Finance analysis reveals. That was up 22.2 percent from 2015 volume, the biggest increase among the three mortgage-production channels. The biggest increase for broker originations was in Fannie mortgage-backed securities, rising 31.5 percent from 2015, accounting for 12.2 percent of the government-sponsored enterprise’s MBS issuance last year. The dataset includes only purchase and refinance loans that were securitized within six months of origination, and it excludes mortgages with no channel identification. Brokers earned...[Includes two data tables]


March 16, 2017 - Inside Mortgage Finance

FCC Weighs Revised Phone-Contact Standards That Could Interfere with Mortgage Business

A request from two consumers for changes to the Telephone Consumer Protection Act would interfere with mortgage origination and servicing operations, according to the Consumer Mortgage Coalition. The CMC submitted a comment letter to the Federal Communications Commission late last week in response to a petition submitted to the FCC in January. The petition called for the FCC to re-write parts of the TCPA and require express consent to be in writing from consumers regarding certain communications from companies, including mortgage lenders and servicers. The petition would define express consent as not being provided even when a person to be called knowingly provides a phone number to a lender on a loan application. Anne Canfield, executive director of the CMC, said...


March 16, 2017 - Inside Mortgage Finance

Court Rules Against Lender in MI Cancellation Dispute, Says Federal Law Overrides GSE Servicing Guidelines

A borrower seeking cancellation of private mortgage insurance prevailed last week in a lawsuit against JPMorgan Chase. The appeals court noted that federal law regarding standards for MI cancellation overrides Fannie Mae’s servicing guidelines. The case of Ginnine Fried v. JPMorgan Chase centers on how to calculate a borrower’s loan-to-value ratio when allowing for MI cancellation after the LTV ratio falls below 80.0 percent. The borrower filed...


March 16, 2017 - Inside Mortgage Finance

As Consideration of PHH Corp. v. CFPB Continues, The Role of the Administrative Law Judge Emerges

Nearly all of the discussion related to the ongoing legal battle between PHH Corp. and the Consumer Financial Protection Bureau has involved either questions about the bureau’s interpretation and enforcement of the Real Estate Settlement Procedures Act or issues having to do with the constitutionality of the CFPB. But the role played by the administrative law judge early in the bureau’s enforcement action has surfaced, with potential significance in the eyes of the U.S. Court of Appeals for the District of Columbia Circuit, which recently granted the agency’s request for a rehearing by the full court. To adjudicate the matter early on, the CFPB borrowed...


March 16, 2017 - Inside Mortgage Finance

Credit Reporting Changes Could Spur Mortgage Lending as Consumers’ Scores Are Elevated

The three major credit bureaus plan to exclude two critical pieces of negative information from their reports, which may make it easier for some borrowers to qualify for a mortgage. Many tax liens and civil judgments, which can weigh down a credit score, will be removed. As part of a multi-year plan to alleviate incorrect information, on July 1, Equifax, Experian and Transunion will apply new public record standards when it comes to collecting and the timely updating of civil judgments and tax liens, the Consumer Data Industry Association said this week. The new standard will apply...


March 16, 2017 - Inside Mortgage Finance

Detroit Court Ruling in Government’s FHA-Related Case Against Quicken Loans Narrows Lender’s Potential Liability

A recent decision by a federal judge in Detroit dismissing portions of the Department of Justice’s FHA-related claims against Quicken Loans will shrink the lender’s liability under the False Claims Act, according to a legal expert. In a decision rendered March 9 on the closely watched case, U.S. District Judge Mark Goldsmith narrowed the scope and timeframe for which the DOJ can pursue any recovery or settlement against Quicken Loans for FHA losses allegedly due to faulty underwriting and loan default performance. It is the first major decision since the DOJ’s suit was transferred from federal court in Washington, DC, to federal court in Detroit last year. The DOJ and the Department of Housing and Urban Development’s Office of the Inspector General began...


