Mortgage Originators

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

April 21, 2017 - Inside Mortgage Trends

First-Time Homebuyers Often ‘Overpay’

A typical first-time homebuyer pays significantly more than a repeat homebuyer does for the same house, according to research by economists at the Federal Housing Finance Agency. They suggested that appraisers could help reduce home prices for first-time homebuyers, though the proposal faces a number of obstacles. The FHFA analysis was based on appraisal information associated with loan applications submitted to the government-sponsored enterprises from the ...


April 21, 2017 - Inside Mortgage Trends

Economics Drives Choice in Lender, Study Finds

What some people might call “hard-core economics” – closing costs and interest rates – along with a lender’s reputation for excellent customer service, play a decisive role in most consumers’ choice of a mortgage lender, according to a new survey from Ally Bank. “Four in five Americans (81 percent) who ever had a mortgage or plan to apply for one in the future said the total amount of closing costs did/would factor into their lender decision,” the bank said in announcing the results ...


April 21, 2017 - Inside Mortgage Trends

Lenders Push ‘Digital’ Mortgage Offerings

loanDepot rolled out another aspect of its digital origination software interface last week as a number of lenders work to use technology to improve the mortgage application and origination processes. A mortgage origination process that is completely online or digital is still being pursued by lenders, but officials at loanDepot suggest that the proprietary digital lending platform the nonbank has developed, known as mello, is “the future of lending.” “Technology advancements have ...


April 21, 2017 - IMFnews

What We’re Hearing: How do you Solve a Problem Like Ocwen? / Hints that Something was Afoot / Should Ocwen Call its Overseas Workforce Home? / Influencing the GSE Debate / Ginnie Mae Cracks the $1.8 Trillion Mark

And now the obvious questions becomes: where does Ocwen go from here? The company can’t possibly be sold because of all the outstanding lawsuits and “legacy” problems...


April 21, 2017 - IMFnews

Veep Economist Calabria Hints at No Official Plan for Fannie/Freddie Yet

“Maybe we end up in the exact same spot as the last generation, maybe we end up with Corker-Warner,” said Calabria.


April 21, 2017 - IMFnews

Lone Star Prepping a Potentially Record-Breaking Nonprime MBS (Post-Crisis Era)

The pending issuance will largely be backed by purchase mortgages...


April 21, 2017 - IMFnews

1Q17 Non-Agency MBS Issuance Spikes 67 Percent on Heavy Deal Flow Tied to ‘S&D’

Although most of the major non-agency segments posted solid increases, the scratch-and-dent market was the star of the show.


April 20, 2017 - IMFnews

Short Takes: Fix-and-Flip Lender Ready to Employ Loan Brokers / Habib Says Rates Will Head Higher / Megabanks Looking at Nonprime Whole Loan Buys? / The Consumer Law Enforcement Agency? / Ditech’s MSR Reduction

We understand that some surprising names are beginning to show up at auctions for nonprime, non-agency whole loans...


April 20, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

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


April 20, 2017 - Inside Mortgage Finance

Fewer Renters Looking for a Purchase Mortgage, Saving for Downpayment a Significant Hurdle

The share of renters who expect to purchase a home is declining, according to a survey conducted for Freddie Mac. Even though many renters reported optimism about their financial situations, saving for a downpayment and other factors present hurdles to financing a home purchase. Some 41 percent of renters surveyed said they expect to purchase a home, down from 45 percent in September. Freddie also found that the number of renters who say they are working toward homeownership fell from 21 percent in September to 15 percent in March. Most renters said...


April 20, 2017 - Inside Mortgage Finance

Industry Fears Doubling Standard Tax Deduction Would Diminish Mortgage Interest Deduction, Crimp Housing

Industry experts are concerned that significantly raising the standard federal income-tax deduction could make the mortgage-interest deduction less valuable and hurt the housing market. The Republican “blueprint” for a massive overhaul of federal income taxes proposes boosting the standard deduction from $12,600 to $24,000 for joint filers. This could mean fewer taxpayers would itemize their deductions and claim the MID. The Community Home Lenders Association opposes...


April 20, 2017 - Inside Mortgage Finance

As the Home ‘Flipping’ Market Continues to Gather Steam, Lenders Plow New Ground by Using Third-Party Brokers

Two of the most active lenders in the “fix & flip” market – Finance of America Commercial and CALCAP – are coming off record years and are expanding their efforts by launching brokerage initiatives that could increase their volumes even more. “Why now?” asked Mark Filler, CEO of Finance of America Commercial. “We’re at the point where we have better pricing, better products and the market is strong.” In 2016, FOAC – known as Jordan Capital when it was acquired by nonbank mortgage giant Finance of America a few months ago – originated...


