Mortgage Originators

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

January 16, 2017 - Inside the CFPB

CFPB News in Brief

Bureau Mulling Possible Changes to HMDA Resubmission Guidelines. It’s been roughly one year since the CFPB issued a request for information regarding Home Mortgage Disclosure Act resubmission guidelines, and the bureau has yet to decide which way to proceed. The agency received 31 comments in response to the RFI, which was published Jan. 12, 2016, in the Federal Register. Commenters included HMDA reporters, industry trade groups, and consumer groups.... Revisions to Interagency Compliance Rating System Still Pending. The CFPB and the other members of the FFIEC continue to review public comments on their April 29, 2016, proposal to revise the existing Uniform Interagency Consumer Compliance Rating System to reflect regulatory, supervisory, technological, and market changes since the system was established....


January 16, 2017 - Inside the CFPB

Mortgage Complaints Keep Falling as Market Continues to Heal

Empirical evidence of the mortgage market’s recovery is still piling up, with the latest quarterly consumer complaint data from the CFPB showing that gripes about home loans fell in most categories tracked, both on a quarterly basis and year over year, according to a new analysis and ranking by Inside the CFPB. Consumer criticisms in the fourth quarter fell a solid 15.0 percent from the period ending Sept. 30, 2016. Finger pointing by borrowers fell on a YOY basis as well, but by a smaller 4.5 percent, the data show. With fewer and fewer borrowers underwater or in foreclosure these days, it should be no surprise that complaints about loan modification are down the most [With three exclusive data charts] ...


January 16, 2017 - Inside the CFPB

Justice Dept. Settles Redlining Allegations With Two Ohio Banks

The U.S. Department of Justice recently reached a settlement with two jointly owned but independently operated banks in Ohio, Union Savings Bank and Guardian Savings Bank, resolving allegations that the pair engaged in a pattern or practice of redlining predominantly African-American neighborhoods in and around the Ohio cities of Cincinnati, Columbus and Dayton, as well as in Indianapolis. According to the government’s complaint, Union (with $2.7 billion in assets and 29 branches) and Guardian (with $861 million in assets and 11 branches) violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race and color in their mortgage lending practices. The Justice Department alleges that, from at least 2010 ...


January 16, 2017 - Inside the CFPB

ABA Calls for CFPB Reform, Expanded Qualified Mortgage

The American Bankers Association sent a letter to the leaders of Congress recently, urging adoption of a bipartisan regulatory relief package that would provide unspecified reform of the CFPB and address an expanded definition of a qualified mortgage. When it comes to the bureau, the ABA urged sensible regulation by restoring “balance to the regulatory process, including Consumer Financial Protection Bureau reform,” and by focusing on promoting both economic growth and safety and soundness. On the QM point, the organization asked lawmakers to “reform mortgage regulations that have raised costs and prevented banks from flexibly serving their customers without enhancing consumer protections or safety and soundness. Most crucially, deeming loans held in portfolio as qualified mortgages will expand safe and ...


January 16, 2017 - Inside the CFPB

PHH Corp. May Have an Ally In Case Against CFPB

While many in the mortgage industry wait for the District of Columbia Circuit Court of Appeals to decide whether to rehear the arguments of the CFPB in its wrangling with PHH, the plaintiffs in State National Bank of Big Spring, Texas, et al. v. Lew, et al. have stepped back onto the legal stage at the district court level. Specifically, “Plaintiffs respectfully move [the U.S. District Court for the District of Columbia] to hold a status conference at its earliest convenience to determine how this case ... can be most efficiently adjudicated in light of the CFPB’s petition for en banc review of the panel decision in PHH Corp. v. CFPB,” State National Bank and its parties asked the appeals ...


January 16, 2017 - Inside the CFPB

Appeals Court Grants PHH’s Request to Respond to USSG

Late last week, the District of Columbia Court of Appeals disregarded the objections of the CFPB and gave PHH Corp. permission to respond to the federal government’s arguments in support of en banc review of the court’s earlier three-judge panel decision.“Upon consideration of petitioners’ motion for leave to file a supplemental response to petition for rehearing en banc, the opposition thereto, and the reply, it is ordered that the motion be granted,” 11 of the 12 judges wrote in an order issued Jan. 13. PHH’s supplemental response is due Jan. 27, 2017, and is not to exceed 15 pages. Back in October, the three Republican appointees ruled that the CFPB’s leadership structure involving a single director who can be ...


