Trends & Profitability

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

February 17, 2017 - Inside FHA/VA Lending

VA Peppers Lenders with New Policy Guidance, Instructions

The Department of Veterans Affairs has issued guidance regarding various aspects of the VA Home Loan program. On Valentine’s Day, the VA sent out a reminder to VA lenders regarding the continued use of the current National Pest Management Association (NPMA) Department of Housing and Urban Development Forms NPMA-99-A and NPMA-99-B. Circular 26-17-07 has instructions for filling out both forms. HUD NPMA-99-A, Subterranean Termite Protection Builder’s Guaranty, is completed and certified by the builder. The licensed pest control company completes the HUD-NPMA-99-B. Also on the same day, the VA announced a new requirement for staff appraisal reviewers (SARs). In 2015, VA released guidance, that established a low-risk and a high-risk appraisal review process. This requires SARs to review the LoanSafe Appraisal Manager product during the issuance of the ...

February 17, 2017 - Inside FHA/VA Lending

4Q16 Spike in FHA Delinquencies Justifies Trump’s Premium Action

The spike in FHA delinquencies in the fourth quarter of 2016 justifies the Trump administration’s decision last month to suspend and review the outgoing administration’s lowering of FHA mortgage insurance premiums, said House Financial Services Committee Chairman Jeb Hensarling, R-TX. Commenting on the Mortgage Bankers Association’s quarterly delinquency rate survey, Hensarling praised President Trump’s decision to set aside the 25-basis-point premium reduction, which Inside FHA/VA Lending reported first on Jan. 6, 2017. “Lowering premiums at this time was a big mistake,” said Hensarling. “The sudden increase in delinquencies makes it clear that President Trump was absolutely right to undo the previous administration’s irresponsible action.” Hensarling recalled that in 2013 “taxpayers had to spend $1.7 billion to bail out the FHA.” Going forward, the FHA must be fiscally sound, with a ...

February 15, 2017 - IMFnews

Tennessee Investor Pares Holdings in Walter Investment Management

Walter Investment/Ditech has yet to establish a date for the release of its fourth quarter results…

February 15, 2017 - IMFnews

The Mortgage M&A Game is On! In the Hunt: Blackstone, Flagstar and Others

“Anytime you have rates run up by 50 basis points, it usually takes about 90 days before a washout begins,” said one mortgage advisor.

February 14, 2017 - IMFnews

Lawmaker Seeks Clarity on CFPB’s Compliance with Trump’s Regulatory ‘Freeze’ Memo

The subcommittee chairman notes: “Therefore, I was surprised by your public hesitancy last week to affirm that the president’s regulatory freeze applies to the CFPB…”

February 14, 2017 - IMFnews

Blackstone Invests in B2R Finance, Then Buys Fix & Flip Lender Jordan Finance

Mark Filler, who founded Jordan and served as its CEO, was named president of Finance of America Commercial.

February 14, 2017 - IMFnews

Inching Up Ever So Slightly: The Percentage of GSE Loans With Lower Credit Scores

The apparent easing of credit terms in the Fannie/Freddie market has been moving at a glacial pace…

February 13, 2017 - IMFnews

Are GSE Loan Sellers Finally Easing up on Credit Standards?

In the purchase market, GSE sellers appeared to reach to qualify more borrowers…

February 10, 2017 - Inside Mortgage Trends

Data: Top Agency Purchase-Mortgage Sellers and Agency Purchase Mortgages by State: 12M2016

A ranking of the top 100 agency purchase-mortgage sellers in 2016 and a ranking of agency purchase mortgages by state.

February 10, 2017 - Inside Mortgage Trends

DocuSign Taps G Suite in Broader Digitization Push

Industry technology vendor DocuSign has tapped into some of the technological capabilities of Google – the G Suite collection of electronic tools, in particular – as part of a strategic initiative to digitize the mortgage closing process and sharply reduce the time it takes to close on a loan. “The broader idea for DocuSign – and Google Suite plays into this as well as the things that we’re doing with our ‘lead to close’ strategy – is wanting to take away any of the friction from completing ...