April 20, 2017 - IMFnews

ABA: Small Banks Reducing their Share of Non-QM Loans

Most of the banks’ non-QMs received that designation due to high debt-to-income ratios.


April 20, 2017 - Inside Mortgage Finance

CFPB Suggests Lenders are Making Billions Because Borrowers Don’t Shop Effectively for Mortgages

Many borrowers could have seen significant savings on the interest rate on a mortgage if they shopped around, according to a working paper published by the Consumer Financial Protection Bureau’s Office of Research. The bureau economists noted that close to half of consumers didn’t shop before taking out a mortgage, based on the National Survey of Mortgage Originations, a representative survey conducted by the CFPB and the Federal Housing Finance Agency. And only 16.0 percent of borrowers considered three or more lenders before obtaining a mortgage. The economists said...


April 20, 2017 - Inside Mortgage Finance

The Early Read: Bank Mortgage Lending Down in 1Q17, Nonbanks Fare a Little Better

Based on mortgage results reported thus far, the first quarter was a nasty time for new originations for both the megabanks and some of the regionals, with non-depositories reporting slightly more benign production figures. Market leader Wells Fargo posted a hefty 38.9 percent one-quarter drop in mortgage originations. Second-ranked JPMorgan Chase reported a slightly less severe 23.0 percent drop in home loan funding. Citigroup, which a few months back made a strategic decision to deemphasize its role in home lending, suffered a 32.1 percent drop. Then there’s...


April 20, 2017 - IMFnews

Discussion Draft of CHOICE Act 2.0 Would Make Multiple Changes to CFPB, Mortgage Lending

The measure also would allow a recipient of a civil investigative demand to appeal the order to the U.S. District Court system…


April 20, 2017 - IMFnews

MBA Issues 60-Page Report on Reforming Fannie and Freddie

The trade group first launched its GSE task force in late 2012 with 17 initial executive members, including Bob Ryan, a Wells Fargo executive who is now the acting deputy director of the division of conservatorship at the Federal Housing Finance Agency.


April 20, 2017 - IMFnews

CFPB Suggests Lenders are Making Billions Because Borrowers Aren’t Effectively Shopping for a Mortgage

The agency estimates that collectively, borrowers are missing out on $13.0 billion per year in foregone savings…


April 19, 2017 - IMFnews

Short Takes: A Production Decline for USB / Mortgage Bankers Killing Their Share of Trees? / Citadel About to Hit a Milestone / Freddie Readies CRT Deal / StoneHill Hires Former Fannie Mae Official

A reason to go digital? According to one study, the mortgage market consumes almost 2.2 billion sheets of paper annually, which is equivalent to more than 260,000 trees...


April 19, 2017 - IMFnews

Underwriting Standards for Jumbo MBS Return to Norm in 1Q17

Average DTI ratios on prime non-agency MBS range from 30.0 percent to 33.0 percent in any given quarter.


April 19, 2017 - IMFnews

The Final Tally on FHA Legal Settlements for 2016: $454 Million

The largest civil money penalty imposed by the board was $604,000 as part of a settlement with Ocwen Loan Servicing...


April 18, 2017 - IMFnews

Short Takes: Randy Quarles, the Fed and the GSEs / What Role? / A Sign from Movement Mortgage? / Investing in a MortgageHippo / LoanCare Hires CIO

Of course the bigger question is this: what role, if any, will the Fed play in deciding the future of Fannie and Freddie?


April 18, 2017 - IMFnews

Although Industrywide Originations Will Drop, Movement Sees 25 Percent Growth for Itself

In 2016, Movement Mortgage added 201 branches in five states. It now has 662 locations in 47 states.


April 18, 2017 - IMFnews

First-Lien Production Off 37.7 Percent at BofA; Second-Lien Lending on the Rise

But there was some good news: BofA reported $4.05 billion of second lien production in the first quarter, a 13.7 percent improvement from the prior period.


