Mortgage Originators

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

April 18, 2014 - Inside Mortgage Trends

Mortgage Hassles Prompt Cash House Purchases

Some 30.0 percent of homes purchased in March avoided the use of mortgage financing, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. While mostly associated with investors, a fair share of current homeowners rely on cash for home purchases as a way to avoid the hassles associated with mortgage closings. The cash share of home-purchase financing has increased fairly steadily since August, when 26.5 percent of home purchases ...


April 18, 2014 - Inside Mortgage Trends

Fannie: Second-Home Mortgages Rebounding

A new report by Fannie Mae finds that second-home mortgage market activity is in the midst of a strong rebound, representing a small yet significant corner of the mortgage market. Fannie’s report – Second Homes: Recovery Post Financial Crisis – noted that the uneven economic recovery has a benefit to the second-home buyer, who tends to be older, earns more and consequently has the means to make a larger downpayment ... [Includes one data chart]


April 18, 2014 - Inside Mortgage Trends

ATR Hasn’t Changed Origination Strategies Much

It’s been a full three months since the Consumer Financial Protection Bureau’s ability-to-repay final rule and qualified-mortgage definition have been implemented. So far, there have been no significant changes to origination strategies on the part of lenders, according to a Standard & Poor’s survey of rated mortgage lenders. “In terms of projected regulatory impact on recent lending activity, 84 percent of 2013 mortgage production was QM compliant, with the remaining ...


April 18, 2014 - Inside Mortgage Trends

CFPB Pilot Aims to Digitize Entire Closing Process

The Consumer Financial Protection Bureau plans to announce a voluntary pilot project next week related to its efforts to streamline and improve the mortgage-closing process – an initiative likely to rely heavily on the industry’s latest technological capabilities, and perhaps stimulate some innovation in the process. The pilot will be formally announced on Wednesday during a live online webcast of a public forum the bureau plans to conduct at its headquarters in Washington, DC ...


April 18, 2014 - Inside Mortgage Trends

GSEs Get Less Volume From Top Sellers

Fannie Mae and Freddie Mac did significantly less business during the first quarter of 2014 along just about every metric you can think of, but the two government-sponsored enterprises saw out-sized declines from their biggest customers. The top five GSE sellers accounted for just 33.3 percent of single-family mortgage deliveries during the first quarter of this year, according to a new Inside Mortgage Trends analysis of ... [Includes two data charts]


April 18, 2014 - IMFnews

Short Takes: Prediction on FHA Insurance Premiums / Nonbank Servicer Grows / Donovan to Talk Housing / Outlook for Interest Rates

The FHA's mortgage insurance premiums could be set to decline at the end of FY 2015.


April 18, 2014 - IMFnews

Mortgage Hassles Keep Share of Cash Home-Purchases at High Levels

While mostly associated with investors, a fair share of current homeowners rely on cash for home purchases as a way to avoid the hassles associated with mortgage closings.


April 18, 2014 - IMFnews

Top GSE Sellers Falter in First Quarter of 2014

The market share for the top five sellers to Fannie Mae and Freddie Mac fell to 33.3 percent in the first quarter of 2014.


April 18, 2014 - IMFnews

Pilot from CFPB Will Aim to Digitize the Entire Mortgage Closing Process

The CFPB plans to launch a pilot project as part of its efforts to improve the mortgage closing process.


April 17, 2014 - Inside Mortgage Finance

Mortgage Market at a Glance

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


April 17, 2014 - Inside Mortgage Finance

Top 100 Mortgage Lenders - 4Q13


April 17, 2014 - Inside Mortgage Finance

Increasing Home Prices Seen as Hindering Purchase- Mortgage Originations, Factors Go Beyond DTI Ratios

Some industry analysts suggest that originations of purchase mortgages have been held back by potential borrowers’ debt-to-income ratios, which have increased along with rises in home prices. However, originations of purchase mortgages have increased in the past year as home prices have risen and it’s more than DTI ratios shutting certain borrowers out of the purchase market. Even though interest rates on mortgages remain at relatively low levels, housing affordability has been an increasing concern due to trends in home prices. Borrowers in parts of California, as well as Denver, Miami and Portland, could have difficulty qualifying for a purchase mortgage, according to a recent analysis by Zillow. Based on income, mortgage and home-value data for the fourth quarter of 2013, Zillow found...


