Trends & Profitability

Browse articles from all of our Newsletters related to Trends & Profitability.

April 24, 2017 - IMFnews

Servicing Transfer Activity Slowed in 1Q17; Fannie’s Temporary Freeze a Factor

Matrix Financial Services edged out Lakeview Loan Servicing as the top acquirer of servicing rights through co-issuance deals…


April 21, 2017 - Inside Mortgage Trends

California Tops in Insured Mortgage Business

California remained the mother lode of mortgage insurance business in the first quarter of 2017, but a number of other major states had higher concentrations of insured business, according to a new Inside Mortgage Trends analysis. Some $12.50 billion of agency mortgages securitized during the first quarter with some form of primary MI were tied to Golden State properties, representing 58.9 percent of California’s total agency purchase-mortgage ... [Includes one data chart]


April 21, 2017 - Inside Mortgage Trends

Non-Defaulters Pay More Under FHA Pricing

A disproportionate share of the premiums collected under the FHA’s current pricing scheme are paid by non-defaulters even though higher premiums are targeted for higher-risk borrowers, according to a new analysis from the Federal Reserve Bank of New York. The study contends that FHA’s policy of allowing borrowers to refinance their upfront mortgage insurance premium “reduces the total cost of borrowing during the first year, but results in non-defaulters paying ...


April 21, 2017 - Inside Mortgage Trends

First-Time Homebuyers Often ‘Overpay’

A typical first-time homebuyer pays significantly more than a repeat homebuyer does for the same house, according to research by economists at the Federal Housing Finance Agency. They suggested that appraisers could help reduce home prices for first-time homebuyers, though the proposal faces a number of obstacles. The FHFA analysis was based on appraisal information associated with loan applications submitted to the government-sponsored enterprises from the ...


April 21, 2017 - Inside Mortgage Trends

Economics Drives Choice in Lender, Study Finds

What some people might call “hard-core economics” – closing costs and interest rates – along with a lender’s reputation for excellent customer service, play a decisive role in most consumers’ choice of a mortgage lender, according to a new survey from Ally Bank. “Four in five Americans (81 percent) who ever had a mortgage or plan to apply for one in the future said the total amount of closing costs did/would factor into their lender decision,” the bank said in announcing the results ...


April 21, 2017 - Inside Mortgage Trends

Lenders Push ‘Digital’ Mortgage Offerings

loanDepot rolled out another aspect of its digital origination software interface last week as a number of lenders work to use technology to improve the mortgage application and origination processes. A mortgage origination process that is completely online or digital is still being pursued by lenders, but officials at loanDepot suggest that the proprietary digital lending platform the nonbank has developed, known as mello, is “the future of lending.” “Technology advancements have ...


April 21, 2017 - Inside Mortgage Trends

Buyers Interested in Mortgage Businesses

With 2017 shaping up to be a so-so year for originations, the list of potential buyers of other companies is beginning to grow. Usually, firms that are in the hunt to purchase other shops tend to keep it quiet. Over the past few months, however, several companies have admitted that they’re open to pulling out the checkbook. Included in that camp, at least for right now, is Flagstar Bancorp, Freedom Mortgage, and Impac Mortgage Holdings. Others that are said to be open to deals ...


April 21, 2017 - Inside Mortgage Trends

Servicing Transfer Activity Slowed in 1Q17 Despite Spike in Freddie Bulk Deals

The secondary market in agency mortgage servicing rights cooled off in the first quarter of 2017 after a hectic end to 2016, according to an exclusive analysis and ranking by Inside Mortgage Trends. A total of $109.78 billion of agency MSR changed hands during the first three months of the year, down 32.9 percent from the fourth quarter of 2016. Part of that was due to a 26.2 percent decline in new business volume at Fannie Mae, Freddie Mac and Ginnie ... [Includes three data charts]


April 21, 2017 - IMFnews

1Q17 Non-Agency MBS Issuance Spikes 67 Percent on Heavy Deal Flow Tied to ‘S&D’

Although most of the major non-agency segments posted solid increases, the scratch-and-dent market was the star of the show.


April 20, 2017 - Inside Mortgage Finance

As the Home ‘Flipping’ Market Continues to Gather Steam, Lenders Plow New Ground by Using Third-Party Brokers

Two of the most active lenders in the “fix & flip” market – Finance of America Commercial and CALCAP – are coming off record years and are expanding their efforts by launching brokerage initiatives that could increase their volumes even more. “Why now?” asked Mark Filler, CEO of Finance of America Commercial. “We’re at the point where we have better pricing, better products and the market is strong.” In 2016, FOAC – known as Jordan Capital when it was acquired by nonbank mortgage giant Finance of America a few months ago – originated...


