Mortgage Originators

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

November 21, 2014 - Inside FHA Lending

Strong 3Q Pushes Up FHA’s Nine-Month Total

FHA lenders capped a nine-month production run with a total of $99.39 billion in forward mortgages, thanks to a strong push in the third quarter of 2014, according to Inside FHA Lending’s analysis of agency data. Third-quarter production totaled $38.3 billion, up 16.6 percent from the previous quarter. Year-over-year originations, however, were off by 43.0 percent. FHA endorsements have now fallen from a peak of 1.8 million loans in FY 2009 to approximately 786,000 in FY 2014, according to the latest independent actuarial review of the health of the Mutual Mortgage Insurance Fund. The 57 percent reduction in endorsements takes FHA closer to the lower levels of activities seen just prior to the housing bubble, the report noted. A sharp decline in refi activity drove the substantial drop in forward loan endorsements in fiscal 2014. Previously, many homeowners ... [1 chart]


November 21, 2014 - Inside FHA Lending

FNMA Accepts Guaranteed Rural Housing Loans

Fannie Mae has begun purchasing rural housing loans with a Department of Agriculture/Rural Development guarantee. The government-sponsored enterprise accepted delivery of Section 502 (RD-502) loans from USDA-approved lenders on Nov. 3 – an open challenge to Ginnie Mae, which has dominated the market. The loans were delivered as standard products with no variance required. Other government-backed loans such as FHA and VA continue to require a negotiated variance. The Section 502 single-family guaranteed housing loan program provides financing to low- to moderate-income rural homebuyers. A community is eligible for 30-year fixed-rate RD-502 loans if it is located in an area that meets the USDA’s definition of “rural.” The Farm Bill, signed into law in February of this year, defines “rural” as any area outside of city limits with a ...


November 21, 2014 - Inside FHA Lending

FHA Short Refi Production Declines in 2014

The number of underwater borrowers seeking to refinance their conventional mortgages into an FHA loan fell in fiscal 2014 from the previous year, according to an Inside FHA Lending analysis of agency data. The number of endorsements under the FHA Short Refinance program totaled 1,327 at the end of fiscal 2014, down from a record 1,662 in the prior year. Endorsements hit their peak in fiscal 2013. A total of 5,140 distressed conventional loans with a combined original mortgage amount of $784.9 million were refinanced under the program over the five-year period. In order to participate, borrowers must be current on their mortgage payments, have a credit score of 500 or greater and owe at least 15 percent more on the property than their home is actually worth. Lender participation is strictly voluntary. More importantly, the lender or investor must be ...


November 21, 2014 - Inside FHA Lending

Congress Urged to Extend Expiring VA Loan Limits

Thousands of military veterans in high-cost areas may be deprived of VA’s home-loan guarantee benefits unless Congress extends the current VA loan limits before the end of the year. Those loan limits expire on Dec. 31, 2014. The VA loan limits are based on median home values estimated by the FHA, providing loans up to 125 percent of local area median price. The program does not set a cap on how much a veteran can borrow to finance a home purchase but it does limit the maximum amount it can guarantee to 25 percent of the current loan limit. Veteran and industry groups are urging Congress to make the VA limits permanent. A VA spokesperson said the agency was not asked for a position on the issue since Congress did not put forward any bill in any of the hearings this year. “But as a general rule, VA wants to maximize the opportunities ...


November 21, 2014 - Inside FHA Lending

Wells Fargo, DOJ Settlement Talks Hit Wall

Wells Fargo and the Department of Justice are reportedly at an impasse in their settlement talks in connection with a lawsuit accusing the bank of improper underwriting and false certification of certain FHA-insured loans. In an e-mailed statement to Inside FHA Lending, a bank spokesperson said Wells Fargo’s good faith effort to work with the federal government to resolve the complaint “has not yet resulted in a settlement.” Nonetheless, the bank “will move forward with presenting [its] case in support of [its] prudent and responsible FHA lending practices, which have produced high-quality FHA loans with delinquency rates that are half the industry average,” the spokesperson added. This week, citing an unidentified source, Bloomberg reported that lawyers for the government and the bank have told the presiding judge in the case that they ...