April 17, 2014 - IMFnews

Short Takes: No Adverse Impact from State Servicing Laws / National MI Lives Up to Its Name / Assurant Acquires StreetLinks / Credit Score Trends

Market fundamentals appear to have blunted the expected impact of Homeowner Bill of Rights laws enacted by three states in 2013.


April 17, 2014 - IMFnews

Trade Groups Continue to Push HUD to Revise FHA’s High-Cost Loan Limits

The MBA and others want documentation from HUD detailing the recent reduction to FHA loan limits in certain high-cost areas.


April 17, 2014 - IMFnews

Loss of Preemption Splinters Mortgage Joint Venture Industry

The Dodd-Frank Act prompted major changes for mortgage joint ventures, with some firms striking out on their own and others sticking with the smaller market.


April 17, 2014 - IMFnews

Mortgage Production Slumped at Major Banks in First Quarter

Originations by six major banks in the first quarter of 2014 fell by 27.9 percent compared with the previous quarter.


April 16, 2014 - IMFnews

SHORT TAKES: U.S. Bank's Originations Drop / Purchase-Mortgage Applications Remain Down / Servicing Up for Bid / CFPB Forum on Mortgage Closings / Foreclosure Rescue Scams

U.S. Bank's mortgage originations in the first quarter of 2014 declined by 71.2 percent compared with the first quarter of 2013.


April 16, 2014 - IMFnews

Purchase-Mortgage Volume Sank in Early 2014

Purchase mortgages securitized by Fannie, Freddie and Ginnie in the first quarter of 2014 were down by 76.3 percent compared with the first quarter of 2013.


April 15, 2014 - IMFnews

SHORT TAKES: Negative Outlook / Fannie to Assess Late Fees / Servicers Implement CFPB Rules / Crowdfunding Servicing Purchases / Johnson-Crapo Outlook

DBRS suggests it's likely that most of the U.S. population won't be able to qualify for a mortgage any time soon...


April 15, 2014 - IMFnews

Ellie Mae: Encompass Outage Wasn’t Due to an Attack, There was No Data Breach

The outage of Ellie Mae's Encompass systems at the end of the first quarter appears to be due to a malfunction on Ellie Mae's end, not a malicious attack.


April 14, 2014 - Inside the CFPB

Freedom of Information Act Ruling Goes in Favor of the CFPB

The issue of the recess appointment of Richard Cordray as director of the CFPB may finally have been put to rest now, after the U.S. District Court for the District of Columbia dismissed the last remnants of a case brought by the watchdog group, Judicial Watch, under the Freedom of Information Act. Back in September, the court ruled that the CFPB had properly discharged its FOIA obligations in the case for all the documents at issue except one, an e-mail from a White House staffer to a CFPB employee. At the time, “the court agreed with the CFPB’s position that it was entitled to rely on the deliberative process privilege, the attorney client/attorney work product privilege, or the presidential communications...


April 14, 2014 - Inside the CFPB

QM Rules to Constrict Mortgage Credit, ABA Lending Survey Finds

More than 80 percent of bankers expect mortgage credit is going to be constricted because of the CFPB’s new mortgage rules, which took effect in January, according to the results of the latest Real Estate Lending Survey from the American Bankers Association. More specifically, in discussing the impact of the ability-to-repay/qualified mortgage rules on credit availability in the market generally, 41 percent said there will be a measurable reduction in credit availability across all mortgage lending segments. Forty percent said there will be a measurable reduction in credit availability in the non-QM lending segments only, and 20 percent said there will be no measurable impact on mortgage lending levels, regardless of QM or non-QM classification. When asked to characterize the...


April 14, 2014 - Inside the CFPB

Mortgage Lenders Call for Changes To CFPB’s Ability-to-Repay Rule

In a statement submitted for the record to the House Financial Services Committee last week, the Mortgage Bankers Association said it remains concerned that the CFPB’s ability-to-repay rule could unduly tighten mortgage credit for a significant number of creditworthy families who seek to buy or refinance a home. To improve the rule, the MBA rattled off a handful of suggestions, the first of which was to establish cure procedures. “The CFPB should adopt rules allowing lenders to cure calculation errors and other processing mistakes made while attempting to meet the qualified mortgage requirements,” the trade group said. “Without such procedures, lenders will be forced to avoid transactions at the boundaries of the points-and-fees cap, debt-to-income limits and the annual percentage...