January 17, 2017 - IMFnews

Short Takes: PE Firm Eyes Three Mortgage Acquisitions / One Lender That’s Definitely Looking… / LOS Vendor Hires New President / Another Court Victory for PHH

Some M&A advisors believe 2017 could be a banner year for mortgage company sales. Then again, that’s what they predicted early last year...


January 17, 2017 - IMFnews

Black Knight Developing Mortgage 'Specific' Credit Score

Wesley Winter, a senior modeler at Black Knight, said a traditional credit score may not be the best predictor of mortgage default.


January 17, 2017 - IMFnews

Moody’s Reaches $864 Million Settlement with DOJ and 21 States for Pre-Crisis Ratings

Moody’s settled the MBS/CDO case without admitting wrongdoing…


January 17, 2017 - IMFnews

Cordray Has a Target on His Back. But When Will Trump Pull the Trigger?

It’s no secret that Trump would like to fire Cordray, it’s just a matter of how and when…


January 17, 2017 - IMFnews

Correspondent Share of GSE Business Edged Higher in 4Q16; Brokers Slumped

United Shore Financial Services was the top seller of broker loans by a wide margin, with $5.83 billion in fourth-quarter activity, more than twice its nearest competitor…


January 13, 2017 - Inside Mortgage Trends

VA Continues Gaining Market Share

Mortgages guaranteed by the Department of Veterans Affairs accounted for 29.4 percent of insured home loans securitized in the agency mortgage-backed securities market in the fourth quarter of 2016, a new Inside Mortgage Trends analysis reveals. That was up from a 27.2 percent share for the VA during the third quarter. The home-loan guaranty program has become a refinance dynamo, accounting for a whopping 44.6 percent of insured refi loans ... [Includes one data chart]


January 13, 2017 - Inside Mortgage Trends

Black Knight Developing Mortgage Credit Score

Black Knight Financial Services is developing a mortgage-specific credit score that could be more useful for lenders than traditional credit scores. It’s not clear how much traction the score will gain, considering that Fair Isaac’s FICO score remains the dominant metric for assessing the creditworthiness of mortgage borrowers. Wesley Winter, a senior modeler at Black Knight, said a traditional credit score may not be the best predictor of mortgage default. “The FICO score is trying to ...


January 13, 2017 - Inside Mortgage Trends

Homebuyers Remain Optimistic

While mortgage interest rates remain at historic lows, an increase of even one percentage point is not going to have a dramatic effect on affordability and any negative homebuyer response to rising rates is likely to be short-lived, according to a new Redfin survey. Even if mortgage rates climb to 5 percent, homebuyers would lower their expectations and shop for less expensive homes, said 49 percent of the 827 Redfin real estate agents who responded to the survey. Redfin conducted ...


January 13, 2017 - Inside Mortgage Trends

Prospective Homebuyers Sending Mixed Signals

The recent run-up in mortgage rates appears to have suppressed short-term home purchase expectations among prospective homebuyers, who nonetheless otherwise feel optimistic about the housing market over the longer term, according to new data from government-sponsored enterprise Fannie Mae. Fannie’s latest Home Purchase Sentiment Index (HPSI), released earlier this week, dipped 0.5 points to 80.7, the fifth consecutive monthly decline. The index is down ...


January 13, 2017 - Inside Mortgage Trends

Higher Rates May Mean Staff Cuts

With interest rates up 75 basis points since the election – and staying there, at least for now – residential production is likely to slip in the quarters ahead, leading to layoffs, especially at firms that focus on refinancings. “It’s coming,” said industry consultant Don Henig, a former top sales executive for loanDepot, a top-10 ranked originator. “Maybe we haven’t seen too many layoffs quite yet, but just look at volume numbers and do the math.” Henig added: “Right now, a lot of shops ...


January 13, 2017 - Inside The GSEs

Fannie Gained Share in Surging GSE 1-Family Business of 2016

Heavy refinance activity at the end of the year lifted single-family business at Fannie Mae and Freddie Mac to a three-year high in 2016, according to a new Inside The GSEs analysis and ranking. The two firms guaranteed $973.72 billion of single-family mortgage-backed securities during 2016, up 18.1 percent from the previous year. That included a 5.7 percent increase from the third to the fourth quarter that was fueled by a 24.5 percent jump in refi loans delivered into new GSE MBS. While both companies saw solid gains from 2015 activity, Fannie’s 23.3 percent increase was more than double the 11.0 percent rise in Freddie volume. [includes two charts]


January 13, 2017 - IMFnews

Wells Fargo, JPM and BofA All Managed to Increase Production in 4Q16. The Last Squeezing of the Mortgage Grapes?

