A Minnesota state court has rendered a judgment that could substantially limit the amount of damages Residential Funding Co. and its successor-in-interest, the ResCap Liquidating Trust, could recover if it were ever to prevail on its claims in any given lawsuit against correspondent lenders, according to industry attorneys. On Feb. 1, the District Court of Hennepin County held that RFC and ResCap would not be able to pursue loan-by-loan damages associated with a repurchase claim and, thus, could not use a repurchase price “formula” to establish damages, said Philip Stein, a partner with Bilzin Sumberg Baena Price & Axelrod, in an analysis. The decision favored...
It is two months into 2017, and compliance attorneys are still trying to discern some of the finer nuances of applying the Dodd-Frank Act’s risk-retention requirements to various sectors of the secondary market beyond residential MBS. One such area is structured aircraft portfolio transactions. In a recently issued white paper, attorneys from the Clifford Chance law firm and four other U.S. law firms looked at applying the rules to a typical issuance of securities by a newly formed special-purpose vehicle that owns (or will own) a portfolio of aircraft and related leases. They note...
Fannie Mae and Freddie Mac reported record lows in the volume of mortgages that sellers repurchased during the fourth quarter of 2016 because of manufacturing defects, an exclusive new Inside Mortgage Trends analysis reveals. Mortgage seller repurchases or other indemnification to the two government-sponsored enterprises totaled $207.31 million in the final three months of 2016. That was down 37.0 percent from the previous quarter and ... [Includes two data charts]
As interest rates continue to inch upward and refinance activity drops, it stands to reason that more residential lenders will move to cut staff, if they haven’t already. But so far, there have be no major layoffs – at least none that have been registered. But that doesn’t mean industry executives aren’t thinking about it. According to interviews conducted by Inside Mortgage Trends over the past month, it’s a mixed bag when it comes to hiring. Non-agency/nonprime lenders such as ...
The homeownership rate fell for the 12th consecutive year in 2016, hitting levels last seen 50 years ago. While industry analysts expect that the homeownership rate will stop declining in the coming years, growth will likely be constrained. The annual homeownership rate in 2016 was 63.4 percent, according to the U.S. Census Bureau. That was down from a rate of 63.7 percent the previous year and from a peak of 69.0 percent in 2004. Frank Nothaft, chief economist at CoreLogic ...
The Angel Oak family of mortgage lenders finished 2016 with roughly $700 million of nonprime/non-QM originations, according to officials at the company.
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