Trends & Profitability

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

September 29, 2016 - IMFnews

Impac Considers Opening a Second Origination Center in Effort to Boost Retail

Impac is forecasting $12 billion in originations this year, up 29.0 percent from 2015…


September 29, 2016 - IMFnews

Lender Rolls Out New LO Benefit: A Share of the Servicing Fee

The compensation plan is available to LOs of Atlantic Bay who originate more than $14.0 million in retail loans in a calendar year.


September 28, 2016 - IMFnews

Analyst: PHH Corp. Is Just too Cheap; But Will a Buyer Emerge?

A decade ago, PHH Mortgage had several suitors, including Countrywide Financial, which once coveted its private-label business…


September 28, 2016 - IMFnews

Redwood CEO: JPMorgan ‘Ahead of Everybody Else’ with Non-Agency MBS Packed with GSE-Eligible Loans

The Redwood CEO said the MBS offer a number of benefits to Chase, including effectively cutting the guaranty fee…


September 28, 2016 - IMFnews

Academics Weigh In: DFA Mortgage Rules Benefitted the Wealthy

However, Georgetown University professor Adam Levitin is challenging the findings of his DC-area colleagues.


September 27, 2016 - IMFnews

‘Big’ M&A Announcements Slated for MBA Convention in Boston?

Most of the firms looking to buy other shops are nonbanks…


September 27, 2016 - IMFnews

VA Lending Up Almost 30 Percent; Nonbanks Dominate

Among the top 20 VA lenders, just six depositories made the cut: USAA, Navy Federal, Wells Fargo, Flagstar Bank, The Federal Savings Bank and North American Savings Bank…


September 26, 2016 - IMFnews

MBA Task Force Proposes Standardized Loan Mod Program to Replace HAMP

The task force consists of 20 MBA member companies, led by Alex McGillis of Quicken Loans and Erik Schmitt of JPMorgan Chase.


September 26, 2016 - IMFnews

UWM Provides Grant Funding for Brokers to Open Their Own Shops; Money Doesn’t Have to be Repaid

Requirement for the program include: three years of mortgage experience, a statement on production goals, anticipated operational structure and a description of the company.


September 26, 2016 - IMFnews

Interest-Only Originations Spiked 45 Percent in 2Q; PHH Mortgage a Standout

Morgan Stanley was offering a 5/1 IO ARM with an interest rate of 3.850 percent for loan amounts below $1 million…


September 23, 2016 - Inside FHA/VA Lending

PACE Guidance Not Reassuring, Too Many Uncertainties, Pitfalls

New FHA guidance for dealing with mortgages with a Property Assessed Clean Energy (PACE) obligation went into effect last week but uncertainty lingers and its full impact remains to be seen, according to an industry attorney. The Department of Housing and Urban Development has issued guidance specifically allowing properties encumbered by a PACE lien to be eligible for FHA mortgage financing for both purchase and refinance loans. The department of Veterans Affairs has issued similar guidance. According to Erika Sonstroem, an attorney with the law firm Bradley Arant Boult Cummings, the PACE industry is touting the guidance in its pitches to lenders as posing no risk to mortgage investors. PACE is a program that lends money to homeowners for home-energy savings projects. It is treated much like a tax lien on a property and is included in the ...


September 23, 2016 - Inside FHA/VA Lending

VA Issues Clarifying Guidance for Manufactured, Mobile Properties

VA Home Loan Guaranty has issued clarification regarding title requirements for manufactured or mobile homes conveyed to the Department of Veterans Affairs. Effective immediately, VA is requiring proof of noteholders’ compliance with the agency’s requirements for guaranteed mobile-home financing. Foreclosure title packages that do not include the required documents will be rejected, the agency warned. Under federal law, a manufactured home must be permanently affixed and classified as real property in the state where it is located. VA will not guarantee financing if the property does not meet the criteria. To ensure that a guaranty claim is fully payable and that the holder has the option to convey the manufactured home to VA, servicers must ensure that home loans with a VA guarantee meet federal requirements. Under the clarified VA guidelines, servicers may submit the ...