In general, nonbanks have been gaining origination market share from depositories over the past few years, a trend that shows no sign of abating.


January 13, 2017 - IMFnews

What We’re Hearing: Reading the Wells Fargo (Origination) Tea Leaves / Nonbanks Rule? / MSR Mark-up Mania / CA-Based Nonbank Plans to Hire 1,000 LOs? / The First To Go: Operations Staff / Cordray is Going to be Fired. No Duh

It’s been no secret in Washington financial circles that shortly after Donald Trump was elected president, the decision was made by his “team” to fire CFPB director Richard Cordray...


January 13, 2017 - IMFnews

A Different Type of Mortgage Fraud: ‘Reverse-Occupancy’ Scams Involving FTHBs

Borrowers completing reverse-occupancy fraud aim to qualify for a mortgage with help from the theoretical rental income from the so-called investment property…


January 13, 2017 - IMFnews

The Final Tally: Non-Agency MBS Production Tumbled Sharply in 2016

Oddly enough, the nonprime space showed some signs of life last year and hopes are high for 2017 as well…


January 13, 2017 - IMFnews

What Does the Future Hold for PHH?

Bose George, who follows PHH for Keefe, Bruyette & Woods, also used the phrase “liquidation” to describe the company’s sale of assets.


January 12, 2017 - Inside Mortgage Finance

Mortgage Market at a Glance

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


January 12, 2017 - IMFnews

Short Takes: HUD Nominee Carson Says he will ‘Review ‘the MIP Cut / Why Banks Avoid the FHA Program / HUD’s Budget: $45 Billion / Investor Cuts Stake in Annaly / CPR&T Downgrades Ocwen

CPR&T predicted that the asset value of Ocwen’s mortgage servicing portfolio likely won’t benefit much from the recent spike in interest rates…


January 12, 2017 - Inside Mortgage Finance

As Trump Administration Prepares to Take Reins, New Lineups on Capitol Hill Begin to Take Shape

With the formal transition of presidential power now a mere week away, Congressional Republicans and Democrats alike were busy this week reordering the teams that will take the field for the 115th Congress. Mortgage lenders are hopeful for at least some degree of regulatory relief from the Republican-controlled Congress and White House, but Democrats are vowing to defend the Dodd-Frank Act, one of the signature achievements of the outgoing Obama administration. Republicans in the House of Representatives got...


January 12, 2017 - Inside Mortgage Finance

RPM Mortgage Hits the M&A Trail. Goal is To be a $14 Billion a Year Originator, At Least

RPM Mortgage, Alamo, CA, is in serious negotiations to buy at least two other mortgage banking firms – or their assets – and has its eye on at least one other shop, according to investment banking officials who claim to have knowledge of the situation. If the acquisitions come to fruition, they could put the privately held nonbank on track to be a $14 billion a year originator, said a source who advises the company. One of the target acquisitions is a $4 billion a year lender, the other a $650 million funder. A spokesman for RPM declined to comment. A few weeks back, RPM made...


January 12, 2017 - IMFnews

RE/MAX’s Motto Mortgage Offering Franchise Opportunities in Most States

According to exclusive survey figures from Inside Mortgage Finance, the wholesale/broker market share increased to 10.2 percent in the third quarter, its highest reading of the year.


January 12, 2017 - IMFnews

Securitization of Private MI Loans Declined in 4Q16; Full-Year Numbers Look Good

The GSE figures suggest that private MIs saw a measurable drop in new insurance written in the final three months of 2016, but ended the year with a significant increase in volume compared to 2015.


January 11, 2017 - IMFnews

On the Horizon: More Non-Agency/Non-Prime MBS Deals

In 2016, Caliber issued three non-agency MBS deals that included prime-quality and jumbo loans, often made to borrowers described in ratings’ reports as consumers with “unblemished” credit.


January 11, 2017 - IMFnews

Zeus Offers Crowdfunding for Hard-Money RE Loans. Four-Day Funding?

