Mortgage Originators

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August 1, 2014 - Inside FHA Lending

Around the Industry

Comment Period for Single Family Handbook Extended. The FHA has extended from July 29 to Aug. 15, 2014 the deadline for submitting feedback on certain sections within the draft Single Family Handbook. Comments are being sought on sections “Doing Business with FHA – FHA Lenders and Mortgagees” and “Quality Control, Oversight and compliance." Both sections’ contents, as well as supporting information, are posted for review and feedback on the SF Drafting Table in the FHA website. Each section’s web page also contains highlights of changes, frequently asked questions (FAQs) and a feedback response worksheet. Julian Castro as New HUD Secretary. Julian Castro was sworn in as the 16th Secretary of the Department of Housing and Urban Development on July 28. He replaces Shaun Donovan, who is now director of the ...


August 1, 2014 - Inside FHA Lending

GNMA Data Show Wells, Chase Pulled Back

JPMorgan Chase and Wells Fargo have both paid major settlements regarding FHA lending, and both have curtailed their participation in the program, according to a new analysis of Ginnie Mae data by Inside FHA Lending. During the first six months of 2013, Chase accounted for 11.8 percent of the FHA mortgages in newly issued Ginnie mortgage-backed securities. During the first half of 2014, its volume of FHA loans in Ginnie pools was down 75.8 percent from the same period last year, and its share of the market sank more than half, to just 5.1 percent. Jamie Dimon, Chase’s president and CEO, recently questioned why the bank should stay in the FHA business when legal costs are so high. The Ginnie data show it ... [1 chart]


August 1, 2014 - Inside FHA Lending

FHA Delinquency Rates Fall Midway Through 2014

The delinquency rate for residential FHA-insured mortgages fell at the halfway mark of 2014 from the end of the fourth quarter last year, a result of improved overall loan performance, strong credit standards and an improving, albeit slowly, economy, an Inside FHA Lending analysis of agency data suggests. Although the number of FHA lenders included in the analysis has doubled since year-end 2013, delinquency rates in the 30-60 days and 90-day plus buckets appear to be trending downward. As of June 30, FHA delinquencies across the board were down to 13.3 percent from 15.2 percent as of Dec. 30, 2013. The seriously delinquent rate – the percentage of loans that are 90 days or more past due – has dropped to 7.14 percent from 8.08 percent over the same period. The delinquency rate of FHA loans that are at least one payment past due also fell to ... [1 chart]


August 1, 2014 - Inside FHA Lending

FHA Lower Loan Limits Hit Some Markets

The FHA’s widespread reduction in loan limits for 2014 has had a mixed impact on production levels so far this year, according to a new Inside FHA Lending analysis of FHA endorsement data. Through the first four months of 2014, FHA endorsements were down 55.6 percent from the same period last year. But in counties where loan limits were lowered, FHA production was down 57.5 percent from early 2013. In the relatively few counties where loan limits actually increased in 2014, FHA endorsements were also down from a year ago, but by a less severe 47.4 percent. The biggest decline in endorsements has been in refinances, especially FHA-to-FHA refinances. In areas with lowered loan limits, production of these loans has plummeted 87.0 percent, and even areas with raised loan limits saw an 81.1 percent drop in streamlined refis. Purchase-mortgage originations have taken less of a ...


August 1, 2014 - Inside FHA Lending

MRB Penalizes 46 Lenders, 25 Lose FHA Approval

Twenty-five lenders either settled or lost their FHA approval for a full year because they failed to complete their annual recertification requirement, while 21 others were subjected to enforcement actions because their origination or servicing files did not meet FHA requirements. Results from cases heard by the Department of Housing and Urban Development’s Mortgagee Review Board in 2012 and 2013 showed that the board used all enforcement tools at its disposal. Specifically, the board took the following actions: Assessed money penalties of more than $1.5 million; imposed fees, refunds and principal buydowns totaling $1.2 million; required indemnification on 163 FHA-insured loans; withdrew FHA approval of four lenders; suspended the FHA approval of one lender; and placed one lender’s approval on probation. Violations were related to ...