September 23, 2016 - Inside FHA/VA Lending

VA Shares Pointers to Help Avoid Delays in Processing COE Requests

The Department of Veterans Affairs has made recommendations to VA lenders and borrowers calling in with questions and problems at VA regional centers to avoid long wait times and have their concerns resolved as quickly as possible. In a recent memo to lenders, the VA Loan Guaranty Service is reporting that many of its regional loan centers (RLC) are being swamped with calls due to record increases in VA originations in recent months. While this suggests that more veterans are using their housing loan benefit than ever before, the large volume of calls to VA has caused long hold times for callers and delayed processing of borrower certificates of eligibility (COE). To cut down on the waiting time, the VA urged lenders and borrowers to consider several things before making the call. First, do not call to check on the status of a COE request if there is no urgent need, like an ...


September 23, 2016 - Inside FHA/VA Lending

HUD Poised to Collect Huge FCA Settlement Funds from Lenders

The Department of Housing and Urban Development is set to receive more than $140 million in settlements with three individual lenders in connection with defective loans they originated with FHA insurance. Freedom Mortgage Corp., M&T Bank, and Land Home Financial Services all reached separate agreements this year with the Department of Justice on behalf of the HUD Inspector General to resolve the allegations. On April 15, Freedom agreed to pay $113 million, in response to charges that “it engaged in certain conduct in connection with its origination, underwriting, property appraisal and quality of certain single-family mortgages insured by FHA.” The disputed forward loans were insured by FHA between Jan. 1, 2006, and Dec. 31, 2011, which resulted in claims submitted to HUD on or before June 15, 2015. HUD incurred substantial losses when it paid claims on the ...


September 23, 2016 - Inside FHA/VA Lending

Liquidity, Net Worth Issues Persist But Nothing Ginnie Can’t Manage

Ginnie Mae continues to wrestle with issuers lacking liquidity and net worth although the number of such cases has gone down significantly, thanks to tight oversight, according to the agency’s top counterparty risk officer. Briefing participants at this year’s Ginnie Mae summit in Washington, DC, Zack Skochko, director of counterparty risk, reported that some issuers are still struggling to comply with Ginnie Mae’s liquidity and net worth requirements.A number of small issuers failed their liquidity and net worth audits this year by not maintaining the minimum $1 million cash or 10 basis points of outstanding Ginnie securities required to participate in the agency’s mortgage-backed securities program. Ginnie Mae also requires issuers to meet a minimum net worth of $2.5 million plus 35 bps of the issuer’s total effective single-family obligations The requirements were designed to ensure that the ...


September 23, 2016 - Inside FHA/VA Lending

Streamline Refi Segment Causing Problems for VA, Ginnie Investors

The Department of Veterans Affairs is working on a change to its existing streamline refinancing policy to address a problem that is giving VA and Ginnie Mae the fits. Under the VA’s qualified-mortgage rule, a VA borrower must wait six months and show six months’ worth of mortgage payments before they can refinance into an IRRRL (Interest Rate Reduction Refinance Loan) and take advantage of the lower rate. However, it seems not all VA lenders are adhering to the rule and that a good number are refinancing veterans into IRRRLs even before the mandatory seasoning period ends for fear interest rates might rise and the borrower might not benefit from the lower rate. “I’ve redone the numbers in 20 different directions on how much a borrower would save if they had to wait two more months and the rate went up a quarter of a point because they lost those two months ...


September 23, 2016 - IMFnews

The New Breed of Nonprime Lenders See Plenty of Room for Growth

Tom Hutchens, SVP of sales and marketing at Angel Oak, said originations of nonprime non-QMs have predominantly been purchase mortgages. However, refinance activity is starting to increase…


September 23, 2016 - IMFnews

More Purchase Loans Not Closing on Time. The Culprit: A Shortage of Appraisers

More bad news on appraisals: the on-time closing share has declined for four consecutive months…


September 23, 2016 - IMFnews

Foreign Investors, Others Beef Up Their Investment in Agency MBS

According to Treasury Department reports, overseas investors held $821.3 billion of Fannie, Freddie and Ginnie MBS at the end of June, a 5.0 percent increase from March.


September 22, 2016 - IMFnews

The Final Tally: Production Profits Rose in 2Q16, but Servicing Results Hammered

A group of 13 publicly traded lenders reported a combined $1.72 billion in production and secondary marketing income for the second quarter.


September 22, 2016 - IMFnews

CFPB Chief Cordray Gives Kudos to Credit Unions on their Mortgage Performance

The improved numbers suggest that the industry’s fears those rules would crush or even depress the market somewhat were overblown.


