Mortgage Originators

Browse articles from all of our Newsletters related to Mortgage Originators.

July 21, 2014 - Inside the CFPB

CFPB ‘Mini-Corr’ Guidance Leaves Some Big Questions Unanswered

The CFPB recently issued new guidance that warns mortgage brokers to avoid acting as mini-correspondents in an attempt to side-step consumer protection laws and disclose how much money they make on a transaction. The bureau is concerned that some mortgage brokers may be setting up arrangements with investors in which the broker claims to be a “mini-correspondent lender,” when in fact the broker is still essentially just facilitating a transaction between a borrower and a lender. In its new guidance, the agency sets out some of the questions the CFPB may consider in evaluating mortgage transactions involving mini-correspondent lenders in order to understand their true nature. This evaluation involves examining how the mini-correspondent lender is structured and operating. Among the ...


July 21, 2014 - IMFnews

Short Takes: A $300,000 Signing Bonus for an LO? / PennyMac Files to ‘Resell Shares’ / DBRS Updates Non-Agency Criteria / ‘House of Cards’ Star to Speak at MBA / So Long Eric Billings

Did someone really pay a $300,000 signing bonuses to a new LO?


July 21, 2014 - IMFnews

Freedom Mortgage Hires Six New Executives

On the residential side, the top hire was David Firestone, who carries the title of vice president of financial operations.


July 21, 2014 - IMFnews

Signing Bonuses for Loan Officers: $20k to $30k, Or Even More

A signing bonus for an LO sounds nice, but keep in mind that a lender has to find a way to pay for that bonus, which could result in an increase in pricing.


July 21, 2014 - IMFnews

Market Share Loss in Mortgages by Megabanks Bottoming Out?

But have layoffs by the megabanks hurt their ability to fund loans should mortgage rates fall further?


July 21, 2014 - IMFnews

Jumbo Loan Quality Remains Strong, But It’s Still Hard Getting MBS Deals Done

Even if home prices fall by 10 percent, most borrowers in jumbo MBS issued in recent years will have more equity than they had at the time of origination, said Grant Bailey of Fitch Ratings.


July 21, 2014 - IMFnews

FHA Endorsements Rise for 620 to 679 FICO Scores

The distribution of FHA borrower credit scores continued the migration seen in previous quarters, though at a slower pace in 1Q14.


July 18, 2014 - Inside FHA Lending

VA Clarifies Impact of Same-Sex Marriage Policy

Same-sex couples are entitled to veteran benefits, including home loan guaranty, if their marriage is recognized by the state where they live or where they lived when they filed a claim for benefits – and not where the marriage took place.The VA made the clarification in the wake of guidance the agency issued regarding the benefits and services same-sex married couples are entitled to under current laws and regulation. On June 26, 2013, the U.S. Supreme Court, in United States v. Windsor, struck down Section 3 of the Defense of Marriage Act (DOMA), which governs the definitions of “marriage” and “spouse” for all federal agencies, because it was unconstitutional. The court held that the provision deprives a person of the right to equal liberty, which is protected by the due process clause of the Fifth Amendment. Prior to the SCOTUS opinion, DOMA defined “marriage” as a ...


July 18, 2014 - Inside FHA Lending

JPMorgan Chief Seeks FHA Safe Harbor for Bank

JPMorgan Chase chief executive Jaime Dimon this week warned that the investment bank may rethink its FHA business without some type of safe harbor to shield it from potential future liabilities arising from the Financial Institutions Reform, Recovery and Enforcement Act and the False Claims Act. In February this year, JPMorgan agreed to pay $614 million to the federal government to settle allegations that it falsely certified poorly underwritten loans for FHA endorsement, causing massive losses to taxpayers in paid claims. Dimon lashed out at the government during a telephone briefing on the company’s second-quarter 2014 earnings report. He said JPMorgan lost a tremendous amount of money over what the government claimed was fraud but was in fact a “commercial dispute” between FHA and the bank. “We collected $600 million in insurance, the [government] disputed $200 million [alleging] it was fraud ...


July 18, 2014 - Inside FHA Lending

Endorsements Up for 620-679 Credit Scores

Mortgages with 620-679 credit scores accounted for more than half of FHA’s mortgage insurance business in the first quarter of 2014, up from 42.0 percent a year ago, according to the Department of Housing and Urban Development’s latest quarterly report to Congress on the state of the FHA Mutual Mortgage Insurance Fund. Data showed FHA-insured mortgages in the 620-679 credit score range, a band typically identified with borrowers with slightly tainted credit, comprised 51.1 percent of new endorsements in the first quarter. This was up from 50.1 percent in the fourth quarter of 2013. FHA endorsements in the 620-plus category started trending upward in the first quarter of 2011, while endorsements in the 720-850 credit score range began a slow decline during the same period. The distribution of borrower credit scores continued the migration seen in previous quarters, though at a ...