August 1, 2014 - Inside FHA Lending

Lenders Reassess FHA Business, Exposures

For FHA lenders, the idea of a large lender exiting the FHA market and creating opportunities for market share has been overshadowed by concerns regarding liability in the wake of recent fraud-related settlements between lenders and the federal government. Compliance experts said many of their FHA clients are quietly reassessing their FHA business after JPMorgan CEO Jamie Dimon, during a recent earnings call, spoke out loudly against the government’s stringent enforcement actions aimed at recovering “wrongfully” claimed funds. Lenders fear that FHA enforcement actions have taken a turn for the worse in recent years, and that even errors that have nothing to do with loan default are construed as fraud by government prosecutors, resulting in billion-dollar penalties against FHA lenders. Seven major banks, so far, have paid ...


August 1, 2014 - Inside Nonconforming Markets

CFPB Aims at ‘Risky’ Loan Features with HMDA

The Consumer Financial Protection Bureau recently proposed a significant expansion of the loan features lenders would need to report under the Home Mortgage Disclosure Act. The CFPB said the new data will help gauge whether regulations meant to limit originations of “risky mortgage products” have been effective. The federal regulator is seeking new disclosures regarding credit scores, debt-to-income ratios, qualified mortgage status and loan type, among many ...


August 1, 2014 - IMFnews

What We’re Hearing: Look Out Below Ocwen? / Look Out Below Nationstar? / Regarding Fannie and Freddie: Did Treasury Know Three Years Ago They Were Turning the Corner? / What Constitutes Being ‘Under Investigation’? / A HUD Official Comes Clean

Next week, Nationstar Mortgage reports its second quarter results. If the company misses the targets set by investment bankers, it could be a blood bath…


August 1, 2014 - Inside MBS & ABS

Commercial Mortgage REITs Show Promise As Long as Originations Continue to Improve

The immediate future is looking mostly bright for publicly-traded real estate investment trusts that toil in the commercial real estate sector – that is, as long as origination volumes remain healthy. Several high-profile commercial REITs – including Starwood Property Trust, Colony Financial and Ladder Capital – do not report second quarter results until next week, but hopes are high that earnings will be mostly positive. One commercial REIT that did report this week was...


August 1, 2014 - IMFnews

Commercial Mortgage Securitization Rebounds in Second Quarter

At the midway point this year, agency multifamily issuance was off 36.9 percent from the first half of 2013, and production was essentially flat in the second quarter.


July 31, 2014 - Inside Mortgage Finance

Mortgage Market at a Glance

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


July 31, 2014 - Inside Mortgage Finance

Larger Lenders Expect Some Loosening of Credit Standards, Others See Tightening Over Next Three Months, Survey Finds

Smaller and mid-size mortgage lenders were more likely than larger lenders to say their credit standards tightened over the past three months and will tighten more in the next quarter, while larger lenders were more likely to say their credit standards eased in the prior quarter and will continue in the next, according to results of a new lender survey announced by Fannie Mae. The divergent view of credit standards between larger lenders and others is among the key findings of the government-sponsored enterprise’s new Mortgage Lender Sentiment Survey. The quarterly survey focuses on the supply side of the mortgage business and dovetails with Fannie’s monthly national survey of consumers, which provides current information on the demand side of housing. Lender survey results collected during the first two quarters of 2014 showed...


July 31, 2014 - Inside Mortgage Finance

Short Sellers Have Made Big Bets Against Nationstar Mortgage and PHH Mortgage

In recent weeks, speculators have been pressing their bets that certain publicly-traded mortgage companies could be in for a world of hurt because origination volumes are likely to remain subdued this year and there is little chance of growth through servicing acquisitions. According to figures compiled by Compass Point Research & Trading and public websites, the two most-shorted mortgage stocks are Nationstar Mortgage and PHH Corp. Measured by the percentage of shares publicly available (known as “float”), Nationstar has...


