Mortgage Originators

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

May 22, 2015 - Inside Mortgage Trends

Deephaven’s Nonprime Production a Mystery

Seven months ago, a fledgling nonprime lender called Deephaven Mortgage unveiled a $300 million investment in the firm by a global “alternative” hedge fund called Varde Partners, Minneapolis. But since then, not much has been heard about Deephaven. Then again, it might be said that the “new” nonprime industry is still trying to figure out how to operate in a world of tight regulation, non-QM lending and a securitization market that doesn’t want to touch its product. Matt Nichols, the former Goldman Sachs managing director who formed Deephaven two years ago, did not respond...


May 22, 2015 - Inside Mortgage Trends

Economists See Lending Surge in Fuzzy Outlook

Mortgage originations are already off to a better start in 2015, and industry economists are predicting, on average, a 15 percent increase from last year’s sluggish output. But uncertain prospects in the housing market point toward a decline in mortgage originations next year, according to forecasters at the secondary market conference sponsored this week by the Mortgage Bankers Association. 2015 should bring the strongest housing sales volume since 2007, said Leonard Kiefer, deputy chief economist at Freddie Mac. Sales activity was decent over the winter, despite severe weather in many areas, but the market has yet to get back to normal. Freddie looks...[Includes one data table]


May 22, 2015 - Inside Mortgage Trends

Industry Disconnect Emerges on TRID Readiness

A dramatic disconnect has surfaced between different segments of the mortgage industry when it comes to being prepared to comply with the Consumer Financial Protection Bureau’s pending integrated-disclosure rule. Professionals in the land title insurance side of the business are far more confident about their readiness than are depository institutions, recent surveys reveal. A survey conducted in April by the American Land Title Association found that 92 percent of respondents indicated their company will be prepared to implement the new loan estimate and closing disclosures and to comply with the CFPB’s regulation. That number isn’t as good as it seems, though. A much smaller 62.6 percent said they are on schedule for implementation. Another 29.4 percent conceded they are behind ...


May 22, 2015 - Inside Mortgage Trends

Banks Report Solid Increase in Mortgage Banking Income in First Quarter 2015

Commercial banks and thrifts earned $3.99 billion from their mortgage-banking operations during the first quarter of 2015, according to a new ranking and analysis by Inside Mortgage Trends. Mortgage-banking income was up 12.7 percent from the previous quarter and 19.0 percent ahead of the pace set in the first three months of 2014. Early 2015 was no record-setter, by any means, but profits were well below the levels reached in the middle of last year. The call-report data do not separate...[Includes one data table]


May 22, 2015 - Inside Mortgage Trends

Realtors, Appraisers See Potential in Drones

The real estate industry is excited about the potential use of unmanned aerial vehicles (UAVs) or drones in marketing residential and commercial properties. But stakeholders might have to wait a bit more until federal regulations for drone usage are clear and precise. Industry participants across the country are eager to use drones for aerial photography, videography, property inspection and appraisal and for other mortgage-related opportunities UAV technology might bring. Sometime in the not-so-distant future, Realtors will be able to legally fly unmanned drones over listed properties to give prospective buyers a total view of each listed property and its surroundings. For appraisers and catastrophic insurers, drones can reduce the time it takes to provide an appraisal for a residential or ...


May 22, 2015 - Inside Mortgage Trends

Property Flipping Weakens in April

Investor appetite for buying and flipping residential houses appears to have eased in April, and Texas may be partially to blame, according to Auction.com’s 2015 Real Estate Investor Activity Report for April. In April, there were fewer investors looking to flip their house purchase: 50.4 percent, down from 53.5 percent for the first quarter of 2015, the report noted. The percentage of investors planning to hold the residential property and rent it out grew to 48.3 percent last month from 44.8 percent in the first quarter. Although there was strong preference among investors in live auctions for flipping over hold-to-rent in states where Auction.com conducts live bidding, there was less enthusiasm for it in Texas, the report noted. The Lone ...


May 22, 2015 - IMFnews

What We’re Hearing: FHA Readies a Bromide? / Another FHA Lender May Sue HUD / Kudos for Quicken’s Bill Emerson / A Big M&A Deal Brewing? / At Least FBR’s Paul Miller is Optimistic

We understand that at least one other prominent FHA lender is contemplating filing a lawsuit against the government as well...


