Loan correspondents and mortgage brokers continue to play a major role in the agency mortgage market, accounting for 42.9 percent of loans securitized by Fannie Mae, Freddie Mac and Ginnie Mae in 2013, according to a new Inside Mortgage Trends analysis. Correspondents accounted for most of the third-party originations securitized by the agencies, and Wells Fargo was the top producer of these loans. Just over half of the loans sold by Wells were ... [Includes one data chart]
Warehouse lines of credit extended by commercial banks to non-depository lenders fell a modest 11.8 percent in the fourth quarter on a sequential basis, but executives who work in the sector are reporting usage ratios as low as 20 percent. Based on exclusive survey figures compiled by Inside Mortgage Finance, warehouse providers had an estimated $30.0 billion in commitments at Dec. 31 compared to $34.0 billion at the end of the third quarter. But a commitment is...[Includes one data chart]
The Department of Justice is investigating PNC Financial Services Group and Bank of America in connection with their FHA-related mortgage lending practices, the two financial institutions disclosed in filings with the Securities and Exchange Commission. PNC said it has received subpoenas from the U.S. Attorney’s Office for the Southern District of New York seeking information relating to National City Bank’s lending practices in connection with FHA-insured loans as well as the origination of non-FHA loans and their sale and securitization. Another subpoena was issued...
A Miami-based investment management firm is accusing the boards of directors of Fannie Mae and Freddie Mac of failing in their fiduciary responsibilities to the holders of the government-sponsored enterprises’ junior preferred and common stock. Fairholme Capital Management, one of the largest holders of junior preferred stock of the GSEs, says the boards need to improve their corporate governance. “At present, you remain...
JPMorgan Chase is scaling back its mortgage origination and servicing operations to control costs and focus on retail production. “We are committed to the mortgage business in the long term,” said Kevin Watters, CEO of Chase Mortgage Banking, during a presentation for investors last week. “But it’s going to be a smaller, less volatile, higher-quality business." Chase plans...
Legislation that would block implementation of premium rate increases in the Biggert-Waters Flood Insurance Reform Act passed the House of Representatives this week by a bipartisan 306 to 91 vote. The passage of H.R. 3370, the Homeowner Flood Insurance Affordability Act of 2013, paves the way for both the House and the Senate to iron out the differences between their bills in conference. The Senate passed its version on Jan. 30. H.R. 3370 would reduce...
Lenders will face increased fair-lending scrutiny even if they stick to originating loans that meet qualified-mortgage requirements, according to industry attorneys. While federal regulators have stated that a lender’s QM-only policy won’t increase fair-lending risk, a number of factors beyond QMs have prompted an increased focus on fair-lending issues. During a webinar this week hosted by Inside Mortgage Finance, Andrew Sandler, chairman and executive partner at the law firm of BuckleySandler, said he has never seen regulators work more closely together on fair-lending issues. The Consumer Financial Protection Bureau, the Department of Justice and the Department of Housing and Urban Development are doing joint investigations. Sandler said...
“While we’re trying to lend fairly in an unfair world, the regulatory and enforcement apparatus have created this environment that we’re in and they will be looking to enforce based upon those rules,” said industry consultant Maurice Jourdain-Earl.
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