March 16, 2017 - Inside Mortgage Finance

Commercial Banks Continue Servicing Pullback, Thrifts and Credit Unions Pick Up Some Slack

The volume of home mortgages outstanding continued to grow during the final three months of 2016, no thanks to the commercial banking industry. Recently released data from the Federal Reserve show $10.266 trillion of mortgage debt outstanding at the end of last year. That was up 0.7 percent for the quarter and reflected a 2.3 percent gain for the full year. The market still has a long way to go to catch up to the $11.240 trillion of mortgage debt outstanding at the end of 2007, but growth has been steady since bottoming out in mid-2014. The agency market continued...[Includes two data tables]


March 16, 2017 - IMFnews

Short Takes: Deputy Treasury Secretary Role to Be Filled / Fannie Prices Second CRT of 2017 / Housing Inventory Continues Downward Spiral / FHFA Shows Refi Volume Down in Jan.

Former Goldman Sach executive, James Donovan, is the latest Goldman hire for a senior government position in the Trump Administration.


March 16, 2017 - IMFnews

PHH Corp. Continues Defense in CFPB RESPA Dispute

PHH Corp. and related parties again made a full defense of their position in their legal struggle with the CFPB over alleged misconduct under the Real Estate Settlement Procedures Act.


March 16, 2017 - IMFnews

CFPB Sticks Nationstar With $1.75M Fine for Flawed HMDA Reporting

The Consumer Financial Protection Bureau fined Nationstar Mortgage $1.75 million this week for allegedly violating the Home Mortgage Disclosure Act.


March 16, 2017 - IMFnews

Affordable Housing Group Says Trump’s Proposed $6.2B HUD Cut Would Devastate Current Efforts

The Trump Administration’s proposed budget for FY2018 includes a $6.2 billion cut to programs falling under the U.S. Department of Housing and Urban Development.


March 16, 2017 - IMFnews

Agency Servicing Growing, Commercial Banks Continue Pullback

The volume of home mortgages outstanding continued to grow during the final three months of 2016, no thanks to the commercial banking industry.


March 15, 2017 - IMFnews

Short Takes: Mortgage Apps Up/Moody's Upgrades a Wells MBS/Quicken Finds Appraisal Disconnect/the FOMC Concludes its Meeting

Mortgage applications rose 3.1 percent, on a seasonally adjusted basis, for the week ending March 10, 2017, versus the week before, the Mortgage Bankers Association announced Wednesday morning. The MBA's Refinance Index rose 4 percent, and its Purchase Index was up 2 percent…


March 15, 2017 - IMFnews

Industry Groups Call for Changes to National Flood Insurance Program

The Mortgage Bankers Association this week urged Congress to support two bills that would make major changes to the National Flood Insurance Program, including clarification that would make private flood insurance acceptable to mortgage lenders....


March 15, 2017 - IMFnews

Correspondent Channel Lost Some Share of Gov’t Market in 2016

The banking industry continued to backpedal away from the business of servicing home mortgages for other investors during 2016, according to an exclusive new Inside Mortgage Trends analysis of call-report data....


March 14, 2017 - IMFnews

Short Takes: Purchase-Mortgage Apps Increase / Hearing on National Flood Insurance Program / More 'Daily Simple Interest' MBS / Foreclosure Inventory Normalizes

Applications for mortgages related to purchases of new homes in February increased by 16.0 percent from the previous month.


March 14, 2017 - IMFnews

AGs from 15 States Back PHH in CFPB Case, Citing Constitutional Issues

The AGs claimed that the CFPB’s governance structure violates the separation of powers in ways that directly undermine the interests of federalism.


March 14, 2017 - IMFnews

Walter Takes $22.2 Million Loss in Fourth Quarter, $529.2 Million Loss for the Full Year

Walter also stopped originating reverse mortgages in January.


March 13, 2017 - IMFnews

Short Takes: New Risk-Sharing Deal from Fannie / Lender Settles Discrimination Claims with HUD / New Residential Issues Non-Agency MBS / Fitch Affirms Ocwen's Ratings

Fannie Mae is preparing to issue a Connecticut Avenue Securities risk-sharing transaction relating to mortgages with an unpaid principal balance of $39.99 billion.


March 10, 2017 - Inside The GSEs

Freddie January Delinquencies Reach Lowest Point Since 2008

The number of Freddie Mac mortgages that have fallen seriously delinquent or are in foreclosure dropped below 1 percent in January, the first time in close to a decade. Last week Freddie reported that the rate is significantly below the 3.13 percent rate for the entire mortgage market. The last time it was under 1 percent was in 2008, when it was .93 percent. It peaked at 4.20 percent two years later in 2010. It has gradually come down in subsequent years with the rate falling to 3.25 percent in 2012 and 1.88 percent in 2014. The seriously delinquent rate is for mortgage loans that are three or more monthly payments past due or are in foreclosure.