July 31, 2014 - IMFnews

Short Takes: Matrix and Freedom Mortgage Come on Strong / Hope for Warehouse Banks? / Norcom Opens More Branches / About that Servicing Legislation… / Congress: We Can’t Live With Them, and We Can’t…

One joke making the rounds in Washington this week: Congress is going on its August vacation. How will we know the difference?


July 31, 2014 - IMFnews

Ocwen Shares Get Clobbered; Nonbank Declines to Discuss the ‘Lawsky Situation’

Ocwen watchers have wondered when – or if – New York state will ever bring any formal charges against the company.


July 31, 2014 - IMFnews

BofA Moving Closer to a Deal with DOJ?; Fined $1.27 B in 'Hustle' Case

The Countrywide purchase, completed in the summer of 2008, has cost BofA close to $60 billion in operating losses and legal settlements, depending on how the numbers are counted.


July 31, 2014 - IMFnews

Ocwen Suffers Earnings Decline, Blames ‘Regulatory’ Costs; Will Invest in Non-Agency MBS

The unspoken factor affecting Ocwen's immediate future is Benjamin Lawsky and the New York Department of Financial Services.


July 31, 2014 - IMFnews

MBA Pushing for Expansion of LO Testing to Bank Employees

The changes sought by the MBA would also allow mortgage loan officers at banks to more easily transition to working for nonbanks.


July 30, 2014 - IMFnews

Short Takes: Todd Rundgren Takes on JPM / Jumbo Production Jumps 37% at EverBank / HAMP Processing Slows – A Lot / FHFA’s Watt to Take HARP Road Show to Atlanta / More Executive Changes at Flagstar

Hello, It's Me Again: Your foreclosure notice.


July 30, 2014 - IMFnews

New York Hard-Money Lender (with a Warehouse Line) Files IPO

The CEO also noted that the Great Neck, NY-based company has a $7 million warehouse line of credit with Sterling Bank. “That’s an achievement,” he said.


July 30, 2014 - IMFnews

Lenders Will Have More Time to Comment on G-Fees

By extending the comment period, it’s likely that lenders will have at least 120 days before any g-fee hikes are installed.


July 30, 2014 - IMFnews

RPM Mortgage Contributed the Most to New Jumbo MBS from Two Harbors

Some 4.1 percent of the mortgages to be included in the MBS missed their July payments, with most of the delinquencies due to transfers to Cenlar, according to the term sheet.


July 30, 2014 - IMFnews

Another Top Executive Departs Nationstar: Chief Compliance Officer Tankersley

Not only is Nationstar Mortgage one of the most shorted stocks in the sector, but it seems to be having quite a bit of turnover in the executive suite.


July 30, 2014 - IMFnews

California Once Again Dominates GSE Business with a 21 Percent Share

Texas was the second largest source of Fannie/Freddie business during the first half, accounting for 7.3 percent of the market.


July 29, 2014 - IMFnews

Short Takes: Two Harbors Hits Market with a New Jumbo MBS / CFPB Targets Great Lakes Area Mortgage Lender / Happy (?) Third Birthday CFPB / Shorts Target Stonegate Mortgage / New Duties for BofA Mortgage Chief

Surprise: Two Harbors is preparing a new jumbo MBS deal. It looks like the bond will be issued in early August...


July 29, 2014 - IMFnews

Forget Ocwen’s Earnings, Will It Say Anything About the Lawsky Squabble?

“I don’t see how New York can’t ultimately approve Wells’ sale of servicing to Ocwen,” said one analyst. “I think it’s more a matter of when.”


July 29, 2014 - IMFnews

How Much Are Mortgage Lenders Spending on Consumer Ads?

According to research from the Consumer Financial Protection Bureau, all financial service companies spend $17 billion each year trying to reach consumers.


July 29, 2014 - IMFnews

Will Bank of America Ever Mend Fences With Fannie Mae?

The Fannie-BofA squabble was tied to repurchase claims surrounding the bank’s legacy book of business, largely involving loans produced by Countrywide Financial and Merrill Lynch.


