Mortgage brokers grabbed a slightly bigger share of the originations market in the first quarter of 2016, according to a new Inside Mortgage Finance ranking and analysis. Mortgage brokers generated an estimated $38 billion of new home loans during the first quarter, a modest 2.7 percent increase from the previous period. Meanwhile, correspondent production declined by 0.8 percent to an estimated $122 billion and retail originations weakened by 2.2 percent. There appeared...[Includes four data tables]
Although mortgage delinquency rates are once again at pre-crash levels, servicing costs continue to rise, leading some factions of the industry to ask whether Fannie Mae and Freddie Mac should increase the standard 25 basis point fee they pay to their servicers. The issue of higher servicing compensation was raised by an individual lender during the audience Q&A at a panel featuring the top single-family executives of the two government-sponsored enterprises at last week’s secondary market conference sponsored by the Mortgage Bankers Association. Both noted that servicing has changed significantly since the housing crisis, and that the Federal Housing Finance Agency has directed them to review servicing compensation. Subsequent interviews conducted by Inside Mortgage Finance revealed...
Examination reviews by the Consumer Financial Protection Bureau for compliance with the integrated disclosure rule known as TRID are now in full swing, according to leading industry attorneys. That was the biggest take-away from a panel of three legal experts who were featured in a webinar hosted by Inside Mortgage Finance late last week that focused on CFPB examinations and how lenders can navigate their way through them. Although TRID was not a key focus of the webinar, it did come up as a topic during the question-and-answer period. The attorneys were asked...
Guild Mortgage vowed to defend itself against government charges that it improperly originated and underwrote mortgages, which later caused millions of dollars in losses to the FHA and taxpayers. In a statement released after the Department of Justice filed its complaint in federal district court in Washington, DC, last week, Mary Ann McGarry, president and chief executive officer of Guild Mortgage, said the government’s action is unwarranted and meritless. “The implication that any default on an FHA loan by a borrower represents wrongdoing by the lender is not justified...
Fresh off of agreeing to buy California-based First Priority Financial, Caliber Home Loans is eyeing the purchase of other mortgage firms as well in an attempt to crack the top 10, according to industry advisors who have been tracking the firm. “Caliber is talking to a lot of people,” said Rick Roque, managing director of MiMutual Mortgage, Port Huron, MI. Roque declined to elaborate. One investment banker said...
A ruling last week by the Supreme Court of the United States was viewed by the Mortgage Bankers Association as potentially making it harder for plaintiffs to win class-action certifications. Spokeo, Inc. v. Robins involves alleged violations of the Fair Credit Reporting Act. Thomas Robins filed a class-action lawsuit against Spokeo, alleging that his profile on the firm’s website contained inaccurate information. Spokeo is an online aggregator of individuals’ contact- and credit-information. The case was initially dismissed...
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