February 10, 2017 - Inside Mortgage Trends

Benefits for Lenders With Organized Documents

Staying on top of the multitude of documents involved in the process of originating a mortgage can help lenders avoid regulatory issues and increase returns, according to an analysis by Nationwide Title Clearing. The mortgage research and document-processing service provider detailed a number of issues with the so-called trailing-document process in a recent update to a white paper initially published in 2014. NTC said the white paper on document tracking and organization ...

February 10, 2017 - Inside Mortgage Trends

Can Walter/Ditech Find a Path Forward?

Walter Investment Management Corp. has yet to release fourth-quarter results, but if its nine-month performance is any indication, it has some major challenges ahead. Through September, the publicly traded nonbank – the nation’s eighth-largest servicer via its Ditech unit – lost $506.9 million, some of it tied to non-cash writedowns on its mortgage servicing rights. But if revenues are any indication of future earnings, investors shouldn’t brace for too much good news in its ...

February 10, 2017 - Inside Mortgage Trends

Recruiting Seasoned LOs Seen as Key

Lenders looking for originations as interest rates increase will likely have to put an emphasis on purchase mortgages. Seasoned loan originators with a track record of purchase-mortgage volume can help with that strategy, though retaining such LOs can be difficult because they are in demand. Matt Lind, a senior partner at Strategic Mortgage Finance Group, an advisory firm, noted that LOs often switch lenders, lured by incentives and higher compensation. He said nearly 60 percent of ...

February 10, 2017 - Inside Mortgage Trends

GSE Sellers Edge Toward Higher-Risk Mortgages, Nonbanks More Daring

Mortgage lenders that deliver loans to Fannie Mae and Freddie Mac mortgage-backed securities continued to do gradually more business with borrowers with lower credit scores, according to an exclusive new Inside Mortgage Trends analysis of MBS data. In 2016, 21.4 percent of purchase mortgages securitized by the two government-sponsored enterprises had credit scores ranging from 620 to 699. That was up from 20.6 percent in 2015 and 20.5 percent ... [Includes two data charts]

February 10, 2017 - IMFnews

Mortgage Securitization Rate Near Record-Low in 2016

Blame the whole loan-hungry megabanks for the low mortgage securitization rate?

February 9, 2017 - Inside Mortgage Finance

NAR Cites ‘Imaginary Barriers’ to Purchase-Mortgage Lending, and Affordability as an Actual Concern

A number of factors – including misconceptions – are preventing some potential homebuyers from pursuing purchase mortgages, according to the National Association of Realtors. The trade group said it has found “real and imaginary barriers holding back prospective homebuyers.” The so-called imaginary barriers involve potential borrowers’ perceptions about downpayment requirements. “Apparent confusion about downpayment requirements may be...

February 9, 2017 - Inside Mortgage Finance

Many Metro Markets Witnessed Record Home Price Highs in 2016, Distressed Sales Down

Home prices in 2016 soared as a number of metropolitan areas reached record new home price highs, according to ATTOM Data Solutions’ yearend report on home sales. Among 201 metropolitan statistical areas with populations of at least 200,000, 44 percent hit new all-time home price peaks last year. Those areas include Dallas-Fort Worth ($230,571), Houston ($214,795), Atlanta ($181,000), Boston ($390,000) and San Francisco ($720,000). Three Ohio markets, Cincinnati, Columbus and Dayton, also reached...

February 9, 2017 - IMFnews

Consumers Still Complaining About Mortgage Servicing Practices to the CFPB

Complications tied to making payments (loan servicing, payments, escrow accounts), were identified by 33 percent of consumers filing a complaint.

February 9, 2017 - IMFnews

Radian Picks Another Lending Executive as its New CEO: Rick Thornberry

Spencer Stuart, headhunting firm, aided the MI in its search for a new CEO. A few months back former Freddie Mac executive Bruce Witherell was approached about the job, but passed.