November 21, 2014 - Inside FHA Lending

HECM Portfolio Down to Negative in FY 2014

The economic value of the FHA’s Home Equity Conversion Mortgage legacy portfolio fell to negative $0.9 billion in fiscal 2014 due mainly to volatility in long-term house prices and interest rates, according to the latest independent actuarial report on the health of the Mutual Mortgage Insurance Fund. The latest result was a significant improvement from FY 2012, when the fund stood at negative $2.8 billion. In fiscal 2013, the HECM portfolio’s economic value of positive $6.5 billion appeared to be a whopping change from the previous year but that amount reflected a $4.6 billion cash infusion from the forward program and from the $1.7 billion mandatory appropriation, the report clarified. The report also showed a corresponding decline in the HECM capital ratio to negative 1.20 percent. Actuarial projections for fiscal 2015 place the HECM portfolio’s economic value at negative $1.1 billion. The fund’s capital resources for ...


November 21, 2014 - Inside FHA Lending

MMIF Value, Capital Ratio Turns Positive

FHA Mutual Mortgage Insurance Fund ended fiscal 2014 in the black but was still far short of its statutory reserve requirement, prompting critics in Congress to renew their cries for FHA reform. An independent actuarial report sent to Congress this week showed that the MMI Fund now stands at $4.8 billion after a gain of nearly $6 billion over the last year. For the first time since 2009, the fund’s capital ratio also crossed into positive territory at 0.41 percent, up 52 basis points from the negative 0.11 percent posted in fiscal 2013. Overall, the economic value of the fund has risen by $21 billion over the last two years because of the aggressive steps the agency took to stabilize and strengthen the fund, the report said. Policy changes led to improved underwriting for single-family mortgages, increased mortgage insurance premiums, stronger loss mitigation policies and higher recoveries, it added. In addition, with ...


November 21, 2014 - Inside Nonconforming Markets

Investment in Nonprime Lenders Heats Up

Bond investing giant PIMCO has made an investment in Citadel Servicing, a small but fast-growing nonprime lender that could wind up originating $400 million in non-agency residential loans next year. Industry officials confirmed the investment to Inside Nonconforming Markets, although neither company would comment. One source close to the transaction said PIMCO’s stake in Citadel is under 30 percent. The lender, which raised $200 million in seed money early last year, has been funding ...


November 21, 2014 - IMFnews

What We’re Hearing: Higher FHA Costs, Not Lower / The GOP in Favor of This Tax Hike? / How About Regulating Nonbank Lenders? / Cyprus? Wilbur Ross Really is a Bottom Fisher / Ocwen Isn’t the Only Servicer That Loves India

There’s a growing fear that the CSBS might move to increase capital standards for nonbank originators as well.


November 21, 2014 - IMFnews

Risk-Based Pricing Continues: Lower FICO Score Borrowers Saw Bigger Hikes in G-Fees

The increase in g-fees last year made all three loan-purpose categories more profitable.


November 20, 2014 - IMFnews

Wilbur Ross Quits Ocwen’s Board – for Vice Chairmanship at Bank of Cyprus

Two years ago, Ross’ WL Ross & Co. sold its mortgage banking operation, Homeward Residential, to Ocwen for $750 million in cash and convertible preferred stock.


November 20, 2014 - Inside Mortgage Finance

Mortgage Market at a Glance

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


November 20, 2014 - Inside Mortgage Finance

All Cylinders Firing in 3Q14, As Surge in Conventional- Conforming Market Led Increase in Total Originations

Mortgage originations increased in all the major product categories during the third quarter of 2014, although new adjustable-rate mortgage lending was down slightly. A new Inside Mortgage Finance analysis shows that conventional-conforming originations increased by 11.7 percent from the second quarter to the third. That was slightly faster than the 10.2 percent increase in jumbo production and the 10.1 percent rise in government-insured lending. The home-equity market showed...[Includes two data charts]


November 20, 2014 - IMFnews

Short Takes: Stop Guessing on Lawsky Already / Share Price of Fannie and Freddie Common Soars / Foreclosures on the Rise / Essent Sells More Stock

A GSE bill? Since Congress and President Obama have such a strong track record of working together on legislation we know how that’s going to turn out…


November 20, 2014 - IMFnews

Fannie and Freddie Make it Official on R&W Relief but with Several ‘Exclusions’

In regard to misrepresentations, relief will not be offered if it can be proved that a borrower was misled by the originator. And, of course, any mortgage subject to fraud must be bought back.