July 18, 2014 - Inside Nonconforming Markets

Mixed Feedback on CFPB’s QM DTI Ratio Query

The Consumer Financial Protection Bureau’s request for comments on whether to allow for a right to cure on debt-to-income ratio issues for qualified mortgages prompted the typical divisions between lenders and consumer advocates. Lenders suggest that borrowers would benefit from the adjustment to QM standards, while consumer advocates warn that the change would weaken QM protections and encourage sloppy underwriting. The 43 percent DTI ratio standard for ...


July 18, 2014 - Inside Nonconforming Markets

Jumbo Borrowers Often Use Their Primary Bank

Jumbo borrowers in the market for mortgage financing often decide to work with the bank they already have a relationship with, according to new qualitative survey results from the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. Real estate agents participating in the survey were asked what factors drive an affluent homebuyer’s lender selection when opting for mortgage financing instead of an all-cash home purchase. “I’ve found they like to ...


July 18, 2014 - Inside Nonconforming Markets

Impac Offering Correspondent Non-QM Products

Impac Mortgage recently launched a suite of products that don’t meet the Consumer Financial Protection Bureau’s standards for qualified mortgages. The non-QMs are available via the correspondent channel and are aimed at prime borrowers. The lender refers to its offerings as “Alt QMs,” including a jumbo option, a program for loans slightly outside of agency guidelines and a program that purposefully excludes analysis of a borrower’s tax returns ...


July 18, 2014 - IMFnews

What We’re Hearing: Is the FHFA IG All Wet Regarding Nonbank Risk? / Hurting the GSEs’ Reputations? / Time to Probe GSE Specialty Servicers? / Prospect Mortgage Continues to Hunt for Acquisitions / Raj Date Doesn’t Recognize ‘His’ CFPB

Industry reaction to the FHFA IG report on nonbank and small lender risk was swift. Maybe Fannie Mae is better off having Countrywide as its biggest customer again?


July 18, 2014 - IMFnews

An Increase in Originations Could Mean More Mortgage Jobs

Lenders are being careful about costs, but rising loan volumes could force some firms to hire, at least a little bit.


July 18, 2014 - IMFnews

Put Ginnie Mae in Charge of All Government MBS?

Over five years, Fannie and Freddie would be wound down, but would be allowed to be sold and recapitalized as private entities with different business plans.


July 18, 2014 - IMFnews

Non-Agency MBS Issuance Sputtered in Second Quarter

Nationstar Mortgage ranked first among non-agency MBS issuers, but its volume was tied to servicer advances.


July 17, 2014 - Inside Mortgage Finance

Mortgage Market at a Glance

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


July 17, 2014 - Inside Mortgage Finance

Top 100 Mortgage Originators: 1Q14 Data


July 17, 2014 - IMFnews

Short Takes: USB Grows Production by 27 Percent / New Applications Not So Hot / More Big MSR Deals on the Way? / Housing Starts Disappoint / Foreclosures Continue to Improve

Luckily, JPM’s Jamie Dimon doesn’t care about such silly thing as mortgage rankings. (And he's not a big fan of FHA either.)


July 17, 2014 - Inside Mortgage Finance

Miami Loses Discrimination Fight with Banks, But Some States Find Ways to Force Banks to Pay Foreclosure Costs

While legal attempts by city governments to force large banks to pay for the high cost of foreclosure have failed, efforts to resolve the problem in state legislatures appear to be making headway. The City of Miami suffered consecutive defeats in three of the four lawsuits it filed against major banks after a federal district court judge dismissed all three because of the city’s lack of standing to bring suit under the federal Fair Housing Act. U.S. District Court Judge William Dimitrouleas dismissed...


July 17, 2014 - Inside Mortgage Finance

FHFA-OIG Report Cites Purchase Mortgage Risks To Fannie, Freddie From Nonbank, Smaller Lenders

The recent shift in direct mortgage sales by smaller and nonbank lenders has reduced Fannie Mae’s and Freddie Mac’s concentration risks, but the trend has led to an increase in counterparty credit risk, according to the Federal Housing Finance Agency’s official watchdog. The evaluation report issued this week by the FHFA’s Office of Inspector General said the regulator of the two government-sponsored enterprises needs to monitor Fannie’s and Freddie’s risk-management controls regarding smaller lenders and nonbanks. According to Inside Mortgage Trends, an affiliated newsletter, nonbank sellers accounted...


July 17, 2014 - Inside Mortgage Finance

Most of the Megabanks Saw Mortgage Profits Increase Firmly in 2Q; A Barometer for the Rest of the Industry?