May 22, 2015 - Inside MBS & ABS

MBS Trading Volume Hit a Yearly Low in April Despite Strong Issuance. Should the Market Worry?

In April, the average daily trading volume in agency MBS fell to $187.8 billion, the worst reading of the year and a possible harbinger of problems to come. One market participant, speaking under the condition his name not be used, likened it to MBS buyers “going on strike.” He added: “Right now, you have an illiquid market, and that’s not a good thing.” In December of last year, the MBS trading volume was...


May 22, 2015 - IMFnews

MBS Trading Volume Hit a Yearly Low in April. Should the Market Worry?

One market participant, speaking under the condition his name not be used, likened it to MBS buyers “going on strike.”


May 22, 2015 - IMFnews

Chase to Issue a Jumbo MBS with Higher LTVs, Older Interest-Only Mortgages

First Republic Bank is the top contributor to the Chase jumbo MBS with a 20.9 percent share.


May 22, 2015 - IMFnews

FHFA Pulls Down the Cone of Silence on Single-Security Timeline

Is a single GSE security years in the distance? It's hard to say. The FHFA won't offer a timeline.


May 22, 2015 - IMFnews

Banks and Thrifts Gobble Up Ginnie Mae MBS

Commercial banks and thrifts held $1.58 trillion of residential MBS at the end of March, a 2.6 percent increase from the previous quarter.


May 21, 2015 - Inside Mortgage Finance

Mortgage Market at a Glance

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


May 21, 2015 - Inside Mortgage Finance

Lenders Prevail in Novel Lawsuits Involving Loss Mitigation, Allegations of Predatory Lending

Separate lawsuits against major banks were dismissed last week, providing some insight on how lenders and servicers can defend against claims brought by consumer advocates under the False Claims Act and allegations of redlining and reverse redlining. In 2013, Advocates for Basic Legal Equality alleged that U.S. Bank’s servicing practices violated the FCA. U.S. District Court Judge Jack Zouhary dismissed the lawsuit, noting that the claims were barred by the “public disclosure doctrine.” Larry Platt, a partner at the law firm of K&L Gates, said...


May 21, 2015 - Inside Mortgage Finance

Nonbank Gains in Market Share Boost Warehouse Lending; a Strong Refinance Market Helps Too

Warehouse banks increased their commitment levels to $40 billion at the end of the first quarter, a 14.3 percent sequential gain and a sign that all is well in residential originations, at least for now. Not only did warehouse providers benefit from stronger originations in early 2015, their business was boosted by the fact that nonbanks continue to gain origination market share. Compared to the same quarter a year ago, commitments are up a mouth-watering 42.9 percent, according to exclusive survey figures compiled by Inside Mortgage Finance. Then again, at $360 billion, the first quarter of 2015 was...[Includes one data table]


May 21, 2015 - Inside Mortgage Finance

Analysts See Stronger Market in 2015, But Little Change In Fundamental Problems Facing the Mortgage Industry

Housing is showing some traction, but heavy regulation and enforcement continue to weigh on the mortgage market, according to analysts at this week’s secondary-market conference sponsored by the Mortgage Bankers Association in New York. Charles Gabriel, president of Capital Alpha Advisors, said there are some green shoots in the mortgage market, including signs of more home sales. But he characterized it as “a mature market that is suboptimized.” Lenders have paid massive penalties in lawsuits, he added, and there is no sign that they will expand the credit box. “U.S. Bank was asked...


May 21, 2015 - Inside Mortgage Finance

Refi Surge in Conventional-Conforming Market Helped Fuel Originations Uptick in Early 2015

The conventional-conforming sector led the mortgage market’s surge in production volume during the first quarter of 2015, according to a new Inside Mortgage Finance ranking and analysis. Lenders originated an estimated $207 billion of conventional-conforming mortgages during the first three months of this year, an 18.3 percent increase from the fourth quarter of 2014. The conventional-conforming sector accounted for 57.5 percent of the $360 billion in overall mortgage originations during the period. The $360 billion is a revision of our initial estimate and does not include home-equity lending. The government and jumbo markets were...[Includes two data tables]


May 21, 2015 - IMFnews

Short Takes: Finally, Lawsky Tells Us When He’s Leaving / Meet the New NYDFS Boss, Same as the Old Boss? / Erbey Still Loves Ocwen, At Least Its Stock / Shelby Bill Passes, but... / Impac’s Non-QM Volumes Meager But Growing

Who might replace Lawsky? How about: Rohit Chopra, assistant director and student loan ombudsman for another agency that’s highly popular with mortgage executives: the CFPB.