September 22, 2016 - IMFnews

And the Beat Goes On: Banks Continue to Cede MSR Business to Nondepositories

Meanwhile, bank whole loan portfolios have been increasing – largely because of the resurgence of jumbo mortgage originations, along with the recovery in home-equity lending.


September 21, 2016 - IMFnews

Short Takes: Hillary to Turn GSEs Into Public ‘Utilities’? / Don, Low Rates are Good / How Far Will the OCC Go? / A Lack of Ethics was the Problem / Bestborn Hires Three

So, what’s wrong with banks and financial service companies offering sales quotas? Nothing at all, if...


September 21, 2016 - IMFnews

Judge Orders Govt. to Produce More GSE-Related Docs, Shows Signs of Frustration

Margaret Sweeny, the judge presiding over the case, is growing increasingly frustrated with the government’s attempt to keep documents out of the public domain


September 21, 2016 - IMFnews

Nationstar Mortgage JV with KB Home to End; $1 Billion of Production in Limbo?

The privately held Stearns Lending is already “offering mortgage banking services” to the homebuilder’s customers…


September 21, 2016 - IMFnews

Freddie Mac Predicts a 3Q16 Production Boom of $595 Billion

Freddie expects originations to hit $2.0 trillion this year, a 14.3 percent sequential improvement…


September 21, 2016 - IMFnews

Mortgage Production is Booming but Reports Abound of Appraisers Cherry-Picking Assignments and Charging ‘Rush Fees’

One mortgage CEO who runs a California-based shop told IMF his firm recently was in a pinch and paid a $1,500 “rush fee” to an appraiser to get a deal done on time.


September 21, 2016 - IMFnews

Former Clayton Chief Joe D’Urso Lands at Pretium Partners

Founded by former Goldman Sachs executive Donald Mullen, Pretium Partners bills itself as a specialized investment management firm with roughly $6.5 billion of assets under management.


September 20, 2016 - IMFnews

CFPB’s TRID Rule Gets the Blame for a Rise in Mortgage Defects

In fact, these two categories are responsible for more than 75 percent of all defects.


September 20, 2016 - IMFnews

JPM Prepares Another Jumbo MBS, First Deal in More than a Month

Despite improvement in securitization returns, jumbo whole loan sales are still more profitable, KBW said.


September 16, 2016 - Inside Mortgage Trends

TRID Led to More Compliance-Related Defects

Mortgage lenders were making big strides in reducing the number of loan defects related to documentation just as the new integrated disclosure rule took effect, leading to a surge in compliance-related defects. That’s according to a new report based on an analysis of the post-closing quality control data associated with more than 50,000 mortgages that was performed by ACES Risk Management Corp., otherwise known as ARMCO, a provider of web-based audit technology ...


September 16, 2016 - Inside Mortgage Trends

Clinton and Trump Both Support Homeownership

Presidential candidates Hillary Clinton and Donald Trump both want to promote homeownership, but they have different views on how to go about it. The Democrats’ platform supports giving “everyone a fair shot at homeownership” in America by putting them in a financial position to own a home, and preserving the 30-year fixed-rate mortgage while “modernizing” credit score models. The GOP platform assures voters that the “American Dream” of homeownership “is not a stale slogan,” ...


September 16, 2016 - Inside Mortgage Trends

GMFS Mortgage Tested by Louisiana Flood

On August 11, 2016, the most severe storm in decades hit southern Louisiana, including the city of Baton Rouge and 22 surrounding parishes. The massive rainfall brought an estimated 29 inches over a two-day period, submerging homes in three to six feet of floodwater and stranding thousands of people in their homes. On the east side of Baton Rouge is the Amite River, which separates the Ascension and Livingston parishes, where a good number of GMFS Mortgage employees ...


September 16, 2016 - Inside Mortgage Trends

Bank Repurchases Bounce Higher in 2Q16

Mortgage repurchase activity by banks and thrifts took an unexpected turn higher during the second quarter, according to a new Inside Mortgage Trends analysis of call reports. Call reports show that banks and thrifts repurchased $804.1 million of single-family mortgages, or otherwise indemnified a buyer, during the second quarter. That was up $40.0 million or 5.2 percent from the first three months of the year and marked the second straight quarterly ... [Includes one data chart]


September 16, 2016 - Inside Mortgage Trends

Advanced Analytics Seen as Key for Growth

Benchmarking and other advanced analytics are helping many lenders grow their originations, according to TransUnion, a provider of data, analytics and consulting services. A recent survey by the company also found that a majority of lending organizations lack the resources to realize the competitive benefits of analytics. Versta Research surveyed 309 banks on behalf of TransUnion. Some 66 percent of the lenders said data and analytics are evolving faster than ...