In addition to crowdfunded hard-money loans, Zeus offers traditional forward and reverse mortgages.


January 11, 2017 - IMFnews

Short Takes: To Fire Cordray, or Not to Fire Cordray, That is the Question / Just Run for Governor / Dr. Carson’s Advisors Include… / Quicken’s Gilbert: DOJ is ‘Out of Control’

Cordray, of course, could just nip this in the bud right now, resign and start his run for governor of Ohio…


January 11, 2017 - IMFnews

Nationstar Hires Capital One Executive Patel as EVP and Chief Risk Officer

Patel also will serve as a member of the lender's executive management team.


January 11, 2017 - IMFnews

The Love Affair Continues: First-Lien Holdings at Banks and Thrifts Up Again in 3Q16

Third-ranked Bank of America had the slowest growth among the three banks, with a $189.1 billion portfolio as of the end of the third quarter…


January 10, 2017 - IMFnews

Short Takes: Gain-on-Sale Let-down? / About Those MSR ‘Marks’... / Ocwen Attorney Joins Philly Law Firm / Go with the ‘Waterfall’ / Vegas-Based Lender Hires Sales Chief

As gain-on-sale margins decline, MSR marks will rise...


January 10, 2017 - IMFnews

Non-QM Originator LendSure Lays Out its Plan for Growth

LendSure is licensed in 12 states, with approvals pending in seven more…


January 10, 2017 - IMFnews

Mortgage Hiring Accelerates in November. Can it Last?

Some industry executives have been predicting a correction in mortgage hiring in the coming months, with large layoffs anticipated at shops that have focused too strongly on refinancings.


January 10, 2017 - IMFnews

A Wide Variety of Denial Rates Among Jumbo Originators

Some 30 percent of jumbo application denials were tied to debt-to-income ratios, compared to 15 percent for all loan types.


January 10, 2017 - IMFnews

The Final Tally: Ginnie Mae MBS Issuance Hit a Record High in 2016; VA Soared

FHA collateral still accounted for over half of Ginnie issuance, but the 2016 total was up a more subdued 8.2 percent from the previous year…


January 9, 2017 - IMFnews

Short Takes: FHA Premium Cut Has Negative Impact on MI Stocks / Carson Should Expect a Lot of Questions on the MIP / Of Mortgages and Brains / FHLBs Get More Flexibility on Collateral

Mortgage insurance stocks aren't have a good day. Blame the FHA MIP cut?


January 9, 2017 - IMFnews

Carson’s Inexperience Could be Front and Center at HUD Confirmation Hearing

One big positive for lenders: the mortgage industry could see a reduction in new rule-making from HUD and perhaps a reversal of certain regulations promulgated during the Obama administration.


January 9, 2017 - IMFnews

HUD Trims FHA MIP by 25 BPs. But Can (and Will) Trump Block It?

Why the change of heart? For most of last year, HUD and FHA officials nixed the idea of cutting the premium…


January 9, 2017 - IMFnews

AMC Acquires Origination and Servicing QC Services from Stewart

AMC acquired Stewart’s residential due diligence and servicing functions, including credit, compliance, origination and servicing quality control reviews.


January 9, 2017 - IMFnews

In Limbo: the ‘Prime’ Non-Agency MBS Market

Some $1.57 billion in prime non-agency MBS were issued in the fourth quarter, down 61.3 percent…


January 9, 2017 - IMFnews

Tozer on Ginnie Mae MBS Demand: ‘I Wish I Could Make More’ [Securities]

Presently, Japan is the volume leader in Ginnie ownership at roughly $204 billion…


January 6, 2017 - IMFnews

HUD Makes It Official: Annual MIP Will be Cut by 25 BP on Jan. 27

The change – whose likelihood was first reported by Inside Mortgage Finance last Thursday – affects new loans with a closing/disbursement date of Jan. 27, 2017.


January 6, 2017 - Inside FHA/VA Lending

Michigan Lender Agrees to Pay $48 Million to Resolve FCA Claims

United Shore Financial Services of Troy, MI, has agreed to pay $48 million to resolve allegations of FHA-related fraud, adding to the more than $7 billion in settlements and judgments the Department of Justice has collected since 2009. United Shore, parent company of United Wholesale Mortgage and Shore Mortgage, was accused of improperly originating mortgages and falsely certifying compliance with FHA requirements. Originated between Jan. 1, 2006, and Dec. 31, 2011, the loans eventually turned bad, resulting in significant losses to the FHA insurance fund. The complaint did not specify the number and total amount of the bad loans United Shore originated or the size of FHA’s losses on those loans. United Shore was charged with violation of the False Claims Act, becoming the latest financial institution to join a growing list of FHA lenders that have opted to settle, rather than litigate, ...