April 20, 2017 - IMFnews

CFPB Suggests Lenders are Making Billions Because Borrowers Aren’t Effectively Shopping for a Mortgage

The agency estimates that collectively, borrowers are missing out on $13.0 billion per year in foregone savings…


April 20, 2017 - IMFnews

Agency Servicing Continues to Grow – Nonbanks Increase Holdings by Almost 22 Percent

Nonbanks serviced $2.418 trillion of agency loans at the end of the first quarter, up 21.6 percent from a year ago…


April 19, 2017 - IMFnews

Impac Mortgage on the Hunt for M&A Deals and Non-QM, Raises $56 Million

On Impac’s wish list: buy others, grow servicing and make more non-QM loans…


April 18, 2017 - IMFnews

Although Industrywide Originations Will Drop, Movement Sees 25 Percent Growth for Itself

In 2016, Movement Mortgage added 201 branches in five states. It now has 662 locations in 47 states.


April 18, 2017 - IMFnews

First-Lien Production Off 37.7 Percent at BofA; Second-Lien Lending on the Rise

But there was some good news: BofA reported $4.05 billion of second lien production in the first quarter, a 13.7 percent improvement from the prior period.


April 18, 2017 - IMFnews

A Hopeful Sign for a Market in Revival: Nonprime MBS Issuance Up 23 Percent in 1Q17

While the market for nonprime MBS was relatively strong during the first quarter, Moody’s said some investors have shied away from the sector.


April 14, 2017 - Inside FHA/VA Lending

GNMA Servicing Market Thawing? Stakeholders Hope as Market Stirs

When it comes to selling Ginnie Mae mortgage servicing rights the past two years, it’s been mostly a bear market, but all that may be changing soon. At least that is what sellers and their merger and acquisition advisors hope. Mark Garland, executive vice president of MountainView Financial Solutions, Denver, said that of late, “We have seen a few Ginnie trades go off at a level closer to full value.” Garland told Inside FHA/VA Lending that he expects this trend to continue with prices tightening over the summer “provided rates hold and [prepayment] speeds stay largely in line with expectations.” And if that happens, there could be an increase in the ability of FHA/VA lenders to securitize excess cash flows. But that’s getting a little ahead of the equation. Over the past 24 months, the Ginnie MSR market has been difficult for two reasons: the fear of lawsuits/sanctions tied to FHA lending, and fast ...


April 14, 2017 - Inside FHA/VA Lending

GNMA Officials Attribute Decline in VA Refis to Anti-Churning Policy

A steep drop in VA-backed securities issuance in the first quarter of 2017 suggests that Ginnie Mae’s efforts to curb serial refinancing of VA loans are working, according to agency officials. Speaking on a panel at the annual VA Lenders Conference in Kansas City, MO, this week, Ginnie executives said that a change in pooling requirements for streamlined refinance mortgages appears to have curbed a destructive appetite for refinancing new VA loans within six months of closing. The practice has caused faster prepayments in Ginnie mortgage-backed securities pools and smaller payouts to investors. VA refi volume fell 42.7 percent from the previous quarter (see chart on page 2), contributing significantly to the 32.2 percent decline in total VA loan securitization during the period. John Getchis, senior vice president at Ginnie Mae, said he does not think the churning trend will continue because the ...


April 14, 2017 - IMFnews

CitiMortgage’s Third-Party Servicing Portfolio Plummets 66 Percent; Lending Off 32 Percent

It’s a safe bet that CitiMortgage will no longer be a top-10 ranked residential servicer…


April 14, 2017 - IMFnews

‘Tappable’ Home Equity Hit $4.7 Trillion in Late 2016, a 10-Year High

December 2016 represented the 56th straight month of annual home price appreciation, with values rising 5.5 percent over the course of the year…


April 14, 2017 - IMFnews

‘Digital’ Lender Better Mortgage Hopes to Triple Production This Year, Ponders an IPO

According to President Jerry Selitto, the company used traditional LOs when it launched in 2016, but then switched gears “after we realized that’s not the model we wanted.”


April 13, 2017 - IMFnews

Nonprime Lenders May See a Banner Year in 2017

“Ever since Trump was elected, we’ve been so busy,” said Citadel founder and CEO Dan Perl…


April 13, 2017 - IMFnews

An Ominous Sign? Residential Production at Wells Fargo Slumps 39 Percent; JPM Not as Bad

Then again, compared to the same period a year ago, Wells' production is just about flat...


April 13, 2017 - IMFnews

Jumbo Lender First Republic’s 1Q Originations Slip Almost 18 Percent, but Strong Improvement in Gain-on-Sale

Home equity lending at First Republic totaled $414.3 million in the quarter, off 8 percent from the prior period.