September 16, 2016 - Inside Mortgage Trends

MBA: Production Profits Doubled in 2Q16

Mortgage bankers booked hefty earnings on their loan origination and secondary marketing during the second quarter, but servicing hedges deepened, according to the latest Mortgage Bankers Association performance report. The average company participating in the survey reported pretax income of $2.913 million during the second quarter, nearly quadruple the average for the previous period. That lifted year-to-date pretax income to $3.665 million, still off 16.7 percent ...


September 16, 2016 - Inside Mortgage Trends

Production Profits Rose in 2Q16, But Rate Volatility Hammered Servicing

With rising origination volume and solid gain-on-sale margins, the business of originating and selling home loans generated substantially more earnings during the second quarter of 2016, according to a new Inside Mortgage Trends analysis of earnings reports. But the servicing side of the business had trouble generating positive income after taking into account gyrations in mortgage servicing rights valuations and the hedges lenders place on these assets ... [Includes one data chart]


September 16, 2016 - IMFnews

Impac Prices ‘Add-on’ Offering of Stock at $13 a Share; Stock Gets Smacked

Impac presently has a market capitalization rate (stock price multiplied by number of shares) of $167.6 million.


September 16, 2016 - IMFnews

Guess Who Benefits from a Rate Rise? Answer: Nonprime Lenders

What’s the market potential for nonprime/non-QM lending? Maybe $100 billion a year…


September 16, 2016 - IMFnews

Who Controls the Jumbo Market? Answer: Retailer Lenders, By Far

The analysis, the first of its kind, was based on new Inside Mortgage Finance surveys that drew results from a broad sample of banks and nonbanks of all size classifications.


September 15, 2016 - IMFnews

Fannie Mae Survey: 55 Percent of Lenders See No Change in Profit Margin

Among other things, Fannie found that for 3Q16, more lenders expect to sell their mortgages to the GSEs rather than keeping them in portfolio.


September 15, 2016 - IMFnews

Two More Lenders Report Record Production in August: Freedom and Pac Union

The third quarter has yet to end and the big question for the industry boils down to this: Will 3Q be better than 2Q?


September 15, 2016 - IMFnews

Fourth Quarter Could be a Barn-Burner for MSR Sales

Potential MSR sellers abound, but what price will they accept?


September 15, 2016 - IMFnews

Boom Times Ahead for Nonprime. And Yes, the Megabanks are Staying Home

All three panelists expressed the view that the nonprime market is safe from competition from the megabanks...


September 15, 2016 - IMFnews

Lenders Fund $53.5 Billion of Home-Equity Loans in 2Q16, Best Showing Since the Financial Crisis

Meanwhile, as home equity originations improve, the outstanding supply of home-equity debt continues to decline.


September 14, 2016 - IMFnews

Signing Bonuses for Mortgage Underwriters? Good MUs Can Earn $135,000 a Year

One mortgage branch manager described the underwriter shortage as a “big time” problem.


September 14, 2016 - IMFnews

When it Comes to Refis, VA-Backed Mortgages Lead the Pack – By Far

There is no clear explanation as to why VA rates are lower than the competition, but some industry participants, including Tom Piercy of Incenter Mortgage Advisors, speculate prepayments might be the reason.


September 13, 2016 - IMFnews

Non-Agency Lenders Look to Investment Properties

Cash-flow underwriting for mortgages on investment properties also may present regulatory concerns…


September 12, 2016 - IMFnews

Feeling Quite Optimistic About Originations: 91 Percent Say 2H Will Be Better Than 1H

Thank you 'Brexit:' Some analysts now believe the industry will surpass 2015’s origination total of $1.735 trillion.


September 12, 2016 - IMFnews

Large Gain in Wholesale Originations at Nonprime Lender Angel Oak

Angel Oak also has a much smaller division, Angel Oak Prime Bridge, that originates nonprime mortgages for investment properties.


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