May 21, 2015 - IMFnews

Shared Appreciation Transactions Seen as Helpful to Borrowers

Research suggests that shared-equity homebuyers have low rates of delinquency and foreclosure.


May 21, 2015 - IMFnews

Oh, and Nationstar’s EVP of Human Resources is Retiring Too

A company spokesman confirmed the departure to IMFnews, noting that O’Brien is leaving after a 40-plus career.


May 21, 2015 - IMFnews

Final FHFA Servicer-Eligibility Rules Will Impact Smaller Shops More

According to analyst Paul Miller of FBR Capital Markets, the standards are meant to “impact small, nonpublic, nondepository institutions that have operated on the periphery of the sector.”


May 21, 2015 - IMFnews

Without the Refi Surge, the First Quarter Would Have Been a Dud

If purchase-lending doesn’t increase soon the mortgage industry could be in for some turbulence.


May 21, 2015 - IMFnews

Analysts See Stronger Mortgage Market in 2015, but Not Much Expansion in the Credit Box

“U.S. Bank was asked why it wasn’t expanding in the mortgage business,” Gabriel said during a panel discussion. “Their answer was: ‘Did you see what happened to Bank of America?’”


May 20, 2015 - IMFnews

Short Takes: Final Capital Standards from the FHFA Arrive / Nationstar Not Worrying / Leveraging Employees (Overseas Too) / Loan Officer Demand Red Hot? / Auction.com Branches Out

Among those nonbanks not losing too much sleep over the FHFA proposal is Nationstar Mortgage.


May 20, 2015 - IMFnews

Congress Ponders Streamlining, Merging Rural Housing Service into FHA

“The process of dealing with RHS is a nightmare,” said Rep. Blaine Luetkemeyer, R-MO, vice chairman of the committee.


May 20, 2015 - IMFnews

FHFA IG Worries About Nonbank Risk (Again), Cyber Attacks, More

In response to its anxiety, the Inspector General plans a series of audits that will study the risks posed by an increasing volume of nonbank loan sales.


May 20, 2015 - IMFnews

Dave Hisey Out as EVP of Nationstar Mortgage

Investors have been unhappy with Nationstar’s stock performance the past year and want a clearer picture of where the firm is headed.


May 20, 2015 - IMFnews

TRID to Heighten Odds of Losses in U.S. RMBS, Moody’s Says

Mortgages with uncured TRID violations will have higher losses if they default, owing to the potential for increased legal costs and damages, said Moody's.


May 20, 2015 - IMFnews

CFPB May Review Lender-Paid Mortgage Insurance

One source said the CFPB is even reaching out to former MI officials to assist it in its review.


May 19, 2015 - IMFnews

Short Takes: Nationstar to Launch Xome / Fortress Controls 66 Percent of NSM / Hedge Funds Invest in Private Money Lenders / FGMC Posts Nice Origination Gain / Foreclosure Law Firm Goes Bust

First Guaranty Mortgage Corp., Frederick, MD, originated $940 million of home mortgages in the first quarter, a 48 percent jump from the same period a year earlier.


May 19, 2015 - IMFnews

Morgan Stanley Cuts Stake in Ocwen as Shorts Increase

According to the website ShortSqueeze.com, almost 30.2 million shares of Ocwen are presently being shorted by speculators or 46.48 percent of the float...


May 19, 2015 - IMFnews

FHA Premium Cut Helped Fuel 1Q Jump in Government Lending; Quicken #1 Again

Quicken once again ranked first among all FHA lenders, funding $2.46 billion during 1Q, more than double the volume of its closest competitor, Wells Fargo.


May 19, 2015 - IMFnews

The Latest Word From the CFPB’s Cordray on TRID: August 1, No ‘Soft’ Enforcement?