February 8, 2017 - IMFnews

Mortgage Hiring Increased in December, but Several Lenders are Taking a ‘Wait and See’ Approach

CMG Mortgage founder and CEO Chris George said that when it comes to hiring he's mostly in a "holding pattern" right now, with exceptions...

February 7, 2017 - IMFnews

Flagstar Makes a Bold Move: Agrees to Buy Stearns’ Correspondent Platform

With its consent order in the rear-view, look for Flagstar to do more deals, industry advisors told IMFnews...

February 7, 2017 - IMFnews

FHA Production Up 7.3 Percent in 2016; Banks Account for Just Two of the Top 15 FHA Lenders

Banks continue to pull away from directly funding FHA loans in the retail channel, citing the potential legal liability…

February 6, 2017 - IMFnews

Citigroup’s Exit from Servicing, the First Step in a Total Withdrawal from Mortgages?

Dave Akre, who runs Whole Loan Capital, noted, “How can they stay in the mortgage origination business when servicing is a huge part of the borrower experience?”

February 3, 2017 - Inside FHA/VA Lending

Vet Agency Clarifies Student Loan Policy in Underwriting VA Loans

The Department of Veterans Administration has issued guidance to clarify its new policy regarding student loans in underwriting VA guaranteed home loans. Specifically, the guidance shows lenders how to calculate a student-loan monthly payment when figuring out a VA borrower’s ability to repay. The clarification in the guidance applies to deferred student loans and the new policy will provide guidance for student loans currently in repayment or about to begin repayment within 12 months of a VA loan closing. How should a lender calculate a student loan monthly payment for loan underwriting purposes? A monthly payment need not be considered if the borrower provides written proof that the student loan will be deferred at least 12 months beyond the closing date, the guidance said. If a student loan is under a repayment plan or is about to begin repayment, the lender must consider the anticipated monthly payment in the ...

February 3, 2017 - Inside FHA/VA Lending

MBA Concerned About Lack of Consumer Protections in PACE

The Mortgage Bankers Association has asked the Trump administration to help close a loophole in the Property Assessed Clean Energy (PACE) program that could put consumers at risk. In a recent public service video, Pete Mills, MBA senior vice president for residential policy and member engagement, said the MBA has been in contact with the president’s transition team to see if there is a way to incorporate consumer protections into the program. Mills noted a “significant void in consumer protection” due to the structure of PACE programs. The PACE program allows local or state governments, when authorized by state law, to finance the upfront cost of energy upgrades on commercial, residential or industrial properties. A PACE loan is repaid over a set period – typically 10 to 20 years – through a special assessment on the property on top of the owner’s annual property tax bills. It has seniority over all ...

February 3, 2017 - Inside FHA/VA Lending

FHA Endorsements Decline in 4Q16 VA Refinances Increase Slightly

FHA single-family endorsements declined 5.5 percent from the third to the fourth quarter of 2016, losing some market share, while VA saw a modest uptick in guaranteed loans, thanks to robust refinancing activity. The FHA endorsed a total of $68.3 billion of forward mortgages during the fourth quarter, according to an Inside FHA/VA Lending analysis and ranking. That brought total production over a 12-month period to $255.6 billion (excluding Home Equity Conversion Mortgage loans), a 7.3 percent increase over 2015. FHA activity in the purchase market fell 13.6 percent in the fourth quarter though annual volume was up 14.3 percent from 2015. While FHA historically has been stronger in the purchase market, 2016 proved to be a more competitive year for FHA streamlined refinancing. FHA-to-FHA refinance endorsements rose 15.6 percent in the fourth quarter from the prior quarter, but ... [ 5 charts ]

February 3, 2017 - IMFnews

A Loosening of Mortgage Credit? Not Yet, Not Really

Tom Hutchens of nonprime originator Angel Oak Mortgage Solutions said his shop presently employs 44 wholesale account executives and plans to hire 60 more over the next 18 months.