April 14, 2014 - IMFnews

Citi’s Retail Originations Drop 37% in First Quarter of 2014

Citi continued the trend of big banks reporting sharp declines in their mortgage originations, driven by a lack of refinance business.


April 14, 2014 - IMFnews

SHORT TAKES: FCI Continues to Expand its Servicing Base / Wells Fargo and JPM Take a Rest on MSR Markups / Jumbo Expansion? / Mods and Foreclosures / FDIC Throws Cold Water on Consolidation Theory / New Office for Interlinc

The MBA said applications for purchase-mortgages with high loan balances have increased in recent months while applications for lower-balance mortgages has declined…


April 14, 2014 - IMFnews

Mortgage Bankers Call for Transparent FHA Loan Limit Process

The National Association of Realtors also urged the FHA to use its “granted discretion” to adjust loan limits for areas that have experienced significant declines.


April 11, 2014 - Inside FHA Lending

Filing Deadline for Recertification Extended to June 9

The FHA has extended the filing deadline for lender recertification to June 9, 2014, to match the agency’s timeline for switching to the Lender Electronic Assessment Portal (LEAP). LEAP is a new system that will serve as a one-stop shop for all lender approval and recertifications. It replaces the current “Lender Approval” and “Cash Flow” web pages in FHA Connection as well as the current system lenders use to submit financial information as part of recertification. LEAP is scheduled to be fully operation this month, although consolidation of Title I and II lender identification numbers has already taken place on March 31. Last year, the FHA issued guidance extending the filing deadline for all lenders with a December 2013 fiscal year end. Although the guidance recommended that lenders be prepared to complete their recertification no later than May 31, it also stated that ...


April 11, 2014 - Inside FHA Lending

Deficient Files, No. 1 Cause of ‘Unacceptable’ Grade

Deficient file documentation is the leading cause of initial “unacceptable” ratings in the FHA’s most recent post-endorsement technical review (PETR) of targeted single-family FHA loans. Published in the March 2014 issue of Lender Insight, review results showed that 50 percent of the 5,504 FHA loans selected for review in the fourth quarter of 2013 had missing or flawed documentation. Of that percentage, 65 percent of loans were rated “unacceptable.” Loans are selected for post-endorsement review based on a risk-targeting methodology and do not reflect the overall FHA portfolio. An “unacceptable” rating indicates that the loan endorsement file had a material defect at the time the loan was endorsed for FHA insurance. Such ratings are upgraded subsequently if the lender provides mitigating documentation. Unacceptable ratings are due to errors or flaws in ...


April 11, 2014 - Inside FHA Lending

FHA Volume by State Drops, State HECMs Rise

Overall FHA production fell significantly in all 50 states in 2013 apparently due to mortgage insurance premium increases and policy changes that made it difficult for even qualified borrowers to obtain an FHA-insured single-family loan. FHA volume by state dropped 27.5 percent in the fourth quarter to $35.8 billion, from $49.4 billion in the previous quarter, with all states showing varying percentages of decline during the period. Year over year, production by state declined by 9.2 percent, data showed. Total FHA originations were $211.3 billion for 2013, with the first quarter ending strongly with $63.7 billion. Production, however, lost steam over the next three quarters. Among the top five FHA states, Virginia suffered the largest quarterly drop, 35.2 percent, in FHA volume. California was the top FHA producer state with $35.2 billion for a ... [2 charts]


April 11, 2014 - Inside FHA Lending

Industry Calls for Transparent Loan-Limit Process

The Mortgage Bankers Association is urging the Department of Housing and Urban Development to provide a transparent process by which interested parties could request a recalculation of the FHA loan limits and present supporting evidence. By statute, maximums for FHA loan limits in high-cost areas were reduced to $625,500 from $729,750 at the beginning of the year for one-unit residential properties, the same maximum loan limit for Fannie Mae and Freddie Mac for similar properties in high-cost areas. The MBA said HUD made further reductions in FHA FY 2014 loan limits in approximately 300 counties and county equivalents across the country, with many experiencing significant reductions. The trade group believes these changes were not required by statute. To the extent that the loan-limit reductions in those areas were discretionary, the MBA strongly urged HUD to moderate its ...