The CFPB also disputed the notion that the Aug. 1 effective date comes at a bad time on the closing calendar...


May 18, 2015 - Inside the CFPB

Briefs: Also Noteworthy

CFPB May Review Lender-Paid MI. Pricing on lender-paid mortgage insurance policies has come down over the past several months, apparently spurring the CFPB to take a look at what’s going on behind the curtain. Citing industry officials who claim to have knowledge of the situation, Inside Mortgage Finance, an affiliated publication, reported late last week that the powerful consumer regulator may focus on whether there is some kind of quid pro quo going on between lenders and mortgage insurers. In particular, the CFPB is interested in the discounting of LPMI in exchange for a lender sending more of its MI business to an insurer and whether such a practice violates the Real Estate Settlement Procedures Act, the newsletter reported. In ...


May 18, 2015 - Inside the CFPB

Briefs: More and More TRID

CFPB Updates Mortgage Origination Examination Procedures to Reflect TRID. The CFPB has put out an updated version of its Supervision and Examination Manual’s Mortgage Origination examination procedures. The latest iteration features guidance on how its compliance examiners will examine loan disclosures and the terms of closed-end residential mortgages that are subject to the pending integrated disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act. Of the manual’s eight modules, the updated TRID examination procedures are reflected in module #4. “Examiners should obtain and review a sample of complete loan files to assess the entity’s compliance,” states the new section of the manual. “If consumer complaints regarding mortgage origination and closing indicate potential violations of ...


May 18, 2015 - Inside the CFPB

Shelby Regulatory Relief Bill Includes ATR Fix for Portfolio Loans

Sen. Richard Shelby, R-AL, chairman of the Senate Banking, Housing and Urban Affairs Committee, released the text of his pending regulatory relief bill last week. Among a handful of CFPB-related provisions is one that would grant qualified mortgage status under the bureau’s ability-to-repay rule for residential loans held in portfolio. However, as per the draft Financial Regulatory Improvement Act of 2015, certain conditions would have to apply. To begin with, the lender/creditor would have to hold the loan in portfolio from its inception, or any acquirer of the loan must continue to hold it in portfolio. Additionally, the mortgage cannot have been acquired through securitization, nor can it have certain forbidden features, like negative amortization, interest-only provisions, or a loan ...


May 18, 2015 - Inside the CFPB

Most Title Industry Pros Will be Ready for TRID on Time: ALTA

Contrary to other segments of the mortgage industry, a huge majority of title professionals will be ready to play ball when the CFPB’s TILA/RESPA integrated disclosure rule goes live Aug. 1, 2015, according to a survey conducted by the American Land Title Association. “Ninety-two percent of our survey respondents indicated their company will be prepared to implement the new forms and comply with the CFPB’s regulation,” said Michelle Korsmo, ALTA’s chief executive officer. “The land title insurance industry has been a leader in preparing the real estate industry for the new disclosures and that is reflected in the preparedness of our members.” However, perhaps not so surprisingly, collaboration with lenders and real estate agents, and potential closing delays top the ...


May 18, 2015 - Inside the CFPB

Industry Uncertain About TRID Compliance Capabilities: ABA

Most of the mortgage industry cannot reliably confirm whether it will be ready to fully comply with the CFPB’s pending integrated disclosure rule, according to a new member survey by the American Bankers Association. Based on approximately 800 responses from bankers nationwide, “Our survey reveals that an overwhelming 74 percent of banks are using a vendor or consultants to assist with TRID implementation,” Bob Davis, head of mortgage markets at the ABA, said in a letter to CFPB Director Richard Cordray. Community banks in particular are highly dependent on the ability of vendors to deliver technology-related services that are critical to bank compliance efforts, according to Davis. “Interestingly, though, bankers from large institutions were over-represented in the survey, which implies ...


May 18, 2015 - Inside the CFPB

MBA Asks For More Guidance on Changes to the Closing Disclosure

The Mortgage Bankers Association continues to forward to the CFPB questions and requests for clarifications on a number of issues related to the bureau’s integrated disclosure rule that have yet to be adequately addressed, such as changes to the Closing Disclosure (CD) after scheduled closing. “There are limited options under the rule, in the event a lender has provided a closing disclosure and closing is delayed for unforeseen circumstances outside the lender’s and/or the borrower’s control,” said the MBA in correspondence to the bureau. Similarly, there may be borrower and seller changes to the purchase terms. “Under the current rule and commentary, the lender apparently has no ability to provide a revised Loan Estimate (LE) or CD and re-compute the ...