March 10, 2017 - Inside The GSEs

Freddie Changes Impact Self-Employed and 401(k) Reporting

Freddie Mac implemented a few underwriting changes that went into effect this week regarding a borrower’s self-employment status, retirement accounts and commission income. The GSE announced that the documentation required for self-employed borrowers will be revised based on the number of years the borrower has been self-employed and the business has been in existence. Borrowers self-employed for less than five years will face greater scrutiny under the new requirement. Borrowers who are self-employed and have had a business operation for at least five years will require one year of personal and business returns. But those who have been self-employed with business in operation for less...


March 10, 2017 - Inside The GSEs

Prominent GSE Reform Proposals Share a Few Common Themes

Three prominent GSE reform proposals have been floated over the past year and the Urban Institute said they have more commonalities than differences. In an attempt to clarify some of the choices presented in the reform proposals, Jim Parrott, senior fellow at the UI, penned a paper highlighting the similarities and zeroing in on the differences. …


March 10, 2017 - Inside The GSEs

GSE 1-Family Business Dropped in February as Refi Slumped

New issuance of single-family mortgage-backed securities by Fannie Mae and Freddie Mac fell 30.6 percent from January to February as the refinance business continued to weaken. The two GSEs issued a combined $63.67 billion of single-family MBS last month, according to a new Inside The GSEs analysis and ranking. Absent a heavy refi flow, February is typically the low point in the annual cycle. A year ago, combined Fannie/Freddie production totaled just $50.05 billion in February. Production in the first two months of 2017 was up 45.7 percent from the same period last year, with big gains in both purchase (up 42.7 percent) and refi business (up 57.7 percent). But while purchase-mortgage lending is...


March 10, 2017 - Inside MBS & ABS

Signs of Consolidation in SFR Market: Canadian Firm To Buy Silver Bay, Altisource May Be Takeover Target

Tricon Capital Group’s recent announcement that it plans to buy single-family rental operator Silver Bay Realty Trust for $1.4 billion in cash is a potential sign that this thriving sector could be in for a round of consolidation. Once the deal is completed, the combined SFR company will have 16,800 homes in its stable of rentals – 9,000 coming from Silver Bay and 7,800 coming from Tricon American Homes, the U.S. residential division of the Toronto-based TCG. Among SFR operators, TAH/SBRT will rank...


March 10, 2017 - IMFnews

Nation’s Largest FHA Lender Quicken Scores Partial Victory in FHA-DOJ Case

Early on, after the lender was sued, Quicken even threatened to leave the FHA program but never did and instead has dominated the FHA “direct” lending market…


March 9, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

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


March 9, 2017 - Inside Mortgage Finance

Servicers Strongly Oppose Proposed Regulations In Maryland Regarding Servicing Transfers

A proposal by the Maryland Commissioner of Financial Regulation regarding servicing transfers prompted strong opposition from servicers, who cautioned that it would disrupt mortgage markets. In January, the Maryland CFR proposed a number of amendments to its mortgage regulations. The proposal revised an initial plan from the state regulator back in January 2015. The new proposal included...


March 9, 2017 - Inside Mortgage Finance

HFSC’s Budget Views Lay Groundwork for Carson’s HUD Agenda as Secretary Prepares for ‘Listening’ Tour

Secretary Ben Carson may not yet have a clear agenda and a set of priorities for the Department of Housing and Urban Development over the next four years, but the House Financial Services Committee appears to have identified changes that Republican lawmakers want to see at the agency. A HUD spokesman said Carson will embark next week on a nationwide “listening” tour of certain communities and HUD field offices to learn more about the agency he leads, FHA programs and the mortgage insurance fund he oversees. On March 2, Vice President Mike Pence swore...


Poll

With rates higher this year, there has been talk of lenders liberalizing their underwriting standards in an effort to increase volume and make up for lower refis.

Do you think your shop will loosen standards over the coming three months?

Yes, but not by much.

47%

Yes, by a lot.

5%

Yes and, heck, we may even do non-QM lending.

14%

No, not at all.

26%

No and we may even tighten credit.

7%