April 18, 2017 - IMFnews

Ginnie Mae Officials Attribute Decline in VA Refis to Anti-Churning Policy

John Getchis, senior vice president at Ginnie Mae, said he does not think the churning trend will continue…


April 18, 2017 - IMFnews

A Hopeful Sign for a Market in Revival: Nonprime MBS Issuance Up 23 Percent in 1Q17

While the market for nonprime MBS was relatively strong during the first quarter, Moody’s said some investors have shied away from the sector.


April 14, 2017 - Inside FHA/VA Lending

Around the Industry

Judgment Imposed on Former President and Founder of Loan Correspondent Firm. A federal court in Chicago ordered the former president and founder of MDR Mortgage of Palatine, IL, to pay more than $10 million to the Department of Housing and Urban Development for submitting false certifications on FHA loans. The HUD Inspector General Office and the Department of Justice withheld the identity of the former bank official, who was found liable under the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act. The violations allegedly involved loans the FHA insured from 2006 through August 7, 2008, the period during which MDR submitted the allegedly false certifications. The DOJ identified 237 loans that MDR processed during the period in question. The loans defaulted and resulted in $3.4 million in claims paid by the FHA. In addition, MDR provided annual verifications to ...


April 14, 2017 - Inside FHA/VA Lending

MBA Remarks on Defect Taxonomy, LRS, Changes to Data Collection

The Mortgage Bankers Association is calling for improvements and clarifications of the new Loan Review System and the Defect Taxonomy to provide FHA lenders greater certainty as to the type of errors that can expose them to False Claims Act risk. The LRS unifies FHA quality control processes into a single system, including test cases from post-closing lenders, post-endorsement loan reviews, lender monitoring reviews and lender self-reporting. It streamlines all the review processes and analysis of results. The new system includes the defect taxonomy, a streamlined rating system for documenting loan-review results and finding the root cause of defects. In MBA’s view, the defect taxonomy shows how far FHA has advanced to ensure lender accountability for the quality of their loans, protecting borrowers and managing its financial risks. However, the Department of Housing and Urban Development needs to ...


April 14, 2017 - Inside FHA/VA Lending

MRB Reports Settlements, Fines From Administrative Actions

The Mortgage Review Board reported approximately $454.4 million in settlements against 25 FHA lenders for various violations of agency lending requirements and imposed more than $1.8 million fines and other penalties against 253 lenders for annual recertification violations. The settlements and penalties resulted from administrative actions taken by the board against FHA lenders from Oct. 1, 2015, through Sept. 30, 2016. The settlements did not constitute an admission of liability or fault. The largest settlement amount, $113 million, was between Freedom Mortgage of Mount Laurel, NJ, and the Department of Justice to resolve alleged violations of FHA requirements and the False Claims Act. In August last year, the MRB voted to release Freedom from any civil money penalties or administrative actions as part of the lender’s settlement with the DOJ. The largest civil money penalty imposed by the ...


April 14, 2017 - IMFnews

Short Takes: Assessing Wells Fargo / Did the Account Fabrication Scandal Play a Role? / Watching the Yield on the 10-Year (Fall) / Better Mortgage Believes it Has a Better Idea on LO Comp / SFIG Prepares the Next Phase

For Wells, the bigger question might be: did its “account fabrication” scandal of 2016 (which is still reverberating at the company) affect its mortgage business?


April 14, 2017 - IMFnews

CitiMortgage’s Third-Party Servicing Portfolio Plummets 66 Percent; Lending Off 32 Percent

It’s a safe bet that CitiMortgage will no longer be a top-10 ranked residential servicer…


April 14, 2017 - IMFnews

‘Tappable’ Home Equity Hit $4.7 Trillion in Late 2016, a 10-Year High

December 2016 represented the 56th straight month of annual home price appreciation, with values rising 5.5 percent over the course of the year…


April 14, 2017 - IMFnews

‘Digital’ Lender Better Mortgage Hopes to Triple Production This Year, Ponders an IPO

According to President Jerry Selitto, the company used traditional LOs when it launched in 2016, but then switched gears “after we realized that’s not the model we wanted.”


April 14, 2017 - IMFnews

CFPB Proposes HMDA Rule Clarifications

One change would facilitate reporting the census tract of a property, using a new geocoding tool that the CFPB plans to provide online.