April 13, 2017 - IMFnews

The Final Tally: ARM Originations Increased in 2016; JPMorgan Chase the Market Leader

Wells Fargo Co. ranked third with $21.1 billion of ARM originations in 2016…


April 12, 2017 - IMFnews

Nationstar CEO Earned $5.36 Million, Flagstar Chief Saw a Decline in Compensation

The compensation figures for both men include salary, stock awards and other forms of income.


April 11, 2017 - IMFnews

Mortgage Employment Keeps Rising, but for How Long?

Jeff Detwiler, president of Long & Foster, which also owns a mortgage banking firm, said the company’s attrition rate “is at its lowest.”


April 10, 2017 - IMFnews

UWM Funds $4.6 Billion in 1Q, Expects 2Q to be Much Bigger

UWM is the nation’s largest table funder in the nation, followed by Caliber Home Loans and Stearns Lending, according to a full-year 2016 ranking from Inside Mortgage Finance…


April 10, 2017 - IMFnews

Mixed Performance for Nonbanks, but Quicken Strong

Moody’s notes that the privately held Quicken Loans has strong profitability “due to its solid franchise position and strong capital levels…”


April 10, 2017 - IMFnews

Are Nonbanks Losing Their Mojo with Fannie and Freddie? GSE Market Share Slips Again

Single-family volume was down from the unusually high level in the fourth quarter of last year…


April 10, 2017 - IMFnews

Mortgage Complaints Down Without Exception, Data Show

Compared to the fourth quarter of last year, mortgage complaints declined by 14.8 percent.


April 7, 2017 - Inside Mortgage Trends

‘Tappable’ Equity Hit $4.7 Trillion, 10-Year High

The amount of equity U.S. homeowners could access rose by almost $570 billion in 2016, reaching $4.7 trillion last year, thanks to an extended streak of home price appreciation. This was the highest level of “tappable” equity seen since 2006, according to a new report from Black Knight Financial Services. Perhaps just as impressive, an eye-popping 44 percent of refinanced mortgages in the fourth quarter of 2016 were cash-out refis, the highest level in eight years ...


April 7, 2017 - Inside Mortgage Trends

Education a Big Factor in Post-Crisis Lending

Whether a potential homebuyer has a bachelor’s degree plays a significant role in the applicant’s ability to obtain a mortgage, according to research funded by Fannie Mae. The analysis suggests that the higher-education variable wasn’t much of a factor before the financial crisis, but a borrower’s level of education is a factor in post-crisis originations. Researchers at the University of Southern California probed data from a survey of households conducted by the Survey Research Center at ...


April 7, 2017 - Inside Mortgage Trends

Nonprime Lenders May See Banner Year in 2017

While conventional residential lenders try to figure out how to cut costs in what likely will turn out to be a down year for originations, nonprime firms are headed in the opposite direction – growth. Angel Oak Companies, Atlanta, the largest nonprime lender of 2016 with $700 million of production, this week announced the promotion of four senior managers and plans to double its sales force, which presently numbers 52 account executives. “We’ve already added 16 ...


April 7, 2017 - Inside Mortgage Trends

Mixed Performance for Nonbanks, Quicken Strong

Quicken Loans has exhibited strong, consistent profitability in recent years while some other major nonbanks have faltered, according to Moody’s Investors Service. A report the rating service recently published offers a rare glimpse into the profitability of Quicken, Provident Funding Associates and Stearns Holdings, three private nonbanks. They are among nine nonbanks in the mortgage industry that have corporate ratings from Moody’s. “Quicken has strong profitability due to ...


April 7, 2017 - Inside Mortgage Trends

Bank Repurchases Tumbled in 2016

Banks and thrifts repurchased $813.1 million of single-family mortgages during the fourth quarter of 2016, an 8.2 percent decline from the previous period, according to an Inside Mortgage Trends analysis of call-report data. It wasn’t the lowest quarterly repurchase volume on record – that distinction belongs to the fourth quarter of 2015 at $735.6 million. But the final three months of 2016 brought the full-year total to $3.27 billion, and that was the lowest ... [Includes one data chart]


April 7, 2017 - Inside Mortgage Trends

Brokers Lose Share in 1Q17 GSE Market

Single-family business at Fannie Mae and Freddie Mac fell sharply in the first quarter of 2017 and the wholesale-broker channel bore much of the brunt of the decline. The two government-sponsored enterprises issued $218.2 billion in new single-family mortgage-backed securities during the first quarter, a 27.1 percent drop from the final three months of 2016. But a new Inside Mortgage Trends analysis reveals that the supply of mortgages originated ... [Includes two data charts]


April 7, 2017 - Inside Mortgage Trends

Both Production and Servicing Income On Mortgage Banking Faltered in 4Q16

Mortgage-banking income was down on both sides of the business in the fourth quarter of 2016, although the downturn in servicing may be more a matter of unusual results at two large firms. An Inside Mortgage Trends analysis of earnings releases from 13 publicly traded mortgage lenders shows production-related income – including origination fees and secondary market gains – fell 25.1 percent from the third quarter to the fourth. The group earned a combined ... [Includes one data chart]


April 7, 2017 - IMFnews

Godot Finally Arrives: The Federal Reserve Plans to Shrink Its Huge Portfolio Once…

The Fed owns roughly $1.7 trillion worth of agency MBS. But don’t expect any wholesale dumping to take place…


April 6, 2017 - IMFnews

Is a Sale an Option for the Struggling Walter/Ditech?