May 18, 2015 - Inside the CFPB

Cordray Angers Realtors Over Concerns About Closing Delays

CFPB Director Richard Cordray tried to reassure attendees at the National Association of Realtors’ trade expo last week that the impact of the bureau’s pending integrated disclosure rule isn’t going to be as dramatic as many fear – particularly the concern that the three-day disclosure requirement is going to delay loan closings. “The timing of the closing date is not going to change based on any problems you discover with the home on the final walk-through, even matters that may change some of the sales terms or require seller’s credits,” Cordray said. On the contrary, the bureau “listened carefully to your concerns” and limited the reasons for closing delays to only three narrow sets of circumstances. They are: any increases to ...


May 18, 2015 - Inside the CFPB

Cordray Sticks to His Guns, Won’t Yield on TRID Enforcement

CFPB Director Richard Cordray continues to appear steadfast in his refusal to accommodate the mortgage industry by providing some sort of soft enforcement period for the new integrated disclosure rule, which is set to kick in Aug. 1, 2015. In a recent letter to Rep. Blaine Luetkemeyer, R-MO, one of the members of Congress who has been pressing the director for some kind of an enforcement grace period, Cordray was too discreet to come right out and say “no” to members of Congress. Instead, he told the congressman that the bureau shares his desire for “a smooth and successful implementation of the integrated disclosure rule, and we continue to work closely with all stakeholders to support that goal.” Cordray then ...


May 18, 2015 - Inside the CFPB

Bipartisan Pressure Mounts For TRID ‘Hold-Harmless’ Period

If one of the sponsors of the Dodd-Frank Act supports giving mortgage lenders an enforcement break when the CFPB’s integrated disclosure rule kicks in later this year, you know something serious is afoot. Such is indeed the case. Rep. Brad Sherman, D-CA, one of the original backers of Dodd-Frank, has crossed the partisan aisle in the House Financial Services Committee to join Rep. Steve Pearce, R-NM, in introducing H.R. 2213. Their bill would grant lenders a temporary safe harbor from enforcement of the rule integrating the required mortgage disclosures under the Truth in Lending Act and the Real Estate Settlement Procedures Act. More specifically, H.R. 2213 would protect lenders from private lawsuits and regulatory enforcement actions through Dec. 31, 2015, ...


May 18, 2015 - IMFnews

Short Takes: How High Can Ellie Mae’s Stock Go? / And the Flipping Continues / Lending to Flippers, a Profitable Business / GOP Says No to HUD Again / A Virginia M&A Deal

Several hard money lenders are involved in financing flippers, charging interest rates that are several percentage points above the going Fannie Mae/Freddie Mac rate.


May 18, 2015 - IMFnews

Ocwen Works to Address Operational Uncertainty By Adjusting Financing Agreements

Among other actions, Ocwen entered into an agreement in April to receive up to $125.0 million of backup financing for new loan originations...


May 15, 2015 - Inside FHA/VA Lending

Around the Industry

House GOP’s Proposed Budget Rejects IT Administrative Fee, HTF. House Republicans withheld funding for a proposed administrative fee, which the FHA planned to invest in technology to improve quality assurance and reduce paid-claims losses. The Department of Housing and Urban Development first requested authority to collect the fee in the President’s FY 2015 budget request but was turned down. It appears House Republicans are on track again to reject the proposed fee in the FY 2016 appropriations bill, said HUD Secretary Juan Castro. Castro lambasted the House Republicans’ proposed budget cuts, saying they would hinder HUD from carrying out its mission and from investing in communities that most need help. The GOP bill also rescinds funding to the proposed Housing Trust Fund, which allocates a small percentage of Fannie Mae and Freddie Mac profits to ...