April 13, 2017 - IMFnews

Short Takes: Ed DeMarco and TBTF / An Accomplishment: G-Fee Parity / Hensarling’s Donors / GSEs Stay Busy on the Multifamily Front / What Mortgage Directors Earn

In 2012, the g-fee disparity fell to about 6 bps. By 2013 it was just about gone. And you can credit Ed DeMarco…


April 13, 2017 - IMFnews

Nonprime Lenders May See a Banner Year in 2017

“Ever since Trump was elected, we’ve been so busy,” said Citadel founder and CEO Dan Perl…


April 13, 2017 - IMFnews

An Ominous Sign? Residential Production at Wells Fargo Slumps 39 Percent; JPM Not as Bad

Then again, compared to the same period a year ago, Wells' production is just about flat...


April 13, 2017 - IMFnews

Jumbo Lender First Republic’s 1Q Originations Slip Almost 18 Percent, but Strong Improvement in Gain-on-Sale

Home equity lending at First Republic totaled $414.3 million in the quarter, off 8 percent from the prior period.


April 13, 2017 - IMFnews

The Final Tally: ARM Originations Increased in 2016; JPMorgan Chase the Market Leader

Wells Fargo Co. ranked third with $21.1 billion of ARM originations in 2016…


April 12, 2017 - IMFnews

Short Takes: CFPB Continues to Hire – Examiners / The Ginnie Mae Job? / An End to ‘Implied’ Guarantees / The Ginnie Mae ‘Plan’ / Fears About the Mortgage Interest Tax Deduction

More CFPB examiners means more CFPB exams? Maybe, maybe not...


April 12, 2017 - IMFnews

Still a Better Deal: Selling ‘Conforming’ Jumbos to Fannie and Freddie. But for How Long?

However, conforming jumbos accounted for 36.3 percent of the $1.03 billion non-agency MBS JPMorgan Chase issued in February.


April 12, 2017 - IMFnews

Hensarling Unveils Changes to CFPB in CHOICE Act 2.0

Despite these developments, FBR Capital Markets analyst Edwards Mills said passage of the Hensarling legislation is unlikely. “We continue to believe that major Congressional action on financial regulation is a 2018 event,” he writes in a new client note.


April 12, 2017 - IMFnews

Nationstar CEO Earned $5.36 Million, Flagstar Chief Saw a Decline in Compensation

The compensation figures for both men include salary, stock awards and other forms of income.


April 12, 2017 - IMFnews

Financial Services Roundtable Names Former FHFA Director Ed DeMarco President of its HPC

In June of last year, DeMarco co-authored a Milken Institute white paper entitled “Why Housing Reform Still Matters." In it, he argues: "…we need to preserve the liquidity and capacity of an active, globally financed MBS market…”


April 12, 2017 - IMFnews

Investment Banker Craig Phillips is Treasury's ‘Point Person’ on GSE Reform

One trade group said Phillips has already reached out to the industry, gathering opinions on key issues facing the market, including Fannie and Freddie…


April 11, 2017 - IMFnews

Short Takes: Consumer Complaints Center on Credit Bureaus / LenderLive Completes PHH Deal / New Rez Issues Non-Agency MBS / Ben Carson’s ‘Listening Tour’ Arrives in Jacksonville, FL / Norcom Opens Denver Branch

LenderLive hired a majority of the former PHH employees and rebranded the private-label facility...


April 11, 2017 - IMFnews

Mortgage Employment Keeps Rising, but for How Long?

Jeff Detwiler, president of Long & Foster, which also owns a mortgage banking firm, said the company’s attrition rate “is at its lowest.”


April 11, 2017 - IMFnews

UWM Parent Agrees to $1.4 Million Settlement with California for Improper Interest Rate Charges

CEO Mat Ishbia said the interest-rate issue concerned just 5 percent of the lender’s loans that were closed in California between 2011 and 2014. “We didn’t benefit one penny and not one borrower was harmed,” he said. -


April 11, 2017 - IMFnews

Mortgage Brokers Lost GSE Market Share in 1Q17; Lowest Reading in Six Years

A new Inside Mortgage Trends analysis reveals that the supply of mortgages originated in the wholesale-broker market fell 42.8 percent during 1Q17…


April 11, 2017 - IMFnews

With Originations Down in 1Q17, Lenders Keep an Eye on Expenses; Some Banks Pondering FHA Again?

“There are a couple of big banks looking at FHA again,” said the consultant, but he declined to identify the shops, citing client confidentiality.


Poll

With the spring homebuying season in full swing, what percentage of your March 2017 application volume has been for “purchase” loans?

75% or higher
50% to 74%
30% to 49%
Under 30%

vote to see results