The nation’s megabanks reported fairly strong mortgage earnings during the second quarter thanks to a jump in new originations, robust servicing revenue and expense cuts. If the results reported by Wells Fargo, JPMorgan Chase, Bank of America and Citigroup are any indication, the industry may be rebounding from a rough stretch in late 2013 and early 2014. But the first quarter of this year was so bad – and originations so weak – that lenders had no place to go but up. Larry Charbonneau, a warehouse lending analyst, said...


July 17, 2014 - IMFnews

The Dodd-Frank Act Turns Four: Good in Some Respects, but Access to Credit Harmed

According to an Inside Mortgage Finance analysis of loan-level data on mortgage-backed securities from the GSEs, underwriting standards on mortgages have loosened only slightly over the past year.


July 17, 2014 - IMFnews

More Evidence of Strong 2Q Originations: Cardinal’s Volume Up 53%, Wash Fed 45%

So far, the only notable skunk at the second quarter origination party has been JPMorgan Chase which reported a 1 percent decline in fundings compared to the first quarter.


July 17, 2014 - IMFnews

Industry Groups Across the Spectrum Support DTI ‘Right to Cure’ for QM

The American Bankers Association said its members were not able to clearly identify instances where a DTI cure mechanism would be useful in the normal course of bank operations.


July 17, 2014 - IMFnews

Judge Grants Partial Discovery in GSE ‘Takings’ Case, Public Access Limited

“In essence, defendant asserts that the court should merely take its word that the documents – some of which defendant itself has not reviewed – are privileged,” wrote Sweeney. “This suggestion runs contrary to law.”


July 17, 2014 - IMFnews

FHFA IG Frets Over Nonbank and Small Lender Counterparty Risk to the GSEs

"Buying loans from some nonbanks could damage the enterprises' reputations," the FHFA IG says.


July 16, 2014 - IMFnews

Short Takes: Strong Earnings for MGIC, But a Warning Too / Non-QM to the Rescue? / Ocwen in Stock Deal with Ross / Stonegate Mortgage Gets a ‘Neutral’ Rating / Canada in for a Big Housing Correction?

MGIC is operating with each GSE as an eligible insurer under a remediation plan. In trading Wednesday, its share price was down 9 percent…


July 16, 2014 - IMFnews

BofA the Latest Megabank to Report a Strong Rise in Originations

Residential loan production is looking up at Bank of America. But can it last?


July 16, 2014 - IMFnews

GSE MBS Business Activity Rebounds in Second Quarter

Year-to-date MBS issuance by Fannie and Freddie was down 60.9 percent from the first half of 2013.


July 15, 2014 - IMFnews

Short Takes: Quicken Overtakes JPM as the Nation’s #2 Lender? (Not Likely) / What Does Jamie Dimon Like Less, Brokers or the FHA? / BofA Cuts New Repo Deal for PennyMac / Earnings Due Soon from MGIC, Radian, Others

Here’s a question to ponder: what does Jamie Dimon like less? Loan brokers or the FHA?


July 15, 2014 - IMFnews

Orange Capital Slashes Stake in PHH

The holding company for the nation’s sixth largest lender recently sold its fleet division, and is in the throes of restructuring its mortgage unit, which is now its main line of business.


July 15, 2014 - IMFnews

W.J. Bradley Finds Investor Partners for New Non-Agency Products

Several other nonbanks have entered the non-QM space the past few months including Bayview through its Lakeview unit, Impac and others.


July 15, 2014 - IMFnews

To Avoid QM Landmines, Some Wholesalers Cap Fees to Brokers at Under 2 Percent

“If the cap is 2.75 percent, it doesn’t leave much, but you have to keep in mind that the lender is building ‘everything else’ into the note rate,” said Marc Savitt.


July 15, 2014 - IMFnews

FHA Lenders Find Glitches in the Agency’s New Loan Portal

Mortgage firms are concerned they may be sanctioned or penalized if they make a mistake, but the FHA at this time likely will not take any action because the system is so new.


July 15, 2014 - IMFnews

JPM Ponders Leaving FHA Sector; Megabank Reports Weak Production Figures

Is Jamie Dimon mad at the FHA? Tuesday morning he told analysts that "the real question" is whether the bank should be in the FHA business at all.


July 14, 2014 - IMFnews

Short Takes: Does the CFPB Understand the Mortgage Business? / Why Skyline Likes Wholesale / Nice GSE Bill, Guys. Too Bad It’s DoA / Mortgage Master Joins FTHB Compact / Relax, the MI Industry Will Be Just Fine?

Mortgage brokers who read the guidance said it reveals how little the young regulatory agency understands about the industry. If a broker has the financial ability to obtain a warehouse line of credit...