July 28, 2014 - IMFnews

Short Takes: Lender Focusing on Four M&A Deals? / Mechanics Bank Inks Origination Deal with RPM / California, the Golden State of Mortgage Fraud? / Fannie Vendor Denies Discrimination Allegation / EverBank is Apparently a Jaguars’ Fan

RPM Mortgage, one of the largest privately held nonbanks in California, has signed a new origination deal with Mechanics Bank, Walnut Creek, CA.


July 28, 2014 - IMFnews

CFPB Finally Issues Its Proposed HMDA Rule

The CFPB also is proposing that financial institutions provide more information about underwriting and pricing.


July 28, 2014 - IMFnews

Believe It or Not: White House Still Working on Advancing GSE Reform This Year

In mid-July senior White House staff, Treasury officials and the staffers from the Council of Economic Advisers met with representatives from a number of industry trade groups to discuss housing finance reform.


July 28, 2014 - IMFnews

Big Banks Report Substantial Increase in 2Q14 Mortgage Income

Although only one of the 21 banks (BB&T) posted a net loss on mortgage banking during the second quarter, seven others reported lower profits than they had in the first quarter.


July 25, 2014 - Inside Mortgage Trends

Data: Agency MBS Activity By State: 6M2014

A ranking by state of agency mortgage-backed security activity in the first half of 2014 with columns for purchase mortgages, refinances, Fannie Mae, Freddie Mac and Ginnie Mae.


July 25, 2014 - Inside Mortgage Trends

Lenders Mum on Marketing Costs

Trying to find out how much money an individual mortgage company spends each year in marketing its products to consumers is no easy task. A quick survey of some of the nation’s largest lenders on advertising dollars conducted by Inside Mortgage Trends yielded the same exact response: “We don’t disclose that information.” Many large lenders don’t even engage in specific mortgage-related advertising, at least not on a national level. The one exception is ...


July 25, 2014 - Inside Mortgage Trends

Interest Rate Hedging in Fluctuating Environment

Lenders facing rising interest rates might be overlooking valuable hedging options, according to officials at Mortgage Capital Management. The firm offers pipeline risk-management services and is touting float-down locks, or put options on interest rates, which MCM claims will increase earnings stability and grow production. A float-down lock allows a borrower to receive a lower interest rate on their mortgage if rates decline between when ...


July 25, 2014 - Inside Mortgage Trends

Low Payments Won’t Deter Potential Movers

Concerns that rising interest rates will prompt current homeowners to stay in place are overblown, according to a number of industry analysts. A panel at Zillow’s latest housing forum this week focused on the issue of borrower lock-in, with most speakers downplaying the issue. Joseph Tracy, an executive vice president and senior advisor to the president at the Federal Reserve Bank of New York, said his research has found that rising interest rates ...


July 25, 2014 - Inside Mortgage Trends

Firms Offering Hefty Signing Bonuses for LOs

Not only are residential originations on the rise once again, but so are “signing bonuses” for top-flight loan officers who can bring in the volume. According to research from Garrett, McAuley & Co., signing bonuses being paid today range from $20,000 to $30,000, but “with some going much higher.” With production shifting toward purchase-money lending, LOs with deep ties to Realtors and homebuilders can fetch the most. But according to interviews ...


July 25, 2014 - IMFnews

What We’re Hearing: Why Doesn’t JPM Just Get Out of Mortgages Entirely? / Down, Down, Down: JPM’s Ginnie Share / NAR’s Yun: CFPB Might Want to Investigate FHA / Do LOs Exaggerate Their Production Numbers? / Zillow and Trulia: A Match Made in Money-Losing Heaven

NAR Chief Economist Lawrence Yun: “The way they have raised premiums and fees – the way I view it and what I hear from Realtors – is essentially they are ripping off consumers. It’s almost as if HUD needs to be turned over to the CFPB to be investigated"...


July 25, 2014 - IMFnews

Buried in the FHFA IG Report: Fannie and Freddie Will Conduct More ‘Operational Reviews’

Nationstar Mortgage and Walter Investment are the only seller/servicers (counterparties) mentioned by name in the FHFA IG report on nonbank risk.