November 20, 2014 - IMFnews

FHFA’s Watt: Fewer Than 100 Companies Affected by FHLB Membership Changes

Several weeks back, a FHFA official told IMFnews that just 18 members would be affected by the captive rule, mostly REITs.


November 20, 2014 - IMFnews

Urban Institute Launches ‘Credit Availability’ Index with Guns Blazing

Still, the new index from the Urban Institute is not perfect...


November 20, 2014 - IMFnews

3Q Product Mix Roundup: Home Equity Loans Had the Strongest Growth

Based on the run-rate of the first nine months, HEL production could top almost $67 billion in 2014, which would be the best year since 2009.


November 19, 2014 - IMFnews

Short Takes: Any G-Fee News? No / Keeping an Eye on MSR Sales / Why Realtors Will Live Forever / California Home Sales Nothing Special / Jeb Will be Back, Hensarling At Least

After a servicing sale closes, the GSEs must monitor each transaction to make sure the transfer of receivables took place in a timely manner and more…


November 19, 2014 - IMFnews

MIAC Auctioning Off $908 Million Fannie/Freddie Portfolio

With roughly six weeks left in 2014, some mortgage firms are rushing to sell MSRs as a way to bolster fourth quarter profits.


November 19, 2014 - IMFnews

CFPB Warns Mortgage Firms on How they Treat Borrowers with Disability Income

The new bulletin discusses standards and guidelines on verification of disability income, including those under the CFPB’s ability-to-repay rule.


November 19, 2014 - IMFnews

Senate Banking Chair Urges Watt and Treasury to End GSE Conservatorships

The two GSEs have been in conservatorship for six-plus years now, with no legislative solution to their future in sight.


November 19, 2014 - IMFnews

CS/DLJ Will Issue Non-Agency MBS Backed By ‘Re-Performers’

Fitch warned that about 25 percent of the collateral received C or D grades for material violations or lack of documentation.


November 18, 2014 - IMFnews

Lower FHA Premiums? Dream On…

In a statement, Rep. Hensarling decried last year’s $1.7 billion “taxpayer-funded bailout” of the FHA.


November 18, 2014 - IMFnews

Short Takes: Obama Won’t Give Up on Killing the GSEs / Redwood Sells Debt / More Ocwen Customer Complaints / Carrington Bolts ARMs / The Return of Mike Baldwin

Republicans have never been big fans of the GSEs and there’s plenty of Democrats who aren’t so sure about the government “guaranty” as well...


November 18, 2014 - IMFnews

FHFA: Extensive ‘Testing’ Underway at Common Securitization Platform

In 2015, the team at the GSE common securitization platform will focus on implementation of the remaining software components...


November 18, 2014 - IMFnews

Fannie Continues to Loosen Rules; 990 Days for a Foreclosure in New York

Fannie Mae recently loosened its credit standards on condominium loans. What's next?


November 18, 2014 - IMFnews

Cerberus-Backed FirstKey to Issue its First Jumbo MBS

The top contributor to the new jumbo MBS from FirstKey is CMG Financial with a 13.8 percent share. Cornerstone, Bank of Internet and Impac also provided product.


November 18, 2014 - IMFnews

Mortgage Banking Income Softened in 3Q Despite Origination Surge

For the first nine months of 2014, the group reported $10.94 billion in net mortgage-banking income, a stunning 43 percent decline from the same period in 2013


November 17, 2014 - IMFnews

FHA’s Mutual Mortgage Insurance Fund in the Black by $4.8 Billion

The FHA’s annual independent actuarial review of the MMIF showed a capital reserve of 0.41 percent at Sept. 30, 2014.