“Our ability to maintain or grow our servicing business may depend, in part, on our ability to acquire servicing rights from, and/or enter into subservicing contracts with, third parties,” the company said in an SEC filing.


April 4, 2017 - IMFnews

Short Takes: Skyline Posts Strong Purchase Lending Numbers / Banks and CUs Pony Up to the IO Bar / Flagstar’s New Wealth Advisory Business / Thanks to AVMs and Google Earth, All Appraisers May be Toast / Frommeyer Leaves NAMB

A former Utah appraiser said she lost her job to AVMs and now drives a bus for $40,000 a year...


April 4, 2017 - IMFnews

Fast-Growing Nonprime Lender Angel Oak Adds Four Executives, Aims to Double Sales Force

Angel Oak employs 52 wholesale account executives and hopes to add three to four additional ones a month.


April 4, 2017 - IMFnews

Origination of IO Mortgages Spiked by Almost 37 Percent in 2016

PHH Mortgage, which is restructuring its operations, was the top ranked interest-only lender in 2016…


April 4, 2017 - IMFnews

Flagstar Will Acquire ‘Certain’ Assets of $3-Billion-a-Year Lender Opes

With the purchase of Opes, Flagstar likely will move up two spots in the origination rankings to number 12, according to Inside Mortgage Finance.


April 3, 2017 - IMFnews

Prime Non-Agency MBS Bounces Back in 1Q17

Just two firms – Redwood Trust and JPMorgan Chase – continued to dominate jumbo issuance in the first quarter…


March 31, 2017 - Inside FHA/VA Lending

Lender Group Calls on Carson to Rescind HUD’s Current PACE Rule

The Mortgage Bankers Association is urging Housing and Urban Development Secretary Ben Carson to rescind current guidance and prohibit future FHA financing of properties encumbered by a Property Assessed Clean Energy (PACE) tax lien. The guidance, which the Department of Housing and Urban Development implemented in July last year, should be eliminated unless the PACE lien is clearly subordinated to the FHA loan and national, standardized consumer protections are in place, the MBA said. The MBA said it has significant concerns with the risk posed by PACE financing to traditional lien priority and the FHA, as well as the lack of consumer protections. “Unfortunately, [current PACE guidance] does not reduce these concerns – it amplifies them,” the letter warned. PACE loans were developed to help finance energy-efficient retrofits, such as solar panels, energy-saving appliances and ...


March 31, 2017 - Inside FHA/VA Lending

VA, MBA Working to Find Solution To Aggressive Refinancing Problem

The Department of Veterans Affairs and mortgage industry stakeholders are working to resolve the churning problem in the VA Home Loan Guaranty program. It appears the agency is unhappy that Ginnie Mae’s recent pooling policy change was only partially effective in discouraging early solicitation of VA purchase loans for refinancing. Apparently, the practice is continuing and is adversely affecting mortgage-backed securities investors who are not getting full return on their investments. The Mortgage Bankers Association said a handful of lenders and mortgage brokers are still engaging in serial refinancing of VA purchase loans within six months of closing, causing faster prepayments in Ginnie MBS pools. Ginnie announced a policy change, which took effect on Feb. 1, 2017, clarifying that streamline refinance loans may be delivered into Ginnie MBS pools only if, at the ...


March 31, 2017 - IMFnews

Walter Investment’s Chief Legal Officer Jonathan Pedersen Resigns

No reason was given by Walter Investment for the resignation.


March 31, 2017 - IMFnews

And the Biggest Foreign Investor in U.S. MBS/ABS is: Taiwan (Yes, Taiwan)

China still ranked second in agency MBS investment, but Japan’s larger portfolio of non-agency MBS and ABS boosted it to second place overall.


March 30, 2017 - IMFnews

Top-Ranked Lenders Reclaim Some Market Share; Community Banks Still Major Players

The top 100 lenders produced a hefty $1.622 trillion in first-lien mortgages last year, including their correspondent and wholesale-broker programs…


Poll

With the spring homebuying season in full swing, what percentage of your March 2017 application volume has been for “purchase” loans?

75% or higher
50% to 74%
30% to 49%
Under 30%

vote to see results