February 3, 2017 - IMFnews

PennyMac Financial’s 4Q16 Results: Originations Rise but Earnings Decline; MF Rollout in the Works

PFSI is forecasting that by the second half of 2017 it will be originating $40 million to $60 million per quarter in multifamily loans.

February 2, 2017 - IMFnews

Invictus Capital Readies New Nonprime MBS Backed by Originations from Verus, Angel Oak and Others

The new MBS is largely backed by non-QMs, along with some “rebuttable presumption” QMs…

February 2, 2017 - IMFnews

Flagstar’s President of Mortgage Banking Len Israel Departs

During his career, Israel has worked for IndyMac Bank and other shops.

February 2, 2017 - IMFnews

No Sign of Slowing Down: Nonbank Share of Top 50 Servicers Keeps Growing

A fun fact for nonbanks: Depository institutions among the top 50 servicers reduced their holdings by 1.2 percent during the same period.

February 1, 2017 - IMFnews

A Bullish Sign for Nonprime: Three Active Originators Working on MBS Deals

Tom Hutchens of AOMS, said “a lot” of his optimism about higher nonprime origination volumes for 2017 is tied to securitization. “This is now a liquid market,” he said.

January 31, 2017 - IMFnews

Nonbank GSE Servicing Growth for 2016: A Whopping 18.5 Percent

The largest Fannie/Freddie servicers are still Wells Fargo, JPMorgan and Bank of America, but all three continue to shrink their exposure to GSE product...

January 30, 2017 - IMFnews

Bulk MSR Transfers up Sharply in Late 2016; Co-Issuance Sector Cooled

Bulk transfers of Freddie Mac MSRs also increased dramatically in 4Q16, more than doubling to $17.52 billion…

January 27, 2017 - Inside Mortgage Trends

Data: Top Sellers of TPO Originations - 12M2016

A ranking of the top 100 agency sellers of third-party originations in 2016.

January 27, 2017 - Inside Mortgage Trends

Most Borrowers Seeking Help Are Minorities

Some 53 percent of the distressed homeowners seeking housing counseling in the past year were minorities, according to an analysis by the Homeownership Preservation Foundation. The nonprofit HPF operates the Hope Hotline, which offers free foreclosure-prevention counseling. The hotline gained prominence in 2007 as delinquencies and foreclosures started to pile up. While the number of distressed borrowers has declined significantly in recent years, delinquencies on ...

January 27, 2017 - Inside Mortgage Trends

Survey: Fewer Lenders Satisfied with Their LOS

A survey gauging lender satisfaction with their loan origination systems (LOS) has shown mixed, if not downright depressing, results, according to the Stratmor Group. Only 28 percent of the more than 250 lenders that responded to the 2016 survey reported they were “very satisfied” with their current LOS and have no plans to replace them. They were commenting on commercial off-the-shelf and proprietary loan origination systems, the scope of their functions and their track record of ...

January 27, 2017 - Inside Mortgage Trends

Recovery Continues, Foreclosures Fall 31 Percent

In another sign that the housing and mortgage markets continue to heal from their catastrophic collapse in 2007, the national foreclosure rate in the U.S. dropped by 30.53 percent in 2016, ending the year at 0.95 percent of active mortgages, according to new data from Black Knight Financial Services. “This marks the most improvement Black Knight has seen in any year on record,” the firm said in its “first look” at December 2016 month-end mortgage performance statistics. Also, the inventory of ...

January 27, 2017 - Inside Mortgage Trends

Vendor Offers Insights on Lost Originations

Credit Plus, a company that offers mortgage-information services, recently launched a product that can help lenders determine why a loan applicant ultimately chose a different lender. The Lost Sales Analysis product was developed by Equifax, a credit bureau. Among other features, the Lost Sales Analysis from Credit Plus can help lenders determine if applicants closed a mortgage with a competitor. Credit Plus can provide the name of the lender associated with the lost sale and a number of ...

January 27, 2017 - Inside Mortgage Trends

Will Carson Restore FHA MIP Cut?