November 17, 2014 - IMFnews

Short Takes: Former FHFA Chief Blasts Mortgage Industry / Who’s Behind the HIC? / More Relief From FHA / Ocwen’s Stock Recovers Slightly / Venable Hires Ex-Hensarling Staffer

So, which groups are behind the "housing-industrial complex"? DeMarco isn't naming names...


November 17, 2014 - IMFnews

Sources: PIMCO Invests in Nonprime Lender Citadel Servicing Corp.

According to Citadel’s website, it offers five different loan matrices, which have credit grades ranging from A down to C.


November 17, 2014 - IMFnews

Brokers and Correspondents Key Players in 3Q MBS Surge

Although Wells Fargo officially exited the broker market two years ago, it apparently still does a tiny amount of business through the channel.


November 14, 2014 - Inside Mortgage Trends

Third-Party Originations Grow in 3Q14

Mortgage brokers and correspondents helped fuel the surge in agency mortgage-backed securities issuance during the third quarter of 2014, according to a new Inside Mortgage Trends analysis of loan-level MBS data. Correspondents originated 35.0 percent of the loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae during the third quarter, up slightly from the first two quarters of the year. Likewise, the share of broker originations edged up to 11.3 percent in the most recent three-month period. Wells Fargo ranked as the biggest seller of third-party originations during the first nine months of the year. The company pulled out of the broker market, although a few such loans trickled into agency MBS this year, but correspondents accounted ...


November 14, 2014 - Inside Mortgage Trends

New Jersey Lender Moving Forward

Freedom Mortgage recently broke into the top 10 ranking of mortgage originators and doesn’t look to be stopping there. Through the first nine months of 2014, Freedom produced $16.4 billion in originations, a 28.5 percent increase over the same period last year. That’s a huge increase at a time when overall mortgage origination volume dropped a whopping 44.2 percent. Last week, Freedom announced a deal to acquire Continental Home Loans, a retail lender focused on the New York metro market. Freedom officials said the deal, structured as an asset acquisition transaction, will boost its monthly production volume to $2 billion. That would raise the firm a notch or two in the rankings. Beefing up its retail presence was one reason ...


November 14, 2014 - Inside Mortgage Trends

Mortgage-Banking Income Softened In 3Q14 Despite Surge in Originations

Mortgage-banking income reported by a diverse group of 33 lenders fell 16.0 percent from the second quarter of 2014 to the third, according to a new analysis by Inside Mortgage Trends. The 33 publicly traded companies, which include most of the top originators and servicers in the industry, had a combined $3.547 billion in net mortgage banking income during the third quarter. That was only 12.0 percent above the dreary $3.166 billion the group earned during the first three months of 2014, which was one of the industry’s least profitable quarters ever. The tepid third-quarter results came at a time when origination volume was unexpectedly strong – up 36.7 percent from the first quarter of 2014 – and many lenders have put ...


November 14, 2014 - IMFnews

What We’re Hearing: Can Cerberus Finally Do Something Right in Mortgages? / Kinder, Gentler Condo Guidelines from Fannie? / Lower LLPAs from Fannie but Tighter Cash-Out Rules / Ocwen, Ocwen, Ocwen

And there could be some good news on lower LLPAs. Fannie said that come May 2015, it will change how it treats loans where there are two or more borrowers...


November 14, 2014 - IMFnews

Fannie Says MI Assessment Crucial to Revival of 97 Percent LTV Program

Sources said previous requirements for a standard 97 LTV product, which Fannie offered until November 2013, are being considered.


November 14, 2014 - IMFnews

The Nonbanks in 3Q: Ocwen, WAC, PHH in the Dog House

Some publicly traded nonbanks are facing possible class-action lawsuits from angry investors who’ve seen billions of dollars in stock equity evaporate over the past year.


November 14, 2014 - IMFnews

Treasury’s Point Man on Mortgages: A ‘Benchmark’ Transaction Needed for RMBS Revival

Used in conjunction with the industry’s RMBS 3.0 project, such a mechanism could help clear away the rubble from the market’s collapse...


