Collecting disaggregated race and ethnicity data a full year before the revised Home Mortgage Disclosure Act regulations become effective will benefit covered creditors as they become used to the new requirements and make the necessary system adjustments to accommodate a new wave of granular HMDA data, according to industry attorneys. A policy statement issued by the Consumer Financial Protection Bureau in late September creates a temporary safe harbor for lenders that take advantage of the one-year window – Jan. 1, 2017, through Dec. 31, 2017 – to collect disaggregated ethnic and racial information in their home-loan application if borrowers agree to provide it. Previous amendments to HMDA will require...
Fannie Mae and Freddie Mac reported a combined net profit of $5.53 billion in the third quarter of 2016 with income from guarantee fees strong in both the single-family and multifamily segment. Both government-sponsored enterprises expect guarantee fee income to continue to be a driving force. Freddie’s net profit of $2.33 billion represents its strongest performance since the second quarter of 2015, when it earned $4.17 billion. Stellar g-fee income and a steep reduction in hedging losses helped contribute to that growth. Meanwhile, Fannie reported...
On Thursday Wells said it’s raising its reserves, noting that the SEC has been added to the list of federal agencies investigating its sales practices.
With no blockbuster mergers and a relatively subdued secondary market in mortgage servicing rights, glacial momentum continued to reshape the mortgage servicing business during the third quarter of 2016, according to new ranking and analysis by Inside Mortgage Finance. The two forces that have had the biggest impact over the past few years are the growth of nonbanks and the gradual deconsolidation of the servicing market. The combined portfolio of the 23 nonbanks that ranked among the top 50 servicers as of the end of the third quarter jumped 6.9 percent in just three months. The nonbank share of the $7.389 trillion serviced by the top 50 players in the market rose...[Includes two data tables]
HomeBridge Financial Services this week agreed to buy the assets of Prospect Mortgage, marking one of the largest acquisitions of the year and stoking the hopes of investment bankers that more deals may lay ahead. But HomeBridge’s purchase of Prospect could turn out to be an anomaly. According to HomeBridge CEO Peter Norden, the two parties had been talking on and off about combining forces for roughly five years. For Norden, the combination of the two nonbanks – both privately held – is...
The $185.0 million settlement Wells Fargo agreed to in early September regarding retail banking sales practices has impacted the lender’s mortgage operations, according to bank officials. Timothy Sloan, Wells’ president and CEO, said mortgage referral activity declined significantly after the settlement was announced. “Mortgage referrals from retail banking, which account for 10.0 percent of our year-to-date mortgage originations, were down 24.0 percent from August to September,” he said during Wells’ recent earnings call. Sloan noted...
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