July 25, 2014 - IMFnews

First-Time Homebuyer Share of Purchase Market at High Levels

Jeff Mezger, president and CEO of KB Home, said the first-timer share of home purchases is rising due to increased employment, noting cities in Texas as an example.


July 25, 2014 - IMFnews

2014 Loan Limit Decreases Slowed FHA Lending

A new analysis shows that housing markets where FHA loan limits were reduced this year have seen a bigger drop in FHA business than elsewhere in the country.


July 24, 2014 - IMFnews

Short Takes: A Kinder and Gentler FHA? / A Rapidly Improving MMIF? / CFPB and FTC Target Loan Modification Scammers / A Continuing Decline in Underwater Homes / MGIC CEO Culver to Retire

Or perhaps the FHA is concerned that the private mortgage insurance industry will continue to gain market share at its expense?


July 24, 2014 - Inside Mortgage Finance

Mortgage Market at a Glance

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


July 24, 2014 - Inside Mortgage Finance

Top Direct Originators: 1Q14 Data


July 24, 2014 - Inside Mortgage Finance

2014 Loan Limit Decreases Slowed FHA Lending, But Impact Muted in Purchase-Mortgage Sector

FHA single-family endorsements fell 55.6 percent in the first four months of 2014, compared to the same period last year, but the impact was far from uniform across the country. A new analysis by Inside FHA Lending, an affiliated newsletter, shows that housing markets where FHA loan limits were reduced this year have seen a bigger drop in FHA business than elsewhere in the country. In counties with lower FHA loan limits, production in the first four months of 2014 was down 57.7 percent from a year ago, while production in markets where there was no change fell 51.3 percent. FHA lending declined...


July 24, 2014 - Inside Mortgage Finance

Correspondent Lending Boosts Freedom Mortgage Originations, Nonbank Bulks Up on Servicing

Freedom Mortgage reported continued growth in originations in the second quarter of 2014, largely driven by correspondent production. The nonbank has focused on agency mortgages with strong underwriting, retaining servicing on the loans. Freedom had $5.72 billion in originations in the second quarter of 2014, a big 48.7 percent increase from the previous quarter and up 31.1 percent compared with the second quarter of 2013. Officials at the nonbank touted Freedom’s strength while originations have declined overall. “While the mortgage industry is experiencing a downturn, Freedom Mortgage has increased...


July 24, 2014 - IMFnews

Fannie Mae Survey: More Lenders May Keep Their MSRs

Regarding portfolio retention, the GSE found that over the next three months, 56 percent of nonbanks hope to grow their loan portfolios.


July 24, 2014 - Inside Mortgage Finance

Most Lenders Rode Surge in Mortgage Production In 2Q14, But Pace Was Well Below Recent Past

A healthy housing recovery boosted mortgage origination volume during the second quarter of 2014, but production remains at relatively sluggish levels, according to a new market analysis and ranking by Inside Mortgage Finance. Single-family mortgage originations totaled an estimated $295 billion during the second quarter, up 25.5 percent from the first three months of the year. The first quarter of 2014 was the worst production environment for the mortgage industry since the end of 2000, even falling below the mark set at the depth of the financial crises in the fourth quarter of 2008. In fact, the most recent April-to-June cycle brought...[Includes three data charts]


July 24, 2014 - IMFnews

10 Trade and Consumer Groups Tell FHFA: Please, No Increases in G-Fees or LLPAs

The 10 groups question “whether it is appropriate for the GSEs to target private sector returns while in conservatorship.”


July 24, 2014 - IMFnews

HUD: Other Lenders Will Fill the Void if JPMorgan Bolts FHA

Are officials at HUD worried that JPM's Jamie Dimon may follow through on his threat to leave the FHA program? Not in the least.


Poll

Home-equity lending is beginning to show new life. My company (pick one):

Plans to enter this market over the next 12 months.
Is already making home equity loans and hopes to increase the offerings.
Is in the market but don’t expect much growth.
Is not making second liens and has no plans to do so.

vote to see results
Housing Pulse