January 6, 2017 - Inside FHA/VA Lending

Share of FHA Loans with Initially Material Defects Rises in 3Q16

The initial material defect rate for FHA-insured loans targeted for a quarterly post-endorsement review increased to 53 percent in the third quarter from 50 percent in the previous quarter, according to test results. Published in the FHA’s quarterly Lender Insight, the results were from post-endorsement technical reviews conducted between July 1, 2016, and Sept. 30, 2016, on 5,973 FHA loans. The initial material defect rate appears to be trending upward since June 2016, when it had stayed flat at 47 percent over the previous eight quarters. The latest loan sample was comprised of 75 percent purchase loans, 10 percent streamline refinances, 7 percent rate-and-term refis, and 8 percent Home Equity Conversion Mortgage loans. Of the targeted loans, 23 percent met FHA requirements but an equal percentage were found to be “deficient,” while 12 percent were deemed “unacceptable” due to ...


January 6, 2017 - Inside FHA/VA Lending

FHA to Implement Methodology for Finding, Classifying Loan Defects

The FHA this year will focus mainly on the completion and implementation of the Defect Taxonomy to help lenders easily identify and categorize loan defects found in FHA-insured loans. At least that was the plan announced by the outgoing Obama administration. The agency urged lenders to be on the lookout for detailed information about Defect Taxonomy and other process improvements in the coming months. “As we begin to implement these changes and transition from current processes, some lenders may experience a temporary decrease in loans selected for review,” the FHA noted in Lender Insight, which updates lenders on the latest rulemakings and policy changes. Announced in June last year, Defect Taxonomy is part of the Blueprint for Access, which embodies three core concepts: identifying a defect, capturing the sources and causes of a defect, and assessing the ...


January 6, 2017 - Inside FHA/VA Lending

FHA Expected to Announce 25 bps MIP Reduction, Industry Thrilled

Industry stakeholders are anticipating an FHA insurance premium reduction soon from the Department of Housing and Urban Development. Sources say a 25-basis-point premium reduction is in the works and HUD Secretary Julian Castro may announce it during his farewell address. His last day in office is Jan. 20, President-elect Donald Trump’s inauguration day. A HUD representative declined to comment on the report citing department policy against “commenting on rumors.” A number of lobbyists and consultants said they have heard similar reports but cautioned it is not a done deal. Two industry executives expressed certainty about the veracity of the report. The idea of a premium cut has been raised with neurosurgeon Dr. Ben Carson, Trump’s nominee for HUD secretary, who will have his Senate confirmation hearing on Jan. 12. A mortgage insurance premium reduction at this time would ...


January 6, 2017 - Inside FHA/VA Lending

Ginnie MBS Program Set New Records in 2016, VA Soared

Ginnie Mae guaranteed a total of $507.46 billion of single-family mortgage-backed securities in 2016, its biggest annual volume ever, according to a new analysis and ranking by Inside FHA/VA Lending. That was up 16.4 percent from the agency’s previous record of $435.80 billion set in 2015. (Those figures include MBS backed by FHA home-equity conversion mortgages, which are not included in the table below or in the rankings on pages 3-5.) In 2016, Ginnie guaranteed $497.03 billion of MBS backed by traditional forward mortgages, also a record, which was up 16.9 percent from the previous year. The biggest factor in last year’s record-setting production was the boom in VA lending, particularly VA refinance loans. Issuers securitized a record $203.03 billion of VA loans last year, up 33.0 percent from the 2015 total. Some 54.3 percent of those loans were refinance transactions. Total VA refi loan ... [4 charts]


Poll

HUD has announced a 25 basis point cut in FHA premiums, which is slated to take effect in late January. Is your lending shop for or against a cut in FHA premiums?

For. It should help lending volumes.
Against. The private MI sector should take on this risk, not the government.
Too early to say.
I believe the new White House may scuttle the idea so it doesn’t matter.

vote to see results