November 13, 2014 - Inside Mortgage Finance

Mortgage Market at a Glance

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


November 13, 2014 - Inside Mortgage Finance

Relaxing Re-disclosure Timing Requirement to Three Days Would Best Serve Consumers, Industry Says

One key point that much of the mortgage lending industry is contesting in the Consumer Financial Protection Bureau’s proposed amendments to its integrated disclosure final rule is the timing requirement for re-disclosing the loan estimate. The proposal would amend a final rule to integrate disclosures required by the Truth in Lending Act and the Real Estate Settlement Procedures Act that itself won’t be implemented until August 2015. The CFPB tried to make the so-called TRID more workable by giving lenders more time to revise loan estimate disclosures. Revisions based only on changes in rates would have to be made by the next business day after the rate locks, instead of on the same day, which is the current requirement. A number of lender representatives told...


November 13, 2014 - Inside Mortgage Finance

Mixed Results for Publicly Traded Nonbanks: Ocwen, Walter, PHH in the Dog House; PennyMac and Redwood Show Promise

Although residential lenders are coming off a better than expected production quarter – and enjoying a decent last three months of the year – analysts and investors seem undecided on whether there’s opportunity in the market or it’s time to stay on the sidelines. Several high profile publicly traded shops that are considered “high touch” specialists – Nationstar Mortgage, Ocwen Financial and Walter Investment – continue to trade at steep discounts to their 52-week highs with all three facing possible class-action lawsuits from angry investors who’ve seen billions of dollars in stock equity evaporate over the past year. And then there’s...


November 13, 2014 - IMFnews

Short Takes: Commercial Bank in the Hunt for Mortgage M&A / Is LoanDepot #2? / Surviving Brands / Why Own When You Can Rent? / Essent’s Marzol to Retire

We should point out that even though LoanDepot is doing the buying, the Mortgage Master brand name will survive. LD did the same thing when it combined forces with imortgage last year…


November 13, 2014 - IMFnews

Wells Fargo Seeks Settlement With DOJ Over FHA Allegations

Wells Fargo estimates that a settlement could cost the bank at least $950 million.


November 13, 2014 - IMFnews

SFIG Releases More Standards to Promote Non-Agency RMBS

The new documentation was released in conjunction with a non-agency RMBS reform symposium held in New York by SFIG and Information Management Network.


November 13, 2014 - IMFnews

LoanDepot Acquisition of Mortgage Master Will Make LD the Nation’s 11th Largest Originator

In the retail channel, LoanDepot ranks fifth among all nonbanks, a figure that excludes what Mortgage Master brings to the table.


November 13, 2014 - IMFnews

3Q Final: Private MIs Saw Huge Gain in Market Share as FHA Fell Behind

In fact, it was the highest quarterly volume in new flow business for the MI sector since the second quarter of 2008.


November 12, 2014 - IMFnews

Short Takes: Subprime Vet Jon Daurio Back in Biz? / Don’t Get Drunk on the Lawsky ‘News’ / Can the GOP ‘Fix’ the CFPB? / Nationstar Disappoints Some / Gateway Hires BB&T Mortgage Official

Will former Long Beach Mortgage executive Jon Daurio finally launch a new nonprime venture?


November 12, 2014 - IMFnews

Two Harbors the Latest to Unveil a Non-Prime Mortgage

“It has been clear to us for some time that the market has a need for products like this," said Two Harbors executive William Roth.


Poll

What is it going to take to convince lenders to loosen the credit box (i.e., remove underwriting overlays)?

The recent rep and warranty changes announced by the Federal Housing Finance Agency should go a long way in protecting lenders from future buybacks and help expand mortgage credit.
There won’t be any significant elimination of underwriting overlays until the government stops seeking huge mortgage-related penalties and settlements from lenders.
There shouldn’t be any expansion of the mortgage credit box since looser underwriting is what caused the recent mortgage crisis.

vote to see results
Housing Pulse