July 14, 2014 - IMFnews

New Jersey Bank Throws in the Towel on Retail Mortgages

The moves are part of a comprehensive plan presented by Thomas O’Brien, Sun Bancorp’s new president and CEO who was brought on board as a consultant in April to restructure the company.


July 14, 2014 - IMFnews

Citigroup Inks $7 Billion MBS Settlement with DOJ

Under the terms of the settlement, Citigroup will pay $4.5 billion in cash and provide $2.5 billion in consumer relief.


July 14, 2014 - IMFnews

Another Megabank (Citigroup) Reports Much Stronger 2Q Originations

Citigroup also marked down the asset value of its residential mortgage servicing portfolio to $2.282 billion, a 12 percent decline on a sequential basis.


July 14, 2014 - IMFnews

Brokers None Too Happy with the CFPB Crackdown on ‘Mini-Corr’

One California-based mortgage broker had this to say: “All the CFPBs is doing is driving up costs, further confusing the consumer, and wasting even more tax payer dollars.”


July 14, 2014 - IMFnews

Nonbanks Gaining More GSE Market Share; Small Shops Shine

Surprise: most of the growth by nonbanks has been by smaller mortgage bankers.


July 11, 2014 - Inside Mortgage Trends

New Jersey Lender Exits Retail Mortgage Business

Sun Bancorp, a $3.5 billion banking institution in New Jersey, is leaving the retail mortgage banking business and cutting back on direct home-equity lending due to declining profitability and tighter regulation. The moves are part of a comprehensive plan presented by Thomas O’Brien, Sun Bancorp’s new president and chief executive officer, who was brought on board as a consultant in April to restructure the company and ... [Includes one data chart]


July 11, 2014 - Inside Mortgage Trends

Rising Production May Mean More Jobs

Mortgage professionals continue to face a tough job market, but they can still find gainful employment depending on what their position is. No one is completely secure in the current economic environment, although mortgage brokers and loan officers may have the best standing. “Demand for key talent has suddenly spiked,” said Rick Glass, a principal in R.T. Glass & Associates of California, a mortgage recruiting firm. Mortgage brokerage firms added ...


July 11, 2014 - Inside Mortgage Trends

How Big Is That Non-QM Market?

The next gold rush in the mortgage industry may be home loans that fall outside the legal safe harbor for qualified mortgages under new rules that took effect in January. And like any bonanza, it’s hard to tell how big the mother lode is. According to Deutsche Bank Securities, it could be a staggering $600 billion a year, but that estimate comes with a lot of caveats. For starters, Deutsche Bank estimated that about $52 billion of 2013 mortgage originations were ...


July 11, 2014 - Inside Mortgage Trends

Borrowers Urged to Shop as Lenders Compete

The decline in refinance activity in the past year has prompted a closer look at differences in interest rates as lenders compete for borrowers. Lenders that don’t offer the lowest rate suggest that there’s more to the mortgage decision than just a low interest rate, particularly because rates are at historic lows. LendingTree, a firm that allows potential borrowers to compare loan offers, recently launched an ongoing study to track the difference between ...


July 11, 2014 - Inside Mortgage Trends

Nonbanks Gaining More GSE Market Share; Retail Channel Losing Steam

The rebound in new business at Fannie Mae and Freddie Mac during the second quarter of 2014 was fueled by a hefty increase in purchase-mortgage activity, but it also featured clear shifts in the volume of loans coming from different kinds of lenders. A new Inside Mortgage Trends analysis of loan-level data on mortgage-backed securities issued by the two government-sponsored enterprises shows that nonbank lenders continued to ... [Includes 3 data charts]


July 11, 2014 - IMFnews

What We’re Hearing: Is Our Mortgage Origination Estimate Crazy? / Good News from At Least One Warehouse Lender / Bullish on Non-QM Lending? / The FHFA MI Proposal is Out and the World Hasn’t Ended, Yet / As for Radian… / Frank Raines’ New Job

So, you doubt our 2Q origination estimate? Here’s what an executive from a top-five warehouse bank told us: “We’re experiencing a significant pick up in outstandings."


July 11, 2014 - Inside MBS & ABS

Fitch Consolidates Key MBS Ratings Criteria in Master Criteria, Tweaks Grading, Tiering Systems

Fitch Ratings has consolidated a number of key rating drivers into updated master rating criteria for residential MBS backed by newly originated and seasoned residential mortgages. The latest report replaces the July 2013 RMBS criteria, and while no material changes have been made to the overarching process, a few tweaks have been made. The important rating drivers that were incorporated include...


Poll

Will non-QM lending add to loan production by 2015?

Yes, but not by much.

43%

Yes, by a lot. Necessity is the mother of invention.

41%

No way. You’re dreaming.

8%

I’m hopeful, but unsure of the whole non-QM market.

8%

Housing Pulse