April 11, 2014 - Inside FHA Lending

FHA Rejects Industry Plea to Lower MIPs

FHA Commissioner Carol Galante quashed any industry hope of seeing mortgage insurance premiums lowered at this time, saying that while the Mutual Mortgage Insurance Fund has shown some improvement, full recovery is still far off. In remarks during the Mortgage Bankers Association’s National Advocacy Conference this week, Galante also defended a provision in the president’s FY 2015 budget proposal seeking statutory authority for the FHA to collect an administrative fee from lenders to help fund quality control improvements. Both issues are high up on the MBA’s lobbying priorities as members gathered in Washington, DC, this week to meet with lawmakers and their staff to discuss FHA and other key industry concerns. Galante said the Department of Housing and Urban Development is currently focused on strengthening the MMI Fund and expanding access to credit for all qualified borrowers. The FHA raised pricing five times from ...


April 11, 2014 - Inside Nonconforming Markets

Nonbanks Looking Beyond Non-Agency MBS

A number of real estate investment trusts and other nonbanks plan to invest in nonprime assets other than vintage non-agency mortgage-backed securities as part of an effort to take credit risk as opposed to interest rate risk. The plans include investments in credit-sensitive loans, seller financing for lenders that work with nonprime borrowers and, potentially, even direct nonprime lending. A year ago, Two Harbors Investment saw an opportunity in what it calls credit-sensitive loans ...


April 11, 2014 - Inside Nonconforming Markets

IO Originations Increase Sharply in 2013

A number of lenders increased their originations of interest-only mortgages in 2013, according to a new ranking and analysis by Inside Nonconforming Markets. IOs with loan applications of Jan. 10 and beyond will subject lenders to greater liabilities due to the Consumer Financial Protection Bureau’s ability-to-repay rule, but many lenders note that they will continue to offer IOs to well-qualified borrowers. Lenders reported ... [Includes one data chart]


April 11, 2014 - Inside Nonconforming Markets

Fenway Summer Merges with Start-Up Ethos

Ethos Lending was looking for an investment from Fenway Summer and ended up merging with Fenway Summer’s mortgage unit. The combined operation plans to start originating agency mortgages in the second quarter of this year and offer prime non-qualified mortgages via the wholesale channel by the end of 2014. Raj Date, the founder of Fenway Summer and the former deputy director of the Consumer Financial Protection Bureau, will serve as chairman of ...


April 11, 2014 - Inside Nonconforming Markets

Majority of Banks Willing to Offer Non-QMs

Demand from borrowers for loans that aren’t “qualified mortgages” has prompted many banks to continue to offer non-QMs such as interest-only mortgages or non-agency mortgages with debt-to-income ratios above 43 percent. “We’ve pretty much made the decision that the risk of there being any kind of a kickback from an individual – if we underwrite that thing and document ourselves and do the things we need to do – is a risk worth taking,” said Derek Williams ...


April 11, 2014 - IMFnews

What We’re Hearing: Mel Watt Doing His Homework? / Coming Soon (Maybe) From FHFA: LLPA Relief / RIP: The First-Time Homebuyer / Blame Sandra Thompson? / Bank of America Loan Officers Getting Cherry-Picked / Ocwen Hangs Up on Borrower

FHFA Director Mel Watt may have something to say soon on the topic of Fannie Mae/Freddie Mac loan level price adjustments, commonly known as LLPAs. As for the GSE 'Scorecard'...


April 11, 2014 - IMFnews

Despite Passage in Committee, Mortgage Debt ‘Forgiveness’ Act Has Slim Chance

The EXPIRE Act also includes a provision to extend the mortgage insurance premium tax deduction. In a letter supporting the tax extensions to the committee, the Mortgage Bankers Association estimated that for a $200,000 home, homeowners would be able to deduct between $600 and $1,000 from their taxes.


April 11, 2014 - IMFnews

Final Tally: Just Four Jumbo MBS Deals Were Priced in the First Quarter

In 2013, nine firms issued jumbo MBS. In the past two quarters, the only issuers of jumbo MBS were Credit Suisse, JPMorgan Chase and Redwood Trust.


April 11, 2014 - IMFnews

Nation’s Top Two Home Lenders Hammered by Huge Volume Declines in 1Q

But Wells also offers up disappointing news on its mortgage gain-on-sale results. Its GOS fell to 161 basis points in the first quarter compared to 177 bps in 4Q and 256 bps in 1Q13.