Late last week, when the Department of Housing and Urban Development pulled the plug on reducing FHA premiums by 25 basis points, it was originally thought that perhaps, in time, the new White House might change its mind. As one Washington insider noted, “There was a feeling that with a little education and time and with the right decision-makers in place, that maybe they would let the cut go through. Now I’m not so sure.” An industry lobbyist – with a deep resume on Capitol Hill ...

January 27, 2017 - Inside Mortgage Trends

Bank Mortgage Banking Income Down in 2016

Commercial banks saw a sharp drop in mortgage-banking income during the fourth quarter of 2016 that pulled full-year profits below the level reached in 2015, according to a new Inside Mortgage Trends analysis of earnings reports. A group of 25 top publicly traded banks (including one thrift) reported a combined $13.36 billion in mortgage-banking income for all of 2016, down 7.0 percent from 2015. The sector had a chance of topping last year’s ... [Includes one data chart]

January 27, 2017 - Inside Mortgage Trends

Bulk MSR Transfers Up Sharply in Late 2016, But Co-Issuance Sector Cooled Off

Agency mortgage servicers last year transferred some $369.44 billion of mortgage-servicing rights tied to mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae, according to an exclusive new Inside Mortgage Trends analysis. Thanks to an end-of-year surge, bulk MSR transactions accounted for most of the market. During the fourth quarter, some $76.69 billion of servicing changed hands in bulk transfers, a 76.5 percent jump from ... [Includes three data charts]

January 27, 2017 - IMFnews

Realty Firm Redfin Enters the Mortgage Space with a ‘Digital’ Product

The mortgage division will employ loan advisors, providing them with incentives that reward service, not just sales...

January 27, 2017 - IMFnews

Willie Newman’s Home Point Financial Agrees to Buy #41 Ranked Stonegate

In the past, Home Point has been a selective buyer of servicing rights and other companies...

January 26, 2017 - IMFnews

Radian’s Profit Falls by 26 Percent, Management Says NIW will be Flat in 2017

Total revenues at Clayton, its mortgage and real estate services division, increased by 10 percent to $52.6 million.

January 26, 2017 - IMFnews

With Production Volume Strong, Nonprime Wholesalers AOMS and Citadel in a Hiring Mode

The Citadel CEO noted that his shop is receiving many unsolicited resumes from mortgage workers employed at conventional shops, a sign that some firms are about to cut staff.

January 26, 2017 - IMFnews

The Final Origination Tally for 2016: $2 Trillion-Plus; Second Best Year of the Decade

To be sure, individual lenders were all over the map in their reported production trends. A handful of top producers reported significant increases from the third quarter, including loanDepot, which was up 13.4 percent…

January 25, 2017 - IMFnews

Short Takes: loanDepot in a Hiring Mode / Some Name Change Tweaks / Movement Mortgage Hiring as Well / Give us Back Our FHA MIP Cut / ServiceLink Fined by Feds

In a poll conducted by Inside Mortgage Finance, just 14 percent of respondents said they were against a cut in FHA premiums.

January 25, 2017 - IMFnews

Nonprime MBS Issuance Could Double in 2017, Says Fitch. Sounds Impressive, But…

Thus far, only a $225.75 million nonprime MBS issued by an affiliate of Lone Star Funds in December has received AAA ratings.

January 24, 2017 - IMFnews

A Warning from MBA’s Stevens: An Industry Paradigm Shift is Underway. What to do About Refi-Heavy LOs?

The MBA chief stressed that the market is set to shift from mortgage loan officers who can thrive as “gatherers” to a market that requires “hunters.”


With rates higher this year, there has been talk of lenders liberalizing their underwriting standards in an effort to increase volume and make up for lower refis.

Do you think your shop will loosen standards over the coming three months?

Yes, but not by much.
Yes, by a lot.
Yes and, heck, we may even do non-QM lending.
No, not at all.
No and we may even tighten credit.

vote to see results