May 15, 2015 - Inside FHA/VA Lending

Borrowers Suffer in the Long Run as Servicers Try to Avoid FHA Penalties

Mortgage originators are foregoing lending to borrowers who are more likely to become delinquent to avoid strict and unrealistic FHA timelines and cost limits, according to an Urban Institute study. Results of the study, which was issued in December, were again highlighted during a recent Housing Finance Policy Center seminar on servicing at the Urban Institute in Washington, DC. Citing the study she wrote, Laurie Goodman, director of the HFPC, said regulatory uncertainty and a broken servicer-compensation model were partly responsible for tight credit. The high cost of servicing non-performing mortgages and regulatory uncertainty regarding the treatment of delinquent borrowers have made lenders apprehensive about making loans that have even a slight chance of defaulting, she said. Long foreclosure delays in judicial states, burdensome foreclosure guidelines and apparently ...


May 15, 2015 - Inside FHA/VA Lending

RHS Final Rule for Certified Loan Application Packagers, Brokers

The Department of Agriculture’s Rural Housing Service has issued a final rule creating a certified loan-application packaging process for the agency single-family loan guaranteed housing program. Published in the April 29 Federal Register, the rule also establishes standards for packagers of loan applications, who are independent from RHS but play a key role in providing Section 502 rural home loan programs to potential homeowners. The final rule will take effect on July 28, 2015. Specifically, the rule addresses the weaknesses in RHS’ loan-application process and integrates the lessons learned from a loan-packaging pilot launched in 2010. The packager gathers and submits the information needed for RHS to determine whether a loan applicant is eligible for ...


May 15, 2015 - Inside FHA/VA Lending

Mortgages Rank High Among Top Servicemember, Vet Complaints

Making mortgage payments is the most common type of mortgage complaint active servicemembers, veterans or their dependents report to the Consumer Financial Protection Bureau. A recent CFPB report on the top complaints received from military members and their families show that 24 percent were mortgage-related, second to debt collection, which accounted for the highest percentage of complaints received, 39 percent. An estimated 53 percent of servicemember complaints involved mortgage servicing related to loan modifications, collections and foreclosures. The report did not identify any specific loan, although it covered both conventional and government-backed mortgages. Complaints against servicers were mostly about failure to remove or amend derogatory credit reports accrued by servicemembers during the trial period, even though the servicemembers have successfully ...


May 15, 2015 - Inside FHA/VA Lending

FHA Delinquency Rate Drops in 1Q, VA Delinquencies, Foreclosures Up

The FHA overall delinquency rate for single-family mortgages fell by 63 basis points to 9.10 percent on a seasonally adjusted basis in the first quarter of 2015 from the previous quarter, while VA loans recorded the only increase across all loan types over the same period, according to the Mortgage Bankers Association. Overall, mortgage delinquencies and foreclosures continued to fall in the first quarter and are now at their lowest levels since 2007, according to the MBA’s quarterly delinquency-rate survey. On a seasonally adjusted basis, the overall delinquency rate fell 14 bps to 5.54 percent from the fourth quarter of 2014, and 57 bps from one year ago, the MBA said. The serious delinquency rate – the share of mortgages that are 90 days or more past due or in foreclosure – likewise fell 28 basis points to 4.24 percent from the previous quarter and down ...


May 15, 2015 - Inside FHA/VA Lending

VA, FHA Purchase Applications Up, Refi Loan Applications Decline

The VA share of total loan applications (purchase and refinancing) for the week ending May 8, remained unchanged at 11.9 percent while FHA’s share fell to 13.8 percent from 14.0 percent the week prior, according to the Mortgage Bankers Association’s latest weekly survey of applications. VA purchase loan applications were up a smidgen, 0.2 percent, for the week while FHA purchase applications were up slightly higher, 0.6 percent. Refi applications at both agencies, however, were down for the week – 11.5 percent for FHA and 5.1 percent for VA. Meanwhile, the Rural Housing Service’s share of total applications rose to 0.9 percent as of May 8, from 0.8 percent the week prior. While there was no change in RHS’ share of refi loan applications during the week, its purchase loan applications was up 8.6 percent, a hefty increase for an agency that accounts for only a ...


Poll

Mortgage originators have been stepping up their hiring of late. Which category of mortgage workers are in highest demand at your shop? (Choose one.)

Loan officers
Processors and underwriters
Compliance
Tech support/programming
Secondary marketing
VP level and higher
We need a good CEO
Other

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