April 10, 2014 - Inside Mortgage Finance

Mortgage Market at a Glance

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


April 10, 2014 - Inside Mortgage Finance

Cyber-Attack on Ellie Mae Raises a Big Question: If They Got Hacked, Can This Happen to Others?

Mortgage lenders are still smarting from a recent cyber-attack on their loan origination software provider, Ellie Mae, but a larger question now looms: If a company of Ellie’s stature was hacked, can it happen to other vendors as well? Tony Garritano, a consultant who manages a mortgage technology advocacy group called Progress in Lending, said, to the best of his knowledge, the attack on Ellie Mae is a first for the industry – and likely not the last. “As more lenders and their vendors migrate to the Internet this will happen again and again,” he said. He notes...


April 10, 2014 - Inside Mortgage Finance

Indicators Point to Historically Weak Origination Market in Early 2014, Potential Culling of Herd

Early indicators suggest that mortgage originations slumped by about 23 percent in the first quarter of 2014, a harbinger of tough times to come for companies that are running on fumes. According to a new Inside Mortgage Finance analysis of loan-level data in Fannie Mae and Freddie Mac first-quarter securitizations, primary market originations for the first three months of the year totaled about $235 billion. Unless the pace picks up, 2014 could fail to reach $1 trillion for the first time since 1998. Lender surveys, which are the major factor in Inside Mortgage Finance originations estimates, are underway. Weak origination volume is...


April 10, 2014 - IMFnews

Short Takes: More Meddling by FHFA in MSRs? / Will JPM’s Dimon Ever Love Mortgages Again? / PHH Finds a Way to Reduce Turnover / MI Looking Up / Homebuilder Expands License Base of MB Sub

Did the FHFA late last summer/early fall raise concerns regarding a certain nonbank servicer’s capital in regard to a huge portfolio of mortgage servicing rights that it had bought earlier in the year from a megabank?


April 10, 2014 - IMFnews

PHH Names New Principal Accounting Officer; Meanwhile Doubts Increase on Sale

PHH Mortgage has been on the auction block for at least two months. One called the sale “mission impossible.”


April 10, 2014 - IMFnews

Sorry Mortgage Bankers, FHA Chief Says It’s Too Early to Roll Back Premiums

FHA chief Carol Galante reminded lenders that mortgage premium increases – five hikes from 2008 to 2013 – were necessary to protect the Mutual Mortgage Insurance Fund and properly price for the risk the government insurer was taking on.


April 10, 2014 - IMFnews

FDIC: Banks Appear to be Warming Up to Non-QM Lending

Roughly 2 percent of depositories said they will cease offering mortgages altogether because of the Consumer Financial Protection Bureau’s ability to repay rule and QM standards.


April 10, 2014 - IMFnews

GSE MI Business Declines, As Expected, But HARP Activity Plunges

The biggest decline in MI-insured business was in underwater mortgages that were refinanced while keeping their existing coverage under the Home Affordable Refinance Program.


April 9, 2014 - IMFnews

Short Takes: A Good Year for Lenders One, But… / Ocwen MSR Purchase Update / Ex-Provident Exec to Get Senior Post at Ethos / Citigroup’s Subprime Past / A Soggy Spring for Mortgage Applications

Will the Ocwen-Wells MSR deal ever get approved? In time, but...


April 9, 2014 - IMFnews

MBA Calls for Changes to ATR Rule, Keeps Pushing For ‘Cure’ Procedures

Another suggestion is to increase the $100,000 threshold for “smaller loans” to $200,000 allowing for mortgage amounts beneath that level to be subject to more workable points-and-fees limits.


April 9, 2014 - IMFnews

If PHH Can’t Sell Its Mortgage Platform, Will It Initiate a Dividend Payment?

“A few groups have taken a walk through the offices in Cherry Hill,” said a source close to PHH. “People are starting to notice – and leave.”


Poll

What do you think is the biggest hurdle to meeting the new QM standards in the CFPB’s ability-to-repay rule?

A debt-to-income (DTI) cap of 43%.

48%

A 3% cap on points and fees.

29%

An interest rate cap of the average prime offered rate (APOR) plus 1.5%.

23%

Housing Pulse